How much is that logo in the window?

Propel received an inquiry the other day via email. “How much is a logo?” they asked. I paused and asked myself, “How do I best answer this?”

Cost vs. Value.

In the creative-services business, pricing is a very difficult task. If Propel Group was in the business of manufacturing widgets, the task of estimating would be much easier—cost of goods, plus labor—simple. It’s not so easy in the business of design, advertising and web marketing.

Truthfully, to answer the question about costs, it depends on many variables. Time vs. more time, as it relates to the consensus building, revisions and approval processes as well as the market value placed on that time. Plus one’s ability to pay. For example, a small business can only afford X. Though corporate America can afford Z. If we applied a flat fee to our pricing structure then most likely the small business owner couldn’t afford to brand his/her start up business. And in contrast corporate America most likely wouldn’t place a value on it if we gave away brand development.

If we thought Propel could sell a logo for a flat fee, we would. It would sure simplify proposal writing. Is the company local, regional or national? Does it matter? Yes, it should because of the exposure. The marketplace increases it’s value. If we want to serve everyone from small businesses to corporations, then pricing naturally has to be flexible—which it is. So, admittedly we alter pricing for small business, corporations and non-profits to be available to serve the needs for each and all.

Are logos ever for free? No. Though if you know creative folks and what motivates them, you must know that, for example, a donut shop brand identity can get all kinds of creative juices flowing. And indeed, selfishly we want to do that work. Providing branding concepts for non-profits can be creatively rewarding, too. Helping the under-served motivates all of us. But that warm and fuzzy feeling doesn’t always allow our business to cover next week’s payroll responsibilities. Thus, why we pick and choose and limit what non-profits we serve.

Questions for questions.

So “how much?” they asked. Well, I wanted to ask, “How much is your brand worth? How much do you want to invest in your company’s image? Do you really think this can be done in an email?” But I knew these questions wouldn’t help us build a healthy agency-client relationship.

Decision makers.

Allow me to engage you to help me with the price of a company brand—let’s do the math together. The aforementioned donut store has one source of approval—definitely we will interface with the owner, the decision maker. Most likely, we will get good insight that enables us to hit the creative target quickly. We already know based on experiences, this will be an efficient in-and-out and yield good creative outcomes. Voilá. Easy. It is called profit.

On the other hand, large corporate clients often start with time-consuming RFPs well before introductions. Email exchanges; a proposal; hopefully, an initial meeting to discuss parameters. Will involve a sacrificial first round of creative to get folks to give you the input they didn’t have time to give because of cumbersome schedules. Then, more meetings; revisions; consensus-building; notes and more rescheduling to meet again. Typically, it can be an extremely drawn-out process and sometimes painful. Especially, if the meetings and revisions put things behind schedule or over budget. Even then, throughout the development process it is not unusual for the larger clients to experience some turnover. Unfortunately, in this economy it happens. A new set of client faces show up who weren’t involved in the initial process and ask again “How much does a logo cost?”

So, how much?

I can tell you first-hand that logos usually cost what brand identities should cost—whatever that is. Let’s talk. Let’s partner. Let’s brainstorm, and let’s at least have a donut or two over the value of your brand. Propel would welcome that.