[toledo3]

Originally posted by jon
I disagree about cost-based pricing. It's important to know your costs in order to properly run your business and manage your cash flow. However, your pricing should be based on the maximum the market and your client base and reputation allow you to charge, not on costs-plus-a-margin.

Many studios practice project-specific pricing, which takes into account the client's budget, the time period (demand-wise), your level of current bookings, your rep, the specific needs of the client's project, your ability to meet those needs (in-house vs rental, strengths, experience, etc), the desirability of the client and project, etc, etc. -- in putting together a price proposal.

That's well said.