A helpful approach when pricing your logo design

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Pricing a logo design and other design services can be tricky.

The first thing most freelancers do when tasked with getting a price to their prospect is they ask their freelancer friends what they charge.

Or, they Google other freelancers and try to find who has posted their prices online.

The problem with benchmarking against other freelancers like this is that it leaves out two key players in the pricing process: you and your prospect.

Sidenote: Once you finish, read how 4 freelancers built recurring revenue models that changed their business. You'll love it.

When you benchmark, you are basing your price on what someone has deemed right for them and their business without considering what is right for you or your prospect.

Don’t get me wrong. I think it’s incredibly helpful to see what others are charging because it gives you an idea of what to strive for and can be a big time wake-up call that you may be underpricing your work.

But you’ve also got to figure out what’s right for you and what’s right for your client.

So you are probably wondering then, “Well where do I start? Where do I get the numbers from?”

Well, below are a few tips to help you get started.

You'll also enjoy this episode of our new podcast...

Find your happy price

When you are just starting out or have been freelancing for just a few years, you might not know exactly what it takes to go from zero to logo design. But as you get more experience, you begin to understand the amount of work you need to put in to arrive at a good design.

Once you do, start asking yourself what amount you would feel comfortable with if you were offered a logo design job.

Would you do it for $200?

Would you do it for $500?

Would $1,000 be enough?

This will make sure you start the project with some excitement and it will give you the extra incentive you need to do good work. Doing good work and getting paid well for it makes for a happy freelancer.

Keep asking until you say to yourself, “Yeah, I would do that.”

The price you arrive at is what author Michael Ellsberg calls your “happy price.”

This price you arrive at—and this is important—is your floor for a logo design.

It’s the lowest price you would design a logo for. It’s your starting point and one you can raise over time as you work with higher-caliber clients who get more value out of your work.

Price the client, not the deliverable

The reason why it’s your floor is because it gives you a starting place and narrows your focus from, “I’ve got no idea where to start!” to “Ok, this is my starting price for a logo design.”

Once you’ve got your starting point, now you’ve got to look at the client and decide if the price makes sense for them.

Ask yourself, “What does the client stand to gain from a good logo design?”

A logo design is not worth the same amount to every client.

A good logo design for a Fortune 500 company has far more value and risk in it than a logo for a mom and pop business down the street, so the price should reflect that.

This works the other way too. A logo design for a small business should be priced lower because the value they get from it is less.

If you’ve decided your logo design “happy price” is $4,000, it probably doesn’t make sense to work with a solopreneur just getting their business started. Even a great logo design is probably not worth that price because the value to them is simply not there.

When that happens, the best thing to do is to refer them to somebody with pricing more suited to their situation—somebody happy to work with them at their budget level.

Present the price with another option

The way you present your design work can be a deciding factor in whether or not a client approves a design.

If you show mockups of the logo in real world situations, don’t overwhelm the client with too many options and explain your design rationale by relating it to the project goals, you are more likely to gain your client’s approval.

Well, the same can be said about pricing.

In some cases, the way you present your logo design price to your prospect can be just as important as the actual price of the logo. So when you have a prospect that will get good value out of your logo design, the next thing to do is present the price to them in the right way.

As the old saying goes, “What’s the best way to sell a $2,000 watch? Right next to a $10,000 watch.”

The higher price makes the lower price look much more desirable—cheap even.

Apple used this exact strategy when they launched the Apple Watch. They offered a gold plated watch starting at $10,000.

That $10,000 price tag had an influence on the much cheaper priced versions of the watch and likely boosted sales of the more affordable versions by making the price look cheap by comparison.

This is known as the cognitive bias “anchoring”.

Anchoring is the tendency of humans to be heavily influenced by the first bit of information they receive when making decisions.

When you hear that $10,000 price tag, you use that as the “anchor” that you base your decisions on. In the context of a $10,000 watch, a $2,000 watch seems cheaper than if it were on presented on its own.

So how do you use this when pricing your logo design?

One way to do this is by offering a package next to your logo design like this:

Option 1 includes:

  • Logo design
  • Typography
  • Color palette
  • Supporting graphics (patterns, icons, etc.)
  • Usage guidelines
  • Stationery design

Price: $3,200

Option 2 includes:

  • Logo design

Price: $1,400

In this case, Option 1 is the anchor price. It makes the $1,400 logo look cheaper by comparison.

Presenting your logo design price this way ensures that your price looks more desirable. An added bonus of doing this is that it also gives you a chance to land the bigger package of work if the prospect chooses option 1.

Key takeaways

  • Don’t just benchmark against other freelancer’s prices. Instead, find your “happy price” by figuring out what’s the lowest price you could charge for a logo design while still feeling happy about doing the work
  • A logo design is not worth the same to every client. Think about the value to the client and price accordingly
  • Presentation matters. How you present your price to a client can be just as important as the actual price of the logo. By using anchoring you can help your price look more attractive to your prospect

My design proposal template

Even with the logo design example above, you might still be wondering what that looks like when presented to your prospect. Here’s what my design proposal looks like. I regularly use this template to sell $5K+ logo and web design projects.

Like I mentioned above, this is not meant for you to benchmark against my pricing. It’s to show you what’s possible and to give you an easy way to present your prices using the anchoring technique I outlined above.

What pricing methods have you found to be successful? Let’s chat in the comments!

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About Ian Vadas

Ian Vadas is a designer and the author of Work With Clients You Love. Get the eBook to learn how to select clients that pay well, treat you with respect and allow you to do your best work.

For tips on getting paid and maximising your freelance revenue, join the FREE email course Pricing For Freelancers.

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Comments

  1. Hi wow thanks a lot this helps a lot I am a freelance designer well a beginner and pricing can be a problem and this information is going to help me a lot. Thank you

  2. Ruthy Suli says:

    love your article, thanks for sharing this

  3. Excellent post and write up.
    A couple of questions:
    1-How many rounds of revisions should you include in your pricing proposals?
    2-How many options do you offer?
    3-If the clients does not like any of the options, do they still pay a percentage of the cost? or do they pay at all?
    Thanks

    • 1. I like to include 3 rounds but it’s up to you how many you want to include. The main thing is that you include a specific number so you can point to it when you are getting close to it and let your client know it will be extra to do more revisions.

      2. I like to offer 3 options

      3. Yes, they still pay unless your contract says otherwise.