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One of the most challenging aspects of beginning a graphic design brand is deciding on pricing methods. Among the factors influencing pricing are location, talent level, reputation, and competitiveness. However, many freelancers, particularly those who deal exclusively with small firms and startups, need help to set a fair fee without pricing themselves out of opportunities. Evaluating the usual freelance graphic design charges and the factors that drive these rates will help you choose how much to charge for your design project.
Factors influencing freelance graphic design pricing
Understanding the many factors that influence price can assist you in developing your freelance graphic design pricing guide.
1. Experience level
The amount of experience has the most significant influence on graphic design prices for freelancers. Those new to graphic design and still building a portfolio should charge less than someone with a decade of expertise. However, new freelancers who have never done contract work before but have years of expertise in, for instance, an in-house agency function might demand higher prices depending on their skill level.
2. Project scope
Another consideration is the scope of any graphic design job. You can charge a lower fee for jobs that take less time or are more straightforward than those that are more difficult or take longer to finish. For example, a project that requires planning, client meetings, and several rounds of changes may be more expensive than one that only requires the completion of a few design deliverables, such as a logo or PDF. You will consider project scope when establishing the design fee, whether you choose a fixed charge or an hourly rate.
3. Overhead and expenses
Any business expenses or overhead should be considered when pricing your freelance graphic design services. Consider any project-specific expenditures, such as design tools or hiring another freelance designer to assist with some of the deliverables on a significant project. Also, consider general overhead in addition to project-related expenditures. Freelancers, for example, must pay for health insurance and office space. Include these expenses in your project or hourly pricing.
4. The project’s value
Many skilled freelance graphic designers choose to bill on value rather than time. It is because experienced experts frequently get faster with time, reducing the number of hours they spend on a job. Pricing by value guarantees that the firm compensates its freelance designer for their skill set and expertise (and how these contribute to the company’s bottom line) rather than merely their time. For example, charging more for a sales page design than for social media graphics. While both are significant to the business owner, the sales page is likely more valuable because it directly relates to new income.
Common strategies for pricing your projects
- Hourly rate pricing: The most straightforward pricing plan is hourly rate pricing. Set your fee and charge it to your client for each hour or portion of an hour spent on their project.
- Project-based pricing: Project-based and hourly rates are the most frequent in graphic design. With project-based pricing, you estimate the cost of a task based on your expertise and educated guesses. It would help if you increased your estimations in case of unanticipated obstacles along the road. Also, you make more money if you finish the job faster than expected.
- Cost plus pricing: Cost plus pricing is less common in the graphic design profession than in others, but it might be handy if you’re also a broker for printing or other services. In cost-plus pricing, you calculate the total cost of a project and then mark it up by a specified dollar number or percentage to generate a profit.
- Competitor-based pricing: When starting a business, competitor-based pricing is ideal for novice and unskilled graphic artists. You analyze your competitors’ pricing methods and then base yours on them. You are matching or exceeding their price. Once your company has grown, you should discard competitor-based pricing in favor of one of the other strategies.
- Value-based pricing: Value-based pricing is the golden standard of pricing techniques. With value-based pricing, you disregard the actual cost of the task and instead set a price based on the perceived value your client will receive from the project. Some clients are ready to pay a premium for such perceived value. Value-based pricing is the most sophisticated pricing strategy and should be addressed with caution. However, when done correctly, value-based pricing will provide the most profit.
Whatever freelance graphic design prices you choose, you must trust that your work is worth the amount you’re charging.
