Ok, you finally have your first freelancing gig. Wait, what is this daunting feeling in your stomach?
That’s right, it’s the good old “omg how do I price this?” anxiety!
You see, pricing your first logo job can be a daunting task. With so many factors to consider, it can be difficult to know where to begin. In this article, we'll break down the process of pricing a logo and offer some tips to help you arrive at a fair and reasonable price.
The first factor to consider when pricing a logo is the amount of time it will take to complete the project. While every logo is unique, there are some general guidelines that can help you estimate the amount of time you'll need to complete a logo design.
According to a survey conducted by the Freelancers Union, most freelance graphic designers spend an average of 20 hours on a logo design project. This includes time spent on research, concept development, and revisions.
It's important to remember that every project is different, and some logos may take longer or shorter to complete. A more complex design or a client who requires numerous revisions will take more time, while a simpler design or a client who is easy to work with may take less time.
When pricing a logo, it's important to consider these variables and adjust your price accordingly.
The next step in pricing a logo is to determine your hourly rate. To do this, you need to calculate your yearly salary.
According to the Bureau of Labor Statistics, the median salary for graphic designers in the United States is $52,110 per year. This means that if you were to work 40 hours per week for 50 weeks per year, you would earn approximately $26 per hour.
Of course, your salary may vary depending on your level of experience, your location, and the types of projects you work on. It's important to do some research to determine the average salary for graphic designers in your area and adjust your hourly rate accordingly.
Once you've determined your hourly rate, you can use this number to calculate the price of a logo.
As we mentioned earlier, most freelance graphic designers spend an average of 20 hours on a logo design project.
If your hourly rate is $26, then the price of a logo design project would be 20 x $26 = $520.
Of course, this is just a starting point. Depending on the complexity of the project, you may need to adjust your price up or down. It's important to communicate with your client and make sure that they understand the scope of the project and the amount of time it will take to complete.
When pricing a logo, it's important to remember that you're running a business. While it can be tempting to undercharge in order to win a client, this can be a mistake in the long run. By pricing your services too low, you're undervaluing your skills and making it difficult to earn a living as a freelancer.
Instead, it's important to ask for more than what you're comfortable with.
This doesn't mean that you should charge an unreasonable amount, but it does mean that you should be confident in the value that you're providing and the time that you're putting in.
If you have this primal fear of “they will reject this for sure” in your stomach—know this: you are actually at the right price tag.
While hourly rates are a common way of pricing freelance graphic design services, they're not always the best way.
Hourly rates can be problematic because they don't take into account the value that you're providing to your client. A logo that takes you 20 hours to complete may be worth far more to your client.
Think about this: would somebody creating a new logo for Nike charge $500? Fat chance.
Value-based pricing is an alternative pricing model that takes into account the unique value that you're providing to your client. Instead of charging by the hour, value-based pricing involves setting a price based on the specific needs and goals of your client.
It takes into account how much value the new logo generates for them. And for Nike, a new logo is worth millions of dollars of potential revenue.
To implement value-based pricing, you should:
When it comes to value based pricing, always think in terms of money.
While it may be hard to quantify the exact value a new logo brings to a company, you can always think about the potential income they might get if you knock this logo out of the park.
Pricing a logo can be a challenging task for freelance graphic designers, but it's an essential part of running a successful business.
By taking the time to estimate the amount of time required for a project, calculate an hourly rate, and set a fair and reasonable price for the value you provide, you can ensure that you're running a profitable and sustainable business.
Additionally, exploring value-based pricing can help you better align your services with the unique needs of your clients and create long-term, mutually beneficial relationships. With the right pricing strategy in place, you can set yourself up for success as a freelance graphic designer and build a thriving business over time.