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You are not only charging for the time to make it, you are charging for the value it brings to their company for the next decade or two. A brand is not just dressing; it’s helping recognition, it’s underscoring their market position, it’s something that is the first shot fired in competing with all their rivals. And they get to register and own the trademark.
This is all valuable. Remember this when you explain the cost. In 1986, Paul Rand charged Steve Jobs $100,000 for the NeXT logo ($300,00 in today’s dollars).
That price was a good deal because it was an emblem, logo and wordmark all rolled into one single piece that worked anywhere, even physically on the product itself. Also, Rand told Jobs he was only allowed to get one logo and that was it. No options, no feedback, no back and forth. It would’ve cost even more otherwise.
I paid approximately US $1400 to an Indonesian designer last year for a logo, word mark, 3 color variations, brand guide, and various file types. My company was a startup. I had quotes of $1-2K from local US designers for just a logo.
Definitely see what you're saying. My startup only had one very specific niche customer type, so by even having a logo and brand identity, we were already ahead of our competitors, who were sole proprietors with no company name, or generic company names that were easily forgettable (like their initials). We ended up not launching at the 11th hour for unrelated reasons, but I do wish I could've held onto the company logo and name.