Jan 24, 200859 appreciated comments
How much is that logo in the window?
Have you ever been frustrated when a logo designer doesn’t tell you the cost up-front?
You might think they’re stalling you, trying to figure out how much you can afford, but what good would that do? The designer is by no means guaranteed your business, so it makes perfect sense to provide an accurate logo design quote ASAP.
The issue lies here:
No project is the same, and every client differs. You can’t receive an accurate quote until the designer knows exactly what you need.
If a logo designer provides a fixed price before researching the project, the reason is due to one of three things:
- They’re shooting themselves in the foot by under-valuing their expertise
- They’ll create a poor design by scrimping on the research stage
- The figure is huge because the designer doesn’t need the business
Always expect to answer questions before money is mentioned.
Image courtesy of Jem-K
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59 appreciated comments, click here to add one
matt adams
So Dave, Where do you start? I’d love to compare pricing processes across the the different firms reading this.
matt adams’s last blog post..new factor 1 diggs
Jan 26th, 2008
David Airey
Hi Matt,
I’ll soon be approaching different logo designers and asking a few pricing questions.
The answers will be published here, and I hope that helps give a better insight.
Congratulations on moving into your new Factor 1 offices!
Jan 27th, 2008
Toon
The problem is like most industries nobody sticks together to keep the value of the work up, somebody will always break away and offer cheap prices. It’s a shame but it’s true. (Nice blog David)
Toon’s last blog post..Superexpresso – Typography & Graphic Design
Jan 27th, 2008
David Airey
Toon,
You could see it as a problem, although more often than not the quality of logo design will decrease alongside the price. I prefer not to work with people who aren’t prepared to spend more than $100 on their logo, so it works both ways. There’ll always be business owners who value a higher quality logo design.
By the way, thanks very much for the kind mention on Graphic Design Blog. I appreciate it.
UPDATE: February 1st 2008
It seems a few of you have misread my comment, thinking that I charge $100 for a logo design. Sorry for the confusion. I meant that anyone who expects to pay $100 is not the type of person I work with.
Jan 27th, 2008
Anthony
“Toon,
You could see it as a problem, although more often than not the quality of logo design will decrease alongside the price. I prefer not to work with people who aren’t prepared to spend more than $100 on their logo, so it works both ways. There’ll always be business owners who value a higher quality logo design.
By the way, thanks very much for the kind mention on Graphic Design Blog. I appreciate it.”
I guess I have been overcharging? I see you mention logos for $100… I have been charging from $650-$1500 for logo designs. Think I am in the wrong? I basically charge 50 an hour and my typical quote for logo work is 20 hours, which includes research and a couple rounds of revisions. Do you think this system is flawed? I have had several satisfied clients at these prices, but hearing they could get a great logo from someone like you for $100 is a little alarming…
Jan 29th, 2008
Peter
I could be wrong, but I have a feeling that there’s a 0 missing in David’s price. $100 for a logo is the kind of thing that undercuts the market and doesn’t help anybody in the long run.
Even at Anthony’s prices ($50 – I would consider quite reasonable), do you think you could churn out a quality logo in 2 hours?
Feb 1st, 2008
David Airey
Anthony,
You most certainly haven’t been overcharging, and you’ve read my comment in the wrong way. I said I’m not prepared to work with people who won’t pay more than $100 for a logo, so please don’t be alarmed.
Peter,
I guess I didn’t word my sentence as simply as I could have. You’ve also got the wrong end of the stick. A good logo design can take weeks or months, so to expect anything in a couple of hours is ludicrous, I’m sure you’d agree?
Feb 1st, 2008
Anthony
David,
Thanks for taking the time to answer my question. For the record, I have really enjoyed your site. I think it is informative to both clients and designers. Cheers on such a clean design! Thank you for the advice you have on your site concerning logos, and working with clients. I have learned a lot from this information, and I am sure many others have as well. Ours is an industry of no rules, no standards and no help from successful peers. It is a breath of fresh air to find a designer who obviously understands the art of design is much bigger than one person. Thank you again.
P.S. I will be submitting a logo to your contest. Any criticism would be well-received.
