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Hourly Rate Versus a Design Fee

Question:

I enjoyed your call this evening and wanted to ask some questions.

In what circumstances would you recommend that I use an hourly rate versus a design fee?

Would you suggest offering hourly rate or a design fee both, at 3 price levels?

Answer:

My recommendation is to use a fee in all situations. Potential clients want to know what you cost and quoting hourly rate doesn’t answer that question. You will be hired more often when you quote a clear price attached to a very clear scope of services.

Your hourly rate is the baseline that you use to calculate your fee. It does not change because I don’t want you to offer your services at lesser rate. What I recommend is to offer the client choices that take different amounts of time.

Think of good, better and best. Good has the basics, better has most of what they need and best is you doing it all, start to finish. You figure out the time it takes to do each of these options and present the choices.

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