Knowing when it’s time to adjust your fees is key to running a profitable business. This week, we asked seven architecture and design firm leaders—Yasmine Ammar, Alexandra Azat, Rhonnika Clifton, Lisa Copeland, Christine Markatos Lowe, Karen Marie Stonely and Chanae Richards—about their approach to raising rates.
Reality Checks
“We reassess our fees annually, but are always paying attention throughout the year. Pricing is a crucial component of business operations and can’t be based on feelings alone. It has to reflect the reality of doing business. We look at economic shifts, market changes, local and regional competitors, vendor and trade increases, team capacity, project complexity, and the level of service our clients are receiving. For us, a rate increase is usually necessary when the cost of delivering the work changes or when the value we are bringing has expanded. As our firm has grown into more turnkey design and build services, our pricing has had to grow with it. Experience, expertise, systems, project management and peace of mind all carry value, and you must charge appropriately for it. Especially if you want to truly attract the type of clientele you desire to serve. If your fees no longer support the quality of the work, the client experience or the sustainability of the business, it is probably time to revisit them. Utilize tenured mentors and tools like ChatGPT or Claude to help you strategize to create the best possible outcome.” —Rhonnika Clifton, RJ Clifton Designs, Houston
Holistic Approach
“I think many designers wait too long to reassess their fees. Growth happens gradually, so it’s easy to overlook how much your value has changed over time. As a multidisciplinary designer, I’ve learned that rates shouldn’t only reflect hours worked; they should reflect judgment, expertise, craftsmanship, and the ability to solve increasingly complex problems with innovative solutions. The moment your responsibilities significantly exceed what you’re being compensated for, it’s probably time to revisit the conversation.” —Yasmine Ammar, Miami
Annual Review
“Our fee structure reflects the highly personalized nature of our work and the level of attention each project requires. We review our fees annually to account for changing market conditions, including increases in material, labor and operational costs. This allows us to maintain the level of service, expertise and attention to detail our clients expect while ensuring the long-term health and sustainability of the business. By establishing expectations early and maintaining an open dialogue, we foster a design-focused collaborative experience.” —Christine Markatos Lowe, Christine Markatos Design, Santa Monica, California
Market Ready
“I make a point to stay informed about industry pricing standards, particularly within my geographic market. Beyond that, I’m fortunate to have a strong network of industry peers with whom I can have open and honest conversations about business, including pricing. Those discussions help normalize what can sometimes feel like a difficult topic and provide valuable insight into current market expectations. As a firm, we typically reassess our rates every two to three years, while also keeping an eye on inflation and broader market trends. Our goal is not simply to charge more—we believe our rates are fair and reflective of the value we provide—but it is important to ensure we remain aligned with rising costs and evolving industry standards. For newer businesses, consistently booking clients without any hesitation could be a sign that rates are too low, while more established firms should base pricing on a clear understanding of their financial goals, overhead, capacity and overall business strategy. Understanding your numbers is ultimately the key to setting rates that support both profitability and sustainable growth.” —Alexandra Azat, Plaster & Patina, Pasadena, California
Trend Forecasting
“We reassess our fees approximately every five years. As a residential architecture and landscape design firm, our project durations typically extend three to five years. We measure and analyze the profitability [of each project] per phase, [as well as] quarterly, annually and at the end of the project. If we identify a consistent trend within our project portfolio which is not profitable, we may adjust our fees, fee structure, billable rates, or the percent of our fee allocated to specific phases. Our firm has only adjusted our hourly billable rates three times over 15 years. We ensure our billable rates per role allow for fluctuations in overhead allocation, rising labor costs and a reasonable level of profit.” —Lisa Copeland, KAA Design Group, Los Angeles
Know Your Worth
“We reassess fees annually, though I’ve only increased our rates twice in the past 10 years. As we project our finances for each fiscal year, we not only analyze the value we provide to clients, but also consider operational costs, market conditions, and our commitment to maintaining the level of quality and service our clients expect from us.” —Chanae Richards, Ọlọrọ Interiors, Philadelphia
True Value
“Designers have been conditioned to think about fees as a percentage, a multiplier or a market comparison. We try to think about value. If we fundamentally change how a client experiences their home, or even their health, the more relevant question is whether the fee reflects that impact. Our clients are paying for nuanced experiences and expertise. The moment I realize a client is calling us before they’ve even defined the problem, I know they’re no longer hiring us simply to design; they’re hiring us to think. When clients are buying judgment rather than drawings, I don’t ask, ‘Can we charge more?’ I contemplate, ‘Are we undervaluing what we actually do?’” —Karen Marie Stonely, Span Architecture, New York