Feb 4th, 2008
David Airey
Anthony,
You’re very welcome to my time, and I’m glad you’ve enjoyed the site. I always appreciate learning that someone has found information of use from me.
Feb 6th, 2008
Joe
David,
Great site. I always enjoy reading up on what you’ve been working on.
I do a lot of work for smaller businesses and can generate a lot of repeat business if I play my cards right. I often will package a logo project with business cards and letterhead. I generally figure about 20-30 hours of work total for each package and bill between $1000 and $1600.
Joe
Mar 17th, 2008
David Airey
Joe,
Great to see you’re not selling your services short, and thanks for the website compliment. I notice you don’t have an online portfolio. Will you be adding any work to your website?
Mar 19th, 2008
ellen petty
Hi David,
I love your site! It’s been a fantastic resource.
I recently started a new design company specializing in identity and branding packages. For a logo alone, including the vector and jpg files I typically charge anywhere from $900-1500, for a small business and $3000 and up for a midsized-large businesses.
Apr 14th, 2008
David Airey
Thanks very much, Ellen.
All the very best with Identity Kitchen.
Apr 15th, 2008
Twanna
Hi!
Stumblin on your site could not have come at a better time. Question, when you say you package letterhead and biz cards with your logo design, is that at a different price or bonus for allowing you to do the work. If it’s bonus, I think that is very much of a value for a future client. I’m in the process of working this out w/ someone now. Thanks for any input!
Apr 15th, 2008
David Airey
Twanna,
Adding stationery design to the logo project will undoubtedly be an extra expense. Care and attention is taken over the layout, and how different elements work together. I’m sure any self-respecting client will understand the additional cost.
Apr 17th, 2008
Todd
Wow! $100 logo – Please Don’t!!! It undermines and devalues the entire design industry! Most people wouldn’t take you seriously and cheep isn’t somthing we should be advocating!
I’ve been in the business for nearly 20yrs and can’t believe that someone wouldn’t want to invest any more into their logo than a $100! You’ve got to sell them on it. It is an investment into their business and this type of component can’t be done cheap! It will be the very cornerstone to every thing they do! and should be able to stand the test of time! Price: $750 min. – $1600 ave (small company). $2k – $5k (med/ larger), and large corporations $7k – $15k & beyond ( and I’m located in the Midwest).
Apr 25th, 2008
David Airey
I’d agree with that price range, Todd, although if your comment was intended for me, you’ve skipped over some of the conversation.
Thanks for leaving your thoughts.
Apr 25th, 2008
Todd
Yeah, I may have David? …just skimming through rather quickly and offering up my thoughts and my experience.
Apr 25th, 2008
Caroline Watson
We launched our company via a retail gift card, so we needed a strong brand identity. We are delighted with the result for Gift Days Out, but it cost us nearly £3k. Buy cheap and pay twice! we will stick with our logo for many moons!!
May 13th, 2008
David Airey
Todd,
Your thoughts / experiences on the matter are indeed appreciated.
Caroline,
Glad to know you have a logo you’re happy with, and one that will last many moons. That’s definitely where the value comes in – the fact that you won’t need to spend more money soon after the initial implementation. Best of luck with it.
May 16th, 2008
Jason
I know that this is an old post but I figured I would add my 2 cents. So many times does a logo require more than just a few comps. It often requires research, brand positioning, and finally execution and revisions. Good logos are identities, crappy logos are produced for $50 via spec work. You get what you pay for.
Jason’s last blog post…David Cross is a Larry the Cable Guy fan
Jul 15th, 2008
David Airey
I completely agree, Jason. Thanks for your take.
Jul 16th, 2008
Staniel
Hi David,
Many companies that will end up being very successful do not have a huge start-up budget. A logo is very important but so is financial responsibility.
An example you will always hear…the Nike logo cost only $35.
Thanks,
Staniel
Oct 20th, 2008
David Airey
Staniel,
Here’s an interesting comment that was left on davidairey.com:
I think Phil realised what a bargain he picked up.
If a designer believes their logo design projects are worth just $35, the chances are they’re right.
