Price Equals Expectations - RD314
Resourceful Designer: Strategies for running a graphic design business
Release Date: 03/13/2023
Resourceful Designer: Strategies for running a graphic design business
In this episode, I'm diving deep into a topic that hits close to home for many of us in the design world: the Curse of Knowledge. I'm sharing personal experiences, like insider knowledge and navigating design jargon, to shed light on how it can lead to misunderstandings with clients. But don't worry, I've got your back! I'll be dishing out practical tips to help bridge that gap, ensuring every conversation is crystal clear. So, join me on this journey as we master the art of transparent communication and strengthen those all-important client relationships. You won't want to miss it!...
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Welcome to Resourceful Designer, the podcast that helps designers thrive in their creative careers. In today's episode, titled "You Can't Read The Label From Inside The Jar," host Mark delves into the importance of seeking feedback and involving others in your design process. Mark reflects on the metaphor of not being able to see the bigger picture when you're too close to something and how this applies to our work as designers. He emphasizes the need for honest feedback from individuals with our best interests at heart to grow and improve as designers. Mark also shares his philosophy of...
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In this episode of Resourceful Designer, I'm joined by special guest author of the new book Ian shares the story behind writing his book and how it can benefit anyone in the design space, even if you don't design logos. I was granted a sneak peek of the book, and I can assure you that it's as good, if not better than we make it out to be during the interview. Ian also shares a heartwarming story of wanting to teach his four-year-old daughter what he does and how this led to a second book for toddlers, Enjoy the interview. And be sure to back Ian's Kickstarter campaign and get a special...
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Resourceful Designer is going on a short hiatus. Please stay subscribed for when I return with more great tips, advice and resources for starting and growing your design business. Stay Creative
info_outlineResourceful Designer: Strategies for running a graphic design business
It’s the beginning of spring here in Canada. And with spring comes a desire to put all the messes of winter behind us and clean things up as we prepare for summer. That’s where the term Spring Cleaning comes from. However, today, I’m not talking about packing away your sweaters and pulling out your shorts. Nor am I referring to cleaning the yard or washing the grime off the windows. Although, it is time to do all of those things. No. I’m talking about doing some business. More specifically: Cleaning Your Computer Cleaning Your Office Cleaning Your Business Cleaning Your Branding ...
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Have you ever thought of turning your design style into a niche? You’re lying to yourself if you say you don’t have one. Every designer has a design style. Even if your design style resembles many other designers, I bet something unique makes you different. Have you ever thought of how you came by your design style? Did you go to school for design and develop your style from what your teachers taught you? Did you learn your style by following design influencers? There are tons of great designers out there you could follow and learn from. Have you studied the history of...
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This is a throwback episode, replaying episode 17, Being A Freelance Graphic Designer Could Hurt Your Business. For any links or to leave comments, please visit https://resourcefuldesigner.com/episode17
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This is a throwback episode, replaying episode 195, Design Hacks To increase Productivity. For any links or to leave comments, please visit https://resourcefuldesigner.com/episode195
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The second most common question among graphic and web designers, after how to attract clients, is how much to charge for our services. No matter what price we settle on, we’re never sure it’s right. Could you have gotten more for that job the client so readily agreed to? Probably. Is price the reason another client isn’t replying to the proposal you sent? It could be. No matter how long we work in this industry. I don’t think we will ever figure out the “right price.” But that’s ok if you feel adequately compensated for your work. Getting paid $200 for a logo design is a great...
info_outlineResourceful Designer: Strategies for running a graphic design business
This isn't a standard episode of Resourceful Designer. Instead, I want to share two tips with you. Tip #1 Set up your Google Analytics 4 account ASAP. Google is turning on Universal Analytics on July 1st, 2023. Google has said the data collected in your UA account will not be migrated to your GA4 account. Unless you want to start again from zero, you need to set up your GA4 account now and start collecting data while you still have access to your UA information. Listen to the podcast episode to learn more. Tip #2 Never tell a client that you "Should" something. "I should be able to start your...
info_outlineThe second most common question among graphic and web designers, after how to attract clients, is how much to charge for our services. No matter what price we settle on, we’re never sure it’s right.
Could you have gotten more for that job the client so readily agreed to? Probably. Is price the reason another client isn’t replying to the proposal you sent? It could be. No matter how long we work in this industry. I don’t think we will ever figure out the “right price.” But that’s ok if you feel adequately compensated for your work.
Getting paid $200 for a logo design is a great accomplishment for some designers. In contrast, other designers won’t consider a logo design project for under $2000. It all comes down to the value you feel you bring and the impression you give your clients.
But let’s look at this from the client’s point of view. From their perspective, what’s the difference between a $200 logo and a $2000 logo?
