Confused about how to price creative services? Are you charging hourly versus value based pricing? Is there a better way to determine what is fair to you and fair to the client? Watch this video and see how much money you are potentially leaving on the table by not pricing the client. We’ll break down why it’s important to price the client and not the job.
One of the biggest determining factors to how you price your design work is value. Regardless of what you’re designing, be it a logo, website, brand identity, or event poster, you are providing some kind of value to the client. This can take the form of more customers, better brand recognition, more conversions on a website, or more tickets sold for an event.
Your design work is an investment the client makes to improve some part of their business. This is what we mean by pricing the client and not the job. Clients always have a budget allocated for resources to complete a specific project. They have the finances to make these projects happen.
So why are practicing designers still working for $50? When you can’t communicate the value, you can’t price accordingly.
Think about the Nike logo. Simple, right? Well, not exactly. That logo is worth billions of dollars. Put it on a plain white t-shirt, and that shirt goes from $5 up to $20. That logo is an essential piece of the brand that creates recognition, trust, and impact. In turn, these are just some of the aspects that bring value to the client.
Going into negotiations and sales meetings is not something that comes easily. It takes practice, preparation, and patience. Clients may want you to break down your hours, or explain why you’re charging a certain amount for design work. Share your process, ask the client what they want to accomplish out of the engagement, and walk them through how you can help them do this.
Design ultimately solves problems. You’re being hired to resolve an issue for the client they aren’t able to do single-handedly. Charge accordingly, but make sure you have a way to back up your statements and overall pricing structure. And remember to communicate the value you’ll bring throughout the conversation.