Chapter 4: Pricing in dollars without underselling

Pricing is where many talented Nigerian designers lose the most, not because they lack skill, but because they guess. They look at what someone else charges, convert a naira price at today's exchange rate, or quote whatever they think the client will accept. Then they discover halfway through the project that the fee doesn't cover the time, the fuel, the data or the software subscription that just went up.

This chapter gives you a method, not a number. There is no single correct price for a brand identity. It depends on scope, the client, your experience, your costs and the value of the outcome.

Important: Every figure in this chapter is an EXAMPLE or part of a HYPOTHETICAL scenario, used only to show how the calculation works. None of them is a recommended rate, a market rate or an income claim. Put in your own numbers.

Three ways to think about price

1. Cost-based: what you need to charge to cover your costs and pay yourself. This gives you your floor.
2. Market-based: what designers with similar skills and positioning charge in your target market. This gives you a reference range.
3. Value-based: what the outcome is worth to the client. This gives you a ceiling, or at least a direction.

A sound price sits above your floor, is informed by the market, and is justified by value. Most underpricing happens because designers skip the floor and guess at the market.

Step 1: List your real monthly business costs

Nigerian designers carry costs that many freelancers elsewhere don't think about. List every cost in its original currency, then convert to a single currency (USD is simplest for international pricing) using a conservative exchange rate. [VERIFY the current rate when you do this, and re-check regularly.]

Category	Examples	Notes
Power	Generator fuel, inverter/solar battery maintenance, electricity bills	Often one of the largest and most variable costs
Data and internet	Main connection, backup mobile data	Budget for two connections
Software (foreign currency)	Adobe, Figma, font licences, mockup subscriptions, Loom, cloud storage	Affected by FX and card limits (Chapter 5)
Equipment	Laptop, monitor, tablet, UPS. Spread the replacement cost over its useful life	E.g. laptop cost ÷ 36 months
Workspace	Home office share, co-working fees
Payment costs	Receiving fees, conversion fees, withdrawal fees	See Chapter 5 [VERIFY]
Professional services	Lawyer review of the contract, accountant
Marketing	Domain, website hosting, portfolio tools
Learning	Courses, books
Tax	Set aside a proportion of income	[VERIFY with a tax professional]

Then add your personal pay: what you need to take home each month to live and save.

Step 2: Calculate realistic billable hours

You won't bill 160 hours a month. Allow for:

• Outreach and marketing (Chapter 3)
• Admin: invoices, emails, contracts
• Calls and revisions that run over
• Learning and portfolio work
• Power or internet outages
• Holidays and sick days

A realistic billable figure for many solo designers is roughly 50–60% of working hours [Assumption, adjust from your own time tracking].

Step 3: Find your floor hourly rate

Floor rate = (monthly business costs + monthly personal pay) ÷ monthly billable hours

Then add a margin for profit, savings and risk (late payments, quiet months, FX swings).

HYPOTHETICAL worked example: floor rate

All figures are invented for illustration. They are not recommendations.

Chidi lists his monthly costs, converted to USD with a conservative rate:

• Business costs (power, data, software, equipment, payment costs, etc.): EXAMPLE $400
• Personal pay target: EXAMPLE $1,200
• Total: EXAMPLE $1,600

He works about 40 hours a week (around 170 hours a month) and estimates 55% are billable: about 94 billable hours.

Floor rate = $1,600 ÷ 94 ≈ EXAMPLE $17 an hour.

He adds a 30% margin for risk and profit: EXAMPLE about $22 an hour minimum.

This doesn't mean he quotes hourly. It means any project price, divided by the hours it takes, should not fall below about $22 an hour in this example.

Step 4: Estimate project hours

Break a typical brand identity project into phases and estimate hours from your own experience (track your time on the next few projects to improve these estimates).

HYPOTHETICAL worked example: hours for a "Standard" brand identity

Invented estimates for illustration.

