Design fees

Davidgarrett · Nov 12, 2012

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.
Thanks
David

berkshire · Nov 12, 2012

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.
B.E.

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

IRstuff · Nov 12, 2012

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?

TTFN
faq731-376

Davidgarrett · Nov 13, 2012

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

MiketheEngineer · Nov 13, 2012

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

What about a monthly retainer fee???

Davidgarrett · Nov 13, 2012

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
David

GregLocock · Nov 13, 2012

Tricky, as you are essentially selling your hard earned experience as a one-off deal to the only likely customer. Will it break your heart if you don't get this job?

Cheers

Greg Locock

New here? Try reading these, they might help FAQ731-376

http://eng-tips.com/market.cfm?

Tek-Tips is the largest IT community on the Internet today!

Members share and learn making Tek-Tips Forums the best source of peer-reviewed technical information on the Internet!

Design fees

Davidgarrett

Industrial

berkshire

New member

IRstuff

Aerospace

Davidgarrett

Industrial

MiketheEngineer

Structural

Davidgarrett

Industrial

GregLocock

Automotive

Similar threads

Part and Inventory Search

Sponsor