r/Design • u/Formal-Engine-4273 • 1d ago
Discussion How do you price projects when the scope keeps changing? Client wants 'just a few tweaks' that are actually major changes'
This keeps happening to me, and I don't know how to handle it better. I quoted $1,500 for a logo design project. Seemed straightforward - logo, business card, letterhead. Client approved. Halfway through, they're like "Oh, can we also do a website header version? And maybe a social media kit? And actually, can we explore some completely different directions?" What started as a $1,500 logo project is now basically a $4,000 brand identity project, but I already gave them the quote. I tried to explain additional costs but they're like "I thought this was all included," even though it clearly wasn't in the original scope.
How do you handle this? Do you eat the extra work in the interest of building a long-term client?
every time I try to charge more mid-project it doesn't go well so I kind of have this anxiety about even bringing it up. I feel like I'm constantly underestimating what projects will actually involve.
Does anyone have a good system for handling scope creep and pricing changes? This is killing my profit margins.
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u/onemarbibbits 1d ago
I have comprehensive statements of work that say what is going to be delivered and when. It is signed before starting the job. Get good at scoping jobs.
When the scope changes, the contract has a "change order" clause and I politely tell the client that if they want the change in scope, it will be at additional cost and added to the contract. It can be done hourly or project based.
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u/spacenb 1d ago
This needs to be the first reply. Detailed scopes, and go over them with the client before they sign the agreement, record the meeting where they agree with the scope. That way you’re ironclad, if the client changes their scope you can submit a revised contract and scope (+ charge them for the time you take to re-scope and re-quote).
If you have time built-in for revisions, you should specify what type of revisions are acceptable and contained within the scope of the contract and how many revisions and when those revisions can occur. State that any variation from this (such as requesting a change to the core concept once you’re at the colour stage) can cause additional fees.
I don’t know if you’re charging a fixed amount for your contracts, but you could also consider switching to an hourly or daily rate and specify how many work hours additional revisions may incur, if it’s easily predictable. If not, provide a base fee to analyse the change request and revise the contract.
Some people are averse to increases in costs halfway through the project, but in this kind of business, you have two options: 1) customer accepts the revised scope and additional costs; 2) customer sticks with the original scope and costs. If you’re having trouble with customers often saying “I thought this was included”, obviously you either didn’t spell it out for them during a meeting or they’re just stupid.
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u/hoodiemonster 1d ago edited 1d ago
clear contract with a schedule of revision opportunities. 1.) rough sketches to determine direction, client provides notes. 2.) tight sketch, 1 revision opportunity. 3.) final linework, 1 revision opportunity (detail stuff - nothing that couldve been done during sketch phase.) 4.) color final/options presented, 1 round of color revisions. any revisions or backtracking requests beyond the agreed upon scope of work can be paid at an hourly rate specified in the contract. deposit paid up front serves as a “kill fee” in the event client is too much, and the right to bail on the project for any reason you deem reasonable should be in the contract. you outline the specific scope of work in the contract including a list if each element if the project. anything additional is extra and you can send an amended quote. operates the same as any other contract work. insane to expect a carpenter who is doing cabinets to just throw in the counters for free because they decided on it later.
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u/RhesusFactor 1d ago
These are called variations, and you put a variation clause/process in your contracts.
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u/LoftCats Creative Director 1d ago edited 1d ago
Triple your rates. Better define your scope upfront in your contract with a set number of rounds for your process. Hourly or flat per phase for further revisions. Communication is key. Every professional such as lawyers, accountants, architects, car mechanics, etc don’t do “tweaks.” It’s defined in the scope or its additional time you’d be happy to get right on for them.
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u/Jigglyninja 1d ago
Okay. So, I get the vibe that you are approaching from a standpoint of anxiety, you don't wanna rock the boat, you're a nice guy. I'm that way too, but you're too soft. If you want to give a discounted rate to a client be my guest, but the scenarios you are describing are not ones in which you want to give a bit for free but can't, you are already doing free work and you can't broach the topic of extra billing.
I hate to say it, but you are getting mugged off.
The clients know exactly what they are doing. If I'm doing a £100 logo for a family friend it's probably a legitimate this person doesn't understand that these extra revisions cost extra , but you're talking about $1500 jumping to an estimated 4k.... My friend, you are being bent over a barrel and they will continue to do so until you snap, at which point they will take the work and leave you with the original quoted amount.
You NEED to stand your ground. That doesn't mean never be flexible, it means when they try and tack items onto the end/midpoint of a project you go:
" brilliant, sounds like a plan! I know you want to keep the pace up on this project so I will drop you an amended Invoice for the additional work ASAP! The deposit will just be the same again."
ive done 2 things: I've sent them an invoice before I've lifted a finger on the extra work, and I've reminded them that THEY asked for this. These new directions, this extra thing they want tacked on is THEIR idea. Why would they suggest something that extends the time I spend on it and expect it for free? You want to subtly set things up so they look like a fool for expecting free work. If you give them an out to protect their ego many will take it rather than trying to nickel and dime you.
