Flat Fee vs. Hourly: Which Pricing Model Works Best for Creatives?
Whether you're a handmade party decorator, workshop host, or custom design artist, one of the biggest decisions you'll face in business is how to price your services. Should you bill by the hour, or charge a flat fee? Each model comes with its own benefits and drawbacks. The key is deciding the right method for the right project, and the right type of client.
So…Let’s break it down!
💸What’s the Difference Between the Two?
Flat Fee Pricing
A flat fee is a fixed price for a defined service or project, regardless of how much time it takes to complete. Clients love it because it gives them a clear number upfront.
Hourly Pricing
Hourly pricing means you track your time and charge a set rate per hour. This is often used when the scope is unclear or the project may require frequent changes or ongoing support.
🧵 When to Use Flat Fee Pricing
Flat fees are great when:
The scope is clearly defined
You’ve done the work before and know how long it takes
You want to scale your income by working faster, not longer
Examples:
Custom invitation designs: $150 per set of 50
Kids craft party setup: $350 flat rate for 2 hours and materials
DIY workshop event hosting: $500 for a 2-hour class
✅ Flat fees help you productize your service. You can build a repeatable offer, streamline your process, and charge based on not only your value but your time as well.
⏱️ When to Use Hourly Pricing
Hourly rates are better when:
You’re doing custom, open-ended work
Clients frequently change their minds
The work is ongoing or undefined
Examples:
Custom vinyl logo design revisions: $45/hour
On-site craft project assistance for an event planner: $50/hour
One-on-one creative coaching: $60/hour
✅ Hourly pricing helps protect your time and energy on projects that are unpredictable or highly detailed.
🎨 Real-Life Scenario
Let’s say you’re hired to design and set up custom centerpieces for a baby shower.
If you know it will take 5 hours to prep, 2 hours to set up, and you have a formula for materials, a flat fee of $375 makes sense. If you’ve done it before, it’s a defined deliverable.
If the client isn’t sure how many tables they’ll need, wants multiple revisions, or keeps changing the theme, an hourly rate of $50/hour gives you a little more flexibility (and protects your boundaries).
📊 Which Pricing Model is Best For You?
There’s no one-size-fits-all or no right or wrong answer. But here’s a simple guide:
Project Type & the Best Pricing Model:
Repeatable & predictable - Flat Fee
Custom or evolving - Hourly
Workshops or classes - Flat Fee (per seat or event)
Consulting or 1:1 sessions - Hourly or Flat Fee
Packages Design work with revisions - Hourly or Tiered - Flat Fee
🧠 Tip: Track Your Time Either Way
Even if you charge flat fees, tracking your time will help you:
Identify time-wasters
Adjust your pricing
Better understand your true hourly rate
Apps like Toggl or Clockify are great free options for service-based creatives.
🪡 Final Thoughts
As a service-based business, your time and your talent are valuable. Flat fees will help you scale. Hourly rates will help you stay flexible. The smartest creatives use both depending on the client, the project, and the boundaries needed.
Are you still unsure which one fits your services best? Try starting with what feels simplest and revist your pricing quarterly. Allow yourself, and your business to evolve!
Need help setting your prices or building profitable service packages?
📩 Let’s chat! The Craft CFO can help you price confidently and profit intentionally. Book a Creative Business Support - Creative Biz Clarity Call with us today!
