Professional fees for professional services (both fixed and hourly) continue to trend upward in designers’ search for the pricing model that outperforms profits from procurement. In a survey conducted by my firm, designers reported that today, pricing models are a mix of revenue sources. Tomorrow, they say, that mix will be heavily weighted toward fees.
Clearly, there is no one pricing model that is always profitable for all designers. But many designers have increased or are increasing their income through higher hourly rates and fixed or variable design fees. In my view, they are earning what they deserve from design, not procurement. Consequently, their reliance on income from sales margin is declining. Once again, there is no single formula or income mix that serves everyone’s circumstances. But respondents to the survey now have a clear way to think about what works and how it works for their profit picture. What if your income was earned the new way? Numbers talk. Our next survey on marketing is coming up.