How To Set A Proper Logo Design Rates
You might not want to quote too high or too low for your clients. Let’s find out more!
Dipping down to the graphic design industry means facing a lot of confusing remarks and rates, which you can see in many design-related works. It includes when a designer, entrepreneur, or freelancer wants to create proper logo design rates for their project. It can be a bit confusing and full of wonders.
The idea of determining your logo design pricing can be a bit reliant on feeling and individual preference. You can even see how many designers came out with 5-10$ per hour to hundreds of dollars for their logo work. The rates can differ and widely change depending on the creator and the client's point of view. Sometimes it can feel too high or too low.
But what makes one creator more valuable than another? The answer can cover a large spectrum of the logo itself. It can depend on the creator's name, output, or the logo's quality, to the client itself. In general, you got to understand that this design business also comes with risks and options. Going for the least risk should be the answer to getting clients and getting your rates accepted.
To get that, you need to have social proof of your logo design quality. For a newbie, it can be hard to accomplish. But slowly, having your portfolio stacked will help lower the risk. Some other aspects are referrals, expertise, credit history, and case studies. Your reputation as a designer is the consideration in setting the rate. After that, consider these steps to set the prices.
Determining Your Level Of Engagement
Before setting the price, be sure you know what level your engagement as a designer is. The idea is mainly to talk about how much and what you need. Going with gut feeling and instant rate can make your client feel too much. This is where you need to work around the bills you have to pay every month and year. In other words, start with measuring your needs.
How much did you need to pay your bill? And how much do you set the logo design rates to pay that bill? In many cases, you need to pick out some of the minimum levels of engagement by reviewing the bill. One of the best considerations about the bill is how much you have to pay to keep the business up and to run.
Remember that creating a logo and its design takes time and tools. If you are working with a computer, take some consideration of the electricity bills and some of the personal expenses. Don't forget the monthly taxes and some profit you have left over at the end of the month. If the result of multiplying it by 12 can cover everything, that should be the minimum rate.
It is also worth being realistic in measuring how many projects you can work on and complete in a year. With the minimum rates, try to count and divide your yearly revenue goal by the number of the logo design project. Remember that it is the lowest amount for each project that you should ask for the rates. You can increase it to fully embrace your engagement.
As you got the minimum number for the engagement, your next step is to determine the pricing model. In this case, you got three basics of logo design rates. You can pick one that fits your needs and capabilities, which can include input, output, and value-based. Each of them has its ups and downs that you should consider in the future.
Input-Based Pricing Models
Also known as cost-plus, this is a common design rate that prioritizes pricing inputs. The idea is mostly about hourly or day rates, which can be harder to take if you are not working for a corporation. In this case, the charge and the rate will likely come with the daily and hourly rate plus some overhead charges for the non-logo design works.
There are many examples, but you can see that some miscellaneous fees are also part of the overall rates. It helps add on room for profit, which is great if you have a long project contract. In some cases, working as a freelancer or entrepreneur can be hard to use this kind of logo design pricing, especially if your client is on the lower end spectrum.
If you are interested in getting this option of pricing, it is best to get some references for other designers or professionals. Going for the market and getting more sustainable rates might help your market get some attention. However, be careful when working with logo contracts. Be sure you get everything equal to the time spent on the design task, comfortability, and fair rates.
Outputs Pricing Models
One of the easiest logo design rate models you can take is the output value. It is easy to wrap your head around, make decisions, and eventually pay depending on the deliverables. The output pricing models highlight efficiency and variants of the logo design quality. You don't need to worry about the hourly rates and can move on to the next project.
As much as it is easy to rate your logo creation, it can be a bit haunting if you don't have a contract to seal the design project. There are possibilities that you might have a hard time and work longer for the design, which does not suit the rates. This is why you should be careful about putting rates on every project. You are the one that understands your capability before setting the price.
In general, you can always refer back to your minimum level of engagement to ensure the design project pays you enough. After that, you need to assess the difficulties of the job and your skills. In this case, it's better to provide different logo output options. Different logo rates help you determine different levels of quality, service, and offers.
At the lowest logo design rates quality, you can set the price around $100 for each logo. Remember that it is the lowest quality option, and you can set the level by yourself. Most of the time, it is a level that only includes marks and a company name. It does not use an intricate pattern or complex lettering. If the client wants it, you can ask for an extra price for the logo.
One thing is for sure, simple is a term that has a different meaning from one person to others. That is why you can set some points to show how simple your design could be. It can include one revision, one meeting, or certain aspects such as basic marks or lettering. You can also provide a max of two concepts and two rounds of changes if needed.
If you are working for a more complex design with intricate patterns and fonts, the logo design rates typically cost twice as much as the simple one. You can expect some high rates, at least around $400 or higher. Sometimes, you can find professional creators charging their work up to $700 for the pricing. It is normal, but the amount of work will also be twice as much.
At this level, you are bound to work around 10 original logo sketches and some extra services, such as more changes, revisions, or meetings. For such a rate, your logo design might be available for a more reputable company that demands some custom concepts and ideas. Sometimes, you might also consider working with other design models such as business cards, letterhead, etc.
