Graphic Design Pricing, Web Design Pricing, Budgets and Key Factors

Recently, I was reading this article over at the one-stop-for-all-things-design, the incredible Smashing Magazine and it got me thinking. Rather, It got me motivated to talk about it and stir up discussion. I am not replying directly to that article at all, as I think it’s discussion is very worthy of pondering and is a somewhat separate-but-related discussion. I think the Smashing article touches on some very important compo­nents that go into any design project and how you should charge for those services.

I mainly want to speak on pricing-out design work hourly vs. a flat-rate, both as a freelancer and as a member of a design team. The ins-and-outs of working for a firm vs. freelance and how your time can be valued and priced differ­ently as a result. Overall, how time plays into design work in general, as it is the most transcendent aspect in the creative service career field.

Budgets and Clients

My goal here is to talk about my experience in budgeting out projects, client expec­ta­tions and how it all relates to time, planning, quality and profit.

The Client

Clients will come to you based on your reputation, word of mouth and your body of work. Immedi­ately you know that they appre­ciate the quality, time and effort you put into your craft. Otherwise they probably wouldn’t be seeking out your service. A projects success can be measured by how well it commu­ni­cates, period. This has several key components.

To name some key items:

  • The client’s overall level of satis­faction and how it relates to the projects goals
  • How the end-result lands on the consumer/target market/general public
  • How well the project was planned-out, which relates to the above
  • The projects overall efficiency and how it relates to a companies/individuals profit

The client’s overall level of satis­faction relates to how well the project was planned-out, budgeted and executed. If you budgeted poorly or planned the project out poorly, you’re going to have an unhappy client. This relates to how the client views the work you have presented them with. There is a lot of truth in the Smashing article about your confi­dence level in presenting a design or design approach. That is key, in helping the client see and under­stand why you did things the way you did. You can never forget to listen to the client either. They’re not stupid, they just don’t have the skill to translate what they need into a graphic form. They do not always know what they want or have the means/understanding to even express what they need. You are their inter­preter, be their guide.

They are paying you for your skill, experience and time, as they can not do these things themselves nor do they have the time to learn the trade. They also need guidance, as they often do not know anything about standard design process and/or your individual/company process and how it’s measured.

The Measure of time

Time, the single most universal measurement of cost and tradi­tional measure of worth/value in offering a service. Quoting a project based on time is very different between working freelance and working for a firm. Your time is valuable. If one project has a broader scope than another, it should be priced accurately. More impor­tantly, you have to accurately schedule-out projects so their are no time conflicts — or have a plan in place if any conflict should arise.

As a freelance designer

When you’re a freelance designer, you have the freedom to pursue other ideas/avenues in the design process if you think it will benefit the project. You’re not subject to anyone else’s produc­tivity or budget but your own. This is both good and bad. When I quote out a job, as a freelancer, I do it based on how many hours it may take. This is after the client and I have a clear view of the project’s deliv­er­ables and due date. So the client knows exactly what they’re getting. There are no surprises.

With that said, I enjoy the freedom of freelance work, in that I’m not monitored by a clock and doing the work for another mouth to feed. That is a whole other world by comparison. As a freelancer, you have the choice to work-out another design option off-the-clock. This can be hugely beneficial to a project and ultimately doesn’t cost you anything but time — which can make the project that much more of a success. It can be chalked-up to experience. We all get into slumps and sometimes further explo­ration off-the-clock is necessary to spark a creative fuse. Working at a design firm still allows you to explore other ideas as well, but you’ll have to explore them during your personal off-the-clock time. The catch is that you can’t explore them in-the-moment. You might be on to something but can’t continue because you’re worried about the budget.

As a member of a design team and/or creative firm

When you’re a member of a design collective or design firm, there are more mouths to feed than your own. There are far more compo­nents that go into a project and it’s time line, in relation to all other projects going on at any given time. The time line is the biggest component and if improperly planned-out, it can lead to going over budget, launching a project past the drop-dead due date and ultimately, an unhappy client. In my experience, the best clients are those who are extremely motivated about the project and ask tons of questions about the time line. You may have an eccentric client here and there who needs to know every little detail of the process and day-to-day progress. Typically, you can flesh-these-out at your initial project meeting and budget accord­ingly. But should you make the client pay more, because they are higher mainte­nance than others? If you work for a design firm, possibly yes. If you’re freelance, it could go either way. My point is that every client is different, has different needs and should probably be budgeted in relation to the time it takes to achieve their desired result.

