Chapter 4 – The Market Will Tell You What You Can Charge

Value is not determined by those who set the price. Value is determined by those who choose to pay it.
~Simon Sinek

 

There is a lot of discussion around price points for designers, both for hourly wages and flat fees for projects, but you should approach it simply. Want some guidance? Charge as much as you can. Aiming high is not as greedy as it sounds. It’s a simple concept to command as much income as possible in recognition of how the market values you. And it swings both ways, from very low to very high. (I’ll go through a couple of tips at the end of the chapter that I’ve found to help increase the amount.)

It could mean $100 an hour from a large, established company, or $200 for a week of work to help out a small business you believe in and want to support.

But what many designers face is the conflict between what they think they’re worth versus what the market is willing to pay them. Have you found yourself saying: “But my friend at XYZ is getting paid this.” “I’m worth at least this much.” “Well, these are my standard rates, and I need to be paid for the value I bring.”

A quick personal story:

While working for a start-up, I was tasked with hiring designers for a digital campaign. I liked a particular pair, and we began a conversation on the price for the work.

I stated the total budget we had to work with (a true, honest number), but the designers balked. They stated that after graduating, they had signed up with a consortium that had them pledge to never work for less than $X amount; therefore, they would need a larger budget.

I explained that while I appreciated their stance, it didn’t change the fact that our budget had a hard limit. This was a small start-up with no extra funds to allocate, and the dollar amount we offered was the value of the work for us at this time. My ending line? “With complete honesty, this is the absolute amount we can pay. If you can do the work for this price, we can proceed; if not, I fully understand and thank you for your time.” They ultimately decided to hide the job from the consortium and delivered excellent work.

In that instance the designers butted up against a conflict: what they thought they were worth versus what a client could actually pay. This example shows a perspective shift that can really help you with how you approach pricing:

It is NOT:
“I am worth this much.”

It IS:
“This fee is based on how much the market values me.”

As discussed in the Fiverrr chapter, a client can get a decent-looking logo for very, very cheap. You may feel that your work is worth $5000, but unless a client is willing to make up the $4995 difference, then it doesn’t matter. It is not what you feel that you’re worth; it’s what someone is willing to pay.

Doesn’t this merely promote a race to the bottom? A bottoming out where no designer will ever be able to charge a high rate because many charge so little?

A more helpful consideration is: How do you focus on and improve that value?

Go back to that Fiverr example. If you are honest and humble about it, often those cheap designs are close to what many higher priced designers would output. The client wants a simplified deer logo with their name underneath in blue. With just a bit of creativity, any designer can produce some great options that will make them happy. With that being true, how can a designer charge at a more livable rate? Both to clients and employers?

A number of ways to consider:

The Experience

Speak to any client who’s hired a designer, and you’ll find a couple of horror stories. The designer was unreasonable. They refused to hand over the source files. They tried to charge double when it was done. They publicly harassed the company. They didn’t finish the work. They refused to make any changes.

Each of these are instructive for providing value to a client or employer. The experience is paramount.

A lot of people can create a decent-looking design. Many can do it cheaper than you. But can they offer the time, focus, and experience you do? Can they make the client feel like they’re understood and have their loose design ideas brought to life? Can they make the client feel like they’ve received the white-glove treatment and they are a true VIP? Can they be responsive and provide assurance and timeline statuses in a prompt manner?

This is true, too, for employers. Do you go the extra mile to ensure your output is in the format and naming convention used by the company? Did you check with coworkers about how you could contribute best for what they need? Did you pay attention, take studious notes, and produce quality work without needing to be asked four times to achieve the client’s goals? What was the experience of working with you like? Do your coworkers feel like they can come to you with requests or ideas and not be belittled or taken advantage of?

Providing an amazing experience for people makes them happy and willing to pay more, far beyond what the actual output is worth. Focus on ensuring their experience is top-notch and that you can command top-notch compensation. What was the experience of working with you like? If it was pleasant and effective, then your compensation can rise higher than your output’s base value.

The Attention

When working on a design, perhaps you notice that in a fair number of instances within the layout, the fonts are not following the company guidelines. It’s not your original file; thus, it’s not your problem. You’ll finish your part and send it down the line.

In finding and acting upon the tiny details during production that others might miss, you are providing great value. Ensuring that the output is consistent and accurate to the specs of who you’re working with shows a care for the work that will be greatly appreciated.

Be careful as there is a certain time and place for this (see chapter 14: Don’t Let Details Get in the Way of the Big Picture). In the first brainstorming session of a brave new idea, there is simply no benefit to slowing down the process with points on minutia.

However, when everyone is heads down looking to ship a product, or in the midst of a sprint of work, aspiring to achieve great output, your attention and care to details can begin to pay dividends. Notice the issues and inconsistencies, then do everything you can to productively resolve them.

Pay attention to the small things under your control to make a big impact.

The Name

Put another way, we’re talking about reputation. As you proceed in your career, imagine pouring yourself into any work you get, with any team. Imagine you being attentive, productive, easy to work with, and having excellent output. What does that do for your name?

What does it mean in the future when a previous coworker suggests they contact you for work, and anyone else in the room who worked with you boisterously agrees?

What you should be looking to do with each and every project you get your hands on is build your name and reputation. You are more than the cumulation of experiences documented in your portfolio. This is the designer who went the extra mile and saved the project. This is the designer who got me out of a jam and helped. This is a designer who is absolutely reliable and trustworthy.

Beyond your designs, a premium can be charged if those hiring know that your reputation carries with it a certain guarantee of excellent work and experience. 

The Output

Put out great work, put out work fast, and put out work that makes a difference to the company and coworkers.

The “difference to the company and coworkers” is the key point there. This is not about output for one’s own portfolio. This is about producing meaningful and helpful design output to serve the company and the project.

It’s a knowledge that when someone works with you, there are going to be outputs, designs, and artifacts produced efficiently and beautifully that benefit all involved.

Cut through the pomp and circumstance when you can. When you know exactly what needs to be done, don’t have a performative user research session or brainstorming meeting. Dive in, do the work, work hard, and contribute to the team.

Not everything has to be a grand showcase of some elaborate design process. Sometimes the team just needs some work grinded out, and your consistent, no-nonsense output can be highly valuable.

The market will tell you what you can charge, so pay heed to where you place your effort to ensure you can charge more than you ever thought possible.

 

What I’m Not Saying

• Always be greedy.
• You always deserve to charge as much as possible.
• Compete with outsourcing by charging bargain-basement prices.
• Build a brand name so you can charge for inferior work.
• Output crazy amounts of whatever anyone wants.
• Output without thought or process.

 

What I Am Saying

• Learn that design output and value are different.
• Focus on the elements outside of design that’ll help you charge more.
• Use your empathy to understand how to provide exactly what is needed to whom.
• Ensure your output is right-sized to provide the best value.
• Become known for your great output, service, and reputation to be worthy your price.