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Measuring and pricing creative work in the creative agency sector : Applications to RED Collective Oy
Kosonen, Inka (2018)
Kosonen, Inka
Yrkeshögskolan Arcada
2018
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201805229588
https://urn.fi/URN:NBN:fi:amk-201805229588
Tiivistelmä
This thesis discusses about the measuring process and pricing of creative work in creative agency context. The purpose of the work is to analyse the present pricing models and their relationship to the measuring of work, project complexity and the industry's current pressures. The study combines theoretical and empirical research methods. The data is constructed of secondary data, which is used to explain differences in pricing models and the common views of them, and primary data. The latter has been collected from Red Collective Oy-company in order to conduct empirical analysis for the theories discovered.
The main questions in the research are: How can creative agencies establish a relationship between their creative work and the pricing process?; and How can Red Collective Oy establish a relationship between its creative work and the pricing process? The study is focused around Michael Farmer's (2017)SMU-unit (Scope Metric Unit) ja it's possible applications to Red Collective Oy. The example adaptations are used to bring up the weaknesses and its suitability to a small sized business.
Based on the analysis made, Farmer's unit model requires more evidence in order to increase it's credibility. The applications to the example bring up the common problem of the lack of hour reportation in the industry. In order for the example company to use the SOW-model (Scope of work) introduced in the thesis, they should obtain stable hour record from one year.
The analysis conducted in the thesis is limited only to one empirical application and the model introduced by Farmer, because based on evaluation it is the most acknowledgeable of the models present today. Every creative agency is unique, and hence the SMU-scales vary. The corporation culture, social atmosphere and individuals working have a great influence on the agency's efficiency. The pricing models focused on creating value are the best, since they combine the customers' and the agencies' interests about the quality of the work and the price of the work.
The main questions in the research are: How can creative agencies establish a relationship between their creative work and the pricing process?; and How can Red Collective Oy establish a relationship between its creative work and the pricing process? The study is focused around Michael Farmer's (2017)SMU-unit (Scope Metric Unit) ja it's possible applications to Red Collective Oy. The example adaptations are used to bring up the weaknesses and its suitability to a small sized business.
Based on the analysis made, Farmer's unit model requires more evidence in order to increase it's credibility. The applications to the example bring up the common problem of the lack of hour reportation in the industry. In order for the example company to use the SOW-model (Scope of work) introduced in the thesis, they should obtain stable hour record from one year.
The analysis conducted in the thesis is limited only to one empirical application and the model introduced by Farmer, because based on evaluation it is the most acknowledgeable of the models present today. Every creative agency is unique, and hence the SMU-scales vary. The corporation culture, social atmosphere and individuals working have a great influence on the agency's efficiency. The pricing models focused on creating value are the best, since they combine the customers' and the agencies' interests about the quality of the work and the price of the work.