Phase	EXAMPLE hours
Discovery: questionnaire review, call, research	6
Moodboards and strategy summary	5
Concepts (3 directions)	14
Presentation (Loom + call)	3
Two revision rounds	8
Mini guidelines (12 pages)	10
File preparation and handover	5
Project management and emails	6
Total	57

Floor price = 57 × $22 ≈ EXAMPLE $1,254. Round up to a clean figure. Any lower and Chidi is, in this hypothetical, working below his own sustainable minimum.

Step 5: Look at the market

Research what designers with similar positioning charge in your target market:

• Pricing pages on studio and freelancer websites
• Published rate surveys from design organisations in your target countries [VERIFY the source and date]
• Conversations with designers you trust
• Agency feedback on your quotes

Be careful about comparing yourself with very cheap marketplace listings or famous studios. Compare yourself with designers who have similar experience and serve a similar niche.

Step 6: Price the value

International clients aren't buying hours; they're buying an outcome. Ask during discovery (Template 6):

• What will this brand be used for: a launch, fundraising, entering retail, a rebrand?
• What happens if they get it wrong?
• How long will they use it?

A brand that will appear on a product range in retail, a funding pitch or a national campaign is worth more to the client than a logo for a hobby project, even if the hours are similar. You don't need to calculate the client's return precisely. Value thinking simply gives you the confidence to price above your floor when the stakes are high.

Step 7: Build three packages

Three tiers make decisions easier, let clients choose their own level of investment, and often steer them toward the middle option.

Tier	Typical contents	Purpose
Essential	Logo suite, colour palette, typography, basic usage sheet	Entry point for smaller budgets
Standard (recommended)	Essential + mini guidelines + key applications (e.g. social templates, business card)	The package you most want to sell
Premium	Standard + brand strategy + full guidelines + collateral/packaging	For larger launches

Also price:

• Add-ons: extra concepts, packaging per product, pitch deck, social media kit
• Retainer: a monthly fee for ongoing brand support, with defined hours or deliverables
• Agency day rate: a simple rate for white-label work

Fill in Template 3 (USD rate card). If you also serve naira-paying clients, fill in Template 4 (NGN rate card) and give it a short validity period, because your FX-linked costs move.

Step 8: Choose your quoting currency

Quote international clients in their currency (USD, GBP or EUR) where possible. Doing so:

• Feels normal and professional to the client
• Protects you from naira volatility during the project
• Moves the FX question to the conversion step, which you control

But first make sure you can actually receive that currency at reasonable cost (Chapter 5). There's no point quoting in euros if your receiving setup only supports USD.

Step 9: Build fees and FX into the deal

• Transfer fees: decide in your contract who pays them (Template 2, clause 2.3). If the client pays, the full invoiced amount should reach you. If you absorb fees, build them into your price.
• FX buffer: consider a small buffer in your naira-based costs, since FX movements affect software and equipment costs.
• Price validity: state how long a quote is valid (e.g. 14 or 30 days).

Step 10: Present your price confidently

How you present a price matters as much as the number.

• Lead with the outcome and scope, then the price.
• Show three options rather than one take-it-or-leave-it number.
• Don't apologise or explain your costs to the client. Your cost calculation is for you.
• Handle pushback by changing scope, not by discounting. "If budget is a concern, the Essential package covers the core identity, and we can add guidelines later."

HYPOTHETICAL example: responding to "Can you do it cheaper?"

Invented for illustration.

"Thanks for being open about the budget. The Standard package includes guidelines and key applications, which is why it's priced at [amount]. If you'd like to start smaller, the Essential package at [amount] gives you the full logo suite, colours and typography, and we can add the guidelines in a second phase. Would that work better?"

Why "cheap because Nigerian" hurts you

Pricing far below the market can backfire:

• Serious clients may wonder whether the quality or reliability is lower.
• It attracts clients who value price above everything, who are often the hardest to work with.
• It leaves no margin for the realities of power, data, FX and revisions.
• It's very hard to raise prices with a client who first came to you because you were cheapest.

[Assumption] This is a positioning view, not a law. You can test it: try quoting at different levels across similar leads and record the results.