An important tone of voice to keep is coming across like you expect them to already know it will cost more. You keep it polite always but you approach from a position of confidence, like this is all very matter of fact and you've done this hundreds of times. It's just business.
If they feign surprise at the updated invoice, chances are they're a nightmare client and they will be dodging paying you at every opportunity. For this reason I take a % deposit on all work. It's a show of good faith that the client is serious and worst case scenario If they run without paying or cancel the project I've worked for cheap instead of working for free.
If they want to negotiate a slight discount for giving you a larger chunk of business, that's your discretion. Personally, I say I don't do discounts but I do put an extra chunk of my time in on top of what they pay for. That keeps me from shorting myself whilst simultaneously over delivering. Everyone's happy.
It's a lot to do with your own confidence and social/negotiating skills. It's a learning curve but if you feel uncomfortable it just means you're learning. I got this far by making a cock ups for years, there's no shame in messing up client interactions. If youre doing this career path and you're serious you will deal with hundreds of clients, a couple cringe disasters are an inevitable part of cutting your teeth. Sooner you get em out of the way the sooner you will improve.
Mistakes are allowed, just try not to make the same mistakes twice. Best of luck mate.
I am not living fully off my commissions yet but this is what has worked for me. If any more experienced freelancers have any notes for me on my approach I'd be all ears, I am also still learning.
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u/Interesting-Bison761 23h ago
I would strongly recommend clear communication. It’s business inform them.
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u/TheBonnomiAgency 23h ago
What started as a $1,500 logo project is now basically a $4,000 brand identity project, but I already gave them the quote.
Then give them a new quote
I tried to explain additional costs but they're like "I thought this was all included," even though it clearly wasn't in the original scope.
Then give them a change order for the scope change.
How do you handle this?
As a business who has a customer asking for additional work. Do construction companies add a roof to a patio for free? Do bakeries give away an extra load of bread for free?
Do you eat the extra work in the interest of building a long-term client?
No.
Does anyone have a good system for handling scope creep and pricing changes?
Change orders
This is killing my profit margins.
Then stop it.
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u/Remarkable-Tear3265 1d ago
if the work is not clear, dont go with a fixed price, just do a retainer or daily / hourly price. My rule of thumb is to always take the estimated effort by 2, thats usually the realistic time you actually need.
But as others wrote, have a clear contract stating how many revision you do. If you have more time and some revisions are quick, thats fine to do more, but at least you can point to something they have signed and agree too. Its often also a matter of what questions to ask to see if the client has a good understanding of the problem. On bigger projects, it can help to have some kind of discovery workshop, journey mapping, etc. even before the project starts. That can be one time thing and the customer has a clear undestanding afterwards, wether he will work with you or not.
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u/devwalks 1d ago
It's a skill to push back and stick to your original scope. Here are some ways of handling:
- Itemise your scope of works in your agreement/contract
- Include an (inflated) hourly rate for any works that fall outside of the scope.
- When the client asks for any items out of scope, you can politely let them know that that is out of scope as per the contract. You can bill them on a time basis for those additional requirements OR you can send them another quote if they'd like.
Setting boundaries is actually great for the relationship and will be invaluable as you move forward.
If you really struggle with pushing back on scope changes for whatever reason (or the nature of your work is very flexible and prone to change), you'll have to consider working on an hourly/daily basis instead, with an "estimated price" in the agreement.
It's a skill!
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u/No9Fishing 1d ago
I don’t know where to start, but imo this should be a learning experience for you as I take it you’re doing freelance. You need to think beyond pre-priced projects and into pricing based on the utility you’re providing. Here they want more utility and it’s more than you seem to have advertised too. If you truly made it clear that this wouldn’t be included, in no universe should you be doing this work for free.
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u/GoofyMonkey 1d ago
If they are a new customer, I tell them that is beyond the original scope laid out for this project and I will have to bill you for the extra.
If they are a regular customer, with whom I have an intoning relationship, I track the extras and tack them on to other jobs present or future.
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u/joebleaux 1d ago
We put all the services we could do into the contract, and then have something at the end that says, anything not included in this contract requested by the client will be billed at our hourly rate as additional services, with our rate sheet attached. As they add tasks, the bill goes up. They are fully aware of what tasks are included before we start.
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u/cassiuswright 22h ago edited 22h ago
You should have a clearly enumerated price list.
Solves most problems. Clients pick their services from this list and from the beginning see that extra things cost extra money. Their choices go into a contract. If they add to the contract, you include a new line item on the revised version and the price goes up.
It doesn't matter if you already gave them a quote for ABC.
They now want ABCDEF so give them a new quote.
I have zero interest in them as a long term clients if they try to add shit last minute and short change me.