Why design firms charging hourly will always prevail

The biggest factor that goes into a design firms efficiency vs. output is budgeting time. There are no “freedom” design sessions. It’s all governed by time. A company’s profitability, efficiency and overall produc­tivity relies on time. If a project lands under-budget, that’s profit. If a project goes over-budget, that’s profit you missed out on. Your pay checks are governed by pre-determined hourly work-weeks. It is only logical to charge your clients by the same framework/system that you pay your employees. This way every­thing can be accurately assessed at the end of the day/week/month/year. It just makes sense, but is it the best way? Probably not, though it is the most logical, simple and conducive-to-the-business approach. I strongly feel it will always constitute the majority in the design firm world. Companies have to account for their employees based on how much time they spend on projects, which directly relates to that employees hourly pay (or how it factors into salary).

At a design firm you have to account for all aspects that go into a project and your business. This means sched­uling adequate time for project management/planning, commu­ni­cation with the client, internal meetings, and when applicable SEO and/or copywriting. These all factor into the time line of the project and on a larger scale your produc­tivity as an employee and as a company. Once you receive content for a website or print piece, you have to factor in the layout of said content and how it relates to the overall final piece. You may have a copywriter review and make correc­tions, you also have time set aside for client review and changes. This could account for a weeks-worth of time and should be planned-out accord­ingly. How do you accurately budget for that if it doesn’t relate to time? Your SEO specialists also have several projects on their plate and need to plan their daily/weekly/monthly schedule based on the overall time line of a project. The company as a whole, has to have time as a guide to plan-out the flow of projects and when they need to be complete. Since there are so many factors that go into a project, I can’t even imagine trying to budget one if time isn’t a factor. I also think there is a certain degree of expec­tation by the client to know and under­stand how long a project will take.

Maybe there is a better way to plan. Maybe there is a better way to quote-out projects. What do you think?

Of course, my experience may not be your experience, so let me know what your thoughts are.

The client holds respon­si­bility too

It’s not just us, the designer/developer, who takes all the respon­si­bility for a project or it’s success (how ever measured). The client is respon­sible for reviewing your proposed project time line and letting you know if it works for them. Also, they are respon­sible for supplying any copy/content/imagery that has not been included in the project. If they drop the ball on their end, in many cases it will push back the projects dead line and launch date.

This takes some experience to establish somewhat accurately and there are too many variables in the equation to allow it to run smoothly all the time. You have life to contend with. So, my advice is to approach a time line with an open-mind, trying to be as deter­mined as possible to adhere to it but flexible to the client’s unexpected needs. Bout those needs should not exceed the projects scope, as that will void the projects time line and budget. It will have to be re-evaluated and quoted.

Graphic Print Design vs. Web Design

Pricing out a project can be very different based on the project goals, medium and deliv­er­ables. Branding or logo design, for example, can take a long time and require extensive planning. There is a level of research, devel­opment, brain­storming and personal experience that factor in to quoting such a large endeavor. I strongly feel that branding is the most difficult of projects to accurately (subjective) quote and also deter­mines what the whole-package will be viewed and received. Branding is also, by far, the number one step any company should take in estab­lishing themselves. Having a clear brand is invaluable both in how consumers view your product/service and in how any other designer you employ may approach a graphic piece. It is the ultimate set of expec­ta­tions in design. At the core of any related piece, must be the heart of the brand.

In web design,

you hope that your client has an estab­lished brand. This is the disconnect with a lot of website designs. A website may look nice but if you don’t establish a brand first, in many cases, the websites look and feel will seem unfocused. Of course this is largely subjective, like anything in design, but in my experience it is a very valid point. Branding is such a huge component in today’s world. A website only serves to provide an extension of your brand and get people to buy your product or seek out your service. The business card offers a spring-board to you and your website. Now days, it is almost inexcusable to exist and try to profit without a website. Phone books are pretty much dead. Is there an unsub­scribe list I can add myself to?

