Pricing Design

A Book Apart Briefs #2

by Dan Mall

Pricing projects can feel tricky, but it doesn't have to be. Dan Mall explains how to earn more, by understanding what goes into a price (and why hourly rates don't work) and what your clients really want-and are willing to pay for. Learn the right questions to ask and when, and ways to turn client requirements into numbers, with a real-world example from Dan's agency. Whether you're running a shop or going solo, this is a book you can't afford to miss.

Genres: Design, Business, Nonfiction, Website Design

56 pages, Kindle Edition

Published January 3, 2025

Reviews

[Tim Kadlec · Rating 5 out of 5]

No one in web design has done more work to help others run successful business than Dan Mall. His written post after post and even published a podcast all about how to successfully run your own web studio. Pricing feels like a taboo topic to many which makes good information hard to come by. That’s not the case with Dan. In this short book, he dives deep into how he prices projects—providing all the nitty gritty details along the way. I’ll be buying plenty more copies of this one so I can hand it out to friends—such a great resource!

[Nathan Snelgrove · Rating 5 out of 5]

Invaluable reference. I copied and pasted a section from my Kindle app, printed it, and keep it on my desk as a reference point for every discussion with a potential client. For those of us who practice value pricing, this is essential. For those who do not, it's an excellent argument for it.

[Mohammad Jaber · Rating 5 out of 5]

.. And that was a great book!

[Erik Rostad · Rating 4 out of 5]

Quick read about value pricing with some immediately implementable advice. Very helpful book with great lists of additional resources for further study.

[Harold Maduro · Rating 5 out of 5]

Explica bastante bien los temas de pricing, precio por hora, valor y profit, desde un punto de vista accesible. Short read.

[Chad · Rating 4 out of 5]

Concise, practical guide to value pricing for design projects.

Notes
Pricing Methods

Cost-plus pricing is all about you; it doesn't take client into account.

Hourly pricing cons
• Clients tend to choose lowest rate.
• Clients want to know total cost up front.
• It's difficult to raise rates as quickly as your experience increases.
• You're incentivized to spend more time, but client is incentivized to get you to spend less time.
• Your income is limited by number of billable hours.

If fixed prices are based on hourly rates, they have same cons as hourly pricing.

Don't charge hourly to allow for shifting requirements or clients who can't make up their minds. Instead, define scope, then use value pricing.

Value-Based Pricing
Base price on value to client and the moment (e.g., how much you need work, how quickly client wants work done, how difficult client is to work with, etc.).

To help come up with price, think of what object you'd take for payment (e.g., new MacBook Pro, used car, 2 yrs of mortgage payments).

A Pricing Case Study
Offer 3 price options, often tiered.

Pros of price options
• Uses anchoring effect
• Causes client to compare your prices with your other prices, not with competitors' prices
• Forces you to think of ways to create value for client

Don't focus on your abilities or deliverables, but on results client can achieve.

Base each option on a different trait or result that's important to client, then sort into high, medium, low value.

Consider basing high option on 10% of potential value of engagement to client.

Options can be priced with different units (e.g., per phase, per month, fixed). It's OK that clients can't compare these directly to each other or to your competitors.

[Katie · Rating 4 out of 5]

Useful and encouraging - I want to give value based pricing a more serious try. Fun and accessible writing too.

I wish the book had gone a little more into recognizing and communicating value. I often work with nonprofits, and usually our work won't directly translate into increased revenue from them. The value is in improved mission alignment and reducing staff/volunteer time spent on things that can be streamlined or automated. It can be tricky to monetize that.

[Patrick Haney · Rating 4 out of 5]

At only 50 pages, this "Brief" from A Book Apart is easily read in under an hour. And anyone who freelances, or runs their own design business, should find an hour right now and read it. Dan lays out a great strategy to figure out what you're worth and how to sell value to your clients. This book definitely changed my perspective on a few things regarding my own design pricing!

[Pat · Rating 5 out of 5]

I will definitely be re-reading this book next week. Short and sweet, this book has caused me to really think deeply about the value I bring to design and development projects and how to ensure that I am able to continue to deliver that value to my clients.

