• Home
• Blog
• Portfolio
• Contact

The Pros and Cons of doing ‘Trade’ work

Posted 07 Dec 2009 - One gratefully received comment

Recently I got thinking about the pros and cons of ‘Trade’ work, probably because I have done a lot of it – both personally working with other designers and within various companies I have worked for.

So what am I talking about when I say ‘Trade’ work?
I am not talking about working for brick layers, carpenters or electricians, I am referring to work within ‘our’ trade – design, illustration, photography, web development and print. This is work commissioned by another design/print/web company (or individual) who will then invoice their client in the same way they would have had they completed the work themselves ‘inhouse’.

I guess the other kind of work we do could be called ‘Direct’ work. You have your own clients which you usually meet through marketing or word of mouth. You will speak to them on the phone, travel to meetings with them, take briefs, provide quotations for print, advise on hosting and either produce all the work yourself or put elements of the job out to others.

It’s worth spending a moment reminding ourselves why ‘Trade’ work exists and pointing out that most designers or developers would have passed on some elements of their work before.

What I imagine to be the most common form of ‘trade’ work would be, as a designer, sending your work to a printer which of course, is perfectly acceptable. After all you are a designer, your client (probably) wouldn’t expect, for one minute, that you will print it yourself.

Another common form of this (and one that I benefit from myself) is a designer working on a website for his/her client but they either don’t code websites at all, or the build is too complex for them so they outsource it to a web developer who will then code it.

Things can then break down a lot further – designers > illustrators, printers > print finishers, front-end developers > back-end developers and so on.

Once put into perspective it seems almost impossible to function without ‘Trade’ work.

Trade work as you can imagine has its good and bad points – here they are as I see it…

Good points (pros)

Contact with the client is either minimal or non-existent.
I know we’re not socially incapable but you can potentially avoid lengthy meetings and allow you to spend less time on the work.

Clear and Concise brief.
In theory the brief has already been vetted by someone else in the ‘Trade’ to become clear and concise.

Deadlines are well managed & realistic.
Not always in practice but its fair to say that the company/person passing work to you will normally act as a barrier, softening the blow.

Reliable & prompt payment.
In my experience you will be working with someone you have worked for many times before. If payment terms were not acceptable on both sides you wouldn’t (or at least shouldn’t) still be working together.

Work remotely.
You have the brief, you’ve got the files, you have internet access, you’ve got your phone, as long as the works getting done it doesn’t matter where you are, your client doesn’t need you to have a water cooler and meeting room.

Future benefits.
A good working relationship with someone in the ‘Trade’ is healthy for business it means you are likely to receive ‘Trade’ prices for their services in the future – for example if a printer uses you for design you are likely to receive a very good price for your own stationary, in return you should expect to do the same for their personal materials.

Not so good points (cons)

Less cash.
When doing ‘Trade’ work you shouldn’t expect to charge as much as you would direct to your own client, of course do not leave yourself short, but remember it has to be worth their while too. I would say usually about two thirds of your normal rate is appropriate provided you have a good working relationship.

A wise man once told me ‘you should make something out of everything you do‘ that works both ways, no one works for free.

Beware of ‘farmers’.
At some point you may come across a company that outsource ALL of their work, essentially these are just sales companies. They would often have their clients believe the work is completed ‘in-house’ and projects are normally very poorly managed.

In my experience you should avoid this work at all costs, you will end up doing all of the work for their profit. Loyalty is rare and you should expect to see them move on as soon as someone cheaper comes along or you ask them to pay your invoice.

Potentially no credit for the work.
This can vary but essentially you should be aware it is unlikely you will be credited, if this concerns you discuss the issue prior to starting work and if necessary adjust your price accordingly.

No new leads from your work.
As you are not dealing with a client directly you will not be recommended by them to their friends and colleagues, although hopefully any future work of the same nature will remain outsourced to you.

You are building someone else’s business / reputation.
This is where it can become a heavy weight on your shoulders. You are essentially building another person’s business for them. If this worries you it certainly means you need to address your balance of ‘Direct’ and ‘Trade’ work.

In our ‘Trade’ outsourcing work is both inevitable and essential. The more skills you have inhouse the better but it is not always the most profitable way to work & sometimes you simply may not have enough time on your hands. Having a small network of ‘Tradesmen’ who are skilled and you trust is key.

Perhaps the single most important thing I have to say is get the balance right. The right mixture of ‘Trade’ and ‘Direct’ clients will make for a very healthy business. Trade work rarely goes just one way, if the relationship is right you end up working with people, not for them. In the times when your business is slow and your income from ‘Direct’ clients is down the ‘Trade’ work may just be what gets you through.

What are your views?
Is it better to carve out a niche for yourself as a specific ‘craftsman’, or should we all provide the ‘full service’?

Can you get away with higher rates if you specialise in one area as a ‘craftsman’ and become an expert?

What are your opinions on ‘Trade work?’ have you experienced it yourself?

If you enjoyed this post why not sign up to get automatic email updates whenever I post something new?
• Subscribe to email updates • Subscribe to my RSS feed
• Follow me on twitter • Join me on Facebook

- leave a comment!
 

© Ken Reynolds Design