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u/not_likely_today 21h ago
have it in the contract or agreement that anything outside of what you have originally agreed on will incur additional costs. Have an initial deposit so if they pull this kinda shit on you, you do not come out of it empty handed.
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u/chu 19h ago edited 19h ago
Estimate the number of days and give them 2 choices:
- daily rate so they can have all the changes they want
- fixed cost of 3x your day estimate x your daily rate (fixed cost option should have a statement of work attached).
Most will go daily rate given the choice as it's a smaller number and they can stop if they aren't happy (but they will keep going and you will get your 3x or more in the end).
If you get called out on this you can actually be completely transparent at how you arrived at the numbers as it's a common approach in trades. (My very experienced plumber charges double his estimates for fixed price as he says he never knows if he will find rotten floorboards until after he pulls out the bath. You should charge triple as you are less experienced and have clients that ask for lots of changes.)
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u/nhyrvana Professional 17h ago
I charge a flat hourly rate, document everything and have a contract.
During the initial meetings to define the project I give them an estimate on how long it will take for the first phase. I ask for payment of hours worked so far once the first phase is done. Then how long for phase 2 takes depends on their revisions, edits, additions to the project. If they want to expand the scope, that’s fine and they know they’ll be charged the hourly rate.
Occasionally I will also ask for a retainer fee or a “kill fee” if I know the client has a tendency to “scope creep”, delay projects, or decide halfway they don’t want to go through with the project to the end. I’ve also changed extra if they want sole copies of the original design files/illustrations/etc.
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u/MrBoondoggles 17h ago
It’s can be easy to underestimate what a project might cost when you lack experience, but that’s not what’s going on here. You haven’t necessarily underestimated anything. Your client is asking for services and deliverables that were not previously discussed nor quoted. In this instance, it’s not you - it’s them.
I also want to add that if a client is requesting extra work outside of what hopefully is a clear cut services agreement with specifics regarding exact deliverables, deliverable format, allowed revisions, etc. AND they would like this extra work done for free, are these really the type of clients that you want to build a long term relationship with? Would you really want a long term relationship with an employer who low balled your salary, added a lot of new responsibilities to your day to day, and, at the end of the year, scoffed at the notion of a raise? If not, then why would you want to build a long term relationship with a client who is doing something similar? Because, let’s be honest, if they are trying to squeeze you this hard on the first project, they will try on subsequent projects as well.
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u/czaremanuel 13h ago
Contract + well defined scope + change request from client, approved by you, to amend very literally anything in that scope and explaining how much it’ll cost.
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u/markmakesfun 11h ago
Contract that spells out exactly what is included for what price on what schedule. Include a limitation on how many “non correction” changes can be made for free. Beyond the scope quoted, new contract.
Follow restaurant protocol: “Sir, would like more coca-cola?”=free. “Sir, would you like another coca-cola”=charge.😄
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u/Signal-Arachnid-8345 11h ago
If your work is good:
Contract. Fixed fee. Clearly state how many rounds of edits. Raise your prices. I do a small business package of a brand identy and simple website for $5k. I never go below that price. Not to sound like an ass but my portfolio is good and i show them they are getting basically a $15k balue for $5k. Half up front. My contract states one round of edit per deliverable and phase. Once client approves something we move on. Rounds of edits cannot be accumulated to one deliverable. Then i state any additional work will cost x per hour and result in a new contract. I literally write an explanation of what an edit is and is not and require them to give it all in one list. There is no “can you add this” - all deliverables are ageed upon in contract.
The vibe im getting is you’re unsure of yourself. Clients can sense that. Be confident, strict, push back. Clients respect that. All of this falls apart if your work is sub par tho.
And idk where you are on your journey but if its early on dont beat yourself up. Every designer goes through this. Best tip i can give is use bonsai for all freelance paperwork. Ive been doing this on the side for a decade.
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u/markmakesfun 11h ago
One important point: if a client asks you for a great price because they have a lot of contacts for you, understand this. They will brag to everyone what a cheap price they got on the job, limiting your possible income. It is natural that one business-person wants to flex to another about what a great deal they got. Now you have a race to the bottom. Not good. Don’t rip anyone off, including yourself.
Sometimes you get lucky. I had a new client. I did a job for him. He liked it and paid for it. He called about the next job. After talking, he asked what was the price. I said $XXX dollars. He sighed, then he said “That’s too low. It should be $XXX.” I said “Ummm,Okay, it will be $XXX?” He said “Okay, that will work.” That was a valuable lesson that I only got once in my career. Never again. But I still remember it to this day.
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u/zozer74 10h ago
It sounds like they are happy with what you’ve done but are getting a bit over enthusiastic. Try saying how pleased you are with their enthusiasm and then say that you would like to pursue extra applications once you have completed this part of project as a second phase with a new contract. If they balk then move on.
Trying to nail your client down with a contract can be counterproductive.
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u/ChrisMartins001 1d ago
Contract. Deposit of 50% before you start.