Introduction

Every business has a logo. A logo is a graphical representation of a company’s name, trademark, abbreviation, etc., and it is one of the most important branding tools. The logo is often the first thing that people see when they are introduced to a new company or product, so it is important that it makes a good impression. There are many factors involved in assessing the pricing behind designing a new logo. The most crucial deciding factor is the sheer size of the company. A small company will not have the same budget for a logo as a large corporation. Other factors include the industry, the target market, and the level of complexity involved in designing the logo.

In this article, we are going to look at what goes into pricing a design of a logo. Is the price same for all? Does the logo determine the brand value? If so, then how would you charge for the logo? What if it doesn’t catch up to the value you determined for it? These are the questions that will determine how much you charge for your logo or how much you can expect to be charged.

 

Ask the right Questions:

The crucial thing you need to do when engaging with a client about any kind of business is to ask questions. This will help you gain information. This allows you to be well-informed before making your pitch, when in fact you might not need a pitch at all, and, finally, to be in control of the direction of the conversation.

Questions serve you in two ways:

  • First, they help build a rapport with the client and establish engagement while still gathering the info that you want to know.
  • Second, they help determine if there is a problem, what the problem is, and how you can be of service to the client.

Now, does that mean all you have to do is to keep asking questions? Of course not!! No one is going to keep answering the other’s questions if they do not see a clear purpose involved. The vital point to ensure here is that you ask the right questions. First, you have to be inquisitive to know, your follow-up questions help you narrow in on where you want to go. On the other hand, the final questions help you determine where and how to pitch your client.

The crucial aspect here is knowing when to stop. Once you have sufficient info, or when you have guided the line of questions to a specific aspect, then pitch your client or offer up your diagnosis of their problem.

The key is to serve a purpose and to fulfill a need rather than to sell something because most clients will turn the other way if they smell you trying to sell them something.

What to expect when you are paying for a logo (for a potential client)?

This is vital to know for a designer, a developer, or anybody else offering creative services. This means that until you understand what it is like to stand in the other’s shoes, you will not know what questions to ask them or how to even look for their problem.

The first step in the logo design process is to understand the client’s needs. The designer will need to know the company’s history, its mission statement, and its target market. This information will help the designer create a logo that accurately represents the company.

However, the first question to start this step here is why does the client need a logo? This seems a bit illogical here because I said that the logo is the first step in the design process; however, why does the client need a customized logo that represents his brand other than it being cool or it being a requirement?

Any designer on Freelancer.com or Fiverr can help you design a logo but who can help you design your logo. There is a difference here. The key to identifying the difference is to know why you need your logo. The greater the value of the logo and the new identity system it might bring to your business, all the more you can be expected to pay. Think about the added value that this logo will bring to your business.

Value Perception

This value will determine how much you would be willing to pay to achieve that value and which designer or developer will help you ascertain that value.

  • First you need to know who your client is. This can be quite taxing to do but it is vital, nonetheless. If you don’t know your target client, you won’t be able to design a logo that resonates with them. Your client could be a large multinational corporation or a small local business looking to serve their community in a better way.
  • Second, what does the client want their logo to achieve? This is known as the “brand strategy.” The brand strategy is the overarching plan for how the logo will be used to reach the target client.

Do you have a plan on how you can help your client achieve this with the logo that you make for them? What is wrong with their current logo if they have one? Is there a mismatch in the kind of value that they want to bring to their target audience or the image they are trying to portray here.

  • Third, what is the client’s budget? This is a critical question because it will help you determine what kind of logo the client can afford. A logo is a long-term investment, so it’s important to make sure that the client can afford the logo that you create. To determine this investment, you have to determine the level of risk that the client will have to take if something goes wrong. It can be aware of that risk and still be able to speak to your client then that client would be more willing to speak more with you.
  • Fourth, what is the timeline for the project? This will help you understand how much time you need to spend on the project and how much of your client’s time and money you can save by putting in your time. An estimate of that will help you determine how much can charge your client and how much he would be willing to pay for that

What do all these questions help the client understand about you? Yes, these questions and your follow-up answers and thoughts, in return, will help the client understand if you are the least risky option. Ultimately, that is what will help a client choose you. Whether it is a small business or a large corporation, their corresponding risks will help them determine our viability.

What will likely be able to convince the client?

