In this episode, I break down the different pricing models for interior designers and how to choose the right approach for your studio. From hourly rates to fixed fees, percentage-based pricing to hybrid models, learn how to charge appropriately for your work and make markup a sustainable, clear, and ethical income stream.
I hope you enjoy the episode
Beth xx
Why Pricing Matters
If you're not charging properly, you're not running a business—you're funding a hobby. Your fees must reflect the value you bring to the table: your design skills, years of experience, network of trades, problem-solving abilities, and commitment to delivering results that elevate clients' lives. I've worked with incredible designers who are undercharging for months or years simply because they weren't sure what was normal or allowed, or they felt confident in putting the right number on their fees.
Pricing Models Explained
Hourly Rate
• Straightforward approach: track your time and bill accordingly
• Great for short-term or consulting style work
• Can penalize efficiency and create time-tracking chaos
• Every designer should have an hourly rate, even if it's not their primary model
Fixed Fee Per Phase
• Break projects into phases (concept, design development, documentation, etc.)
• Assign a fixed fee to each stage
• Provides predictability and encourages clarity around scope
• Requires data on how long projects actually take
• Works well with clear processes and experience with similar jobs
Percentage of Project Cost
• Common in larger studios and similar to models used by builders and architects
• Fee aligns with the scale of the project
• Can be risky if budgets shift or deliverable expectations aren't clear
• Requires clear processes for what you'll deliver and when you'll invoice
Package or Service Offerings
• Pre-scoped offerings at a fixed price (like "designer for a day")
• Perfect for clients who want a taste of your expertise without full service
• Great for leads who aren't ready for full commitment
• Provides steady cashflow and is easier to market
If you are not offering one of these services, I would seriously consider how you can fit it into your studio offering.
Hybrid Model
• Combining different models for different phases of the same project
• Most designers use some form of hybrid approach
• Allows flexibility based on project needs
Different pricing models can be used for different stages of the same project.
Making Markup Work
Markup is not a dirty word—it's compensation for:
• Your sourcing skills and trade accounts
• Relationships with suppliers
• Time managing logistics and chasing suppliers
• Resolving damages and ensuring everything arrives intact
When you explain this clearly to clients, they get it. I recommend including a statement in proposals about the value of procurement and how markup contributes to a smoother, higher-quality outcome.
Options for handling markup include:
• Using a flat fee instead
• Showing markup transparently
• Rolling it into a combined service and sourcing fee
Communication is Key
Regardless of your pricing model, clear communication is essential:
• Be upfront in proposals
• Spell out what's included and what's not
• Explain how changes are handled
• Clarify how fees are structured
Clarity builds trust. Vague language or hidden fees create doubt and resentment and are going to cause you a whole heap of trouble down the track.
Finding Your Pricing Identity
Your pricing approach is as much a part of your brand as your visual style:
• Are you a luxe full-service studio?
• Are you the approachable, efficient problem solver?
• Do you offer flexible consulting or highly bespoke packages?
You get to decide and you get to evolve. If you start us down one path and then you feel it's not working for you or it's not working for the business or it's not financially viable, stop doing it and change.
This episode is essential for interior designers at any stage who want to ensure their pricing reflects their value and supports a sustainable business.