Oct 20th, 2008
Skoo
Ok, I have a quick question for you if you would please. I have recently been hired by a fairly popular musical group to design a new logo for them. They are a national touring group and have a couple of major label CD releases. What do you suggest I charge for that sort of thing? I’m new to charging people really lol. I have done tons of logos and things for people but they were all friends and did it for free. This will obviously be on all of their promotional items and CDs and things, so I want to charge what its worth. Any help is appreciated thanks!
Nov 19th, 2008
David Airey
Skoo,
What you charge depends less on your client, and more on your design skill. Regardless of whether or not you pay the bills with your fee, don’t sell yourself short — you can’t negotiate upwards.
Good luck.
Nov 21st, 2008
Nic
I think that good identity design for a small business is well worth $1,000 +. However, I sometimes see work from established designers who charge that (and more) that I don’t like, and work from some newer , less expensive designers that I think is beautiful. I say this only b/c I don’t believe that a higher price point always means you get a better–or even a good –product, though the chances may be higher if you’re dealing w/ someone who’s experienced. I’ve heard stories from people who’ve lost a lot of $$ b/c they’ve had to hire more than one designer to get what they want. It seems almost like the luck of the draw–you can look at a portfolio, but even if you like what someone has done before, that doesn’t mean he or she will “get” your business and ideas.You can’t knock clients for being cautious. If the logo is exactly what you wanted then you should be happy to pay good money for it. BUT, an expensive logo that misses the mark is basically worthless and depending on yr budget/finances, it could mean taking a substantial loss.
Feb 11th, 2009
David Airey
Nic,
You mention the following:
“I don’t believe that a higher price point always means you get a better product.”
I completely agree. The chances are improved, but it’s far from guaranteed, and the client has a responsibility to do some research before choosing a designer. Here’s a relevant blog post of mine, detailing 10 things to expect from your logo designer.
Feb 14th, 2009
Pablo
LOVE THIS THREAD!
I agree with so much of it. Especially the logo designers cgharging $50 for a brand that under-cuts and devalues what established and proven designers are producing. Much as people who get a free “Build You Own Website” CD on a magazine and then start offering websites for $99, devalues what true/trained designers working in the medium of the Internet are doing.
I also try not to work for people with a $100 budget as there is always as much work involved in a simple logo as in brochure…but people seem to accept the fact that a brochure will cost them more?
So much so, I recently did a job for ‘friends’ – always a mistake – but after 3 weeks work, 5 original ideas, fine-tuning the final logo and implementing it for print and digital media, by ‘mates rate’ bill of $300 was scoffed at!
(I feel better for that)
Jun 8th, 2009
gholem
Wow! Do you have any idea what prices are in Romania? There are “companies” that charge 25 dollars on a logo or so. And this happens only because there will always be some hungry and cheap students that would charge the smallest price ever just to get some food on their table.
And, please don’t fool yourselves, those students work very good and they’re full of good ideas and understand the concept of marketing, advertising, pr and publicity.
Jun 15th, 2009
Aaron
i have recently entered into design… finally got my finger out and decided to get images out of head and off the paper and onto a computer… however i’m finding it hard with the pricing as i dont know anybody in this line of work… my projects are rather small and for people i know which is an added obstacle… so i cant charge huge amounts… however… i cant constantly sell myself short… is there a rough standanrd to go by or is it a case of just winging it…
need guidance…
Jun 22nd, 2009
Troy
Aaron:
“i have recently entered into design… however i’m finding it hard with the pricing as i dont know anybody in this line of work”
I’m in the same boat. Added to that I have no formal design education and a very limited portfolio, so it’s difficult to “sell” a client on a project at a reasonable rate. (that brings up another question I thought of about what you should include in your portfolio… but that’s for another time I guess)
Jun 29th, 2009
David Airey
Aaron, Troy,
Back when I first started, I found it useful to set myself an hourly rate — one I’d be happy working for. Then, when confronted with a new client project, I’d estimate how many hours it would take, and multiply by my hourly rate, giving myself a rough estimate.
With experience is becomes much easier to set flat rates, but there’s no exact science given the wide range of variables.
Hope that helps a little.
