How I Price Branding Projects

The Hourly Rate Problem

Early in my practice I priced branding projects by the hour. It seemed logical — charge for the time I spent. The problem is that hourly pricing creates a perverse incentive structure: the more efficient I get at the work, the less money I make. A junior designer spending thirty hours on a logo made more money than I did spending twelve hours on a better one.

That's backwards. Clients aren't buying my time. They're buying the result.

Value-Based Pricing

The shift I made was to project-based, value-oriented pricing. Instead of calculating hours and multiplying by rate, I think about what the deliverable is worth to the client. A brand identity for a venture-funded startup launching a national product is worth more than the same identity for a local sole proprietor — even if the design work takes the same amount of time.

This means the same type of project commands different prices for different clients, which feels uncomfortable at first. But it accurately reflects the economic reality of what I'm delivering.

What Goes Into a Project Price

A branding project price needs to account for: strategy work (positioning, research, competitive analysis), the design phases (exploration, refinement, presentation), revisions, final deliverables and file preparation, and brand guidelines. Each of these phases has real time attached to it.

It also needs to account for overhead, tools, licensing, insurance, business costs — things that don't appear in the "time spent on the client's project" calculation but are real costs of running a practice.

Defining Scope Precisely

The most important pricing practice I've developed is precise scope definition. The price I quote is for a specific set of deliverables with a specific number of revision rounds. Any change to that scope is a change order conversation.

Without clear scope, every project expands beyond its budget. Clients don't intend to scope-creep — they just keep having ideas. A clear scope document at the start protects both of us.

Deposit and Payment Terms

I require a deposit before starting work — typically 50% of the project total, sometimes more for larger engagements. The remainder is billed at project milestones or on completion.

No deposit, no start. This isn't distrust — it's the standard for professional services work. It also weeds out clients who aren't ready to proceed.

When to Walk Away from a Budget

Sometimes a client's budget doesn't match what the project actually requires. My choice is to reduce scope (deliver fewer deliverables for the budget), pass on the project, or explain what the full project costs and let them decide.

Trying to do a full branding engagement on a budget that can't support it is bad for both parties. I'd rather be honest about what the budget can accomplish than under-deliver on an under-funded project.