Large companies don’t just spend millions of dollars for a logo, what they’re actually buying is reassurance.
Within those multi-million dollar rebranding campaigns is research, audits, copywriting, and brand positioning. All of which aim to qualify whether the final design resonates with the company’s target audience. So truthfully they’re not paying millions for a logo alone, they’re buying a comprehensive brand strategy and brand identity system that will cover all instances of their brand.
The reason why a company will spend so much money, is because a poor rebranding execution doesn’t just cost them the price of the design, it can also decrease their sales. With a billion-dollar company, reduced sales from a poor redesign can mean millions of dollars in lost revenue. Rather than risk those millions working with a less expensive design company, many businesses will only work with design firms that have a strong reputation for managing massive rebrands of their scale. The inflated budget isn’t just a frivolous spend, it often allows the design firm to hire consultants that can better ensure their final design will be well-received by their client’s customers, making success all around more likely, and reducing the risk to the client.
At the end of the day, regardless of how long it takes the design firm to complete the work (5 minutes or 5 years) if they can consistently deliver results that prevent companies from losing millions in lost revenue, they’re clearly worth the price.