Why we’ve changed our mind about design value
For 15 years we’ve helped designers explain their value to clients. We’ve written articles, developed frameworks, and run workshops teaching value-based pricing. We believed – passionately – that if designers could just articulate their value better, clients would pay more appropriate fees.
But we were wrong. Or at least, partially wrong.
Our latest global research shows the most successful design firms aren’t talking about value at all. They’ve shifted to something far more powerful, and the results are transforming their businesses.
How global design firms measure success
Global research shows successful design firms price based on impact, not just value.
Learning about impact-based pricing transformed our client conversations overnight.
The next day I used this approach and tripled our project budget. It wasn’t about charging more – it was about understanding and articulating the real business impact of our work.
Sarah Gross, Creative Director Storyfolk.
The problem with value-based pricing
Value is subjective – what designers value often differs from what clients value. But impact can be measured. When you focus on impact, conversations shift from cost to return on investment.
Measuring design impact
Impact shows up like this:
- increased sales
- reduced costs
- improved efficiency
- better customer retention
- higher employee satisfaction
- shaping public awareness and behaviour
- accessible and inclusive stakeholder communication
- workplace culture and internal communication
The evidence
Our research shows studios that focus on impact rather than value:
- command higher project fees
- build stronger client partnerships
- win more strategic work
- maintain better profit margins
- report greater job satisfaction.
So what?
We were wrong about value. Or rather, we were only half right. Value matters, but impact matters more.
Want to learn how to identify, measure and communicate design impact? We’ve developed a workshop to share practical tools from our global research. More here or just call or email and we’ll talk about your specific challenges.
Carol Mackay
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These articles talk more about working in the creative industry:
- An article about shitty profits
- 5 benchmarks for a creative business.
- And an article about rebranding the design industry.
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After 30+ years running a design studio, I accumulated a pretty special network of fellow designers. One thing most have in common: a need for more information about the ‘business’ side of design. Most are impatient with any task competing for time spent doing what they love – designing so they wanted more info about how to work more efficiently and effectively.
Not me. I love that intersection between design and business. I built a career working with Ombudsman schemes, the Emergency Services sector and the Courts. My special power has always been an ability to use design to translate the difficult to understand or the unpalatable message.
I now use exactly the same skills with creative business owners. I translate the indigestible into bite-sized chunks of information. I share insights, introduce tools and embed processes to help others build confidence business decision-making skills. More confidence makes it easier to grasp opportunities. More confidence makes it easier to recognise a good client from the bad.
Outside DBC I have mentored with Womentor, AGDA The Aunties, and most recently Regional Arts NSW.
And I’m a proud volunteer and board member of Never Not Creative.
Always happy to chat, I can be contacted here.