How Cost Of Design Can Affect Your ROI

I came across a great article from Wildfire Marketing Group over the weekend, and I thought it was worth reposting..

What does a cheap logo design really cost you?

We’ve written several times about the importance of professional graphic design and even how to chose the right graphic designer, but what we haven’t discussed very much is how the cost of design can affect the return on your investment. As business owners, people often look for any opportunity to reduce their costs. While there can quite frequently be a strong upside to this, just as frequently if not more frequently, there can also be a tremendous downside.

Logo design, unlike most tangible products, is not a commodity. You may be able to find a manufacturer who will sell the same bolts you’ve been buying elsewhere for half the price. This is usually because that manufacturer has developed some specialized process to produce the bolts at a lower cost than their competitors can, or perhaps they have bought their raw materials in significantly larger quantities, earning themselves a volume discount. When it comes to service based businesses, this simply isn’t possible. You are paying for skill and experience.

So what happens when you try to reduce your costs by hiring graphic design companies or freelance graphic designers to design your logo based on price? Well, sometimes you come out ahead, but more often than not, you learn a very expensive lesson. On one end of the scale, you may end up with an unprofessional logo that presents a poor image of your company. On the other end of the scale, you could end up in a situation like a client that came to us after hiring one of the lowest priced design firms they could find.

They had hired a local firm to design their logo, then they had business cards, stationary, brochures and signage printed and even wrapped six cargo vans, only to find out that their logo was almost an exact copy of a competitor in the next city. They were furious and unfortunately, the firm that put them in this situation went out of business shortly afterwards leaving them with no recourse. Needless to say, after saving a few hundred dollars only to then waste several thousand dollars, they now thoroughly understand the cost vs. value equation. In the end, we developed a professional (and original) logo for them along with their new print marketing materials which they were very satisfied with.

When you decide to hire a graphic design company, before you look at their price, look at the quality of their work and how long they have been in business. If it turns out that you can’t afford the services of a top-quality graphic design firm, you may want to consider finding a way to come up with the money – it may save you a more sizable amount in the long run.

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One Response to “How Cost Of Design Can Affect Your ROI”

  1. Deloris Helfinstine says:

    It will depend on the way you look at it and exactly where you will be coming from on the theme really. In the long run attractiveness is in the eye of the beholder, but I’m with you on this one.

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