Pricing foundations
Choose the pricing model after you understand the work.
The best fee structure is the one that reflects how predictable the scope is, how much risk the studio is carrying and how the client receives value. Many studios use more than one model across different services.
01Fixed feeClear client price for a defined scope.
02HourlyUseful where time or scope is less predictable.
03Project %Fee linked to an agreed project-cost basis.
04HybridCombine models across design and procurement.
Chapter 01
01 · Choose a pricing model
01Fixed project fee
02Hourly fee
03Percentage of project cost
04Fee per square metre / square foot
05Day rate / consultation fee
06Hybrid pricing
Chapter 02
02 · Calculate your real cost
01Billable design hours
02Non-billable project admin
03Software and subscriptions
04Studio overhead
05Employees / freelancers
06Travel and site time
07Insurance / professional costs
08Tax provision
Chapter 03
03 · Set a profitable hourly rate
01Start with target annual compensation
02Add annual overhead
03Add desired studio profit
04Estimate realistic billable hours
05Divide required revenue by billable hours
06Review the rate against project complexity
Chapter 04
04 · Build fixed fees correctly
01Estimate hours by project phase
02Apply the correct internal hourly cost
03Add project-specific direct costs
04Add contingency for normal revisions
05Add target profit margin
06Review against minimum project fee
Chapter 05
05 · Price by project phase
01Brief + site survey
02Concept design
03Design development
04Technical design
05FF&E + specifications
06Procurement
07Installation / styling
08Project closeout
Chapter 06
06 · Create a minimum project fee
01Define the smallest commercially viable engagement
02Account for onboarding and admin that exist on every project
03Avoid accepting tiny scopes at full-service process cost
04Use consultation services for smaller enquiries
05Review the minimum as studio demand grows
06State the minimum clearly where appropriate
Chapter 07
07 · Charge for revisions
01Define included revision rounds
02Separate refinement from redesign
03Record client approvals
04Price additional revisions before starting
05Track revision hours internally
06Update scope when the brief materially changes
Chapter 08
08 · Price procurement
01Choose markup, procurement fee or hybrid model
02Define what procurement service includes
03Account for ordering and supplier communication
04Account for tracking and delivery coordination
05Account for damages / returns administration
06Explain the commercial model in client terms
Chapter 09
09 · Product markups
01Know the retail / client price
02Record the trade / designer cost
03Define the studio markup policy
04Track gross markup revenue
05Account for payment fees and logistics
06Keep pricing treatment consistent with client agreements
Chapter 10
10 · Consultations + small services
01Set a minimum booking length
02Charge for preparation where appropriate
03Define deliverables clearly
04Collect payment before the session
05Offer follow-on services separately
06Avoid turning consultations into unpaid project work
Chapter 11
11 · Technical drawing fees
01Price based on drawing-set complexity
02Account for coordination time
03Include QA / checking time
04Define number of revisions
05Separate consultant engineering responsibilities
06Price additional details outside original scope
Chapter 12
12 · Remote / virtual design
01Define exactly what information the client supplies
02Limit revision rounds
03Price room-by-room or package-based where appropriate
04Account for sourcing time
05Define technical-drawing limitations
06Create clear boundaries around site verification
Chapter 13
13 · Travel + site visits
01Define included site visits
02Charge additional visits where appropriate
03Account for travel time
04Account for mileage / transport / accommodation
05Set rates for out-of-area work
06State travel terms before appointment
Chapter 14
14 · External consultants + contractors
01Clarify whether costs are paid directly or through the studio
02Record consultant quotes separately
03Do not accidentally absorb third-party costs
04Define coordination fees if applicable
05Keep external costs visible in project budgets
06Explain who carries contractual responsibility
Chapter 15
15 · Payment schedules
01Collect a deposit / retainer before work begins
02Tie later payments to phases or dates
03Avoid leaving most of the fee until completion
04Define payment due dates
05Pause work for materially overdue invoices where contractually permitted
06Make payment methods simple
Chapter 16
16 · Scope creep protection
01List inclusions
02List exclusions
03Define revision rounds
04Define project area / rooms
05Define expected deliverables
06Record changes in writing
07Issue additional-fee approval before extra work
Chapter 17
17 · When to raise your prices
01Demand regularly exceeds capacity
02Your close rate is unusually high
03Your experience / portfolio has materially improved
04Your project complexity has increased
05Your costs have increased
06Your service has expanded
07Current fees cannot support the team you need
Chapter 18
18 · Track pricing performance
01Estimated hours vs actual hours
02Effective hourly rate
03Gross profit by project
04Profit by service type
05Revision hours
06Procurement revenue
07Average project fee
08Proposal conversion rate
Chapter 19
19 · Build three service levels
01Entry: focused consultation / defined small scope
02Core: complete design service for the studio's main client
03Premium: expanded coordination / procurement / installation support
04Keep differences based on scope and service, not arbitrary labels
05Make the core offer easiest to understand
06Ensure every tier is profitable
Chapter 20
20 · Review your pricing every quarter
01Review recent project profitability
02Update overhead assumptions
03Review billable capacity
04Check supplier / freelancer cost changes
05Review client objections and conversion
06Adjust minimum fees
07Update proposal language
08Set the next pricing review date
Worked pricing logic
Why €5,000 of revenue is not €5,000 of income.
Project fee€5,000
Total design revenue invoiced to the client.
Delivery + overhead− €3,200
Labour, admin allocation, software and other project costs.
Operating profit€1,800
Before applicable tax and owner distributions. Illustrative example only.
Quarterly pricing review
Four numbers to check.
TimeEffective hourly rateActual fee ÷ actual project hours.
MarginProject profitWhat remains after delivery cost.
SalesClose rateHow often suitable proposals convert.
ScopeUnpaid extrasHow much work is leaking outside fee.