We Changed Our Pricing Structure And We Are Now A $1.5M Branding Agency [Update]
This is a follow up story for Percept. If you're interested in reading how they got started, published almost 3 years ago, check it out here.
Hello again! Remind us who you are and what business you started.
Hello again guys, I’m Lewis Jenkins, Principal and Founder of Percept Brand Design, a strategic branding agency in Sydney. You may have previously read the initial Starter Story interview about how I kicked off my company, Percept. If not, check it out here.
Percept is an Australian branding agency specializing in Strategic Branding, Brand Identity, Packaging Design, Visual Communication, and Digital Design. We work with clients across many different industry sectors, helping them amplify their business performance. Basically, we transform good companies into great brands.
Percept is now a $1.5M branding agency, with clients that include Unilever, DuluxGroup, Rio Tinto, and the Australian Government, as well as many lesser-known names that value strategic branding design and allow us to produce good work because they trust our track record for good advice.
Tell us about what you’ve been up to. Has the business been growing?
This past year has seen us grow, with the transition from adolescence into a more mature business model a continuing process. Percept has successfully shifted our market position from being one of the thousands of design agencies in Australia offering aesthetic deliverables to Percept being among a handful of strategic branding agencies with a far more refined offering of actually improving the businesses we work with.
One of the most notable things that allowed this was our change in the pricing structure. Basically, we got to a tipping point where we had the runs on the board, and it was time for a brave move to realize the profitability potential of our brand agency. We increased our typical project price 10-fold and tripled the time we’d spend on that particular strategic branding project. Effectively tripled the quality of work we were delivering and tripled our time billing rate at the same time.
The brand repositioning for our business has enabled us to produce far better work than we had previously created due to the shift in the hourly rate, enabling us to spend more time developing robust brand strategies and brand identities. This improves our reputation and attracts more important projects and larger budgets. The transformation is paying off financially and in terms of our stature within the design industry and positive publicity in the commercial world.
This past year, we have won a few awards and received great industry recognition for our branding design work. Percept is thrilled to have won Silver in the Australian Design Awards 2023 as well as achieving Silver in the Sydney Design Awards 2022 too. These accolades were for branding projects in the Graphic Design, Identity, and Branding categories. See our work.
In additional good PR news, Percept has been named in the Clutch Report of Leading Branding Agencies in Australia for 2022. Agency Spotter also ranked Percept in the Top 30 Global Branding Agencies for 2022 and TDA crowned Percept Branding Agency Of The Month for January 2022.
What have been your biggest challenges in the last year?
Of course, one of the challenges for us this year has been navigating through and bouncing back from all the effects that Covid-19 has had on the business world. Obviously, we’re not alone here, so there is no need to go into too much detail except to say that these challenges have taught us to be more resilient, making us stronger and more flexible as a company.
If you are prepared to do whatever it takes and have the passion to follow it through, you will be rewarded in the long run.
The economy has also thrown its fair share of challenges at us, with our overheads increasing significantly. At the same time, our potential clients are looking to tighten up their spending to ensure security during these trying times. This made us question whether it was the right choice to stick with our new pricing structure because we were struggling to convert many new businesses due to clients’ budgets. We decided to stick strong with our position and trust that the projects we win will validate this choice.
What have been your biggest lessons learned in the last year?
Sticking with the change to our pricing structure enabled us to win better projects and deliver better outcomes because we now have the time to invest in creating top-class work.
This has also had a positive knock-on effect because we can employ better staff and offer competitive salary packages that attract the industry’s best talent.
Furthermore, embracing the working-from-home culture has improved our situation further. Now we are employing remote creatives, allowing us to assemble best-of-breed personnel, meaning Percept can provide the best branding services possible, regardless of where in the world potential clients are located, even though our design agency is in Sydney, Australia. This increases the quality of our offering and opens up our market globally.
What’s in the plans for the upcoming year, and the next 5 years?
Our plans for the upcoming year are to consolidate on the successes of the past 12 months, continue to deliver top-class strategic branding outcomes for our clients, and see their businesses prosper as a result.
We also intend on growing the Percept team of brand designers by 20% in approximately 6 months' time, so please keep an eye on our socials to see what roles we will be offering.
We’re excited about working on new projects and with new clients as our design agency grows. Variety is the spice of life, and it keeps us on our toes creatively!
Over the next 5 years, Percept aims to be considered among Australia's top 10 branding agencies. We intend to push boundaries with our strategic branding work and help our clients' business performance in the process.
Percept’s vision for the next 5 years is to balance our growth to a $2M yearly turnover with better working conditions for our team so they can enjoy quality and fulfillment in their work/life balance. Part of this plan includes the promotion of an inclusive and positive studio culture that gets the best out of everyone because they enjoy working at Percept Brand Design.
What’s the best thing you read in the last year?
The Bible. It has given me plenty of great advice!
Advice for other entrepreneurs who might be struggling to grow their businesses?
Keep at it and stay positive! It is hard, don’t make the mistake of thinking it will be easy or quick. If you are prepared to do whatever it takes and have the passion to follow it through, you will be rewarded in the long run.
Are you looking to hire for certain positions right now?
Even when we’re not advertising specific roles, we’re always looking for talented individuals who can help Percept be the best branding agency possible. Go to the Careers page of percept.com.au to submit your information for consideration in your desired role.
Where can we go to learn more?
If you have any questions or comments, drop a comment below!
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