One of the most important aspects that your logo design company must consider is to know exactly what to charge for your product or services. As with any business, knowing precisely what to charge is one key towards success. In your business, you must price your logos at a point that it’s competitive with similar providers, and yet still afford you enough revenue for your business to continue to operate and grow.
In this cut-throat business, you will have to rethink how much you are willing to charge for each and every project. To provide you an overview of how much your logo is worth, there are a few factors you must consider. Below are some of the vital factors to think about before you quote a prospective customer a reasonable price:
1. Experience and Expertise
The more experienced you are in logo creation, the more right you have to demand for a higher cost. The better the image of a logo design company, the higher they generally charge for their expert services. But, make sure that your final price remains relative and reasonable at all times.
For instance, if you have accumulated decades of experience in a specific logo design type, however your customer demands an entirely different one outside your expertise, never rely on your highly irrelevant experience to raise your price a notch higher.
2. Time and Effort Involved
Ascertain a definite value for your time and the duration it’ll take for you to complete the job. Knowing exactly what you want to earn on a per hour rate is a good starting point. You must also determine the pricing for that particular timeframe. For example, if you have set your hourly rate to $100 and a logo design takes 30 minutes to complete, then the charge for your time is $50.
Is the project difficult? Will added effort be exerted for its completion? If your answer to these questions are all a resounding ‘yes,’ then you need to set the bar higher.
3. Check Your Competition
It is always best to check on your competition for pricing. A great way to know what price your market will bear is to go ahead and spy on what your competition is charging for comparable services. Ensure you research providers who deliver exactly the same kind of services as you do, both in terms of quality produced and expertise.
4. Know Your Profit Margin
Always set an objective profit margin when working on logo design projects. Upon careful determination of hard costs and assessment of your competition, add in the profit you want to make per logo to your costs.
5. Compare Pricing With Competitors
Make it a habit to compare your pricing with those of your rivals. In case you are priced just below them, you may then be inclined to raise your rate for prospective profits. When you are priced too high, then ascertain if your logo design work and experience calls for the costly rates. Otherwise, adjust your prospective profit or find ways for you to effectively reduce costs.
As a general rule of thumb, you must not accept a logo design work for which you do not have adequate resources to complete. Be sure to come up with a clear and specific contract and agreement with your customers. You do not want to end up offering more services for peanuts!
Lastly, always be honest. Your customers highly expects of you, if you tell them that you can meet their deadline, then do it by all means! If you can’t or won’t, notify them as soon as possible.
