Professional Logos And How Much Should You Pay?
I get this question all the time, How much should I pay for a professional logo? My students, my friends.. even my clients ask this question, among How To Design A Professional Logo. The answer is actually very simple, yet not that simple. Without dragging out a ton of pointless, irrelevant information and business politics, like other pretentious blog posts, I will answer this questions fairly quickly. There are a few things I need to clear up first, just to give you (the reader) an informed and accurate diagnosis of what exactly “professional” means. But before that, Im going to give you a little story about my graphic designer friend and how they work out pricing and logic. Now I do not stand in any position to promote this logic or discourage it, it is simply just her opinion.
A Designers Opinion
A few days ago I was sitting with a designer friend and talking about logo design and how much they charge. She told me that she once had a meeting with a client and the client asked them to draw a rough sketch, illustrating a logo concept for there business. So my friend happily drew it for them, taking around 5 to six minuits of illustration time.
She then displayed her drawing to the client, to which the client, ecstatically grinning, responded “That’s it! you just nailed it right there!So my friend, being pleased with the design, then laid out a price.. Ok if you are happy with the design and do not require revisions, then my price for this will be £1499. To which the client then asked “Well how can you charge that, for 5 minutes of work?”, to which she replied “well it may be five minutes of work in this room, but to draw it that quick and accurate took me 9 years of illustration knowledge to perfect. Also you need to consider education, ect. “So that is how I draw up my pricing, as well as illustration”. The lesson here is that the client should never assume “time” as a method of payment. It simply doesn’t work, I do somewhat value her method of pricing, but there are still a lot of more things to take into consideration. On to the more pressing point…
So What Is Professional Then!
Well according to experts, professional means a person engaged or qualified in a profession. But that doesn’t necessarily help us with why the term professional is used in terms of skill. Firstly I should point out the I am no means a professional however, I do work with some of the most professional and profound artists in the industry today, here at Company Logo Designer and I feel I am well informed enough to know now what a professional is. In my opinion, being professional is the person who holds expert advice, much like a doctor. A professional will diagnose the problem and an amateur will advise.
This is key here because I feel that a professional will be able to effectively illustrate the problem within your business and work with you, “the client”, of how to solve them problems through their skills. Now being a graphic designer is of course a skill and a professional will use this skill to help diagnose and work out the problem professionally, to effectively illustrate perfect design elements to there business image. It should be performed by causing the client the least amount of damage to their business through illustration, and of course boost profits. So you see a professional does more than just sell the product, they diagnose the problem with the client and help the client illustrate a perfect business image. This in turn is worth way more than an advisor or amateur in the field of illustration.
So How Much Do Designers Charge?
Well some designers in the Graphic Design industry charge around 30 to 60 pounds a logo. These are mostly, freelance designers, trying to get clients through websites like up work. They charge quite a low rate because they are looking to get a lot of small clients, to make up their revenue. None of these, however will include brand strategies or color implements. They will only value the work on the merits of the money, so the logo in turn is worth mostly no value. The time spent on this will be around one to two and a half hours. There will be no supporting elements considered in these packages, the consideration of icons, typography patterns, so they pretty much work on a very small value scale.
Now on to the more pricey designers. These designers can charge anywhere between a hundred, and ten thousand pounds. Some in the design industry have even charged thousands and some insanely merit their work on millions. These designers, however pretentious you think of them have all come to the conclusion that their work is worth that money, and not everyone has the assured talent of David Carson, Chip kid or Michael Beaut, but, believe it or not, most designers that charge what is believed to be an extortionate amount. They do have some sense in what they are selling, not because ones head is up ones ass, although I have met a lot of these designers, but more because they believe that they are professional.
Now some designers have a ridiculous markup, for example, BP logo cost 211 million dollars or 171.172715 million pounds! This logo was built on the objective to create an environmentally friendly image. The logo is suppose to illustrate a flower growing from the sun. The method of marketing involved was to convince BP’s clients of being environmentally friendly. Whatever your opinion of BP, this logo required some serious thoughts into the initial design of marketing, however without the politics involved on the illustration, we feel that this price is ridiculous. Which in turn is quite ironic for the initial design elements for the client.
There are more examples. The Norge logo cost 55 million dollars, So how do these designers get away with such extortionate prices? Well, the answer is of course the value to the client. Small boutique businesses don’t have a lot of risk involved when promoting products with their logos. Whereas big companies can involve a huge amount of risk, when receiving a poorly illustrated design. They also have a lot of products that they need to put the logo on. So you see the risk becomes a lot higher, one wrong Illustration and they would need to require a reprint of their whole entire stock, vehicle graphics, magazine’s, flyers, everything.
That Is Why The Designer Always Prices The Client And Not The Job
The other way people price their design work is through the economy of their business. If they are running a large building that requires a lot of computers, staff, all that fancy schmancy stuff, they they’re going to require quite high return on their products, and of course some other design companies will only have a select amount of clients. So Designers price their products quite highly, because they know that there might not incur a lot of work In the future.
So what does Company Logo Designer charge? Well, we have an extensive research program that was launched a few years ago to see what the best value is for our clients and we feel that we much prefer repeated business over disappointed customers. We also love the higher end of the scale of illustration, this is when we love building a product, that our client is happy with, that we know will work amazingly well for them and will promote client sales and the client will eventually thrive in their industry. Anyway enough about our team, let’s get back to the question at hand.
So How Much Is A Professional Logo Worth?
The main price the product should be valued on is what the client values and thinks that there product is worth to them. Now obviously that is quite hard to price because it is in their head and not yours, but with most logic, you can diagnose the problem this way. From this view It is very easily to see how the client needs to be directed in terms of illustration. From there you can come up with the price from the client. That price maybe a lot higher… maybe a lot lower… but it is the desired price and that price is the relationship between you and the client and the illustration.
And that’s the magical moment where you will definitely know the price. There is no real guide to pricing and there has never been, you can research all you want but you will be stuck at the beginning again with the same answer. That old saying the client is always right, really does mean all that!
Thank you for reading. I hope this article helped you in terms of pricing illustrations.
If you wish to learn more on pricing strategies and whatnot. Please do read some of these books, One of them, I highly recommend is called: No BS price strategy the ultimate no holds barred kit, but take no prisoner guide to profits power and prosperity by Dan S Kennedy. It is an exceptional read and explains all of the pricing prospects in more detail. Another great book is the arts of pricing new addition. By Raffi Mohammed.