Q & A: Pricing Logos

Every once in a while I get an email from a reader with a question related to one of my articles or blog postings. With the permission of the writer, I thought I'd publish the most recent inquiry. Maybe some could benefit from our conversation.

Writer writes:

Hi there, I found your information online while doing a search on logo design. I love the article you have about the steps you take to design a logo. I'm trying to get my foot in the door with designing logos but I wanted to know if there were actual things I have to consider to determine a correct price for the client. I'd like to charge based on how many hours it takes to design the logo because ive read somewhere that that's what you should do. I just can't determine if I've covered everything I should to determine how many...I'm looking for a guide to go by and would appreciate any help you can offer.

Thank you!

My response:

Thanks for letting me know you liked the article; I appreciate it!

I think pricing is tricky when it comes to design. Not only does it vary from designer to designer, but on the location you're working from as well. I've heard a couple of different theories on how to price logos. Some just go by their hourly rate. Others created a package price. Another way I've heard is to charge a starting base of $500 and then add an additional $100 for each employee the company has. This way, the cost is proportionate to the business. Since logos are the only means of design that can be sold as an asset, they should definitely be priced accordingly.

For myself, I allot myself about 18 hours for research, font selection, design and revisions, plus compiling the logos onto a disc for the client and multiply this by my hourly rate. I have found that sometimes I go a bit over and sometimes I come in under, but having a set price for this particular job makes me feel more comfortable. All other work I do is by the hour. Logos and stationery sets are the only jobs I do that I have a set "package price" for. Also, I find that this end price is competitive with what other designers are charging in my area.

Hopefully this helps. Sorry for being somewhat general and keeping it slightly vague; so many variables go into pricing. Good luck with your design career!

I thought I'd publish this because I get questions from time to time about pricing. Hopefully this will help you out as well!