Jul 2nd, 2009
julie t
I have a general question, which we are on the subject of pricing. I gave a reference for someone to design a logo for a family member, and they gave 5 different options to choose from, but they were all stock graphics. The charge was $500. I wondered if this is usual business practice to use stock art graphics with some wording and charge that for a logo?
Jul 11th, 2009
David Airey
Hi Julie, no, it’s not normal business practice, and some stock art websites will label it a breach of copyright.
Jul 12th, 2009
Janey
David I think your website is great!!!
I live in Dublin, Ireland and studying Graphic Design.
Im doing a lot of freelance work and having problems figuring out prices.
I came online to look for some advice and your website has been the best very informative, love the layout!!!
Very happy with the information I found, I will definitely be adding this to my fav list ;) Thanks
Oct 28th, 2009
David Airey
You’re very welcome, Janey. Good of you to drop by and comment, and all the best with your studies.
Oct 28th, 2009
Marina
Hi David, i love this page, there’s a lot of information for us designers, and i have to say i visit it every day, for research, doubts, inspiration, everything really. I found very useful all the posts on logo pricing.
And continue with the discussion, most designers have lowered their prices at least one time in their designing time, but it is a real problem because clients don’t take design seriously, im from Mexico and design over here is not valued the way it should be and it makes me mad, really.
Nov 6th, 2009
Locke
I utilize quite a lot of software in order to complete my requests depending on what the demands of the clients are and the style of their logos. I also make true 3d photorealistic logos or logos with 3d elements when needed (AFTER explaining the difference between vector and raster).
I charge a very VERY small fee (usually between $10-$65) and I never have to make a second draft after my meeting with the client. I just took a job full time as a GDesigner because I underestimated the value of my work and wasn’t able to hold myself over and go to school. I personally think that educational institutions should teach students how to value their work becuase at school the process was/is undervalued and taken for granted (I thought anyone could research and make a logo).
Most of the time I do use Illustrator, but sometimes raster (photoshop, max, maya, alias, mudbox, zbrush, corel) works just fine for logos (print work). I am not “professionally experienced”, but this is my hobby and my passion.
That cube logo at the top would take me about an hour or two raster and I wouldn’t charge over $100 at all, but that is why I am reading these posts as it is very hard to assign a numeric value to my work. I dropped a logo in an hour today my boss said was a $1,000 logo so I am extremely alarmed and depressed now (and we only got $125 for it, but there is NO way I would charge $1000/hr no matter how complex a logo – animated logo would be a lot different though)!
Dec 16th, 2009
David Airey
Locke, that’s why I advise against hourly rates. A flat fee for design projects wins every time.
In the words of Paula Scher, “It took me a few seconds to draw it, but it took me 34 years to learn how to draw it in a few seconds.”
Don’t sell yourself short.
Dec 16th, 2009
Lele
solid gold .. extremely resourseful and informative site!
+fav & +follow
thank you for saving me hours of research hehe and at least giving me a base to start with! :)
Dec 30th, 2009
Chris
David, what are your thoughts on designing a logo with an agreed license specifying an amount of time of use, for example: five years? If a designer still charged a reasonable rate, but was lower than full market price. I would never advocate designing any logo for less than $250 to $500, but if an upstart company wanted a low-cost logo, wouldn’t this be a option to look into?
Jan 26th, 2010
David Airey
I’ve never heard of a similar idea, Chris. I’d not recommend it. A logo should be developed for the duration of a company’s lifespan, and sold as such, too.
Jan 28th, 2010
Marcello
Hi,
i’ve been designing for personal use for 5 years now and i love doing it. i was recently approached by a local car dealer to create a new logo and business card for his company. i design very creative business cards and i sell them to people very well, although i believe i undercharge. i charge 250$ per side for a very unique style business card (as opposed to 150$ per side for a plane white business card with the logo in the corner and the persons information). i feel i should be charging more for the creative cards because they’re like what no one has ever seen before. would i be overcharging?
second question, and this one is more useful to this blog. This same client wants me to create a logo for 100$, personally, for 100$ i’ll draw on a napkin and give that to him because i know how complicated and long it is to design the perfect logo for a company (and i’m not willing to do it for 100$). But i need to know, as a salesman, how to make your client understand how valuable a logo really is…i want him to know why he’s paying 750$ for a logo. can you help me find the right words to sell a logo to somebody who thinks it’s simply a 2 color design that should take no more than 2 hours to make?
thank you so much! i love this website!
