Let's find out how you should set a price for a logo design!
For a professional logo designer, setting a price will not be that hard. Usually, they have created the logo design price list, and the clients will choose which package they want to choose. However, it will be different for the new designers. They want to get a high income for a design, but at the same time, they are afraid that the price set is too high and makes the clients go away.
Thus, how do you set a price for a logo design? In this case, there are several tips that must be considered to set the design price.
1. Understanding the Design’s Difficulty Level
The first consideration to set logo design price is the difficulty level of the logo design. To know the difficulty level of the design, the designer should create a design brief before setting the price. It is important to do to manage the client’s expectations. Here, the designer can conduct a meeting online or offline to make sure all the requirements of the clients. Besides, explaining all the logo requests by email is another choice. Also, preparing a questionnaire for the clients will be a simpler way.
Moreover, some points that the designers must know before they create the design brief and know the level of the logo’s difficulty level is below.
- The purpose of the logo: The purpose of the logo that will be created will help the designer in creating the design brief. Where the logo will use or presented is important to know as well. By knowing all this information, a designer can use the right design and price or at least propose the logo design depending on the need of the company itself.
- The product or services provided by the clients: Another thing that all logo designers must know before they accept and set the project price is knowing what product or service is provided by the clients. This information will relate to the choice of shape and color of the logo design later. Besides, knowing the product or services provided also help the designer to get inspiration to create the best design of a logo for the clients.
- Company’s history: The company’s history can be put in the logo design too. As it is known that many design input the year of the company’s establishment. That is why it is recommended for the designer to ask the information relating to the company as details as possible to get a reference for the logo design brief before setting the price.
- Target audience of the design: One of the things that can influence the logo creation is the target audience of it. It cannot be ignored because there are many kinds of logo designs with different target audiences. For example, the logo for a modern café should show something modern and up-to-date. When the logo is not put on any modern touch, the audience, which is commonly young people, will not be interested in its design.
- The competitors of the business: What is the relation between knowing the competitor of the business and creating a logo design? By knowing the business competitor, the designer can see how their logo should be. The designer may see the logo of the business competitor and learn how the logo can have an impact on the business. Moreover, it is time for the designer to get a weak point of the design and add it to the client’s logo as a strong point.
- Restrictions in the design: Before creating the design brief to know the difficulty level of the logo, the designer better knows what restrictions in the logo design. Usually, the clients or the company will ask the designer not to put certain points in the logo. Thus, asking for the details of the restriction is recommended.
- Logo format required: Nowadays, there are many logo formats provided by many designers. To set the best design price for the clients, the designer should know what logo format is required. Does the company need the softcopy file only without an editable file, or do they need both softcopy and editable versions of the logo design? Making sure this point at the beginning of the project is a must for setting the logo price.
2. Requested Project Deadline
How long the deadline for the logo from the client is another consideration to help the designers set the best logo design price. Many clients want a difficult logo level with a short deadline and a low price. It is a big no for the designers because it means the clients do not respect the logo designers in creating the logo.
Commonly, the short deadline will come with a higher price for a logo design rather than the long deadline time for the logo to be ready. However, the level of difficulty should be considered as well here. Even when the clients give a long deadline, when the design level of difficulty is hard, it is recommended for the logo designer to offer a higher price to the clients.
Moreover, how many design revisions are available for each logo design will influence the price. For instance, the designers give an offer for a maximum revision of three times only. If there are more than three revisions of the logo, it means the clients have to pay an additional price for the design. With the clear agreement from the beginning relating to the revision time, it helps the designer to set a better package of logo design prices for the clients.
3. Determining the Minimum Price of the Design
To get the best price deal for a logo design, it is a good idea for all designers to determine the minimum price of their design. This minimum budget will pay the base bills that the designers spend on creating the logo and also the experience as graphic designers. There are several ways to know the base price offered to the clients.
- Monthly cost to run the business of design of a logo: As a logo designer, there will be the base design cost to run this business. It includes the electricity bill, the rent for the business place, and other operational costs. All of those costs must be calculated as a monthly costs. Making sure that all of the costs happen will help to calculate the minimum price for the clients.
- Monthly taxes or other taxes which may happen from the design project: Monthly taxes and project taxes, if any, must be included in the design cost as well. Somehow, tax is not calculated, and later, it becomes complicated for the logo designers because they must pay the tax from the project, but they do not put any cost for it.
- Profit for the logo design project: All businesses will talk about profit, including the logo design business. How much profit the designer will make depend on every designer. Make sure that the profit will be good enough to support the business without making the offering price to the clients too high.
- Multiply by 12 all the design costs above and divide it by the estimated project for a year: After all of the design costs mentioned above are calculated, it is time to multiply by 12. The result is the yearly revenue for the business. Then, divide the yearly revenue by the estimated project number a year. Now, the basic logo design price for the clients is ready. Remember that the deal price later can be higher or lower depending on how the designer negotiates with the clients.
4. Choosing the Price Method
Choosing the price method is one of the tips that all designers can try to set a price for a logo design. Every designer may have a different method for their design price. Three price methods that the designers can consider are Inputs, Outputs, and Value-Based.
