How To Price A Logo

The New And Improved (and Fair) Way for Both Parties

Designer using graphics tablet

Understanding how to properly set price points is crucial for any business.  In the mysterious and confusing world of graphic design and printing, there are many things that just don’t make sense. Ask two different people for a quote on business cards and you’ll get two different prices.

It seems that no business professional can agree on anything remotely to do with graphic design and printing pricing. Although, there are many factors that can go into this (for example the overhead, employees salaries, greediness, ignorance, etc of business owners), the biggest sinkhole of pricing inequities is how to price a business logo. For years the pricing has been all over the place. You hear stories of businesses having paid $50,000, $1,000,000 or even $30 to a designer for having designed a logo. The price for a logo is all over the place because no one truly knows how to price a logo.

It should be stated that logos are priced differently from all other graphic design services. The logo designed for a company is the only graphic designed piece that a business can write-off as an asset. A business can sell a logo; they cannot sell the business cards or envelopes it prints.

Ideally, logos should be priced as to how many people will see it. The more people that see the logo, the more a designer can charge for the logo. But as simple as that may sound, the question is always, “How to you get to that price?”

In my 14 years as a graphic design and illustration business owner, having designed hundred of logos for various customers, I have come up with a sure-fire way to answer that question. My answer is fair, honest, foolproof and, most importantly, consistent for every industry that requires a logo designed.

This is the solution:

  1. The ground floor price is $500.00 to start.
  2. Then add $100 per employee. The more people that see a logo, the more valuable the logo is, or really the more that a designer can charge for the logo. If a company is just starting out and it’s a one-man operation, you charge $600, the $500 to start and then the $100 for each employee rule. If a company has been around for a while and has 350 employees, you charge $35,500, again $500 to start, and then add the $35,000 for each employee. It makes figuring out a logo easy and non-complicated. You may be thinking that $35,500 for a logo is very expensive, but think about it this way: If a company has 350 employees, and is only paying each employee $10 per hour on a 40 hour work week, then combined salaries are $7,280,000. In this example, an invoice of $35,500 is probably the cost of buying everybody new pens and pencils, sarcastically meaning it is very reasonable and fair for everybody involved.

This is fast becoming the new industry standard of how to price logos.  Other price points and good business practices that will allow you to command top dollar for your services can easily be learned through online business classes.


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John, it shouldn't be awkward at all. If your talking about logo's and how to help the company, it's not a strange question to ask at all. Besides, when you describe the reasoning for the logo price, it will make sense why you wanted to know. Good luck!

By Tom Mungovan

Yes, customers will agree. I've designed many, many logos with this formula, and when all is said and done - everybody wins. Business owners know the value of what they sell, and they know that their logo is part of their image that helps them sell what they offer, or they should realize this as soon as possible. On the rare occasion when customers balk at the price, it's a red flag that they will be difficult to deal with and I let them go elsewhere time and effort is money as well. In my experience, when customers complain about price, they complain about everything else. It saves me time and a headache to let them go :)

Hope this helps.

By Tom Mungovan

Wow! I never knew one can charge like this! But will customers agree?
I noticed a small mistake in your write: Please get it corrected: It says "then add the $35,000 for each employee. " - It should be $100 for each employee!

By the way, thanks for visiting my "How to design a Brochure?" and offering your comments.

By Anonymous

Interesting calculations -- I digitize logos for embroidery and make my money by charging a fee for the digitizing plus the embroidery. I wish I could base my pricing on how many people look at the embroidered logo! Thanks for the interesting article.

By Marion Cornett