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Chris, I've worked in the design and advertising industry for a number of years and I've had loads of issues with pricing in the past.

In a competitive market such as design, which is saturated with designers who are one man bands to creative agencies, the value for what you charge is going to be significantly different and dependent on the job.

An agency although more costly than a one man band, bring the experience and creativity of a number of people. They have business people, strategists, marketing specialists as well as designers. The value is in the service and creativity they bring. The one man band can call on years of experience but not the creativity that can come out of brainstorming in a locked room with all these different creatives and lots of coffee. Make sure your client is aware of that!

On pricing my advice is to always keep it simple. Charge by the hour or by the day and be transparent to the client when presenting these prices. This will make it easier if a client needs to negotiate (not that I encourage this! But in the current market place we all need to get paid, when work is looking slow!)

Charge based on your operating and staff costs and add 20-30% for profit. Remember although its profit, it tends to be re-invested back in the business. So don't skimp on that as if you undercharge your hourly rate you could become stagnate rather than progressing the business in the way you would like.

If you are charging for campaign work or ideas, its important to charge according to the value to that client. If its Vodafone and you've nailed a worldwide campaign that will bring increased international sales, you need to get paid. If its a local client with a smaller market place, you need to charge within reason, but remember they are paying for your experience, your service and quality of work. Don't be another MAC monkey who devalues what real creatives can bring to a business by undercharging for a great idea.

Good luck!

Hi Craig, thank you for your advice, it was really helpful!

i'll be implementing this into my plans!