From the course: Running a Design Business: Pricing and Estimating
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Three types of estimates: Ballpark, budgetary, and definitive
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At this point you should have figured out an hourly rate for your services. You'll need that in order to do estimates. There are three types of estimates that can be used to communicate costs to clients, including ballpark, budgetary, and definitive. These are my names, not necessarily widely used in the design industry. Let me explain what I mean by each one, so that you can get a feel for what they are and how to use them. A ballpark estimate, is a rough initial estimate based on high level client objectives, and a large margin of uncertainty. The deliverables are not clear yet, therefore out of necessity, this estimate must be a rough guess. A ballpark estimate should be a price range, rather than a fixed fee. This kind of estimate should probably be kind of high because you don't know project details and you want to make sure that you cover yourself. The purpose of a Ballpark Estimate is to begin the conversation about money, and get a rough idea of what the client can pay for the…