- Inputs: In this price method, the designers will choose an hourly or day rate. It means that the designer will be paid for how many hours or days they design the logo. It is a little bit confusing because the hourly or day rate must be added to the profit and other costs. That is why this method is not recommended for logo design price.
- Outputs: The outputs method is a logo design model that can be the easiest to wrap. In this method, the designer will be paid according to the scope of work agreed upon with the clients. It will be more efficient compared to the Inputs method. The bad thing about this method is that the designer has no contract in the beginning. Without the contract, the client can ask for design revision again and again without adding the price.
- Value-Based: The value-based method means that the designers will price the client, not the projects. For instance, there is a new local company that needs a logo design for its identity. Because they have a limited budget, they will ask for a low-price design. In this case, the designer must discuss with the clients the possibility that the logo will influence the growth of the company. If the company has the potential to grow bigger, a low-price logo is inappropriate. Thus, the designer of a logo has to understand the value of the logo created.
5. Stating Price Early
To get the best design price for logo design from the clients, the designers must state the price of their design early and often. It is not recommended for the designer to wait for the clients to open the topic about the price first. Why? The first reason is it is a matter of respect for the designer and the client. Secondly, stating the design price early also will prevent both parties from wasting their time talking about business which has not been sure whether the client will use the designer or not.
Besides, talking about price early is a part of the business. It shows that the designer is a real professional business person. The designers know their value well, so they are not afraid to talk about the design price in the beginning. After getting the verbal agreement on the logo design price, the next step is sending the written proposal for the logo design for approval.
5.1. Anchoring the Price
The next tip for all logo designers out there is anchoring the logo design price. Price anchor is the practice of stating the highest possible rate first, then the lowest range. For example, a designer has a minimum level of engagement of $3000 for a logo. However, this price is possible to increase depending on the complexity of the logo, the additional scope of supply, and how many revisions in a project.
To practice the price anchor, the logo designer can tell the clients with the highest rate first. Thus, the cost can be from $10000 to $3000 per design. It is recommended to do this because after the clients hear the highest price first, they will get stuck on the number and prepare their budget to the maximum price. Meanwhile, when the lowest number is stated first, the clients think that the lowest price of the logo design is a bargain.
5.2. Developing Price Brackets
After the price anchor is done and the clients agree that the logo design price or at least the price offered is still within their budget, it is time to develop a pricing bracket. What is it? Price bracketing is when the designer offers several design packages to the clients to avoid the clients choosing another designer or maybe comparing to another designer with the same price.
In price bracketing for a design, there some things that the designer can do as follow.
- Writing down the core offering: The first thing is for the designers to write down the core offering to the clients. This core offering is the main offer. The designers hope that the clients will choose this core offering. This is the mid-level design package and the most popular one. The price itself also will be in the middle, which means it is not the lowest or the highest price.
- Creating another logo design offering with a lower price: Then, to create a comparison, the designer creates another design package with a lower price than the core offering. This is the package with the lowest price and the minimum scope of supply. The designer can create the package with the minimum level of price.
- Offer another package with a better scope of supply at a higher budget: To complete the price bracketing, the logo designers must have another offer to the clients with the highest price and the best scope of supply. For instance, by providing one-year support for the implementation of the design or any other offer, it will make a great point to offer a high price.
With this price bracketing, the clients will have three options they can choose from. Commonly, the clients will choose the core offering as the best deals. Even when they do not choose the core offering and the highest price package, the logo designers can still have a chance to deal with the minimum level of engagement.
6. Being Selective in Accepting Project
It is not something new when many clients will start with the statement that the logo design price offered is too high or expensive. It is one of the ways for them to start bargaining the design price. When the bargain can meet the minimum level of engagement, it is no problem for the designers to accept it. However, always saying yes to the low-price design project is a short-term solution for all logo designers. In the end, it will be hard to develop their business if they have few clients with a low-price project.
That is why, for logo designers who have experience for years, being selective in choosing the clients is recommended. It means that when the clients cannot meet the minimum level of the base price offered, there is no problem to deal the logo design project with them. It is better to do this because many designers do not make a profit because they take the low-price design project without considering the minimum revenue that they must get.
7. Creating More Demand
Demand drives a better logo design price. As another business, creating more demand will help the logo designers to get more profit and develop their business. Then, how do we create more demand and increase the price? There are common things that logo designers can do for this.
- Being reliable to get a higher price: Being reliable is a must. Even for those who are not run in the logo design business, reliability will drive a business to grow better and better. The clients will get satisfied because all the design projects meet deadlines, and there is no big problem in completing all of the scope of supply agreed upon at the beginning of work.
- Giving the best design of a logo to the clients: Another tip is to give the best design. By doing this, clients will give a good impression. This point also can make them cooperate with the same logo designers in the future. This long relationship is something great for a business. With this, you can increase the price.
- Enhancing the design skill: How do we get more demand and increase the logo price? The answer is enhancing the skill. With better design skills, there is a bigger chance for the designers to get a bigger project at a better price. Graphic designers also must know the trend to expand this business.
From all explanations above, there are ten tips for all of the graphic designers out there to set a price for a logo design. By applying those tips, there is no excuse that they cannot set the design price for their work. Even though setting a logo design price is not that complicated, there are still some things that the designers must consider.