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Design Systems
Business Strategy
Branding
Corporate Design
Web Design
UX/UI Design
Why hourly pricing doesn't make sense
Charging per hours hurts the the agency and the client - there are way better options

Hourly pricing for UX/UI design services has been the industry standard for a long time, but there are several reasons why it doesn't make sense for both the client and the designer. In this article, we will explore the main reasons why hourly pricing is not the best option for UX/UI design projects, and what alternative pricing models can be used.

1) Lack of transparency and predictability

One of the main issues with hourly pricing is that it is not transparent and predictable for the client. It is difficult for the client to know how many hours a project will take, and therefore how much it will cost. This can lead to unexpected costs and scope creep, as the client may not be aware of how much time is being spent on the project. On the other hand, the designer may not be motivated to work efficiently and may take longer to complete the project in order to increase their hours and pay. This can lead to a lack of trust between the client and the designer and can result in a negative experience for both parties.

2) Focus on time instead of value

Hourly pricing can also shift the focus from the value of the design work to the time spent on it. The client may be more concerned with the number of hours being billed rather than the quality of the work being produced. This can lead to a lack of focus on the user experience and the overall goals of the project. In addition, designers may feel pressure to bill more hours in order to make a living wage, which can lead to less emphasis on the value of their work and more on the time spent on it.

3) Difficulty in comparing quotes from different designers

It can be difficult for a client to compare quotes from different designers when they are using hourly pricing, as the number of hours may vary significantly. This can make it hard for the client to make an informed decision about which designer to choose.

4) Alternatives to hourly pricing

There are several alternatives to hourly pricing that can provide more transparency, predictability, and value for both the client and the designer. Some options include:

- Value-based pricing: This model involves setting the price based on the value that the design work will bring to the client's business. This can be more transparent and predictable for the client, as they know exactly what they are paying for.

- Package pricing: This model involves offering a set package of services at a fixed price. This can be a good option for clients who have a clear idea of their design needs and want a predictable price.

- Project-based pricing: This model involves setting a fixed price for a specific project. This can be a good option for clients who have a clear scope and timeline for their project.

- Retainer-based pricing: This model involves the client paying a fixed fee on a regular basis (e.g. monthly) for a set number of hours of design work. This can be a good option for clients who have ongoing design needs.

In conclusion,hourly pricing is not the best option for UX/UI design projects dueto its lack of transparency and predictability, focus on time ratherthan value, and difficulty in comparing quotes from differentdesigners. Alternative pricing models such as value-based pricing,package pricing, project-based pricing, and retainer-based pricingcan provide more transparency, predictability, and value for both theclient and the designer.

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