How Much Does a Logo Cost?

Ariel Banos, expert in pricing strategy, presents in this article a key aspect to consider when quoting proposals for professional services.

Monday, November 15, 2021

"... In his book "Pricing Creativity", Blair Enns exemplifies the big differences there can be in the price of professional work, using the cases of some famous logos.

  • In 1971, in the early days of his company, Nike CEO Phil Knight paid a design student named Carolyn Davidson the sum of US$ 35 (about US$ 200 at today's values) to create the "swoosh" logo. We are talking about the mythical logo that still identifies the Nike brand today.
 
  • On the other hand, closer in time, in 2008, PepsiCo paid the then famous international design agency Arnell 5 thousand times more, i.e. US$ 1 million, to redesign the iconic Pepsi logo.

The price difference between the two cases is quite enormous. However, even this wide range does not reflect all the possibilities there may be when it comes to charging for a logo design. There are examples below and even above the mentioned values.

However, the big question is: What are the reasons for this huge price difference?
- The quality of the design? No.
- The time required for the design and the expenses of the work? Neither.
- In fact, the most determining aspect in the price of this professional service is the risk that each client is willing to take when hiring their provider."

Read the full article here, "What is the price of a logo?"



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Ariel Banos, founder of Fijaciondeprecios.com explains that when a proposal is a commodity, in other words, it lacks differentiation with respect to others offered in the market, the only alternative is to align itself with the prices charged by competitors. There are no magic solutions.