Design work pricing?

[Matt Geraci]

New member here. I'm an engraver and sandblaster by trade - lately I've been creating logos for various customers. I'd usually roll up the design work into the cost of the item I'm engraving. But today I just got word that a design I submitted for a restaurant was chosen to be their logo! Very exciting. I submitted 8 different proof designs not even thinking that any would be selected. It's a simple, yet elegant design and they will be "buying" my design and having signs made (by another shop) for the business and using it as their logo. They've asked me to tweak the design a bit then asked me to send an invoice for my services and the design... ?!?! So in a completely unprepared fashion I'm posting for random help on the internet on how to charge for design work that will be the logo for a business... any thoughts from you designers? Thanks in advance --
Matt

[Joe Pelonio]

We did that kind of work at my sign shop, and charged $100/hour back in 2006-07.
That's a bargain compared to what a design/branding firm would charge, but my designers were students at the Art Institute, not seasoned professionals. Now there are also many websites offering this for $100-300 total, some using offshore workers, but don't sell yourself short. Your creativity is what got the job, and it's worth money.

[Art Mann]

I don't want to be too pessimistic but the value of design services depends entirely on where you are and the circumstances. My wife ran a graphic design and page layout business for 15 years. She also worked as an advertising designer for a large printing company. She has designed literally 10's of thousands of logos for companies over a 25 year career, as well as graphics for big sales campaigns. If she had asked anything like $100/hr in our location and context, she would never have gotten the first job. I agree with Joe that talented people often undervalue their work. On the other hand, nobody is worth a single penny per hour more than someone else is willing to pay them. It is just as easy to snuff out a beginning business by overpricing as it is to cheat yourself by underpricing. If you overprice, you will know pretty quickly.

[Dan Hintz]

I agree with all of the above. There are websites (which I have used more than one in the past) that allow you to set the price you're willing to pay (held in escrow), and multiple artists throw rough ideas out for your selection. Pick one, then the artist cleans up and tweaks the design to your final specifications. You get the final design files, and the artist gets the money.

Cost? I've seen decent (simple) logos go for $50, and more complicated ones go for a few hundred.

Analysis? Good design can come quite cheap these days... it's not guaranteed, but the field is full of inexpensive yet quality work.

That's not to say you should go for similar rates, but here's the rub... you didn't negotiate a price BEFORE you started work, and that puts you in a bind. How do you fairly charge them for work (and "fair" has to be agreed upon from BOTH sides) that was never the main idea in the first place? You were hoping to get paid for the engraving work, but now someone else is doing that side of things. Charge too little, and the customer's friends will swamp your door and trample you with cheap work... charge too much, and the customer will balk and not pay you a dime (seen that happen many a time). To make it more difficult, you're competing pricewise with some of those high-quality but low-cost artists.

I don't envy you this part of the task...

[Mike Null]

Here are other considerations you should be aware of.

http://www.aiga.org/copyright-basics...hic-designers/

Generally, when I design a logo for a client one of my objectives is to design so that it can be used in both color and in black and white. That becomes important if they want to print on packing slips, invoices, internal documents and some forms of print advertising. I also discuss all the applications they expect to have so that I can design the logo to fit each application. Sometimes an abbreviated version of the design may be needed for certain applications.

My policy is that if they pay me they become the owner and I provide art files in several formats so they can provide them to various suppliers as needed.

[Matt Geraci]

I appreciate all the feedback. I've spoken with the client and we're working out details. They are very excited about the design and desire to compensate me, so as we're working through the final tweeks I think we'll find a happy solution... all of this which will help with direction for the next gig. Thanks much y'all!
M

[Lloyd Nauss]

Mike Null captured the essence. I am a graphic designer by profession - 25+ years. My quotes for corporate identities, which encompasses logos, word marks and logo-types start at $3000.00. Theres is a difference between a logo, word mark and logotype - each brings its own message to the visual language. I offer 50% discounts for registered charities. This price includes many hours of consultation and meetings with the clients before the work starts. It also covers copy-write research and issuing copy-writes to the client - in the end they own it. I usually present 3 ideas based on the info the client has submitted and or discussed with any particulars included. Once one has been selected, I refine and get sign off from the client. Now the work starts, more or less... The corporate mark gets adjusted to work at various sizes - i.e.: lapel pin, stationary sign and billboard. And yes for proper visualization/context the mark has to be adjusted. This applies to black and white or reversed, grey scale and full colour as well as web/RGB colours. I also quote extra for the stationary design as this is a second step to "branding" the business and is just as important as the mark and quote for all other requested materials. In the end the client receives a mark which will stand the test of time, is adaptable to many applications, is copy-writed for the client. I have designed marks that are just as fresh today in the market place as they were 25 years ago. The cost amortized over 10, 15 and 20+ years is worth the effort. Also a mark that works every time saves the client money and headaches... and reduces charges from suppliers and generally speeds up the supplier process. Nothing like getting a call from a supplier saying they can work with your logo! And yes I have not always been awarded the job based on the price - but the results show. As a general marketing rule for business 5% of gross should be spent yearly on marketing, promoting and selling yourself - a lot of people don't do this. Some succeed - most don't.

Cheers...