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Simplifying Design Pricing: Choosing the Right Framework
A practical breakdown of common pricing models and how to evolve them as your practice grows.
Apr 16, 20238 min readBusiness Of Design
Design is everywhere, but pricing often feels opaque. This piece breaks down pricing models in a clear, practical way.
We unpack the value-based pricing illusion and why it can be tough for early-stage designers to use effectively.
Three common models are explored: competitive pricing, value-based pricing, and cost-plus pricing.
As you grow, you can introduce a value percentage alongside a profit margin to reflect the outcomes you deliver.
Finally, factor in the hidden costs of projects, from tools to phase breakdowns, to protect your margins.