You may say it’s the value. It’s the experience of the designer, their skills and their knowledge. And I can’t argue with you there. More experienced designers do tend to charge more. But does that mean the experienced designer’s $2000 logo is ten times better than the $200 logo from a less experienced designer? Maybe, and maybe not. The less experienced designer may end up creating a better logo.
So why would a client hire a $2000 designer over a $200 designer? It can be summed up in one phrase. Price equals expectations.
Let’s look at another industry.
Say you’re going on vacation and need a place to stay. Your destination has two options (It’s not a popular vacationing spot.) Those two options are a $49 per night motel and a $200 per night hotel. Not knowing anything about or seeing photos of either of these two places beforehand, what do you think your expectations are?
Both the motel and hotel offer a bed for sleeping. Both include a TV and free Wifi. Both have breakfast included. They even both have positive online reviews. So you would expect the same experience at both places, right? Wrong!
The fact that one of the places charges four times the price of the other creates a higher expectation. For $200 per night, you expect the beds to be more comfortable. You expect more offerings on TV and faster Wifi. You expect a more inclusive breakfast.
You expect more from the hotel because they’re charging a higher price. Even though, in the end, both places give you precisely what you need, a place to sleep at night.
The same goes for graphic design services. The more you charge, the more clients expect from you. And I don’t mean deliverables. However, that may be part of it. What I mean is your clients expect better communication from you. More professionalism. More attention to detail. And a more take-charge attitude.
The more you charge, the more the client expects that you can get the job done with minimal involvement on their part. These expectations breed trust. And when you’re clients trust you. They give you the freedom to do your work in the manner that suits you best.
The less you charge, the fewer expectations they have. Which means lower trust.
I speak from experience, and many designers can attest that the less you charge for your services, the more clients want to dictate exactly what you do. They don’t want your knowledge or your experience. They only want to fork over a few dollars for your skills. It’s almost like you’re a rental designer. These are the type of clients who say, “I have an idea. I need you to create it for me.” They expect less from you because it’s what your prices tell them.
Would a client hire a $2000 logo designer and say, “Here, I drew up this rough sketch of an idea. Can you clean it up for me?” No. That’s because price equals expectations. Clients will treat you differently depending on how much you charge.
Clients willing to pay more for design services expect higher service, expertise, and attention to detail. They expect you to understand design principles and are current on design trends and technologies. These clients will likely have more complex and demanding design needs and want to work with a designer who can deliver exceptional results.
Designers who charge higher rates can expect to be treated more respectfully and professionally. They will also need to deliver a higher level of service to justify those rates. The more you charge, the more your clients expect. Price equals expectations.
On the other hand, clients looking for more affordable design services are usually willing to sacrifice some level of expertise and customization in favour of a lower price point.
It’s up to you to decide whether to be a higher-rate designer or an affordable designer. But remember that setting too low rates can harm your business in the long run.
While clients may be attracted to lower prices initially, they may also be wary of working with a designer who charges significantly less than their competitors. That trust between you and your clients never reaches the level it does with higher-priced designers and their clients.
Setting your rates too low can make investing in your business and growing your skills and expertise challenging over time. Because the lower you charge, the more clients you need to make ends meet.
In the scenario presented above. The lower-priced logo designer must find ten clients to make the same amount of money the higher-priced designer earns from just one. This means the higher priced designer can focus more of their thoughts and energy on one client instead of dividing it among many, which helps them meet and exceed their client’s expectations.
How to justify higher prices.
One of the first things clients do when considering a graphic or web designer is looking at your portfolio. They want to understand your style, capabilities, and the types of projects and clients you’ve worked with.
It’s essential to have a portfolio that showcases your best work. One that highlights your strengths. Something that shows you’re worth the prices you charge.
Case Studies can help justify higher prices. Where a portfolio piece shows what you’re capable of designing. Case studies illustrate the who, what, and why of the designs you created.
A case study that shows how you think and approach design problems can demonstrate why you’re worth your higher rates.
But besides portfolios and case studies, it all comes down to confidence. You need to feel confident in the prices you charge. And that’s something that can take time. However, you can get there if you slowly build up to it. The next time someone asks for a price, quote them a bit higher than the last similar project you did. And keep doing this until you reach a price point you’re happy with.
I charged $500 for the first website I designed. The next one was $700, then $900 and so on. Nowadays, I rarely do a custom website for under $5,000. And the clients I have respect my abilities and trust me to provide them with attention to detail that befits my professionalism. I meet the expectations of clients looking for a $5,000 and more website designer.
Whether you charge higher rates or more affordable prices, the most important thing you can offer your clients is high-quality work that meets their needs and builds strong relationships. Although, if you deliver high-quality work to your clients, you might as well make a bunch of money doing it. After all, price equals expectations.