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Coming next month our pricing strategy will switch from hourly rates to a new method known as the “creative coefficient”. The creative coefficient will be an easy way to understand the creative scope of each project and provide a cost estimate tailored to it.
We’re right now doing some calculations to create standard benchmarks for the coefficients. The formula for pricing is simple:
Price = Creativite Coefficient x Cost of Business
We will be adding the following modifications:
Price = (Creativity Measure x Power Required) x Cost of Business
The Creativity Coefficient was conceived by creative blog Smashing Magazine. ACG will be one of the first agencies to adopt and align it for larger agency use. We are excited to put it into effect as it will save time and reduce the cost of overhead for our clients.
To help you understand the benchmarks, here are some sample coefficients we derived from our initial calculations:
- Interactive flash website CC is 5.8
- Logo design CC is 1.1
- Corporate social responsibility production CC is 3.5
The numbers above will likely change when we release our new rate sheet. Keep a lookout in your inbox for more info.
To not disappoint, here’s the article link by Smashing Magazine where the Creative Coefficient was derived: http://www.smashingmagazine.com/.
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