How do you tell a friend you won't hire them?

I am looking for a logo design for my new business, and I have a friend that offered me their services but he is too expensive.  He is very good, and as an artist, I understand how shitty it is when people downplay the value of your skills by asking for a discount.
How do I tell him he isn't hired while not jeopardizing the friendship?

Archer2020-07-26T19:23:28Z

Simple, if they are in a business then they have had turn downs before. Friendship has nothing to do with "Business"!