Deposits, retainers and payment structure

• Always take a deposit before starting (Chapter 5). EXAMPLE structure: 50% deposit, 25% at concept approval, 25% before final files.
• Retainers bring predictable income. Define clearly what's included each month and what happens to unused hours.
• Agency work often uses day rates or fixed fees. Agree payment terms in writing before starting.

When and how to raise your prices

Review your prices every 6 months, or sooner if:

• Your costs have risen (power, data, software, FX)
• You are consistently booked out
• You are winning almost every proposal, which may mean you're priced too low [Assumption]
• Your portfolio and experience have grown

Apply new prices to new clients first. Give existing clients notice before changing their rates.

Step 11: Turn hours into three priced packages (worked example)

Steps 3 to 7 give you the pieces. This step puts them together.

HYPOTHETICAL worked example: Chidi's three packages

All figures are invented EXAMPLES. They are not recommendations or market rates.

Chidi uses his floor rate of EXAMPLE $22 an hour from Step 3 and estimates hours for each tier from his time tracking:

Package	Contents	EXAMPLE hours	Floor (hours × $22)	Value adjustment	EXAMPLE quoted price
Essential	Logo suite, colour, type, one-page usage sheet	30	$660	Small business, low stakes	$900
Standard	Essential + 12-page guidelines + 5 applications	57	$1,254	Retail launch, medium stakes	$1,800
Premium	Standard + strategy workshop + 30-page guidelines + packaging for 3 products	110	$2,420	Funded launch, high stakes	$3,800

Notes on the example:

• Every quoted price is above the floor. The gap between floor and quote is Chidi's profit and risk buffer.
• The gap widens as the stakes rise. That's value pricing at work: Premium projects matter more to the client, so a larger margin is justified.
• The Standard package is designed to be the obvious choice: it costs noticeably more than Essential but includes the guidelines most clients need.

Before using numbers like these, Chidi checks them against Step 5 (the market). If comparable designers in his niche charge much more, he may be underpricing. If much less, he needs to make his extra value obvious in his proposal, or reconsider.

Step 12: Price retainers

A retainer is a monthly fee for ongoing brand support. It gives you predictable income and gives the client priority access to a designer who already knows their brand.

How to structure a retainer

1. Define the unit. Either hours per month ("up to 15 hours") or deliverables per month ("up to 8 social templates and 2 campaign layouts").
2. Define response times. For example, "requests acknowledged within one business day; standard turnaround five business days."
3. Define what happens to unused time. Common options: unused hours expire, or a limited number roll over for one month. Write it down.
4. Define what's out of scope. Large projects (a full rebrand, a new packaging range) are quoted separately.
5. Bill in advance, at the start of each month.
6. Set a minimum term and notice period. For example, three months minimum, then 30 days' notice.

Pricing a retainer

Start from your hourly floor and expected monthly hours, then consider a small discount for guaranteed volume, only if the retainer genuinely reduces your sales and admin time.

EXAMPLE maths: 15 hours × floor rate, plus margin, minus a modest volume discount = monthly fee. Check the result is still comfortably above your floor.

Step 13: Price agency (white-label) work

Agencies usually mark up your price to their client, so they need your fee to leave room for their margin.

• Day rate: a simple, common model. Calculate it as your hourly floor plus margin, times the hours in a working day, minus any volume discount.
• Fixed project fee: useful when the scope is clear. Use your package logic.
• Payment terms: agencies may pay on their own cycle (for example, 30 days after invoice). For a new agency relationship, ask for a deposit or a smaller first project to establish trust in both directions.
• Rush fees: agencies often work to tight deadlines. Decide whether you'll charge more for short turnarounds and state it on your rate card.

[Assumption] Agencies tend to value reliability over the lowest price. A slightly higher day rate with flawless delivery is usually a stronger position than the cheapest rate with occasional delays.

Step 14: Decide your discount policy

Decide your discount rules before a client asks, so you're not negotiating against yourself on a call.

