In this article, I would like to write about some indicators that can be used as a reference when you want to ask a designer to do a design, not only for Coconara.
The general form of payment is as in (1).
However, for startups and small and medium-sized companies that cannot afford the initial investment, the payment can be in the form of (2) or (3).
For those clients who cannot afford the initial investment, we can offer the payment formats (2) and (3), so please check and consult with us.
(1) Initial fee (lump-sum payment)
Initial fee (lump-sum payment) is a lump-sum payment of a predetermined design fee for design work. It is generally paid at the time of delivery or at the end of the project, rather than at the time of contract.
Since the intellectual property of the design is purchased, it is in the form of a transfer. There is also an installment method in which payment is made in installments of 150,000 yen at the time of contract and at the time of data delivery, resulting in a tentative payment of 300,000 yen.
(2) Royalty
After the product is launched, a certain percentage of the sales amount (factory shipment amount) is paid as compensation. In other words, if the product does not sell, no compensation is paid. The percentage varies depending on the genre of the product, but is usually between 3% and 5% of the retail price. The higher the retail price, the lower the percentage tends to be.
There are also contracts in which royalties gradually decrease in proportion to the number of units sold. In some cases, several hundred thousand dollars are paid as a contingency fee instead of royalty.
(3) Initial fee (lump-sum payment) + royalty
A combination of the two. I think this is the most common payment method for product designers. The amount or percentage of either can be lowered to accept a job that fits your budget.
If a company has a small initial cost or budget, we would lower the initial fee and increase the royalty ratio. On the other hand, large companies, for example, with a large production volume, are less likely to request royalty-based work and more likely to pay only an initial fee.
For additional information, please contact us at the link below.
crustdesign.studio.site
