Wow...I need to go rethink my entire life now after reading through this thread.
I guess my problem is I don't see value in design. I try to charge by the hour, because I'm mostly working for sign shops who need to turn around and charge their own customers. My prices are more or less dictated by the overall concept of design value in the sign industry.
If I even tried to charge $800 for a logo, I think I'd starve. But I only think that. Maybe I need to get over my own inhibitions and develop the confidence to charge the value of a logo.
Here's a question Rick: Say you charge $1000 for a logo design, but the design comes to you in 5 minutes. Do you send it off 5 min after getting paid? Or do you hold back a while so the client thinks it's taking longer and they're getting value for what they paid. Or do you just do some more concepts to fill in time?
I'm not being facetious either. I'm really curious. This is something I struggle with.
Neato,
No design takes 5 minutes to execute. In my case, if it did take 5 minutes, 5 hours, or 5 days, it's taken 20 years of experience plus those 5 minutes, 5 hours, or 5 days. Why penalize yourself for being good, or efficient. You didn't get that way by accident.
I don't think we're really any faster today than we used to be. In fact, I'd say we're the opposite. We budget 30 hours to design a brand. And 95% of the time - it takes that and perhaps even more. We put a lot more time and thought into our work than say 5 or 10 years ago. Which is why our rates have increased as well - to reflect the time it takes, and the value of the brand.
Would you rather do 4 logos for $200 a piece or one for $800? We do all start somewhere. My first logo sold for $25 in 1995.
Awesome post Dan..
Neato,
The design I did, took about 10 minutes to execute, then the wrap and
cards about a half hour... but thats not what actually happened...
I design ideas... not images... and usually try to convey that in the most
simplest form.
I saw this thread and was going to ignore it but let it stew in my head...
there are a lot of things rattling in my head, like, will we get this booth done.
I stumbled on a business card that had a logo in that similar shape, then dawned
on me, use that shape but make it look like an umbrella. I posted it,
got ticked, then designed the card and wrap for this show, then re-posted.
I usually break even or lose money on logos at 1000. I charge more now.
Most never come to me that fast. If this was my logo job, I would have
shown this, with a few other designs. Many, many times, I design
20-50 concepts in rapid succession then stew on it, the noodle with them
then only show a few designs. Some logos I will only design 2-3 and it can
be painful. I will not cut my price if I design too fast, but on the other hand
I will not penalize the client for using up my budget. Like Dan, I'm slower
than I used to be. I learned to design fast because that was what was required
at the sign shops I worked at
As far as pricing... I need to make a living, I need to pay for my software,
computers, printers, ink, taxes and all the stuff that deals with running a business.
I have nobody else that contributes to the household and no insurance benefits
plus having four kids, one starting college... my household needs dictate what I need
to make... then being 51, I have to worry about getting older.
My advice...
#1 - STOP THINKING LIKE A SIGN SHOP... (unless you are one)
Your sign shop clients... are they replicators or artists?
Replicators need to worry about the bottom line. Realize that that's all they will
pay... but don't use them as the benchmark for what you should charge.
Never use the lowest common denominator dictate what you should charge.
#2 - GET DANS BOOK - and maybe subscribe to design magazines like HOW,
Print or maybe Communication Arts. There is also a nice book called
"Talent is Not Enough" about running a design business... this is for small freelancer
like yourself to a design firm of a few people... a very good read.
http://www.amazon.com/Talent-Is-Not-Enough-Designers/dp/0321702026
#3 - Have a plan for how you want to work, what you will work on, and your goal
on what to charge. Then have something to fall back on related to design and master
that too.... I have drafting, sign design and layout and print layout. Right now, I
make way more money on that than anything else.
AND THE BIGGEST THING
#4 - Recognize your business and your family has needs too. Plan your future
growth and realize that 200 buck logos, even one a day will not sustain you
or your business in the long run.