Key aspects and common mistakes of pricing design work

Pricing in design is as much an art as it is a science, requiring designers to understand both their skills and the marketplace. This article explores how professionals of various experiences and backgrounds determine the value of their services, and they discuss the factors they consider when setting prices, how they explain them to clients, and what mistakes can occur in the process.

Meet the speakers:

Anton Sten, a product designer who has been freelancing for over 15 years and recently shifted to a full-time position.

Sebastiaan Scheer, UX design director with 15 years of experience who now focuses on consulting and mentoring.

Lucas Vasconcellos, graphic designer and illustrator currently freelancing for a large advertising agency in Brazil.

Alexander Moskovsky, product designer at Readymag who sometimes takes on freelance projects that he likes.

Karla Žlimen, graphic and type designer who recently finished her design degree in the Netherlands.

How do you set your prices?

Anton: When I was consulting, everyone was raving about project-based work, especially value-based pricing. While I get how it works, I always ended up charging by the hour, and it suited me just fine. Fixed prices can be more profitable, but they bank on the project going perfectly without any changes to the scope of work (SOW), even if it’s super detailed. The beauty of an hourly rate is that you don’t need to renegotiate every time the SOW shifts—which, in product design, it always does. Need to pivot? No problem—just remember, the clock's ticking.

Freelance rates are usually much higher than full-time salaries, and I’m no exception. That’s why I held out for the right full-time opportunity. The pay might be lower, but it’s consistent. Freelance work can be steady too, but not indefinitely. It really boils down to what kind of security or freedom you want.

Sebastiaan: Prices really depend on the project. I normally charge 100 EUR per hour in the Netherlands depending on the type of work. This rate mostly applies for UX/UI and branding design. However, when I’m asked to take on a more managerial role, such as helping to build design departments, the prices will increase, since this is a different niche. Another method is a package deal, where the price for the project is set upfront based on an estimation, meaning you really need to time-box the project. In the end, you can do the math and compare the total costs to those of a full-time employee. Yes, freelancers are more expensive, but don’t forget that these companies also sell their services at hourly rates to their clients, which are normally way above our rates.

Lucas: My pricing centers around something I call the “headache factor.” Some work is fun and rewarding but demands a lot of time. There’s also work that isn’t particularly difficult or time-consuming, but it’s not that interesting for a feature in your portfolio. And there’s a whole spectrum of different factors in between.

“The theory is that I’ll charge more for work I anticipate will cause a more severe headache.”—Lucas Vasconcellos

Conversely, if work seems like a good match, with better deadlines and a nice brief, I find more space in my heart to charge less.

Alexander: Currently, I have a full time job, so as a freelancer I try to take on projects that offer more than just monetary compensation. Usually, these projects are related to NGOs, art or research. Most of the time, these clients aren’t able to pay a lot of money, so most of my freelance work is non-profit or priced well below market and what I would normally charge if it were my main source of income. I always set the price for the project based on previous experience, because it would be much higher if I were to calculate an hourly rate.

Karla: I charge both by the hour and per project, but I’m more comfortable with hourly rates. It allows me to manage projects the way I think they should be handled and helps me maintain a realistic work schedule. If a client has a fixed budget, I simply divide it by my hourly rate and work within that limit. Handling budgets is always the most stressful part because you’re tight on time and money. But hey, that’s freelancing! In another case, I have a long-term client I work with on a retainer basis. They pay a set amount each month for a certain number of hours or deliverables, which is great for consistent income, especially for ongoing work.

Freelance rates should generally be higher than what you’d earn in a full-time job because you have to cover extra costs like taxes, insurance, equipment, and not having paid leave. But honestly, my rates aren’t much higher than full-time salaries yet. I’m still figuring out how to set fair prices that satisfy both my clients and me.

What factors affect pricing?

Anton: I rarely adjusted my prices based on timing, and never on complexity. Usually, I could either take on a project or I couldn’t, but I never squeezed in a project at a higher rate.

