When to Raise Your Design Rates (and How to Tell Clients)
- Brenna Knight
- 6h
- 6 min read
Pricing is one of the most complex—and often intimidating—parts of running a design business. Whether you charge hourly, by flat fee, or a hybrid of both, conversations around money have a way of stirring up self-doubt. If you’ve ever found yourself wondering if it’s time to increase your rates, you’re not alone. In fact, we recently broke down the pros and cons of different pricing models in our post Settling the Debate: Flat Rate vs. Hourly Pricing in Interior Design, and the feedback was unanimous: designers are eager for more guidance around pricing with confidence.
Today, we’re diving into the natural next step, knowing when to raise your rates and how to communicate those changes to both new and existing clients. Because the truth is, raising your rates isn’t just about making more money. It’s about aligning your pricing with the value you provide, the expertise you’ve gained, and the kind of clients you’re ready to serve. The way you price yourself sets the tone for your business, signals your positioning in the market, and establishes the level of respect you receive from clients and collaborators alike.
Design: ABD Studio | Photography: Matt Kisiday
Signs It's Time to Raise Your Rates
Before you can confidently adjust your pricing, you need to recognize the indicators that signal it’s time for a change. Most designers wait until they’re stretched too thin or feeling resentful of their workload, but the reality is that the signs often show up much earlier. Here are some key signals to pay attention to:
Your Calendar Is Consistently Full
A fully booked calendar might feel like the ultimate measure of success, but it can actually be a red flag. If you’re consistently booked out months in advance, it’s a strong indicator your services are priced below market value. When demand consistently outweighs your availability, it’s time to recalibrate. A rate increase allows you to take on fewer projects at a higher price point, giving each client the level of attention they deserve while protecting your time and creative energy.
Your Scope of Work Has Expanded
Think back to when you first set your current rates. Chances are, your scope of services has grown since then. Maybe you’ve started offering 3D renderings, managing construction details, or taking on full-scale furnishings alongside design. As your deliverables expand and your role becomes more comprehensive, your fees should evolve to reflect the true scope of work you’re providing. Otherwise, you risk giving away your expertise and services without proper compensation.
Your Experience Has Grown
Experience is an intangible yet invaluable asset. With each completed project, you sharpen your skills, strengthen vendor relationships, and develop a sharper design eye. Clients aren’t just paying for hours logged; they’re paying for the confidence that comes from hiring someone who can anticipate challenges and deliver seamlessly. If your rates haven’t grown alongside your expertise, you’re unintentionally undervaluing the very growth you’ve worked so hard to achieve.
Your Clients Rarely Push Back on Pricing
If your proposals are consistently accepted without hesitation or negotiation, you may be priced too low. The right clients should see your fees as an investment in their home and lifestyle, but it’s natural for them to pause and consider the commitment. If no one is blinking at your numbers, it’s a sign that your rates don’t match the value you’re offering—or that your positioning isn’t aligned with the caliber of clients you want to attract.
Your Business Costs Have Increased
From inflation to rising software subscriptions to studio rent, business expenses rarely stay stagnant. What covered your costs comfortably two years ago may not stretch as far today. Raising your rates to account for higher operating expenses isn’t just reasonable. It’s a necessity for staying profitable and sustainable. If you want your business to thrive in the long term, your pricing has to evolve alongside the realities of your overhead.
Design: Lawless Design | Photography: Sean Litchfield
How to Strategically Raise Your Rates
Once you’ve identified the signs, the next step is implementing your new pricing structure in a way that feels thoughtful and seamless. A well-executed rate increase doesn’t feel like a sudden jump but rather a natural progression that reflects your growth.
Do Your Research
The first step is gathering information. Review industry benchmarks, talk to trusted peers, and consider the type of clientele you want to serve. Rates can vary widely depending on region, experience, and project scope, but having context will give you confidence in your decisions. Remember, the goal isn’t to mirror someone else’s rates. It’s to position your pricing in a way that reflects your unique value and expertise while keeping pace with your market.
