Hey, What's included in that design fee?

A recent thread in one of the professional design forums I frequent raised an interesting discussion about how designers justify their rates. I find it endlessly fascinating that design buyers—everyone from corporate ventures to mom and pop shops—have such a hard time understanding what it is they are actually paying for.

It's not uncommon to get questions like why so expensive; it's just a five-page website? and It can't possibly take that long to design a logo, can it? and even the old But there's no way to know if it's even going to work or not, so why should I have to pay premium prices?



The problem with this line of questioning is not that the client wants to know why they're paying what they're paying. We all have a right to know what we're spending our money on. The real problem lies in what it reveals: the client who asks these questions has no idea what they are actually purchasing...


When you buy a car, you expect to know the gas mileage, the type of engine, the horsepower, etc. Most of these details are disclosed outright by the manufacturer. In the design world, these details are the equivalent to deliverables, which include stuff like:

• Number of files
• Type of files
  
• Final printed pieces or live website
  

But when you buy a car, you're also paying for the manufacturer's name and reputation. With name and reputation come implied skills of craftsmanship and knowledge (advanced manufacturing processes, quality parts and materials, assembly line production, engineering, etc). Design buying is no different:

• Ability to concept and problem solve
• Research skills (general market research, competitive research, image research)
• Understanding of the structure, rules and implications of typography
  
• Color theory
• Grasp of composition, balance, contrast and layout and their impact on viewer behavior
  
• Production technique (software, assembly, handwork)
• Graphics editing (color and light/shadow manipulation, effects, cleanup, resampling, etc)
• File prep and prepress (bleeds, printer marks, color separations, file types, etc)
  

These skills vary from designer to designer, which is why there is so much range in pricing out there. Designers love this car metaphor; you can pay premium prices for a Porsche, or value prices for a Hyundai. Both are cars, but there can be no argument that one is sexier and handles better on the road. Maybe as a design buyer you don't want a Porsche, or simply don't have the budget for one. But you'd still shop around for a safe one, wouldn't you? One that won't break down every year? You'll always have to ask yourself what you're willing to sacrifice in order to save a few bucks.

When you buy a car, you get a warranty, right (we really haven't pushed this metaphor far enough yet)? Of course, you'd be an awfully lucky client if your designer gave you one of those. But there are some things you should get with your designer's fee to protect you:

• A written contract that spells out the project parameters, final deliverables, project timelines, client expectations (what you need to provide your designer so they can get the job done), and so forth. These details will protect you should the project seem to get off track. They'll ensure clear communication between client and designer from the get-go.
• Usage rights, or licensing rights, that guarantee you have permission to use the designer's work for its intended purpose. Your usage rights may vary from designer to designer and project to project. They might be exclusive, ensuring the designer can't resell the design to someone else, which is a good thing to have for logos. Always know what rights you're paying for.
  

There's something else that is expressly included in a designer's fees, something that's far too often overlooked by designer and client alike: return on investment. This is the Great Intangible that seems to make everybody cringe. How do we know this will work? There a couple of ways to measure ROI on design, and they depend largely on the type of project. Identity and branding projects can be tough to measure, for example, without conducting focus groups and surveys both before and after the project (and this is why the big boy agencies earn so much for their work—they actually do these things...I hope). But small scale metrics are available to even the independent shop:

• Direct mail can include ID references that can be tracked when taking inquiries. "Mention code ABC to get your discount," is a common one. Or send the recipient to a specific web address and track incoming visitor statistics.
• Sales numbers can be analyzed before and after the design piece is issued.
• Market comparisons and case studies can be used to decide if a particular project type has a successful track record. One of my clients, for example, was going to send out fund-raising invitations formatted in Microsoft Word and printed at Kinko's. They came to me for suggestions, and I convinced them to let me design a two-color piece with custom illustration that was professionally printed. The event ended up filled to capacity and they easily surpassed their $100,000 goal.

Finally, there are a few more things that may or may not be included in your designer's fee. These really depend on your designer's experience, history and focus, but they are extremely valuable skill sets:

• Marketing expertise including branding, positioning, outlets (media and distro) etc.
  
• Business expertise like project feasibility, budgeting, time and project management, legal issues, and so on.
  
• Vendor management (incredibly important to the final product), which includes print specifying, materials specifying, professional relationships, billing, etc.
  
• Writing skills: voice and tone consistency, concepting, grammar and usage, styling techniques, behavior change and persuasion techniques, etc.
  

As you can see, your designer (ideally) brings a lot to the table. You're not just buying a pretty picture—you're buying a set of skills and experience that directly impacts the success of the project itself (whether or not it's a smooth, trouble-free, enjoyable process), as well as the success of your business (whether or not the designed piece actually accomplishes anything).

So the next time you're surprised at a quote from your designer, consider the above list and decide if all of this makes the price tag worth it. Remember: it's your business and your money. You should know what you're paying for.


© 2007 Jessica Sand | For reprint permission, just ask. | And if you want to share this with your clients, by all means do, but be sure to include the following text: "© 2007 Jessica Sand, www.roughstockstudios.com"