Comments on: The design pricing formula

By: David Airey

David Airey — Tue, 17 Jan 2012 09:24:27 +0000

Hello David, the comment thread on this post should give you plenty to consider: How much does logo design cost? Good luck.

By: David VanBilliard

David VanBilliard — Sat, 14 Jan 2012 02:25:14 +0000

i just started my business the beginning of this year. I just got my first client today who is just starting out too. im in a dilemma, i want to charge him a reasonable price, but not under cut myself too, but dont want to lose a client either. what should i charge for a flat rate for a business logo. see the dilemma im in? any feedback would be appreciated. i havent given him a quote yet due to my dilemma. Thank You.

By: Julie

Julie — Mon, 15 Aug 2011 03:29:43 +0000

Oh I forgot to mention my mantra:
‘speed, affordability and quality – pick two!’
i.e. you can have speed and quality, but it won’t be cheap or you can have speed and affordability, but it won’t win any awards!

By: Julie

Julie — Mon, 15 Aug 2011 03:15:59 +0000

Great discussion here, just what I needed. I have been freelancing or rather had my own business for almost 10 years. I work from home, and it suits me.

In general I charge an hourly rate (a fixed hourly rate for design, another for changes or ‘author’s corrections’ and one for ‘in-house work’). I mostly deal with large print publications, so I have a formula based on:

design time x hourly rate
+
page count x hourly rate (i.e. x pages take x hours)
+
number of graphs/diagrams and tables (i.e. one table will take x time)
+
supply of final art (i.e. print ready, web suitable etc)
=
final cost.

I then have to take into account ‘am I designing a new look’ or working with an existing visual style and of course the ‘asshole tax’. I then itemise the ‘design’ hours and the ‘layout’ hours, that way the client gets an idea of exactly how much time is spend on each element.

I state at the bottom of the each quote that one round of authors corrections are included in the quote, but any additional changes will occur an additional charge of $$ per hour. So they know upfront that there will be charges if they keep making changes.

Some clients request a number of designs, but I always get this information upfront, and work that into the quote (itemised under the ‘design’ hours).

I find this usually works. Occasionally I get a call or email letting me know the costs were to high and they have decided either not to go ahead or have found someone cheaper. But that’s fine, I know how much time it will take me, and will not work for less (with one exception: if the client will be a source of a LOT of future work, and future income, I will negotiate a lesser fee with the understanding [in writing] that there will be ongoing work for me).

I have never thought of asking for some of the cost upfront, I do progressive payments, but I like the idea of a deposit (after all, you only have to spend a bunch of time on a project and have it fall apart once to learn that lesson). That would certainly save some sleepless nights! I am running a business after all!

Hope this info helps someone starting out!

By: Claire Coombs

Claire Coombs — Mon, 18 Oct 2010 14:45:47 +0000

I believe it’s about setting expectations from the beginning. In my experienced the smallest jobs can be the most hassle per pound. By setting slightly high expectations as to your charges and your time you may lose some work, but committed customers are prepared to contemplate the premium and are pleasantly surprised when the costs are revealed to them.

By: Rev

Rev — Sat, 21 Aug 2010 16:41:58 +0000

I live under the roof of my parents and apparently don’t really have to pay for any expenses. That’s the benefit of working from home. But then again i still struggle with pricing. My price plan comes mostly from my design skills and if clients want stationery printing then I charge that as an extra. I usually slightly over charge to cover up the time I spend on projects because I have a busy schedule and need to keep up with workload.

By: Dean Taylor

Dean Taylor — Tue, 16 Mar 2010 06:59:06 +0000

Good read.

I do set packages for logo design, any amount of revisions over the package then I would upgrade the package, if it is only 1-2 revisions over the agreed package then I would advise them and charge them at an hourly rate or a set price per revision. depends on the circumstances.

Stationery design, set price, if it goes over the allowed amount of revisions then I charge an hourly rate the the extra work.

Websites, set price. You know what you will pay and what you will get. If it goes over.. a little I don’t worry. But if I find my self working many many hours over the time allowed then I would have to charge more, at an hourly rate.

By: David Airey

David Airey — Tue, 10 Nov 2009 11:57:40 +0000

That’s a great point, Marc. I agree. It is important to show the full price, plus any discounts offered on your invoice. You don’t want to give the impression that a discounted rate comes as standard.

By: Marc

Marc — Fri, 06 Nov 2009 10:31:55 +0000

Here’s one – do you guys invoice and show a “Friends rate” as a discount or just invoice the lower rate?

I think it’s important people understand the discount or it isn’t going to get noticed at all (or appreciated).

By: David Airey

David Airey — Tue, 13 Oct 2009 11:17:20 +0000

I once bought a CD with around 1,000 fonts, but most of them were useless, so nowadays I normally choose to buy small bundles at a time, and I've listed some excellent type foundries here. You should be factoring the cost of typefaces into what your charge your clients.