My inter­me­diary solution, or rather pre-emptive measure, has been to have an initial brain­storm session. These typically take an hour or two of time and manifest themselves as “mood boards”. I like to take some time, especially for clients who don’t have an estab­lished brand or want to pay for one now, to do initial planning into what a website might look like. I go over exact color schemes, font choices, possible stock imagery and some ideas on general graphics (buttons, bulleted lists, etc.). These are of course a further (visual) extension of earlier conver­sa­tions with the client about the general look and feel of their site. These two hour sessions are invaluable. I get to hear the client’s feedback prior to submitting a design concept and can adjust my approach accord­ingly. Overall, these have landed very well on clients and I plan to keep refining them. This also helps for clients who need to see something to accurately form an opinion or have a real under­standing of various elements.

Even more so, as a further extension, clients should pay for SEO work. Proper search engine optimization is, essen­tially, a companies brand for the new age. Their brand for the search engines of the world. Their brand in code, to be inter­preted the same way the visual repre­sen­tation is.

Web design usability

With web design, you also have to factor-in the whole usability aspect. This is a completely different way of thinking from print work. In print work you have initial public reactions to consider, the overall aesthetic, the depth of impact and under­standing, but nowhere near the inter­ac­tivity of a website. In the web world you need to establish clear navigation, a means to browse the site, call-outs to key areas of interest and an overall cohesive presen­tation. This could heavily relate to your perceived brand. If your site is difficult to navigate, your company could be difficult to work with. That could be reading into it a bit too much, but you see my point.

Many of my obser­va­tions are based on my current level of under­standing “web design best practices” and I feel each factor needs to be addressed for every site, regardless of the budget.

The ultimate measure of design success

How is the success of design measured? Is it justified by the cost?
I think, above anything, you have to approach a project realis­ti­cally. If a client has a budget that is less-than-desirable, you have to work with it if you want the job. Sometimes this means “only designing so much”, but is that fair? Is it fair to let time be your restriction? Most of the time, yes I think it is. Mainly because, how else are you going to handle it in relation to your other work? If a client is on a budget and demands the world, I give them realistic expec­ta­tions. They have to under­stand the scope of the project upfront so there are no surprises. Where money and profitability are concerned, you can not justify ignoring time for the sake of a project.

Often times, in web design, it is helpful to offer this first piece as a “phase one” package. This gives them time to see how it lands on the general public and save up the money for what they really want to do with it. Depending on a project’s overall scope, it may have to broken up into several phases to accom­modate their budget. You do not have to conquer the world in one step. I think we sometimes lose sight of this. You can design for the project your on and plan for the future, ideal solution.

If you want to explore design with no budget at all, seek out non-profit work. You make it clear that you want to take a unique approach to the work and ask for the freedom to do so. Doing a project for free (or substan­tially lower price) every once in a while can be incredibly liber­ating and I strongly encourage more design firms to explore this notion. It makes your employees happier and could help relieve stress after extremely busy times.

Since I work for a design firm full-time, I don’t always get to explore design the way I would like to. As a result, I take advantage of non-profit work a few times a year. It makes me a better designer and helps me think outside of a corporate box monitored by time and profitability. I design for the love of doing it but need money to pay my mortgage, bills and have some kind of personal life, just like everyone else. The benefit is that I love doing it.

In conclusion

Any design project you take on must relate to some aspect of time in how you structure cost. There is simply no way of getting around it. If you charge a flat-rate, well, that flat-rate is based on experience of knowing how much a project typically costs, or rather how much time a project takes to complete. But, since no two projects are ever alike and no two clients are ever alike, we must plan and budget for this. The be-all end-all rationale of time. Because design is subjective in worth, I feel it is important to place a tradi­tional form of compen­sation on the service. Charging hourly is perhaps the most common way of validating the cost of any service. I really see no other logical widely-adoptable form of payment structure.

The success of any project can only be measured by the time you, the designer, take to under­stand the project scope/brief and your ability to translate it into design. Take the time to under­stand as much as you can about what makes your client unique. How their service or product should be marketed. In following those guide­lines, the budget should never matter. You can design an extremely effective website, design piece or logo on a tight budget. But the effec­tiveness can only be measured by the individual goal. You may not always produce the best possible solution, as it is subjective, but you can produce something that appeals to the client’s audience. Never take on the world when your client’s inten­tions are only focused on one city. And maybe it will take several phases to complete their end goal. My point is to under­stand, establish and approach those goals accord­ingly. Lack of planning, equals lack of time to plan, which leads to lack of intended quality or understanding.

I look forward to hearing different opinions, shared opinions and experi­ences from you, the designer.

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