Justifying logo design costs

topic posted Wed, December 5, 2007 - 8:40 AM by  Jason
Ok...I know I shouldn't have to justify anything to anyone if I'm confident and comfortable with my work. But I have a client that I've been working for on a number of projects who doesn't get why design takes time/money. He's pretty ambitious and strong-willed with his vision of what he wants his stuff to look like. Under other circumstances I wouldn't take him on as a new client, but there's a bigger, long-term potential to the situation that I'd like to hold on to as the communications manager / lead designer of a new, large company.

I designed what I consider a great logo for his first business that is used on busses, billboards and countless magazine ads and printed marketing materials. Now he's starting a new business and he wants me to 'replicate' a logo idea he has in his head and can't see why it would take more than an hour or two of my time!

Again, assuming I don't want to lose this client, and that -more importantly- I don't want to be making marketing materials as the lead designer for the company using a logo that is a quick, hack job, nor do I want to have someone else do a shitty job and have to use their hasty work....I'm less concerned about the money I'd get from the hours of work and more concerned about ending up with a good logo and keeping the percieved value of my work high. Even if I did it pro bono, I'd still want to show that this stuff takes serious work. He sees a little logo as a very simple design process.

Does anyone know of any websites I could show him to 'prove' how much time, energy and money go into making a successful corporate logo. I don't like having to justify it, but that's how it is, so there's no point in telling me to drop him, or let him go somewhere else and find out how much they charge etc. I just want some third party, objective breakdown of the time and expense of designing a successful logo...something to show him casually in our discussions about it. (I consider it part of the job as his communications manager to lead him in the right direction and help him understand the process to some degree.)

Any help is appreciated.
Thanks,
Jason
posted by:
Jason
Vancouver
  • Re: Justifying logo design costs

    Sun, December 9, 2007 - 7:39 PM
    > He's pretty ambitious and strong-willed with his vision of what he wants his stuff to look like.
    > Under other circumstances I wouldn't take him on as a new client.

    Does this guy just need to learn and is willing and able, or is he the type that will never give up on what he wants vs. reality?
  • Re: Justifying logo design costs

    Wed, December 12, 2007 - 7:52 AM
    My company says this, we are not selling our time, we are selling our ideas.

    In that, how much is your idea worth to you? I often have clients who have projects they've designed and just need me to build. I consider these different than projects where I am using my own creativity, and adjust charging accordingly. If you truly are just building a design he's already created, maybe you should just charge time for it, if you are creating a design from your own creativity and ideas, then you should consider what those cost, not just what your time costs.
  • Unsu...
     

    Re: Justifying logo design costs

    Thu, December 13, 2007 - 3:26 PM
    A few thoughts on others posts and the OP

    The price paid to (Interbrand or Wolff Olins..I forget) was completely in line with the costs of creating a globally visible identity campaign. The price was not for the logo, but the entire identity system; keeping in mind there are months if not years of work both creatively and strategically that went into that. We'll ignore that the sizzle film they made caused seizures by some viewers. I actually think the entire identity is quite successful when seen on context of the whole program...its to me anyway, very very 'London".

    One poster mentioned license fees akin to photography or illustration and getting a client to realize they are paying a royalty for use of artwork. Its generally practiced that with identity the full rights transfer to the purchaser upon final payments etc., so the artist (if hes smart) includes a part in the contract allowing the artist to use the mark for personal promotion only, but rights belong to the client.

    This really comes down to a few things ive learned over way too many years in this business:

    1. youll never convince a client to pay what your 'worth'. This is often true of very large clients, its always true of small ones, so you have to figure out if you want to do it as creative self reward...and if so, tread carefully, as those sorts of clients will take advantage of any generosity. I do a lot of 'favors' for people, but know going in its an exercise in creativity not a money making venture; Someone told me once the price for this particular 'item' was between $5000 and free depending on how much they liked you". If that makes any sense.

    2. for larger clients, an identity is a cost that must be amoratized over many years. Its not a one time expense...its their customers key brand element that they remember. As such, the cost of creating an identity should be priced by its worth to the end user (the company/client), and not necessarily how many hours it takes to create it on the designers side.

    3. for clients who have a strong will of their end product, they want a 'wrist' to execute. Either decide thats OK of find new clients. Never ever fantasize that a freebie, or a favor/low price on a job will lead to bigger full price projects from the same client. Its never happened. Once cheap, always cheap (i.e. 'you did it for me for $X before....)

    In a nutshell there are two types of clients these days. Ones who value the strategic thinking a great designer brings and are willing to pay for it (rare to very very rare), and clients who need computer jockeys to execute their vision..or lack there of. (most). Youll never convert one to the other.

    Im off my soapbox now. Good luck on this one.

    The Graphic Artist Handbook linked in a post above is a great 'baselline' guidebook...as its got prices for different markets across different size companies. A lot of it is 'fiction"....some things are woefully low, and some high, but its a great place to start.

  • Re: Justifying logo design costs

    Sun, December 23, 2007 - 1:44 AM
    A pair of shoes in raw materials might only be worth 7 dollars
    Add the lbaor and the shoe is worth 16 dollars
    add the cost of machenery/maintenence of the machenery that makes them and the factory they are made in, 18 dollars
    add the packaging, 20 dollars
    add shipping, 25 dollars
    add the designer lable that shows the expierence, the logistics, and the thought put into a product, 35 dollars
    add the store front retail costs,39 dollars
    add taxes, 42 dollars.

    His ideas are that 7 dollars of raw materials which are currently useless. You are what turns it into something significant. which is why those raw goods become worth 42 dollars. you dont' havea store front but you have your home, you don't have shipping, but you have gas and a vehicle, you don't, have big factory machines but you have your computer and your programs. The only difference is that yours is less tangable, so people think they can get away with treating it like it dosne't really have a worth.

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