Charge based on ROI
Estefanny Ramirez, TakeThree Studio
"Apart from the general notion of honoring your worth as a creativepreneur and charging what you honestly believe is your value, the main thing that I’ve learned about pricing is to charge based on the ROI (return on investment) that your service or product will bring to the customer/client.
For example, as a graphic designer, I wouldn’t charge the same for my brand development services to a small mom & pop restaurant vs. a seasoned surgeon.
With this example, who would you charge more?
If you said the surgeon, then I would agree with you. Why? Because the average spend $$ by a single client of the surgeon is probably in the thousands vs. maybe $25 to $30 per customer at the restaurant. Therefore, the surgeon would have a much higher ROI per client than the restaurant.
With that said, I would charge the surgeon a much higher rate simply because it’s worth that much.
If I charge the surgeon $5000 for branding and it helps bring in two to three extra clients, that already more than covers what they invested. Hence, they have already gotten back their return on investment.
On the other hand, if I charged the same $5000 to the restaurant, they would need at least 200 new customers to get that return on their investment.
Long story long, do your homework — understand your potential client's business model + prices and know your numbers so that you can properly charge them based on the ROI instead of charging the same rate to every single client."
Estefanny Ramirez is a proud Ecuadorian graphic designer and 1/3 of TakeThree Studio, an independent creative studio run by two humans and a dog that helps businesses create meaningful brand identities or design beautiful websites.
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