Comments on: Why Design Can’t be Billed by the Hour

By: Tad Dobbs

Tad Dobbs — Fri, 02 Jul 2010 19:28:08 +0000

Great post. I think the heart of the problem lies in understanding that you ultimately aren’t buying a hard product. In a sense, what clients pay for is the expertise, strategy and experience of the designer. It can be very confusing especially with logo design, because the item a client seems to be purchasing is simple in appearance. I try to educate prospects by explaining that what you’re buying longevity, flexibility and professional expertise. None of these concepts can be billed by the hour nor would you want to.

By: Christopher Magruder I uneekGrafix

Christopher Magruder I uneekGrafix — Sun, 30 May 2010 22:25:46 +0000

This has always been one of the hardest topics to get across to a client. I look at it like this. You give me the budget and then we can talk about what can be done within that price point.
This may seem like a crazy idea but it has helped me to form lasting relationships with my clients. This way they feel more in control of their own spending and thus more inclined to repeat business.

By: Kai Brethouwer

Kai Brethouwer — Thu, 20 May 2010 04:48:27 +0000

Yes indeed the same principle does indeed apply to developers. Key here is design thinking, which is a process that involves coming up with a solution to a problem. This can’t be translated into ‘desk time’. It applies to anyone who deals with the indeterminate. Architects, engineers, any designer, developers and indeed marketeers.

By: Yaggo

Yaggo — Fri, 30 Apr 2010 13:27:16 +0000

If a designer does a thing in two hours, and more experienced in one hour, why should the latter charge only half of the price?

By: Raja Sandhu

Raja Sandhu — Sun, 25 Apr 2010 23:28:51 +0000

You can usually tell if a logo/design was created on an hourly basis – at least some times. I mean the type where the design appears to be more of an arrangement of graphics as opposed to an evolution of a strong intelligent concept.

Design service is an idea-based solution, in which there is no one answer. If you are a purist, and work from inspiration to perfection, it’s simply impossible to quantify the process.

How I handle this with a client is by giving safe time windows which I could only come to after years of getting to know my ‘process’ better and having enough confidence to say I need more time without the regret of letting the client down. Ideally, if there is no impending deadline for the eureka moment, the process following becomes easier to measure and bill, if that is your method.

In the end, I came to a flat, segmented fee. And still, sometimes you win, sometimes you loose but the problem is always solved.

If you can have your client understand that the design process is like baby making, then you both win

By: Nitin Garg

Nitin Garg — Tue, 20 Apr 2010 09:54:03 +0000

So Glad to read this post & i hope most of us working in creative industry would agree to this.

On first interaction, i generally tell clients about the possible range, for e.g.1500-2000 USD. Once, they brief me detail, i create a requirement & project scope document along with exact quote & expected dates for project milestones. For e.g. Concept drafts, refinements, development, delivery etc.

Getting asked for a hourly rate makes me feel like a design slut sometimes.

By: scottymac

scottymac — Fri, 16 Apr 2010 05:26:28 +0000

Good points, and relevant issues raised by many. We usually (all things aren’t set in stone) bill on a project basis, and relegate things such as production and revisions beyond original, clearly defined scope at an hourly rate. I’ve been at this for nearly 20 years, so I think I have a good handle on how long it will take to achieve stated goals. In my opinion, the most important thing to get right is the creative brief. Have clients complete briefs. Have clients create briefs for all projects, and be willing to walk away if they won’t complete the brief. I also require (but don’t always adhere to it) that clients state an approximate budget or range in the brief.

We make our project estimates based on info gleaned in the brief, initial meetings, and the first follow-up meeting. One thing we always wonder about, but haven’t had a good answer for is value of the work to the client.

Would you say a logo for XYZ company that aims to or currently brings in one million in annual sales should be the same project fee as a logo for ABC company that aims to or currently brings in $40 million?

Its one thing to argue the Coke logo should in some small part share responsibility for the $130b market cap and $30+b in annual revenue. But, good logos do not make good companies. And, great logos certainly don’t make great companies. There’s much more to success than solving the identity and brand problem.

I argue that proper attention to branding, a well developed logo, and thoughtful, adaptable and comprehensive brand guidelines can help companies in many ways. But, I would never argue that the logo is the reason for a client’s success. Maybe I’m not giving our profession enough credit. I’m eager to learn what others think. Also very interested to learn if you think the creative fee should be the same regardless of the size of the company?

To me, its all about scope. Small companies require a similar amount of our time invested in research, discovery, initial client meetings, brainstorming, scketching, design, production and presentation as large companies. The difference is in roll out and implementation. IF we design a logo, and then need to implement it and write guidelines for implementation across a fleet of 12 vehicles, 40 hard hats, three sets of exterior signage, a website and print materials. That’s much less labor intensive than rolling out a logo and brand identity across a fleet of 400 vehicles, 4,000 hard hats, dozens of signs, corporate trade show booths, and print collateral in multiple languages.

The production portion of that equation is very easy to target and account for. I also think the creative portion of it can be fairly estimated. The unresolved question lies in the value of the logo (or any design project) to the client. Should we charge more based on value? Should we charge more because one firm has annual sales of $100m, where another firm only has sales of $10m?

By: Steve Zelle

Steve Zelle — Thu, 15 Apr 2010 16:15:47 +0000

Thanks for stopping by Tyler. Glad you enjoyed the post.

By: Tyler Hayes

Tyler Hayes — Wed, 14 Apr 2010 02:33:37 +0000

This article is brilliant. Just thought I’d chime in.

By: Steve Zelle

Steve Zelle — Thu, 08 Apr 2010 16:36:47 +0000

Isabelle, you suggest a very fair and transparent approach that should work for most designers and clients. Thanks — no doubt many readers will adopt this.

Mark, like Isabelle, your approach is based on consideration and fairness to both parties. Nice of you to share it.

Danielle, Yes!

Benjamin, Thanks for the kind words.

Thanks to everyone else for all the great comments. This post has become a great source for opinions on the subject of costing projects, with the comments providing even more value than my original post. Keep the opinions coming.