My background lies mainly in the area of electronics and hardware products but I was recently approached to design some "soft"good products. The reason i am saying "soft"goods is because the products are about bags, briefcases and other accessories that will use "hard" materials. For this reason i think that i can better manage and realize such a project compared to traditional fabric or leather bags.
Anyway, i need to send to the client a contract and my fee and for this reason i need some advice from you as i think the field of accessories is a bit different than the one of hardware products.
I am wondering whether i should ask for a flat fee or for a (lower) fee and royalties. With royalties i had never before experience. The reason is that 10 products are a lot and the price may seem quite high for the client. Ideally I was thinking to propose both modes of payment/collaboration.
The main questions are:
1. For softgoods/accessories is there a "rule" for what % a designer is expected to ask? The products will be high-end, price range from 3 digits to 4, even close to 5, digits.
2. As i researched online, for softgoods/accessories they advise to ask for higher % than normal as these products usually have a short lifecycle and as such the time-frame to get some royalty fees is limited. Is this expected in the industry?
3. Supposing that a design is successful and the client takes the initiative to launch it in another color (that he chooses and it is not part of the colour schemes i have suggested) and extends its life-cycle. In this case, the product is considered as "new" and the client is not obliged to pay royalties or it is "obvious" that is based on my design?
These are some main questions i have. If you can share more info, you are more than welcomed!