You need to to raise your prices if you want better work. Sounds strange doesn’t it? The idea that if you raise your prices you'll get better graphic design work. It kind of goes agains the whole "undercut your competition" idea that is predominant in most industries. But when it comes to graphic design, charging more means better work for you. I first covered this topic in a blog post titled It's Time To Raise Your Design Rates. In this episode of my graphic design podcast Resourceful Designer, I expand on the topic and tell you how I first discovered the connection between higher prices and better work and I explain how if you raise your prices you'll be better off as well. Make sure you listen to the podcast for the full story. Pros and Cons if you raise your prices Let's start off with the cons since there really aren't that many. Con - Harder to land work. Con - May loose clients That's about it. These cons may be areas to concern yourself with but they are the only two cons, and chances are you won't have to worry about them. So let's move on to the pros. Pro - More money for less work Pro - Higher end clients with bigger budgets Pro - Higher perceived value for your work Pro - Clients who can afford your higher prices will probably have more work for you as well Pro - You will be taken more seriously as a designer Pro - The ability to compete with other high priced designers Pro - More interesting projects to work on Pro - Less one time clients and more recurring clients As you can see, there are way more pros than there are cons, and I only listed some of the pros. As for cons, I Googled it and those were the only two I found. The fact is, after your raise your prices you will be in a better position to attract higher end clients with bigger budgets and recurring work. It all comes down to perceived value and people taking you seriously. A large corporation looking to rebrand will have more confidence in a graphic designer that changes them $8,000 than one that charges them $800. It's perceived value. Both designers may have identical skills, but the higher priced designer will be taken more seriously. It's just like layers. Would you prefer have a high priced attorney represent you or the appointed public defender? The high priced attorney of course. Why? Because of the perceived value. The public defender may be just as competent as the high priced attorney but he/she will never be taken as seriously as the high priced layer. The same theory applies to graphic designer. Do pricing strategies matter? No. It doesn’t matter if you charge by the hour, the project, or by value. If you raise your prices you will project an image of having more value to your clients. And if it looks like you offer more value for your clients you will attract bigger and better clients. Why do you think companies like Pepsi Cola pay so much when they create a new brand? It's not because the designers or agencies they hire spend tens of thousands of hours on the project. Nor is it because the designers or agencies are more talented and more creative than you are. It's because the designers or agencies have created a higher perceived value for themselves that make large companies trust them more and take them more seriously and in return large companies like Pepsi Cola are willing to pay a premium price for them. You can accomplish this as well. Maybe not land a client like Pepsi Cola, although never say never. But you could land some very lucrative accounts and get the ball rolling. Because once you land one large client more tend to follow suit. Do you tell your clients when you raise your prices? This is entirely up to you. The few times I've raised my own prices I didn't tell my clients and they didn't question it when I sent them an invoice billed at my new higher rate. People are used to prices going up and wont be as surprised by an increase as you think they will. Now if you feel this is a little back handed then go ahead and inform