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The case for flat-rate pricing

BusinessJanuary 1, 2025

Hourly billing creates a perverse incentive: the slower you work, the more you earn. The client has no idea what the final cost will be. The designer has no incentive to be efficient. Both parties are worse off.

Flat-rate pricing fixes this. The client knows exactly what they're paying before work begins. The designer is incentivized to be efficient because their effective hourly rate goes up with speed. The scope is clear. The expectations are set.

The objection is always 'but what if the scope changes?' Scope changes are a process failure, not a pricing failure. If the scope is well-defined upfront — which requires doing the hard work of understanding the business before quoting — changes are rare.

RAD charges flat rates for everything. A brand identity is $2,500. A website is $3,500. A bundle is $5,000. No surprises. No overages. No invoices that make you nervous to open.

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