Industry Realities

Industry Realities

04 / Valuation & Quote

04 / VALUE & QUOTATION

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Key question

What is design worth, and how much does it cost?

The value of a design service is often hard to grasp: a logo might be created in just a few days, but its impact lasts for years. Being able to articulate this value and justify a price allows you to negotiate with greater confidence and prevents projects from quietly turning into a loss.

Learning objective: You will be able to justify the value of design, calculate an hourly rate, structure a quote, and handle additional requests and demands for free work with confidence.

You sell impact, not just hours.

4.1 / Where the value lies

Good design often looks simple.

The value of design is evident in various areas:

01

Effect

Design achieves goals: more orders, better understanding, trust.

02

Duration

Good design is used for years.

03

Security

Professional design prevents costly mistakes.

Design often appears effortless; the work behind it remains invisible. Pricing is usually based on three factors: the time spent in hours, the value to the client—such as the scope and duration of use—and market comparisons. A race to the bottom on price harms everyone.

What you make visible is appreciated.

4.2 / Hourly rate and quotation

From annual income to hourly rate.

A minimum hourly rate is calculated from your desired income and expenses, divided by billable hours. Often, far fewer hours are billable than the total time worked, as no one pays directly for client acquisition, admin tasks, and professional development.

A quote lists the services by phase, specifies assumptions such as the number of revision rounds, clarifies what is not included, and indicates usage rights (Chapter 05). Prices are exclusive of VAT; anyone with an annual turnover of more than 100,000 francs is liable for VAT (standard rate 8.1%).

Assumptions belong in the quote.

Try it out
Hourly Rate and Quotation

Calculate your minimum hourly rate and use it to build a quote with line items.

1 / Stundensatz

Mindest-Stundensatz

CHF 100

Nicht jede Arbeitsstunde ist verrechenbar: Akquise, Administration und Weiterbildung kosten Zeit. Gewinn und Ferien sind hier noch nicht eingerechnet.

2 / Offerte für ein Projekt

CHF 1’200
CHF 2’000
CHF 800
CHF 1’000
CHF 600

Total

CHF 5’600

56 Stunden. Halte in der Offerte fest, wie viele Korrekturschlaufen enthalten sind und was zusätzlich kostet.

4.3 / Representing the value

Confident, well-founded, and fair.

Those who know the value of their work can explain it: through the client's goal, the impact, the lifespan, and the process. A well-reasoned price is far less likely to be negotiated down than one based on a gut feeling. New requests, additional formats, or further revision rounds are normal; they are discussed, quoted for, and briefly confirmed in writing before the work begins.

Requests for unpaid draft designs, ‘for your portfolio’, or as unpaid speculative pitches shift the risk onto designers and devalue the work for everyone. Declining politely is professional; alternatives include a paid workshop, a pitch fee, or showcasing existing work. Personal projects are a different matter: there, you call the shots.

Less performance instead of a lower price.

Try it out
Value Formulator

Describe the objective, scope, service life and avoided risks. The tool will use this to formulate a value proposition.

Wie lange wird sie eingesetzt?

Welche Risiken vermeidet sie?

Dein Wertsatz

Die Kampagne für Gartenglück unterstützt das Ziel mehr Erstbestellungen von Pendelnden. Sie erreicht tausende Menschen an Bahnhöfen und online und wird ein Jahr eingesetzt. Professionelle Gestaltung hat zudem fehldrucke, missverständnisse bei der zielgruppe vermieden.

Wenn der Preis zu hoch erscheint

· Leistungsumfang anpassen statt Preis senken

· Etappen anbieten: zuerst Konzept, dann Umsetzung

· Nutzungsrechte enger fassen

· Den Nutzen noch einmal konkret benennen

Exercise

A quote with value

Task: Write a quote for a small project, such as a flyer for a club, and explain its value in one minute.

STEP 1

Break the project down into phases and estimate the hours individually first, then together.

STEP 2

Calculates the price using the hourly rate and quotation tool.

STEP 3

Formulate assumptions, exclusions, and payment terms.

STEP 4

Use the value phrasing tool to formulate a value proposition, and practise the pricing conversation in pairs.

Evaluation: Where did your estimates differ, and which argument was the most convincing?

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