Featured on this episode:

• Access the full video interview with Elana Steele of Steele Appliance here

What you will learn in this episode:

• Why small upfront consult fees can actually cost you larger, more profitable projects.

• How flat fee pricing builds client trust and positions you as a true partner on the project team.

• The mindset and systems designers need to move from chasing $900 consults to landing $90K+ projects.

---

If you haven’t listened to last week’s episode about presenting proposals and scopes of work, I strongly recommend going back and doing so. It’s one of the most critical steps in setting up a successful client relationship.

Today, we’re taking it one step further—how you charge for your design services. Specifically, we’re diving into the great debate: hourly vs. flat fees, and whether charging for initial consults and proposals is actually hurting your business in the long run.

---

Why Hourly Billing Feels “Safe” (But Isn’t)

For most of my career, I billed hourly. It’s what I was trained to do in New York design firms, and it seemed like the smartest move. I worked a certain number of hours, I charged for those hours. Simple, right?

Hourly billing feels safe because it protects your time. If a project balloons in scope, or if clients change their minds repeatedly, you’re covered. In theory, it makes sense: time is money.

But here’s the reality: hourly billing puts you in a defensive position.

Clients open your invoice each month with anxiety, never knowing whether the bill will be a few hundred dollars or a few thousand. Even if they trust that you’ve done the work, that unpredictability creates tension instead of trust. And trust is the foundation of any successful client relationship.

Worse yet, many designers soften the blow by not billing for all their hours. That means you’re working for free—and profitability suffers.

---

Why Flat Fees Build Stronger Client Relationships

Now compare that to contractors and architects.

• Contractors almost always work on flat fees or day rates.
• Architects typically price based on predictable deliverables like drawings, permits, and site visits.

Clients know upfront what to expect. Even if changes arise mid-project, there’s always a clear baseline. That clarity creates confidence and security for the client—and allows you to be seen as a true professional partner.

As designers, we’re involved from beginning to end. Unlike architects who eventually taper off, we’re in the trenches until the last piece of furniture is placed. That’s exactly why pricing based on a clear scope of work—not hours—is critical.

---

The Problem with Charging for Consults and Proposals

Here’s where many designers stumble: they embrace flat fees for the main project but still tack on charges for the early steps—consultations, building a scope of work, or writing proposals.

Let’s be real. What’s more valuable?

• A few hundred dollars for an initial consult, or
• A long-term, multi-phase project worth five or six figures?

Contractors, architects, and trades all meet with clients, review sites, and prepare bids without charging a fee. It’s simply considered a cost of doing business.

By charging upfront before you’ve proven your value, you risk creating friction at the very start of the relationship. And that hesitation might cost you not just one project, but an entire referral network.

---

The Risk of Starting With a Fee

Imagine this:

A past client, Sally, loved working with you. She refers her friend Amy, telling her you came out, built the scope of work, and only charged $900. Amy is also interviewing another designer who doesn’t charge upfront.

Who do you think Amy will hire?

That small upfront fee may have just cost you not only Amy’s project but also all of the future referrals that could have come from her.

This is why aligning your practices with contractors and architects is so important. When you present yourself as an equal collaborator, you gain trust, respect, and stronger partnerships across every project.

---

Decorating Projects: An Important Distinction

Now, there is a caveat. Decorating projects are a different animal.

When you’re standing in someone’s living room and offering actionable advice—move the sofa here, replace the rug, lighten the windows—that’s guidance they could easily implement without you. In these cases, some designers do charge for consults.

But even then, I recommend keeping your advice high-level during an initial meeting, and if possible, still fold it into your flat-fee structure.

---

Why Vetting Matters More Than Consult Fees

The key to protecting your time isn’t charging for consults—it’s building a strong vetting system.

• Use detailed inquiry forms.
• Have meaningful discovery calls.
• Qualify clients before you ever step foot in their home.

This way, you avoid wasting time on projects that aren’t the right fit while leaving space for the ones that are. Every discovery process, whether it leads to a project or not, is an investment in refining your business.

---

The Long Game: Profitability and Respect

Hourly billing may feel safe, but it chips away at trust and profitability. Small consult fees may feel validating, but they can cost you much bigger opportunities.

When you switch to flat fees based on a clear scope of work, you:

• Build trust and transparency with clients.
• Strengthen partnerships with architects and contractors.
• Position yourself as a respected collaborator (not the odd one out).
• Create more predictable and profitable projects.

The real goal isn’t just winning one project. It’s building a career where:
✅ Clients trust you
✅ Colleagues respect you
✅ Your business thrives project after project

---

Final Takeaway

Stop thinking of your time as something you need to “cover.” Start viewing it as an investment in your business.

Flat fees with clear scopes of work give you confidence, profitability, and respect on the job site. And when you stop nickel-and-diming early steps, you remove unnecessary friction that could be holding you back from bigger, more profitable opportunities.

Like this Episode?

• Be sure to check out Episode #136: Unpacking What Project Specifications Are Needed On a Job
• Be sure to check out Episode #137: Designers’ Superpower: Crafting Successful Contracts and Budgets
• Be sure to check out Episode #32: How to Control Budget, Surprises & Deadlines
• Be sure to check out Episode #231: The One Question That Will Transform Your Proposals