Consider Incremental Increases
You don’t need to double your rates overnight. Instead, think in terms of gradual, incremental increases over time. Many designers raise rates annually, every two years, or after completing a set number of projects. This approach allows you to steadily align your pricing with your expertise without overwhelming existing clients or making your business feel unstable. Even a 10–15% increase each year can make a noticeable difference in your revenue while feeling manageable to clients.
Reevaluate Your Pricing Model
Sometimes raising rates isn’t just about charging more, but rather about shifting your entire pricing structure. If you’re charging hourly but feel like your time is capped, consider moving toward flat fees that better showcase the full value of your services. Conversely, if your flat fees are constantly being eaten away by scope creep, an hourly model might help you protect your margins. Revisiting your pricing model as you grow ensures your revenue keeps pace with your work.
Bundle Services for Value
Another way to implement a rate increase without shocking clients is through bundling. By packaging your services, say, concept development, space planning, and furniture sourcing, you create an offering that feels more intentional while naturally increasing your fees. Bundled packages highlight the holistic value of what you provide, shifting the focus from hours worked to outcomes delivered.
Update Your Systems Before You Raise Your Design Rates
Before announcing any changes, make sure your contracts, proposals, and internal systems reflect your new rates. Consistency across all client touchpoints is essential. The last thing you want is to communicate new pricing but send a proposal with outdated numbers.
Design: Studio Gutow | Photography: David Mitchell
How to Tell Clients About a Rate Increase
Implementing new rates internally is one thing. Communicating them to clients—especially long-term ones—is another. The key is to approach the conversation with professionalism, clarity, and confidence.
For New Clients
The simplest place to start is with new inquiries. Any client who reaches out after you’ve updated your rates should be quoted at the new level. There’s no need to explain the increase; you’re simply presenting your current pricing. Remember, new clients don’t know what your rates were before, so this step is often easier than you think.
For Existing Clients
With ongoing or repeat clients, communication is more nuanced. The best approach is transparency paired with advance notice. Let them know your updated rates will take effect starting on a specific date, ideally 30–60 days out. Frame the conversation around the value they’ll continue to receive and avoid apologizing or over-explaining.
Sample Script
"As my studio continues to grow and expand the level of service I provide, I’ve updated my design fees to better reflect the value and scope of work involved. Beginning [date], my new rate will be [new rate]. I truly value our collaboration and look forward to continuing our work together."
This language communicates the change clearly while maintaining professionalism and respect for the client relationship.
Overcoming the Fear of Raising Rates
Even seasoned designers hesitate when it comes to increasing fees. The fear is real: What if you lose clients? What if people think you’re greedy? What if your market won’t support the new rates? These concerns are valid but often overblown.
Losing Clients: Yes, you may lose a client or two. But those are often the ones who weren’t your ideal fit anyway. Raising rates typically attracts more aligned clients who value your work.
Seeming Greedy: Charging appropriately for your expertise is not greed. It’s about sustainability. Your business can’t thrive if you’re underpaid and overextended.
Pricing Out Your Market: There’s a wide range of clients seeking design services. By raising your rates, you’re signaling to the clients who are ready to invest at your level, rather than competing at the bottom.
The bottom line: pricing isn’t just about money. It’s about positioning, sustainability, and confidence in your own worth.
Make Rate Increases Part of Your Business Plan
Instead of treating rate increases as a reactive decision you only make when you’re burnt out, consider building them into your business strategy. Review your pricing annually in line with your financial goals, adjust after every few projects, or implement incremental increases as part of your studio’s long-term growth plan. By normalizing the process, you make it less stressful for yourself and more predictable for your clients.
At its core, raising your rates is about much more than numbers on a page. It’s about honoring your growth as a designer, recognizing the countless hours you’ve invested in your craft, and building a business that feels both profitable and sustainable. Every project, every client, and every lesson learned has shaped your expertise, and your pricing should evolve to reflect that.
The decision to raise your rates might feel daunting, but it’s also an invitation to step into the next chapter of your business, attract clients who truly value your work, and create a studio that supports the life you want to live. And when you approach it with strategy, transparency, and confidence, raising your rates isn’t just a financial decision. It’s a creative one.