“Raising prices isn’t as hard as it seems—just pick a number you’re comfortable with and try to bump it up every couple of years.”—Anton Sten

The biggest risk for freelancers is either never raising their rates or thinking they should hike them after every project. Balance is key.

Sebastiaan: Complexity can affect rates, but I tend to connect this more with the type of skill sets your client needs, which is another way to estimate the package price. Adjusting your price as you gain more experience is fair, since you’ll likely become faster, better, and ultimately more efficient. However, there are limits. Yes, you can mention the number of years of experience you have in UX, but anything above 10 years is more or less the same. The most important aspect, aside from experience, is staying updated about the latest ways of working in the field. Knowledge is more important than experience because this is something you can rationalize and sell.

Lucas: Time, technical and strategic complexity, client size, brief connection, and whether I can or can’t put that project in my portfolio—all of these factors matter. For example, consider the work I did for a local bar in Brasília (Brazil) called Imagina. I had a good amount of time to work on it, but the work was somewhat complex because it involved a lot of illustrations. I loved the brief, and they gave me full freedom to promote my work, so the only “headache” factor was the complexity. However, it was a valuable opportunity for me to undertake a more comprehensive branding project, especially since I didn’t have a strong client project in that field in my portfolio. So, I gave the client more room to negotiate.

I think of professional experience as better projects in my portfolio. If you have over 15 years of experience in graphic design but the quality of your work is lacking, it can be frustrating when someone questions your rates. I believe the work speaks for itself. Every time I complete a project I’m proud of and show it to the world, I raise my prices a little.

Alexander: Most often, the quality and interest of the project are very important factors—considering who the customer is and how complicated the approval process will be, how much time I’ll spend on discussions, presentations, persuasion, and so on. If people approach me with a large project but they trust me completely, it’s more interesting to me than when a project is cool, but I realize that to get it to completion, I’ll have to go through a myriad of steps. In such cases, I’ll set a higher price and be stricter in specifying the terms.

Karla: It really depends on my experience and the complexity of the project. For more complex work that requires specialized skills or extra time, I tend to set higher prices. For projects where I can accurately estimate the time required or that are less complex, I prefer to charge a bit less. However, things can sometimes go off track in a project or client-designer relationship. When unexpected corrections or complete changes in concepts or designs occur, it’s necessary to charge more, and it’s crucial to communicate this upfront or include it in the contract. Difficult clients are inevitable, and you need to protect yourself as a professional.

Typically, I would increase my rates incrementally with new clients and periodically with existing clients. With existing clients, it can be tricky, but explaining how my growing experience adds value to their projects often helps them understand that a rate increase is fair.

How do you explain pricing to clients?

Anton: With hourly rates, there’s not much explaining needed. The price is plain and simple. I’ll make an educated guess about how long something will take, but things change, and they should be allowed to. With fixed pricing, there’s definitely more explaining involved because you need to factor in more variables—and add a buffer!

Sebastiaan: I always explain prices to clients, being completely transparent and guiding them through the process. It’s similar to buying a new MacBook; you’re paying for this amazing piece of hardware that, in the end, pays you back because you can do your job with it. In other words, you know what you're buying. This should be the same for clients: you should be able to explain and rationalize what they’re buying.

Lucas: I like to negotiate in an honest and direct approach, so in almost every case I explain all the factors of a project to a client the way I see it. I tend to do the same when it’s me setting the prices, when I’m the client for any type of service. I prefer to discuss money in the most transparent way possible.

Alexander: I never explain it, because if you break down my rate by the hour, it’s much higher, so I simply make an offer and say it’s the best I can do. I’ve never encountered a complete misunderstanding—in the worst case, clients just say it’s above their budget.

Karla: I like to be upfront about everything.