So, how can you convince the client that you are their least risky option. There are quite a few options for this:

  • Social Proof: In order to reduce the risk, you will want social proof. This can be in the form of client testimonials, reviews, or even referrals. Anytime someone else has taken the risk and had a positive experience with you, that helps ease the tension for potential clients.
  • Referrals: If you have a great network, ask your clients for referrals. If you have done a great job for someone in the past, chances are they will be more than happy to put in a good word for you with their friends or colleagues.
  • Case studies: Solid case studies show the results of your work. Make sure to share those. This is an excellent way to show off what you are capable of and help reduce the risk for potential clients.
  • Credit History: A good credit history can go a long way in helping to ease the minds of potential clients. If you have a strong track record with other clients, that will show that you are reliable and trustworthy.
  • Expertise and scale of operations: Potential clients will want to know that you have the expertise and resources necessary to handle their project. Be sure to highlight your team’s qualifications and your company’s size and scope of operations.

How much should you charge?

Now that we have determined how your client can choose you, lets determine how to evaluate yourself and how much you’re going to charge them should they choose you. A quick way to determine this really quick is with the following steps:

  • Determine your target hourly rate: This is the amount you need to make per hour to cover your costs and make a profit. To do this, first calculate your fully loaded labor rate. This includes all of your indirect costs such as overhead, benefits, taxes, etc. Once you have that number, add in your desired profit margin. This will give you your target hourly rate.
  • Determine the project’s scope: This is where you determine how much work the project will entail. How many hours do you think it will take you to complete the project? Use your past experience to help guide you in this estimation.
  • Multiply your target hourly rate by the number of hours you think the project will take. This will give you your estimated project cost.

Now that you have an understanding of how to price logo design, it’s time to start working on your own pricing strategy. Keep in mind that there is no “right” way to price your services. It all depends on your unique situation and what you think is fair.

Some places don’t believe in charging hourly. On the contrary, they charge a fixed price for their services that will only vary based on the scale of the client. Are you one of them? Let us see what you can do:

  • First, calculate your overheads and taxes: The cost to keep your business up and running and to pay your dues to the country.
  • Then, pay yourself because you don’t work for free
  • Now determine your profit margin: what kind of profit works well for you?
  • Multiply this number by 12
  • Then, pace yourself and decide how many of these projects you can do in a year? back calculate this using your previous work as reference
  • Now you have the minimum level of engagement, which is the lowest you can possibly ask for your services.

Make sure you are following the right level of reasoning (logical) and doing what best works for you and what you are about.

Logo Design Pricing Model:

There are several different pricing models that you can play with according to Chris Do (Founder and CEO of Futur and Blind): The inputs model, the Outputs model, and the value-based model.

Inputs Model: 

The inputs model is the most simple and straightforward way to price your logo design services. You simply add up all the costs that are associated with your logo design project. This includes your time, software, hardware, and any other miscellaneous expenses. You add a markup to then arrive at your final price.

The advantage of this method is that it is very easy to understand and explain to clients. The disadvantage is that it does not take into account the value that you are bringing to the table as a designer, nor does it factor in the client’s budget.

Outputs Model:

The outputs model is a bit more complex. It takes into account not only the costs associated with your logo design project, but also the value that your logo will bring to your client. To price using this model, you first need to determine what your outputs will be (i.e., number of revisions, final deliverables, etc.). Then assign a value to each output. For example, you might charge $50 for each revision, and $100 for the final deliverable logo files.

Your total price would then be the sum of all the values assigned to each output. So, if you had three revisions and one final deliverable, your total price would be $200 ($50 x 3 + $100).

  • The advantage of this pricing model is that it allows you to account for the value that your logo will bring to your client. For example, if you know that your client plans to use their logo on their website, business cards, and other marketing materials, you can assign a higher value to the final deliverable files accordingly.
  • The disadvantage of this pricing model is that it can be difficult to estimate the total cost upfront. This is because you won’t know how many revisions your client will need, or what their final requirements will be. As such, this pricing model is best suited for experienced designers who have a good understanding of their clients’ needs.

Value-based model:

The value-based pricing model is all about charging according to the perceived value of your work. This means that you’ll base your prices on how much impact you think your logo will have on your client’s business. For example, if you’re designing a logo for a well-known company, you can charge more than if you were designing a logo for a small business.

This pricing model can be a great way to maximize your earnings, but it can also be risky. This is because you’ll need to be confident in your abilities and in the value of your work before you can charge a premium price. If you’re not sure about either of these things, it’s best to stick to a more traditional pricing model.

The other common pricing model for logo design is charging by the hour. This is a much simpler way to price your work, and it’s often what new designers will do when they’re first starting out.

To charge by the hour, you simply need to calculate how long you think it will take you to complete the project. Then, multiply that by your hourly rate. This method is less risky than the premium pricing model. However, it can still be challenging to estimate how long a project will take.

