Graphic designers or design agencies have different ways of arriving at their design price quotes. There are three basic formulas for calculating design pricing. These formulas can be applied across design projects such as branding, logo design, web design and graphic design.
1. The Detailed Price Formula
The Detailed Price Formula is the most comprehensive and common way for calculating the cost of design projects. It considers the project specifications, turnaround time, designer’s expertise level, market’s demand level, current economy and factors in discount rates for the clients. This method of pricing is unarguably the most transparent with no hidden cost or variables unless there is a change of project specifications midway. The total cost is based on the full project specifications and requirements of the clients. This method of pricing is ideal for projects with customised or unique design specifications.
2. The Flat Rate Price Formula
The Flat Rate Price Formula is the simplest method for calculating the cost of design projects. It is usually offered as a design price package where the project specifications are predefined by the design agency or graphic designer. If there are additional requirements or features that have been introduced during the project, the final pricing will change as well. The Flat Rate Price Formula is ideal for pricing of cookie-cutter design projects where one doesn’t expect a great change in project specifications.
3. The Hourly Rate Price Formula
The Hourly Rate Price Formula is simply defined by multiplying a predefined hourly design rate with the total number of hours spent on the project. Because the final cost is based on the total number of hours spent and it will only be known after the completion of the project, this method of pricing requires the client to have a high level of trust with the design agency or graphic designer.
How have you been making your design pricing? You can use any methods for pricing as long as your customer is comfortable with it!