Research Market Rates Before Setting Project Prices

Learners will synthesize market data and personal experience to calculate a defensible hourly rate. This capability allows designers to quote projects with sufficient buffer to avoid the difficulty of upward revisions. Learning Objective: By the end of this lesson, learners will be able to calculate a billable rate by synthesizing market data, experience, and the 'lower, don't raise' principle. Transcript Market Rate Data Sources The first move is to locate concrete data that anchors your proposed pricing to reality. You need to compare your instincts against what the industry actually pays. The Information Architecture Institute publishes salary surveys that give you a baseline for the field. AIGA provides contractor rate data, which is specifically useful for comparing against your own freelance or project-based pricing. Beyond those two, you have additional benchmarks to cross-reference. Coroflot and Aquent both offer rate data that helps you see how the market values specific skill sets and experience levels. When you pull numbers from these four sources, you are building a factual foundation. This prevents you from guessing and ensures your rate reflects current market standards. Once you have these external data points, you can begin synthesizing a fair pricing input. The goal is to move from vague estimates to defensible numbers. This data collection step is the critical first layer of your pricing strategy. Key Points: Information Architecture Institute (www.iainstitute.org) publishes relevant salary surveys. AIGA (www.aiga.com) provides contractor rate data for comparison. Coroflot (www.coroflot.com) and Aquent (www.aquent.com) offer additional rate benchmarks. Synthesizing Fair Pricing Inputs Once you have the market data, synthesize it with two other critical inputs to find your rate. The first input is your own level of experience, which anchors your value against the market. The second is what others in your specific market are charging, a direct comparison to your peers. The third input is what you personally feel is somewhat fair, balancing objective data with professional intuition. This synthesis creates a stable baseline for your pricing. You are not just guessing a number, but building a defensible rate. The goal is to arrive at a figure that respects your skill while remaining competitive. However, you must also apply the lower, don't raise principle. This rule exists because it is significantly harder to ask a client to pay more after they see specific numbers. You can always lower a rate to win a deal, but raising it later is often impossible. Therefore, your initial quote needs enough buffer to prevent any need for upward revision. With your rate synthesized and buffered, the next step is estimating the total time required for the project. Key Points: Input 1: The designer's own level of experience. Input 2: What others in the specific market are charging. Input 3: What the designer feels is 'somewhat fair.' The 'Lower, Don't Raise' principle: It is easier to lower a rate than to ask a client to pay more after seeing specific numbers. Calculating Billable Rate Sequence Say you’re scoping a mid-sized interface redesign for a local health system. You’ve already pulled the market data, weighed your own experience level, and settled on what feels somewhat fair for the work. Now you need to turn that judgment into a specific number on the page. The calculation follows a tight sequence, and getting the order right is what keeps the quote defensible. The first move is to estimate the total duration of the project, and you do that by naming a specific number of revisions you’ll commit to deliveri