The design industry, as compared to other industries, has one major, challenging flaw-there's no finite model of comparison, no global understanding of “value” when it comes to design work. To give an example: the college kid a couple doors down will make a logo for you for 200 dollars. The major studio downtown will make you a logo for 4,000 dollars. What's the difference? Some people would say that 200 dollars is too expensive. Others would say that 4,000 dollars is a steal! Still others would have no idea! The point is, the value of design (in this case, a logo) is too abstruse, distant. Many have no idea how much design runs for. Why? Because many people have trouble “imagining” the value of design in terms of dollars or yen. There is no tangible day-to-day value relationship between design and most individuals. Because most people don't have everyday experience with design-related transactions.
A new pair of jeans will cost you between $30 and $200. In this example, what do you think about the pricing? Yeah, $30 is cheap! Most people will agree. In general, we have a solid understanding of the value of a pair of jeans-because everyone wears them! Ask someone the same question about good design and what will you get? Most likely a blank stare. Any customer who requests a logo design, understands the value of a logo internally and to themselves, it's a designer's job to turn the customer's perceived value into not only a price, but what its true value is as a business with a brand to build.
The truth of the matter is that $200 pair of jeans didn't take that much longer to draw up than the $30 pair, but what you get in return (for spending the extra bucks), is recognition for wearing something “brand”. You also get a better fitting product, something that will last you longer, something more tailored and also a bit more confidence because you know you invested in something worthwhile. Our question, if you haven't already asked yourself: How different is that from design? Before someone can finally find a pair of jeans that fit just right, they need to spend time researching. Learning about their body, sizes, fabrics, cuts. They then have to compare that to the price of the jeans and make a decision. Is there value to be found at that price point? Does the price of the product equal the satisfaction and value felt as a customer?
Really and truly, design is no different. The only problem is, unlike jeans, customers can't learn through experience with design, especially when they've never ordered design work before. So this information has to come from somewhere! Ask your designer for industry rates. A designer should be able to get past this whole “tangibility” misconception by telling you what the market usually charges. Just like when you buy jeans, the prices could be all over the place, but at least you'll have a general idea. Sounds easy, but before a designer can explain a product's value, they must first understand how it relates to your business.
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