Why do companies pay SO MUCH for design??
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- 26 Responses
- panosv
Why do huge companies pay hundreds of THOUSANDS of dollars for design that 3 people do anyways? Example, the new crappy Pepsi logo. Whatever, I don't get it. Well, I'm whoring out my prices so the masses can afford graphic design. There. I said it.
http://www.pixelicious.com
- airey0
that there is a question for the ages. we're all pretty much wondering the same thing.
- brains0
- Most likely because it's amazing.brains
- but the arrow's not broken? why's it called broken arrow with an obviously non-broken arrow?!? tell me!!!airey
- true. plus the font...uh i don't have the energy.sputnik2
- don't front you love papyrusacescence
- I hate Papyrus so much more than Comic Sanscoldy
- Needs more eagles to make the logo awesomejamble
- duh, a broken arrow as a logo for "broken arrow"? how clichè is that? -.-jimbojones
- and a wolfscarabin_net
- sikma0
why would you question a company that's more or less waving around a blank check?
instead you should be thinking about how you can get your name on it
- +3millionbrains
- +1scarabin_net
- <<<<<<<<Gucci
- but would you be able to have your quotes in the design quotes thread after that?Pupsipu
- what?sikma
- with respect to the project though, it shouldn't be just about the checkversion3
- show me the moneyjimbojones
- fyoucher10
I don't get it. Is this a question or are you promoting your site?
- brains0
Here's a realization you will come to...
The "masses" really don't care about good graphic design, so if you're happy pumping out shite, whore away...
- airey0
do you also perhaps have a blog we could read panosv?
- ********0
Overhead costs. A company of 30 people making roughly 35k yr would have to pay out like 90k a month in payroll. Then there is health insurance, operating costs, taxes, and all that stuff. Stuff gets expensive
- airey0
i say 'well done' to those that can get away with it personally. i'm tired of selling my wares for next to nothing but i'm more tired of being crap. the dream is to be in a position that i can sell my average skills for way too much.
- Pupsipu0
seriously the pepsi logo isn't the common design project. It's a big branding project for a giant advertising money waste. It comes with business suits, expensive business speech makers, research, focus groups, revisions, dinners, parties, layoffs, drama, etc..
It's very important for Pepsi to market their completely useless can of poisonous sugar and make sure it sells as well as another can of junk liquid. If that re-brand results in a huge profit increase, why shouldn't the designers and branders be rewarded proportionally?
- their whole company and product depend on branding + advertising and nothing morePupsipu
- NBH0
Why would anybody pay $500,000.00 for a car, when you can get one for $15,000.00?
They're both cars. If your drive the Phantom, you may even think that it doesn't handle that well, you don't like the interior materials, or the amount of space in the trunk is less than you think it should be.
If this perplexes you, I suggest you just don't worry about it. You'll more than likely never have to deal with that kind of cliental then.
- your = youNBH
- It's about how much pussy-crushing action you'll get from the car, and whether that's worth six figures to youmonospaced
- Scotch_Roman0
Yeah for clients that big, a rebrand = royalties. On something like that, the royalties can far outweigh the actual design fee.
- acescence0
i've been gearing up for economic collapse and have adjusted my prices accordingly: i will design your logo for two goats and i'll throw in some stationery and letterhead for a bushel of wheat.
- goats are expensive. plus, they eat a lot. lol.akrokdesign
- +1 akrokversion3
- voiceof0
Other than the overhead, testing, planning deployment etc... that large design/branding agencies have to pay to stay in business what it all really boils down to is a memorable identity is worth more to a global company than it is to your local bar.
The pepsi logo and brand identity is going to seen by millions and is going up against other companies with millions to spend on marketing and if the do it right they will see much more profit due to recognition from the design than the local bar would. Both the business and the design firm know this and charge (or pay) accordingly.
If somebody said "write me a song" and you knew they were going to make millions from singing it you're going to charge more (or get royalties) it's common sense.
- akrokdesign0
big companies only spend 2% to 10% on advertising.
- not if you're Pfizer, Merck, Bayer, Arysta or Apple =)zarkonite
- vaxorcist0
Smart design agencies are able to justify their overhead, and large companies like having lots of meetings, and such a momentous thing as changing their identity is a risk, any risk that big has to be worth lots of money and meetings.
Designers need to learn how to price like photographers, i.e. according to the future usage worth of the work, rather than as post-student-laborers, who charge by the hour.
- monospaced0
It has a lot (I mean, a lot) to do with how much the client (company) pulls in each year, and how much they intend to profit from the redesign. When these figures get into the 7 figure range, you can expect huge prices.
I worked in a firm that consisted of 5 people and we had multi-million dollar projects for this very reason.
- freeskihp0
- it was paid for
what are you trying to say?monospaced - it's a pretty effective logo. if you compare it to every other olympic logo, it stands out by miles. it's a bit 80s and fluoro, but it's also fun and exciting. did they pay too much? not really – they agreed to pay a fee to go through one company's process and this is result.geezpleez
- this logo somehow seems obscene and flintstone-ish at the same timevaxorcist
- it was paid for
- d_rek0
An equally valuable question:
Why do some companies/clients insist on paying so LITTLE for design?
C'mon. I've got fucking student loans to pay off here.

