While these negotiating tactics are worth knowing, it all rests on knowing the 'fair market price' - which presumes a project is very well defined.

Most design projects have a wide range of options that can vary the price enormously. Photography, for instance, can be cheap stock for $25 a shot; premium library stock for a few hundred a shot; or commissioned, at a cost of several thousand a shot with models, locations etc.

Also, everyone seems to know someone who can get cheap printing. Don't fall into this trap. It usually runs through a broker and may be a printer in another city (or country). I do a lot of annual reports and other tight-deadline work, so insist on using printers with large presses, in-house prepress and binding and a lot of capacity so I can really squeeze the printing time when there's the (almost inevitable!) delay in getting the accounts signed off.

A design professional needs to guide a client or prospective client through the possible options before even defining the spec. There's no point in quoting commissioned photography if their budget only runs to royalty-free stock. Conversely, you'd look like an amateur if you proposed stock shots to a client who's expecting (or whose job requires) a shoot.

I find detail is helpful in negotiating the fee. When the client can see every cost: photography, models, props, location scouting, retouching, illustration, copywriting, typography, proofreading, test prints etc etc, the total seems less arbitrary. It shows them the complexities of the job (they often think you just go back to the studio and "do it"). It also means that any negotiating can be about specifics. If they need to trim costs, you can work through the budget knowing where you can economise (two models, not three; studio, not location; lighter/cheaper stock; lose the multiple varnishes and metallic inks). Of course, your own fee should only move if the amount of work is reduced - DON'T change your rate without a good reason. If you let them haggle you down, they'll do it forever. They must offer something in return: a bigger (guaranteed) job; discount on their products (provided you want them) etc.

Also be wary of letting them try and cut corners Ð "my niece has done a bit of modelling", "a friend of mine has a house that could work as the location", "We can write the copy". By all means consider them, but only after checking they can deliver - and making the client understand that if they are going to compromise the finished piece, you'll say so.

One other thing that might be mentioned is that if you bid high, the client expectations will also be high if accepted - they may expect miracles.

I have been a self-employed graphic/web designer for 17 years. My biggest challenge now comes when bidding Flash web sites. So far I have been awarded 5 out of 5 Flash sites, but I fear I am bidding too low. I have no way to know what other clients paid for their Flash sites. It would really be nice to have some examples to show prospective clients on the web and be able to quote what these sites actually cost those clients. I also am not sure why such info is so protected. in either case (high or low) it would force me to compete on a level playing field - then the decision is left to other areas besides just budget. When it comes to a web site (especially a Flash site) I simply do not understand how anyone can bid a fixed fee unless it is outrageously high?

Without a doubt, my weakest area for 17 years has been the ability to estimate a job accurately up front - I am always under by 100-300% because the bulk of every job I have ever done ends up 90% unforseen client revisions. Now I bid everything as a minimum up front fee with the understanding that an hourly rate kicks in after the minimum has been exceeded - if the client leaves everything up to me, I always stay within the minimum - otherwise the sky is the limit.

I probably should qualify my previous response. "Yes", I agree totally with everything that was said, but "No", in the sense that any of it pertains to any client "I" have ever done work for the past 17 years in THIS industry. I have done projects for over 100 corporate clients (ALL repeat clients) - most monthly billings per client in the $1000 to $20,000 range. I have never had a client well versed enough to define the parameters of ANY project up front accurately enough for me to even consider submitting a meaningful bid until after the work is complete. Face it, if they could spec out a job properly, they could probably complete it in-house! The reason they look for a fixed-bid is because they are usually clueless as to what a job will entail. If I were to submit a fixed-bid, I would just have to assume that I am being hired to train the client at my expense. The only people I know that can do custom work and throw out a true fixed-bid up front (and make a profit) is Orange County Choppers. There is so much markup on what they build they cannot lose, plus the client has very little input - you get what they give you and like it.

A well-rounded article on a business area that is very difficult, both for practical and emotional reasons. As suggested in the article, this artist hates that part of the job! Very helpful!