Options to consider:

• No discounts; reduce scope instead. The cleanest approach (see Step 10).
• Pay-in-full discount: a small reduction if the client pays 100% upfront. This lowers your risk.
• Retainer or volume discount: only where it genuinely saves you time.
• Referral thank-you: a small credit for clients who refer work that converts. Be transparent about it.
• Non-profit or community rate: if you choose to support certain causes, set clear criteria.

Avoid ad-hoc discounts given because a client sounded disappointed. They train clients to negotiate and make your pricing look arbitrary.

Step 15: Handle FX when you convert to naira

Quoting in foreign currency protects your fee during the project. But you still decide when and how much to convert into naira.

• Convert what you need for naira expenses; consider holding the rest in foreign currency if your provider allows it and it fits your situation. [This is not financial advice. Consider your own circumstances.]
• Compare the rate and fees before each conversion. Providers' effective costs differ (Chapter 5) [VERIFY].
• Record every conversion (date, rate, amount, fees) for your records and tax.

HYPOTHETICAL worked example: why currency choice matters

Invented figures for illustration only.

Two designers each agree a project worth the same amount at the start of a six-week project. Designer A quotes ₦[X] to a UK client. Designer B quotes $[Y]. During the project, the naira weakens against the dollar.

• Designer A receives the naira amount agreed. In dollar terms it is now worth less, and her dollar-priced software subscriptions now cost more naira.
• Designer B receives the dollar amount agreed and converts when she needs naira, at the new rate.

The direction could reverse if the naira strengthens. The point is not to predict FX; it's that quoting in the client's currency keeps the agreed value of your fee stable in the currency the client actually spends, and leaves conversion decisions with you.

Step 16: Price for diaspora clients who prefer naira

Some diaspora clients have naira accounts and prefer to pay in naira. That's fine, but:

• Base the naira quote on your USD price, converted at a rate you're comfortable with, not on your local Nigerian rate card.
• Give the quote a short validity period.
• Make the scope and terms identical to your international contract.

[Assumption] A client in London paying in naira is still an international client in terms of expectations, communication and contract. Price and serve them accordingly.

Common pricing mistakes

1. Pricing by converting your local rate. International work involves more risk, communication and admin. Price it from first principles.
2. Forgetting the hidden hours: calls, emails, revisions, file preparation.
3. Forgetting payment costs. Receiving and conversion fees reduce what you take home.
4. One price only. A single take-it-or-leave-it price removes the client's sense of choice.
5. Never reviewing prices. Costs in Nigeria can change quickly. Review regularly.
6. Hiding behind "it depends". Clients need a range or a package to decide. Give them one.

Checklist: pricing

• Monthly business costs listed, including power, data, software and payment costs
• Personal pay target set
• Realistic billable hours estimated
• Floor hourly rate calculated, with margin
• Hours estimated for each package
• Market research done on comparable designers
• Three packages, add-ons, retainer and day rate defined
• USD rate card completed (Template 3)
• NGN rate card completed, if needed (Template 4)
• Quoting currency matches what I can receive (Chapter 5)
• Transfer-fee policy decided

End-of-chapter exercises

Exercise 4.1: Cost inventory. List every monthly business cost in its original currency and convert to USD at a conservative rate. Note the date and the rate you used.

Exercise 4.2: Floor rate. Calculate your floor hourly rate and add a margin. Write it on a sticky note near your desk.

Exercise 4.3: Time tracking. On your next project, track the hours for each phase. Compare them with your estimates.

Exercise 4.4: Package design. Draft your Essential, Standard and Premium packages with scope and prices. Check each one is above your floor.

Exercise 4.5: Market scan. Find 5–10 designers with similar positioning in your target market who publish prices or ranges. Note where your prices sit.

Exercise 4.6: Retainer and day rate. Using your floor rate, draft one retainer offer (hours, response times, unused-hours rule, term) and one agency day rate.

Exercise 4.7: Discount policy. Write your discount policy in three sentences.

Exercise 4.8: Pushback practice. Write your response to three common objections: "too expensive", "can you just do the logo?" and "another designer quoted less". Practise them aloud.