K8 normally quote on a job base on the design process and an estimated number of hours work. If the job is complicated, including a lot of inovation, we can offer a fixed quote on the phases we feel we have control over, as well as giving an estimated price for the complete project.
If the customer wishes to share both the financial risk and the up-side of a project with the designer, we can agree on a royalty cooperation. i.e. one agrees on a limited start-up fee, covering the basic costs for the designer, as well as a set percentage on the selling out price from the company, per sold item, once the product is out for sale. This rate will vary between 3-7.5%. The royalty agreement will then run as long as the product is for sale and follows the actual product, not the owner.
In some cases where the cooperation goes over a long time, it might be easier for both the customer and the designers if one sets a slightly lower hourly rate and work per hour within a yearly agreement.
K8 takes the liberty of adjusting the hourly rate, depending on the relationship we have with the customer.