The highest rates you can offer can fall under the complex category. In this case, the price tag might even be considered an investment. That is why you will face the more intricate, complex, and long-term custom logo for the design project. Sometimes, you might have to work with a dedicated logo designer team and some expertise to develop more professional work.
With a higher level of specialty in branding services, works, and some concepts, you can charge the experts complex rates of more than $1,000. With the high investment money, you will likely work with complex custom logo artwork, more illustrative, long hours work, complete design package of the full ownership, and all possible files.
Value-Based Price models
The last pricing model is value-based, which is where you rate the client, not the input or the output. In other words, you give a price depending on who you are going to work with. It helps if you have a huge array of client ranges. Take an example giving low logo design rates for new businesses or giving higher prices for a growing company.
The key is pretty much on the client's status and condition. You will need a lot of consideration for this type of pricing, considering some of the customers might have potential. This is where marketing knowledge and sharing take place in determining the rates. You will likely have to ask for many details before setting the design price.
Take an example of working with a company that has a future in growing its revenue up to $500,000 in a year or so. Now you should calculate how much your logo design will be appropriate for such a capable company. You won't want to set $1000 for the new logo or identity on the project since it is only 0.2% of the revenue. Try to negotiate to get the appropriate price.
Talk Price With Clients
At the end of the day, your pricing decision will come from negotiation. Even with input or output models, you are bound to meet some clients that find it too high or low. Talking with the client helps you get the rate right. It is also a great way to educate the potential customer about the most appropriate logo design rates possible.
1. State Your Price First
It is a basic negotiation in that you need to be the one that sets the price first, not the other way around. The idea is to ensure you are working with potential and capable clients one way to another. You won't want to spend hours making fancy logo proposals only to find they cannot afford or will not take the design rates.
So, try to state your price first before showing the details. Do it for both the client and you. Remember that you have bills to pay, so never send your proposal before you get a verbal agreement. It is also a good measurement to state your price over the logo design since it shows how serious you are about being a real business person.
2. Anchoring The Rates
Anchoring the price can be translated to stating the highest possible price for the first time and following it with the low end of the price tag. Take an example of a beginner freelancer, and you can say that the logo price could cost anywhere from $1000 to $200. Depending on your scope and design expertise, the logo rates can differ.
By stating the highest price, you will help the client to consider the maximum money they have to invest. At the same time, the lower design price is mentioned to create a bargain effect. It can make the client think twice about getting the bargain since it sounds like the cheapest but also the lowest quality. If it works, your potential logo design client might take the middle or higher option.
Raising Your Logo Price
With negotiation at stake, you might have to lower the price for some reasons. However, you also need to consider raising the logo or design price after some time. It can happen for many reasons; either you realize that you are selling yourself short, not charging enough, or have better skills compared to before.
When it sounds like a good time to raise the logo design rates, do it carefully to not lose your potential or retain clients. The first thing that you have to do is to negotiate the price, and don't be worried if you meet people that cannot meet your pricing. And you don’t need to explain the changes. Remember that the world is changing, and so does your logo or design business.
It takes time to make people understand your change, but it is something every designer needs to do. If you find yourself deserving the raise or the environment forces you to do it, then raise the rate with no hesitation. You need to keep your business and life. Do it patiently but also consider your logo design quality before you brave yourself to get more money.
Responding To Clients That Do Not Meet Your Price
The idea is bound to happen, but that should not be a hindrance to your logo business. In this case, remember that you deserve to say no before handling the objection. Saying no can be hard for some people, but it is worth considering the minimum engagement in mind. Be sure that you can get the appropriate rates regardless of what people say about your price tag.
In the worst case, you can work with the client as long as the rate still meets your minimum level of engagement. Try to refer back to the logo output price and provide the bracketing rates to give clear services detail. There are also many ways to get the rates if they cannot meet them, ask for a revenue share, a percentage for the contract, or do the job for free. Think twice before you say yes.
In general, you can say that logo design rates can be a bit hard to take. However, it can be less complicated when you got everything ready in your hand. The key point is mostly understanding some of the design pricing. You can also go around and look for references to get the best rates for the work. But there are at least seven major considerations.
The first point is to determine your level of engagement. It helps you learn how much you should value your logo and design skills capability. It is also a key that allows you to understand how much income you need, the cost of the business, the bill, and any other demands you need to pay with the design bill. With that, you will know the minimum pricing.
After that, you can determine the pricing method, which can be based on the input, output, or value. As you know what to ask, it is better to start showcasing the price often, so people know how much your price is. The third point is to always anchor your logo price on the high point; thus, you can avoid any possible loss.
The next step is to determine the pricing brackets to attract and discuss with the client. Sometimes it is also good to move from the low-budget project to the more challenging one, which is the next consideration of logo design rates. And in the end, you will have to continuously work on increasing your demand. It goes with the idea of expanding your business and its rate.
In general, logo design pricings can get a bit complicated, especially in the more competitive world. However, it does not mean beginners and new workers should limit their reach with it. With proper rates, offers, and output, designers can get huge bucks from the works. It takes time and research, but surely it is worth it with some try and error.