Flat Fee vs. Hourly: A Side-by-Side Comparison to Help You Price with Confidence
One of the most common questions I hear from designers—whether they’re just starting out or they’ve been in the game for years—is this:
“Should I charge a flat fee or bill hourly?”
There’s no one-size-fits-all answer. Every designer, every client, and every project is a little different. But understanding the strengths (and limitations) of both models will help you make smarter pricing decisions—ones that protect your time, reflect your value, and support a profitable business.
Let’s break it down.
Flat Fee: Clear, Predictable, and Structured
What it is:
You offer a set price for a defined scope of work, usually tied to specific deliverables or project phases.
Best for:
✔️ Concept Development
✔️ Design Presentations
✔️ Detailed Drawings and Specs
✔️ Packages (ex: Room Refresh, Kitchen Design Plan)
Pros:
Clients love the predictability of a flat rate
Easier to sell the transformation, not the time
Encourages efficiency—you’re not penalized for working faster
Allows you to showcase your expertise with confidence
Cons:
Scope creep can eat into your profit if not tightly managed
Requires accurate time tracking to ensure profitability
Unexpected delays or changes = you working for free (unless contract language protects you)
Hourly: Flexible, Transparent, and Ideal for the “Messy Middle”
What it is:
You bill for the actual time you spend working on a project, usually tracked in 15- or 30-minute increments.
Best for:
✔️ Procurement & Product Sourcing
✔️ Contractor Coordination
✔️ Installation Days
✔️ Revisions & Add-ons
Pros:
You’re paid for every minute of your time
Ideal when scope is evolving or hard to define upfront
Works well for ongoing or support-based phases of a project
Cons:
Clients can be wary of open-ended pricing
You may feel pressure to “justify” your time
Doesn’t always reflect the value you bring, just the hours
Why a Hybrid Model is the Best of Both Worlds
Here’s the truth: both models work—just not for every part of your project.
The real magic happens when you blend them:
👉 Flat fee for the phases you can control (like Discovery, Concept, and Design Development), where you can define the deliverables and outline your time investment.
👉 Hourly for the parts that are unpredictable (like managing delays, coordinating trades, or multiple client revisions), where flexibility is essential and variables are outside your control.
This approach helps you:
✨ Protect your profitability
✨ Set clear expectations
✨ Reduce client confusion
✨ Feel more confident saying your price—without flinching
Ready to Rework Your Pricing Structure?
If you're still feeling unsure about how to apply this to your business, you're not alone. I work with designers every day who are shifting from undercharging or chaotic invoicing to streamlined, hybrid pricing structures that reflect their value and support ease.
📩 Book a complimentary strategy call with me and let’s talk about your pricing model—and how to align it with your process, your personality, and your profit goals.
You don’t have to choose between structure and flexibility.
A hybrid model gives you both—and a whole lot more confidence, too.
