Questions

How costly is it to develop a name and brand identity for local business?

I'm a UX Designer, based in Ukraine. I have experience with marketing strategy and developing customer experience. Recently I've got a commission on brand development. The client is not a corporation, but small local store/cafe/gym for cyclists. I have to come up with the creative brief, brand positioning, naming, branding and it's visual identity and afterward, guide the client through a decision-making process. Trademark checking is not included, just URL and Facebook checking. I guess I will need 30 days of work (4-5 hours a day), something about 120-150 hours. What will you recommend to choose: hourly rate or fixed price? Ordinarily, my rate for UX work is $14/hour. But branding and naming are not usual fields for me. Thank's for any advice!

5answers

Hourly rate is the worst way to charge for your expertise. That's an employee mentality.

Charge per project and charge for outcome. People don't care what the hourly rate, they want to know if I pay you X, you're going to deliver the Y results I am looking for.


Answered 3 years ago

I'm a branding professional and I have done this for the past +10 years. For a project like this you should definitely charge a fixed price and bill according to the client's perceived value of the income, that I imagine will be pretty high since we are talking about the branding of his business.
Usually these types of projects take longer than anticipated because with branding and naming there is a lot of back-and-forth, since this is something that clients like to be very involved with. Therefore, I suggest to calculate what you expect will take you to complete the project and add a contingency that could be a minimum of 20% more. I don't want to give you an exact number in US$ because I understand costs in other countries are very different so in % you should visualize it better


Answered 3 years ago

Here's a tip- when putting your Agreement/Proposal together never say you will DELIVER a name. Word it so they understand they are paying for your CONSULTING on that. (What if they don't like the names?) You are being paid for what you are doing- "Name Consulting". I also add a clause that explains if a name is derived in the course of this project by any other person, you still get compensated for the consulting i.e., time, and ideas you put into it. (I feel like I am writing this too late- anyway-- good luck)


Answered 2 years ago

I charge between 2000 and 4000 dollars to develop a new corporate or product name. That covers three days (at the low end) up to 30 days (for much greater complexity and matching URL and other supportive writing).


Answered 3 years ago

A good rule of thumb is to go with hourly for large commercial projects and for large organizations (or combination of fix and hourly after certain threshold) while a fix flat rate accepted upfront for small businesses and startups.

You can calculate a decent (non-exagerated) hourly rate as if you were an employee somewhere doing that work and then add a multple of 1.5 or something for your business profit and charge that hour multiple as a flat fee for the project.

My name is Humberto Valle, I'm the co-founder of Unthink Digital Marketing - if you have a link with samples I'd really love to see your work. :)


Answered 2 years ago

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