Pricing: Client requests an expansion to one of my typefaces

Kasper Pyndt

Hi TD!

I've got a client that's requesting a thinner weight of one of my typefaces. The client doesn't want any exclusivity, they just need a thinner style for the typeface.

Since adding a weight is also in my own interest, being the publisher of the typeface, I'm thinking that the price should definitely be lowered compared to what I'd charge if I was asked to expand someone else's typeface. I'm thinking something along the lines of 50% of my normal asking price.

What do you think? How would you go about estimating something like this? 

Miles Newlyn

I would charge 100%.
I'f the client accepts that it is great for you, if they need to negotiate then you can consider the discount.

JoyceKetterer

We've done this for language support expansions.  We always charge 100% of labor. If we want to sweeten the deal we'd give a discount on licensing, which is separately calculated.  

Something that often happens with these projects is that the client will expect some sort of design approval, even though that makes no sense.  We always explain in writing that we are making a retail expansion to our own specifications and that they will have no design input.  That way, if they insist on design input that is an extra fee and a change order.  Additionally, we make it clear that no modified version will be our retail release to Adobe.

Nadine Chahine

JoyceKetterer said:

We always charge 100% of labor. If we want to sweeten the deal we'd give a discount on licensing, which is separately calculated.  

This is very important! As this is a retail typeface, the license cost should be added on. If it were me, I would charge a full license but use a lower hourly rate. The license always has the potential to go very big, and to be upgraded later so it's good to keep it at full value. The labour cost is a one off so easier to keep tabs on.

John Hudson

My advice is always to calculate work and rights separately. The pricing of work should be based on the actual amount of time you anticipate spending, and based on rates that realistically support your cost of living. The pricing of work is the baseline that is non-negotiable. The pricing of rights depends on what rights the customer wants. Non-exclusive is only one aspect of this: what are the actual usage rights for e.g. numbers of users/devices, webfonts, etc. For a non-exclusive license, I would price the rights at whatever you would charge another user for those rights to the typeface extensions.

That said, part of the reason for pricing the work separately and making that fee non-negotiable is to allow the rights licensing to be more flexible. This is a situation where the client is going to fund development of something that you own and that has exploitable value for you, so in that situation it may be in your interest to be willing to negotiate or discount the rights licensing portion in order to secure the work. It will be important, however, to make clear that any discounted licensing price is for the usage rights as agreed at this time, and if the usage expands significantly in future additional licensing fees may be payable.

Johannes Neumeier

John Hudson said:

This is a situation where the client is going to fund development of something that you own and that has exploitable value for you, so in that situation it may be in your interest to be willing to negotiate or discount the rights licensing portion in order to secure the work.

I agree with this. As such, I don't think having the client pay 100% for the work is particularly moral in this situation. Great, if you can get the money, but for me it wouldn't sit right. In the end business and client relationships are about more than just money.