The design industry is in a price war. Take a handful of large agencies out of the mix and the rest of the design industry comprises of 3-20 man studios and a few one man bands. Lots of one man bands now that the big boys have cut their staff by 20%. Thousands of one man bands now that graduates can't find a job and are setting up shop solo.
Due to the availability of pirated software and decreasing print costs, students and one man bands can produce a professional front relatively easily, so market differentiation is difficult. So most people resort to the staple of the capitalist market - price. Rates come down, competitors follow suite.
Supply is massive, demand is low.
So how else can you differentiate?
Look at a few other industries - the design industry isn't the first to have a price war. The vodka market went through this. So did the airline industry.
Vodka split the market. Premium vodka and basic vodka. The distinction between cheap and premium vodka is largely in the marketing and the process used to make the vodka. Some filter through diamonds, others through charcoal.
Design could split the market. The problem is that the cheap brands market themselves as professional and disguise their process. They don't say that for £200 you're only getting recycled logos.
So maybe premium brands could create a new process, one that's difficult to copy. Market it well. Split the market.
Another option is to become the cheapest. Pile the templates high, sell them cheap. Plenty of companies are already doing this. In fact I know of a local company that is running purely at cost for the first three years in order to build up a client base. They plan to sell the company as a design franchise, with low overheads employing students working off templates. Like a factory. But cheap.
You could always maintain the same prices, hope your clients don't start looking around.
Or you could innovate. Off something no-one else can. And no, service doesn't count. Everyone offers a high level of customer service (or at least they say they do). Create something new, embrace new technologies, use techniques that everyone stopped using. Experiment, buy an old letterpress machine for your studio, ring your paper manufacturer up and see whats new. Stop printing on 9 lives silk stock. When was the last time you used a special ink? Can you offer AR business cards? How about new markets? Check out the big boys, they're doing deals in the middle east, India and Africa. South America is going to be a massive market soon. Thailand is an opportunity - name a big Thai design company or a big Thai brand.
Do something new and stop whining that no-one will pay what they used to. Why should they?
