Determining the price for services can be a stressful, frustrating, and confusing process. But it doesn't have to be and it shouldn't be.

It is critical that you make the decision about pricing strategy early in the start-up process for your business. You can always alter the way you price later, but you must start somewhere.

You may consider development of some gratis design work to get your business started and to have valuable visuals for your website. Many graphic designers do this to launch their business. Some designers will even promote free services on their website to gain clients and experience.

Logos, brochures, or newsletter designs are good places to start. Once you establish yourself as a high quality designer, you no longer need to do this. You'll have more paying customers than you can handle by then.

As a matter of fact, your business will be explosive once the word gets out that you produce high quality, credible, creative, and innovative designs – AND you deliver on time - every time!

You have the option of pricing your services:

1. By the project – this is the preferred method by most clients. For example, designing a newsletter template for $xx; creating wedding invitations for $xx for design and $xx for printing (if printing is part of your service).

Typically, this is based on your normal hourly rate times the number of hours you believe it will take to complete the project (we'll talk about hourly rates below). You should also consider what the market will bear for the particular type of services as well.

For example, you may be able to design a logo much quicker than the average designer – don't leave money on the table. Consider what the typical design timeline would be and see how close that comes to your estimate – you may be able to slightly increase your fee. Then provide pricing that gives you a competitive edge by being just below the competition.

Or, maybe it takes you longer than the average designer to create logos. You need the experience so price competitively, even though it may take more hours than you're getting paid for. This will increase your proficiency and experience in logo design.

2. Pricing your services by the hour – this is a little trickier, particularly in the online business. Most clients are seeking a fixed price for work to avoid open-ended pricing arrangements and potential price gouging.

Once clients become accustomed to your work, reliability, timeliness, and credibility, you are more likely to succeed with pricing your work by the hour. Your clients know they can trust you to bill them appropriately for any work you design.

Many high-cost design firms charge by the hour, but they are usually well-established and do much of their work face-to-face with clients. They also have much more overhead than you will have as an online graphic designer. This gives you a competitive edge in your niche market since it allows you to price projects a little lower than high-cost firms.

When you're just getting started, we recommend you use the project rate pricing strategy.

When pricing your services, visit some reputable websites specializing in graphic design. Take a look at their pricing structures and gain competitive information in your pricing strategy. This helps you ascertain what the market will bear in terms of pricing for particular types of projects. It also helps you project your own prices and gives you a good source for a reality check.

You can also glean additional information regarding pricing and strategies through professional organizations, forums, and other interactions with similar groups and relevant websites. People in your field of work are usually happy to share their experiences and knowledge to support you in your endeavors.

There is a high demand for top quality graphic design work in the market for all of you - so there is no need to be concerned about sharing this type of information with others in your field of work. It can only enhance your reputation and your position in the marketplace.

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