Job pricing varies on your location, what you’re designing, your competitors and your name. For example, asking Chip Kidd to design a sleeve could cost you a fortune as you’re paying for his name whereas Tom round the corner who’s designing in his basement will charge you £50 because he’s happy for the work.
Logo design and Branding: A simple logo design could cost anywhere from a £200 upwards. Whereas a full company branding would cost no less than £1000 and for named companies, it could be 10x that.
Stationary: Small letterheads, business cards, compliment slips, wedding invitations, cards, etc. would come to around £300 including printing costs. Remember that if the client specifies a certain paper or ink, you have to include this into your pricing as well. You shouldn’t be out of pocket at the end of a job.
Website Design: Generic designs start at around £250 but the cost soon adds up when you add complex designs or the customer requests a certain style.
Packaging Design: Packaging starts with a base price around £1000 to £2000.
Brochure / Magazine Design: Brochures start at around £1000 whereas magazines will cost more depending on the amount of pages and the page layouts. Realistically, you would spend more time on a magazine designing the page layouts than you would for a brochure.
Email Campaigns: £5000 is the cost for a single email design, political ones cost more.
Every self employed business owner needs to know their hourly rate. To do this you calculate your business expenses for a whole year, this includes; hardware, software, cost of attending any conferences, advertising, marketing, domain names, office supplies, office rental, insurance, legal & accounting fees, membership fees, etc. Also remember that you aren’t working for a company so you don’t have any perks like sick days, retirement plan, or holidays, you need to account for this in your business expenses. You also have to calculate your pay after taxes to ensure you can live to your desired life style on your take home pay.
The maths: Add together your expenses and your yearly salary. This is the amount of money you will need per year to achieve your desired lifestyle. Divide this by your billable hours and the result is your hourly pay.
Example (incase you got a little lost like I did): For a year, lets say your desired outcome was £50,000. Yet you haven’t included your £15,000 business expenses, making your desired outcome £65,000 per annum. Let’s say you work 45 hours a week but 30 of those are billable, this leaves you with 1560 billable hours per year. Divide £65,000 by 1560 (yearly expenses by billable hours) and your estimated hourly rate is £41.6, or 42 to keep it simple for everybody.
However, remember that this price could increase or decrease depending on your area and competitors. You have to adjust to your location; this price may work in London but it certainly wouldn’t in the outskirts of Sheffield. Find out what your competitors are charging; call up pretending to be a client scouting for the best prices. It’s a dog eat dog world and you don’t want to be left behind.
I found a really useful guide to being a freelance graphic designer. Once I read it, I really understood the difference pricing and how it worked. This is the post, written by Jake Jorgovan.
Research project: In our teams (myself, Arron, Kevin and Fiona) we are to research if it is viable to move to our given city and work there. We must remember to include things like travel, housing and living expenses. We have one minute per person to conduct a presentation on our findings. I will post the conclusion here.