Recently I was asked by another graphic designer how much he should charge one of his customers for a logo design. Below is an edited version of what I told him.
I have three (3) different rates based on small, medium and large scale businesses with the last two (2) coming with perks like a ‘stationery package’.
For start-ups or small businesses I currently charge a reasonable rate that does three (3) things:
1) It is a good and fair price for a new graphic designer and
2) It makes people see the value-added of having a logo design and
3) It communicates to people that a logo is not a mere ‘commodity’.
You have to evaluate each client and what they say their budget is because you stand the risk of being “low-balled” since people will always try to negotiate the lowest possible price. You need to establish your price and let them know what that figure is. If they ask for a “discount” let them know you do not give discounts, but you might be willing to “not include” a specific charge in the overall cost for let’s says “online research” or “development of concepts”. This makes the client see the value of your work.
In this particular instance, as you said, you might get ongoing work from this client so that’s something you can factor in when you think about charging him. But establish a fair price and if anything you can offer this client a lower price if he says to you it’s too much. You will have to look at how low you’ll be prepared to go. Sometimes a little bartering is good where he can give you something else of value for you taking off a specific cost off the overall price.
In the end, you have to know what payment you would be comfortable with.
Fun Fact: The price for logo design is not just for labour, but more for IDEAS.
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