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Design fees

Design fees

Design fees


Hi I have been ask to design and draft a dye line. It's a total new design based on a polyester dye line I build some years ago. They are looking for me to design and draft the new line. So I would be giving them a complete set of drawings for my new design.
My question is how to come up with a fee to charge.

RE: Design fees

How many hours do you have in it? Do you have any patents on the system?
I would charge for hours spent on the patents, and hours figuring out the original design, plus the actual hours you spend designing and drafting the new line at whatever your rate is.
Remember you have intellectual property, that you can only charge for while they ,do not, know how you do it.
Once you give them that drawing set, you have no more leverage.

The good engineer does not need to memorize every formula; he just needs to know where he can find them when he needs them. Old professor

RE: Design fees

I don't quite remember all my questions from the other thread:
> Is the contract cost-plus or fixed fee?
> Do you have records of your original design cost?
> Are there firm specifications and acceptance criteria?
> What are contractual requirements?

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RE: Design fees

Thanks for your help so far. The line I build before was for a company I worked for at the time. Their are no patents. With your help I think I have a pretty good idea what to charge for the design. But I guess what I am really looking for is what's the intellectual property worth this company does not have a dye line and has limited technical knowledge on how it works. They are currently buying all of their polyester already dye. So making it in house would save them several million dollars a year. Just looking for a place to start.
Thanks again
David Garrett

RE: Design fees

I am going to assume they will need continous "help" with this line.

What about a monthly retainer fee???

RE: Design fees

I think they will need help until they get it up and running. But i am planning on putting that in the up front cost. How about the money saved should I be asking for part of that if so what percentage and
If so for how long.
Thanks again

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