“A lot of clients, even those in the creative industry, don’t fully understand what it means to work as a graphic designer, which means we need to clearly communicate our time, resources, plans, and most importantly, prices.”—Karla Žlimen

Some clients might not favor the hourly rate because they want more work for less money, but sometimes that’s the only way it will work. When I have control over the budget, I break down the work involved and provide a detailed document for my client. This includes estimated hours, number of revisions, meetings, deadlines, etc. I might offer discounts for lengthy or complex projects.

Do you do any market research?

Anton: I used to discuss rates with other freelancers, but it’s a slippery slope if you start comparing your rates—and yourself—to theirs. Everyone’s skill set is unique, and your rates should reflect that individuality.

Sebastiaan: Knowing market rates is very important.

“In the Netherlands, the rates are quite different compared to the US, for example. Still, you’re delivering the same type of work, so if you’re focusing on a different market, you should use those rates.”—Sebastiaan Scheer

Otherwise, you risk underpricing or overpricing yourself.

Lucas: I talk a lot about money with other designers, mainly because there’s no universal reference for prices in graphic design. I like to consult my friends’ references; that’s community. You learn from that: for example, after four years of doing freelance projects I learned from a very dear friend that you can’t charge the same for a worldwide established company as you would for a local shop. Also, how much you charge carries a responsibility to other designers, especially those in your field and city. Every time you accept an underpaid job, other designers suffer when they have to explain to a new client why $100 for a visual identity isn’t a good deal.

Alexander: I don’t really do any research these days. From my agency days, I roughly understand what prices are typical and what a job might cost. Based on this, I know how much I would charge if I actually counted it in hours and considered it my primary source of income.

What pricing mistakes do designers make?

Anton: The main pitfalls are never increasing your rates or raising them too often. A good rule of thumb is that if you land 75% of the projects you quote, your rate is likely appropriate. If everything gets accepted, it’s a sign you should consider raising your rates. It’s also about how you position yourself—some freelancers aim for one really lucrative project, while others prefer to have all of their projects accepted at a lower rate. Again, it’s a balance between security and freedom!

Sebastiaan: Currently, the market is different compared to a couple of years ago. It’s more difficult to land projects, and the same holds true for me. Since there are so many freelancers out there with similar skill sets and challenges, you see many of them offering their services for much less. Yes, this could mean you’ll land the project, but it ultimately establishes new, lower standard rates. If the market returns to normal, we’re stuck with these new rates, and going back is nearly impossible since someone else did it for cheaper. I would strongly advise sticking with the normal market rates. Remember, in the end, it’s cheaper and more efficient for the client to work with an experienced freelancer for a few months than to hire a full-time employee.

Lucas: The most common error I see is working for free. I always hated working for free because, even if I initially wanted to do the project, we all have bills to pay. I would invariably find myself complaining and harboring negative energy towards the creative process, which should be the most fun part. Moreover, every time you charge someone, you uphold a responsibility to the creative community. Working for free undermines the market by taking away the credibility of everyone who does similar work. It’s even worse if you do a great job, because then the client expects to get excellent work for free. That’s not how life works.

Alexander: The first mistake is that you should always evaluate a project not only in terms of money, but also in terms of its benefits—what it will bring you professionally, and whether it will help you grow, gain new acquaintances or experience. Also, consider how significant the project is for your portfolio.

“Choose projects where one of these factors—money, experience, or portfolio—is so compelling that you’re ready to undertake it for that aspect alone. The other two should be nice bonuses, and ideally, not negligible.”—Alexander Moskovsky

A second point is that many designers shy away from quoting higher prices, trying to increase their income by simply increasing the volume of work. It’s always wise to do some indexing to gauge how much the client is willing to pay and to sometimes aim higher—perhaps even double your usual rate—to see how people react.

Karla: Junior graphic designers often don’t charge enough to be financially stable. We take on low-budget jobs and spend way too much time on them. Been there, done that. Keeping a logbook to track your freelance hours and tasks—like how much time you spend designing a logo or researching for a poster—really helps. It gives you a clear picture of the time spent on each task. Over time, this will help you better estimate future projects as you gain experience.