Comments on: Question Of The Week #1

By: Daan

Daan — Fri, 01 May 2009 13:26:03 +0000

I think, the market creates a base value of our services, but in the end we determine our value ourselves, working off this base value.

Because there are lots of stuff influencing a price, including personal and general needs, I don’t think the market alone can determine the price.

By: Mike

Mike — Sat, 25 Apr 2009 13:55:35 +0000

Market determines price in any situation that involves money changing hands. To put what others have said in a slightly different way, designers are part of the market.

Having been a co-owner of a small design firm, having lived with the ups and downs, and having dealt with well-capitalized clients, as well as clients who are working single parents, I am aware of the stratification of the marketplace.

I think one of the important ways to increase perceived value of design services is to keep raising prices as experience and portfolio grow. This is healthy for the industry.

Not every designer can successfully land the big, corporate clients. Not every designer benefits from serving the needs of sole proprietors and other tiny businesses. But these tiny businesses need good design too. They just don’t have the same budget as a bigger company.

By: Jim

Jim — Sat, 25 Apr 2009 04:48:10 +0000

I always know when a client is a disaster waiting to happen when the first question they ask is my rate. From that point forward, you’re just trying to defend yourself, rather than telling the client the value you’re going to provide.

By: Steph Adamo

Steph Adamo — Thu, 23 Apr 2009 20:06:45 +0000

The market definitely determines our value, especially right now when nobody wants to pay for anything. I can see that when someone asks me for a price quote, and then upon seeing it goes “um, nevermind!”

By: Antonea Nabors

Antonea Nabors — Thu, 23 Apr 2009 01:11:04 +0000

Great question Niki.

I think its a little bit of both. Larger companies tend to price their design work higher than a single freelance designer and I don’t think that is fair. Quality work is quality work and should be valued the same. It sucks that some potential clients find larger design companies ’safer and more professional’ than a single freelancer, therefore they feel more comfortable giving their money to a company opposed to one single freelance designer.

At the end of the day, the market really is the base of all value because there are so many different options available to clients today. If they have a website quoted at $13,000 and don’t fancy that price, they can easily hop on Google and find someone to make a quality website for them for 1/2 the price.

It is important for us as designers to stay true to our worth and know that it is OK to say ‘No’ to someone who thinks your prices are too high. Know your worth and stand by it. We can’t let the market undervalue our true talents and capabilities.

By: Stacy Schilling

Stacy Schilling — Wed, 22 Apr 2009 18:45:44 +0000

Unfortunately, for the past several years the market has been determining the value of graphic design, and the value of our services is deemed very low.

As designers, WE need to bring up the value of our design services if we want to get paid what WE are worth. WE need to dictate what our worth is and need to STOP letting the market control how much we are worth.

WE are the design experts – NOT the market!

It is our responsibility to stop being a pushover. Non-designers have no idea what is actually involved with creating a design project.

If we don’t show the market what we’re worth as a designer, then why keep designing?

By: Benjamin Reid

Benjamin Reid — Wed, 22 Apr 2009 17:31:59 +0000

I think the economy affects every area of business, even the graphic design industry. I think it also varies between freelance people and big agencies. Larger agencies I suppose are affected by the market, where as the freelances are trying to undercut the agencies, so in effect, the freelancers are indirectly affected by the economy.

In fact, I’ve started to increase my prices as a freelancer even during this recession and people still seem to think they’re getting a good deal, maybe I should charge more.

By: Ben Ackles

Ben Ackles — Wed, 22 Apr 2009 16:56:53 +0000

The designer can determine their own value, but inevitably the market will judge the value of their craft. As a general rule any qualitative product/service is both set by the creator and judged by the end user. Even if the creator sets the (monetary) value, the market (end user) is ultimately the judge of (effectiveness) value. The key player exempt from the market transaction is the client/business. The client pays the bill, but has very little say in what the value should be.

As a developer and entrepreneur I believe business people generally undervalue the impact of effective design.

By: curtismchale

curtismchale — Wed, 22 Apr 2009 16:11:15 +0000

Something I have heard quoted often is “the right price is the price someone is willing to pay.” As a designer I set my pricing but if I can’t find anyone to pay that price it really doesn’t matter what it is or how good I am. So my market would determine my pricing. I would have to reduce it till I got someone to pay the price (or maybe increase it just depends).

We each know what our time is worth but if no one will pay you that it really doesn’t matter.

By: Prescott Perez-Fox

Prescott Perez-Fox — Wed, 22 Apr 2009 15:41:23 +0000

Like Aaron says, we need to fight for our own value. The market would otherwise put the value at ZERO. They’d say “heck, we can do this ourselves” or think that it’s an unnecessary expense.

In spite of the success of design-driven companies in recent year (Target, Starbucks, Apple, Whole Foods, etc.), design is still viewed as a secondary business service. Also, since there is always competition from someone lower on the economic design food chain, whether it be a student, a designer in a foreign country, or your neighbor’s nephew, we have to be vigilant about pricing and reinforcing the value of design.