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Originally Posted by facialfreak
"Pay us double the price, and if you are not happy with the design when we are finished with it, we'll do it over again ..."
Sure it's a gimmick!
Usually I allow my clients to have input all the way along the process, so that I do not have to do a redesign - they are happy the first time around.
It is MY JOB to deliver something the client is happy with ... I certainly don't charge them DOUBLE for that luxury. I guarantee client satisfaction included in my regular prices - but that's just me! 
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I have never heard of this gimmick and anyone who pays double for a design just to guarantee they will be happy with it is a fucking asshat.
Doesn't anyone do design presentations anymore? I can't imagine having a client who hasn't seen several concepts, then more designs, and then more designs, before the final design is even presented.
Maybe this explains $200 logos...