If you’re not sure which pricing model is right for you, it’s best to experiment with both and see what works best for your business. Ultimately it’s up to you to decide what’s best for you and your clients.

https://www.youtube.com/shorts/HLPkEqBQjyA

How do you haggle prices with your clients?

When it comes to designing a new logo, there are many factors that need to be taken into account. This allows you to come up with an accurate price. The first step is to gather all of the necessary information from the client in order to get a clear understanding of what they are looking for. Once you have a good understanding of the project, you can then begin to work on your estimate.

When it comes to haggling price with your clients, it’s important to be transparent about your process and what goes into your pricing. Many designers are hesitant to do this. However, it’s the best way to ensure that you’re getting paid what you’re worth. Be sure to explain all of the different factors involved in your pricing. This includes factors such as the time it will take to complete the project, the complexity of the design, and any other unique elements that will impact the price.

If you’re still not sure how to price your logo design services, there are a few online tools that can help. Check out the Logo pricing calculator from 99designs or the Logo Design Cost Estimator from HKSEO Pros. In addition to that, here is a few strategies you can try:

State your price early and stand by it

Don’t be afraid to name your price early on in the design process. This will help set expectations with your client and prevent any disagreements later on.

Be transparent about your costs

Once you’ve determined your price, be sure to explain all of the different factors that went into it. This will greatly aid your clients to understand the exact value of your services.

Price anchoring

When presenting your price, it can be helpful to “anchor” it with a higher number first. For example, you could say “My usual price for a project like this is $1,000, but I’m willing to work with you for $500.” This technique can help increase the perceived value of your services. By expressly stating the larger number first, you are first prepping leads with the absolute maximum budget they will need. This will help you avoid any price shock when you eventually give them your real proposal.

Price bracketing

This is a great way to show value without coming right out and saying your price. You basically give them a range, like $500-$1000. This lets them know that the final cost will be somewhere within that range depending on the scope of their project. This technique is perfect for larger projects with many moving parts. This allows you to give a more accurate quote once you’ve had a chance to fully assess their needs.

How do you bracket the price?

  • Mention your core offering, which involves the services you are willing to offer. For example, it could be mockups variations and concepts, each with multiple choices. It should also include a brand style with colors and typefaces.
  • Now offer an alternate option that is a little less involved. Name it at a lower price with slightly lower engagement.
  • Now, ensure you up your core offering and add additional features. This will give you more room to play with additional benefits to up your profit margin and account for more innovative and experimental schemes that the client might like to try.

 

 

How to create demand for your work?

That is the trick question right? How do you inspire reliability and credibility. Here are a few points to help you do that:

  • Be reliable: When you design for a client, make sure that your designs are pixel-perfect. This will show the client that you take your work seriously and that you’re reliable.
  • Maximize your talent: Don’t be afraid to show off your skills. If you’re good at what you do, the client will be more than willing to pay for your work.
  • Create a process: Have a clear and concise design process. This shows the client that you know what you’re doing and that you’re organized. This will make them feel more comfortable about working with you.
  • Keep your promises: If you say you’re going to deliver the designs by a certain date, make sure you do. This will show the client that you’re reliable and that they can trust you to meet deadlines.
  • Be in a market where there is a demand for your skill: Ensure that you are in a market where there is a lot of demand for your skill. That way, you’ll be able to charge more. This is because clients are willing to pay more for someone who can meet their needs.
  • Understand your worth: Don’t undervalue yourself. If you don’t believe you’re worth the price you’re asking, the client won’t either. Make sure you know your worth and are confident in your pricing.
  • Communicate effectively: Be relaxed and confident in your talks with our clients. Be attentive, listen more, ask more questions, and communicate more clearly. This will inspire trust in and of itself.

Conclusion:

The price of designing a logo depends on a variety of factors, from the designer’s experience to the market demand for their services. It’s important to understand your worth and be confident in your pricing in order to be successful as a logo designer.

Ask the right questions. To be able to ask the right questions requires you to thoroughly understand yourself and understand your client’s basic background. Only then you can find the middle ground to satisfy both parties. Be attentive and listen more. After you ask the right questions, it’s important that you listen to your client’s answers carefully. This way, you can proceed to better comprehend their specific needs and wants.

Evaluate all these factors and then begin designing. Our team at Pixel Street has a very open mind when we negotiate pricing with our clients. To know more about our process and pricing, contact us directly.

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Khurshid Alam
Founder

Khurshid Alam is the founder of Pixel Street, a web design company. He aspires to solve business problems by communicating effectively digitally. In his leisure, he reads, writes, and occasionally plays a game of table tennis.