A Comprehensive Guide to Pricing Your Branding and Design Services
Not sure how to price your branding and design services? Here’s a guide on how to charge the right prices for your work!
In this post, I’m going to delve into the art of pricing yourself effectively and increasing your design service rates. When I started Studio Terrae, I wasn’t sure how to effectively price my services. I didn’t know how to break down my pricing, what to charge, or if my clients would be willing to pay for what I was offering.
I understand that determining your pricing can be a daunting and confusing process, which is why I’m breaking down how I went from charging $400 for my first branding project to now charging over $2,000 per project.
A Note on Charging by the Hour
It can be tempting to charge hourly rates when first starting out. However, I would advise against this strategy for a variety of reasons. First, your hourly rate might not take into account taxes, time it takes to communicate with the client, or other overhead expenses.
Charging by the hour might also cause clients to focus on the time that it takes to complete a project, rather than the quality of the outcome. By charging hourly, you attract clients who want a quick fix, and who might not understand the value that your services bring to their business.
You may be tempted to charge hourly in order to ensure that you are paid for your time. However, considering your expertise and creativity is essential in pricing. You are not just charging for your time, but for the value you bring to the client.
Start by determining your base price.
I prefer to charge a base price, rather than charging by the hour. When designers charge a base price, they can avoid being compared to other designers and bring the focus back to the value add.
When determining the pricing for your design services, it is crucial to consider both the market and the value of your offerings to potential clients. Many brands will need education about the value that branding provides. As you pitch to different businesses and gain experience, always keep in mind the market demand for your services and how different types of businesses perceive the value you bring.
Setting prices should begin with a close examination of your financial goals and basic needs, both personally and for your business. This analysis will provide a baseline for the minimum amount you can charge per project. It can be a revealing process, as it may highlight the infeasibility of charging too low, especially if you have ambitious financial targets, limited project capacity, and a need to maintain profitability.
Remember that you can increase your prices as you gain more experience and skills. As you take on more projects, you can incrementally increase your pricing to better reach your financial goals. As you grow, you can also incorporate different variations of a base price, including day rates or monthly retainers.
Understand your Client’s Financial Situation
Understanding your clients' financial situation is essential to accurately pricing your projects for mutual profitability. That’s why it’s important to go into every sales pitch with a list of questions that will help you understand the client’s financial goals. I’ve found Better Brand Designer’s list of sales call questions to be particularly helpful.
These carefully crafted questions will allow you to gain insights into your clients' current circumstances, their revenue, and their investment capabilities. Armed with this information, you can then determine an appropriate price for the project, taking into account your minimum requirements as well as the value you deliver to the client.
Adding Additional Value to Your Services
One of the most effective ways to add value to your branding services is by incorporating brand strategy. Brand strategy is a fusion of clear and imaginative messaging, the brand's commitment to its customers, its distinct personality, voice, and visual identity.
As a design professional, providing your clients with a solid foundation of brand strategy alongside your design services is imperative. Neglecting this aspect not only undermines their potential success but also hinders you from charging the rates you want.
Educating your clients about the significance of brand strategy during the design process is part of your responsibility. Once they grasp the long-term value that a robust brand strategy can bring to their business, they become more inclined to invest in your services at a higher price.
What’s Next?
Now that you have a better understanding of how to price your branding and design services, it’s time to get in front of potential clients and test your strategy. You can always modify your pricing as you gain more experience and book more projects. Keep in mind that this is an evergreen process!