[Matthew · Rating 5 out of 5]

Quick read but enlightening to see another pricing model. We've been using a variant of this for a bit, but its nice to learn the origins and modify our pricing. At 60 pages this is a quick afternoon read.

[David Holl · Rating 5 out of 5]

Fantastic! This book packs so much into 50 pages. Dan briefly covers standard pricing concepts before focusing on value pricing in a way that makes it clear and immediately useful. I wish I'd had this book ten years ago.

[LK Das · Rating 5 out of 5]

Clear, short and straight to the point. If you are confused about pricing creative services, then this book contains helpful actionable steps. Also, real-life examples are included so that it will give you confidence that these tips works!

[Blue Jafar · Rating 1 out of 5]

Strong pass

That was very short, I have to admit. Also, maybe it is me, but I didn’t get a lot of value in this book. Some notions at the beginnings were interesting but overall I don’t find this book useful.

[Bilal · Rating 4 out of 5]

this is a must read for anyone in the service industry.

[Phil Bowell · Rating 5 out of 5]

Very interesting and thought provoking approach to apply to business. Real food for thought.

[Sam Spencer · Rating 5 out of 5]

Clear, concise, practical - just what you need right when you need it.

[Ed Orozco · Rating 5 out of 5]

Short and sweet. It's very actionable and clearly explained. If you want to learn about value-based pricing, start with this one.

[Giustino Borzacchiello · Rating 4 out of 5]

Short and to the point.

I didn't get a lot of value because I'm reading many books on the subject, but this would have been a great first book about pricing!

[Stephanie Wilson · Rating 5 out of 5]

Claro, preciso y consiso. Aun cuando va dirigido a profesionales de diseño web, los conceptos aplican para proveedores de servicios en general.

[Samuel · Rating 5 out of 5]

A good introduction to what value pricing is. Something I'll be taking into conversations in the future.

[Rodrigo · Rating 4 out of 5]

Small and objective book about pricing for individuals and small design agencies.

[Maria-Diana · Rating 5 out of 5]

Light and easy, but I found value in it. (And I this this was the whole point)

[Justin Ruckman · Rating 3 out of 5]

Some good pointers and perspective. But this approach, championed by many, assumes a very specific kind of work. Not every job can be translated in every situation to how much money the party receiving your help can make (or save) directly. At least not without wild speculation. In the end it’s just *another* pricing model, not *the*.

[skullface · Rating 5 out of 5]

I didn't know how valuable this super-short ebook could be without an accompanying table of various rates others charge across differing experience, disciplines, and locations — but that's exactly the author's point. Determining your rate based on those factors is one way to set your price, but it's not the best way for you or for your clients. This book is the best explainer on value-based pricing I've come across, and I've listened to a few episodes of the author's business of design podcast. I want to buy a copy for every freelancer friend I have who's also struggled with pricing. Jessica Hische's essay, "The Dark Art of Pricing", and this book are the resources I will read over, internalize, and come back to again and again to reference.

[John · Rating 5 out of 5]

A great quick read, very quick. Swift and to the point, Dan offers some valuable insight on the subject of pricing design. His writing even managed to reframe my perspective on the industry which feels refreshing. Will certainly be revisiting this one and look forward to exploring some of the reference materials he included.

[Sasha Endoh · Rating 5 out of 5]

If you're new to value pricing, positioning yourself, and forging relationships with clients - this is a great primer!

If you've been at it for a while, heck, sometime you just need to hear it a few different ways before it sticks!

Solid, well written advice.

[Garren · Rating 4 out of 5]

I really nice concise guide to pricing your services.

[Brian Duchek · Rating 4 out of 5]

This excellent short form book (think long blog post) challenged the way I've thought about design studio pricing, and provided a just enough to get me interested in some other titles on the subject.

[Raul Loureiro · Rating 3 out of 5]

Too short for a book even for a brief. Is like a blog post.

[Jack Baty · Rating 4 out of 5]

Short and practical.