Jan 30th, 2010
Sam
I have owned an ad agency for 33 years. I am also the creative director. I have created countless logos for small, to medium sized companies. Some of those companies have grown to large corporations and I am happy to say my work has played an important part of their growth. Creating a truly successful logo requires more than an understanding of good graphic design principles. It requires a unique ability— an almost intuitive skill… to translate a marketing message into form and shape.
I never charge less than $2000, and generally charge $4000 and up. This is intense work. I usually spend at least 40 hours to develop a series of looks for a client to choose from. Once the final design is chosen, another 20 hours can go into the final work which is presented in color and black and white.
Stationary and corporate identity guidelines then follow and these are charged separately.
When I started out, all those many years ago, I charged $500. Obviously, my years and experience have put me in a higher bracket, but we all start out low and work our way up.
Feb 2nd, 2010
Marcello
Hey Sam, thanks a lot for your advice, that’s really helpful! i really needed to find the right words so that these small low budget companies wouldn’t try and hustle me out of my work. i’ll be able to go tell that to my client now!
thank you
Feb 2nd, 2010
sam
Marcello and other young designers-
It is important that you convey to your clients that their brand identity is an investment in their company. It is not a one-time project, but something that will walk the path with them for many years. The logo will appear on everything and set the standard for their company image.
As designers, and generally passionate expressive people, we all want to help others. That is an important aspect of life. That’s why there are times when we see an exceptional entrepreneur, with an amazing product, we may “give away” our work at reduced prices. That’s just who we are. But on the whole, no experienced, good designer should be doing logos for less than $750.
Feb 2nd, 2010
David Airey
Well said, Sam. Great advice.
Feb 5th, 2010
Danielle
wow, I have learned so much in the past 15 minutes reading all these posts. I am just graduating design school- however I have won many logo design contests while in my studies and I am excited to have gotten that opportunity. While I did not charge since they were contests and I was just excited for them to be in my portfolio, I am now making logo’s from word of mouth and am not sure how to approach it as far as pricing is concerned. I am an extremely giving person thus I usually sell myself short. As a young designer I am afraid people will expect low prices therefore that is unfortunately what I present. I am doing a logo for someone opening up their own business and she has asked for a logo and a brochure, I was thinking maybe 350$ for the logo and 25$ an hour for the brochure. I’ve been trying to research prices for small businesses and such but I just don’t want to set a price and drive the customers away if it’s too much. How can you tell how much a client is willing to pay?
Thank You!
Feb 5th, 2010
sam
Unfortunately Danielle, there is no easy answer to this. This is always an educated guess at best and the education comes with experience. Keep in mind, as a young designer, getting work for your portfolio is extremely important. Work that was done in school only shows an artist’s promise and does not carry the same weight as work that was accomplished for a paying client. bringing in a new client, even if you work at reduced costs, will teach you important lessons. Many of these lessons you learn at the expense of the client. It isn’t all about how good you are as a designer. You need to learn how to present yourself, how to collaborate, how to dress to convey professionalism, how to prepare an invoice, how to follow up and keep that relationship alive long after the project is ended.
Don’t be afraid to take on a job, even if you don’t make as much money as you think you should at first. The experience you will gain will force to to think creatively, work with copywriters, deal with printers and the media.
Then as you feel more secure in your new business, you will, and should, start to raise your prices. The best gauge however is the success of the client. Is your work sending them to the bank?
Feb 7th, 2010
chris
Thanks to everyone who posted the really useful info above! I have a related question:
As a freelance designer, how do you charge your clients? Say you quoted them $50 an hour and estimate 20-30 hours. Do you ask for a deposit first, with the rest upon completion of the project? And what if you are unable to come up with something that the client likes? (Still gotta working on building up the confidence….)
Mar 11th, 2010
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