Managing your business

What's a Billable Expense?

by Mark Monlux, markmonlux.com

Dear Mark,
What is considered a billable expense? What can I justifiably mark up?

Signed,
Contentious Newbee

_________________________________________________________________

Dear Contentious Newbee,
From page 85 of the Graphic Artists Guild Handbook: Pricing and Ethical Guideline, 11th Edition:

Billable Expenses for Graphic Designers
Graphic designers traditionally bill clients for all expenses involved in executing an assignment; while textile designers and illustrators often absorb expenses for such things as art supplies because those costs tend to be modest.

Necessary costs related to producing a job, such as model fees, prop rental, research time, production or printing, shipping and travel expenses, are routinely billed to the client separately.

These expenses, even as estimates, are generally agreed upon and set down in the original written agreement. Often a maximum amount is itemized beyond which a designer may not incur costs without the client's authorization.

When graphic artists are required to advance sums on behalf of their client, surveys show that it is customary to charge a markup as a percentage of the expense to cover overhead and provide adequate cash flow.

Dimensional illustration, for example, often requires substantial outlays for rental and purchase of materials and photography needed for a reproducible final. Current data indicate that markups are in the range of 15 to 25%.

I hope that answers your question.

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