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How to Price Your Work as a Surface Pattern Designer

Writer's picture: Carolyn Quan DesignCarolyn Quan Design

Updated: Nov 17, 2024



Welcome to the Designer FAQ series! This blog post will explore strategies for pricing your work as a surface pattern designer.


Before diving in, it is important to note that pricing can be pretty personal. So please feel free to use this as a guide.


Pricing your work as a surface pattern designer can feel a bit tricky, especially when you’re just starting out. You want to make sure you're charging enough to cover your time, skills, and business expenses while staying competitive in the industry.


Imposter syndrome will likely kick in. You are probably asking yourself, "Am I charging too much? What if they (the client) ghost me?" or "Am I charging too little? How can I compete with other designers in such a saturated market?!"


We've all been there. And it's OK to feel overwhelmed by the whole pricing thing. Over time and with a bit of trial and error, I promise you will find the right balance.


Pricing can take many forms, from licensing agreements to hourly vs. project-based pricing. And don't forget to include tax considerations! Which one is right for you?



Understanding Licensing Agreements


One of the most common ways to earn money as a surface pattern designer is through licensing your designs. Licensing means that you’re giving a company the right to use your design for a certain amount of time while you retain ownership.


Exclusive vs. Non-Exclusive Licensing:

  • Exclusive Licensing: In this type of agreement, the company gets exclusive rights to your design for a specific product or category (like fabric, home decor, etc.). You can’t sell or license that same design to anyone else during the contract period.

    • Pros: You can often charge more because the company is getting something unique.

    • Cons: You’re limiting your ability to earn from that design elsewhere during the contract.

  • Non-Exclusive Licensing: Here, you can license the same design to multiple companies. Each company has the right to use it, but they know they’re not the only ones.

    • Pros: You can license the same design multiple times, meaning more revenue from a single design.

    • Cons: Companies may pay less because they know they’re not getting exclusive rights.

What About Exclusive Buyouts?


  • Exclusive Buyouts: It is also worth mentioning that a full buyout of your design is also considered licensing - the catch is that you are granting the company complete exclusivity of the design to use forever!

    • Pros: You can charge a premium (as much as you can get!) because the company will essentially own the design forever

    • Cons: Once it's sold, it's gone. You can no longer earn from that design.



Project-Based Pricing vs. Hourly Rates

Now, when it comes to client work, you’ll need to decide how you want to charge: by the hour or per project. Both have pros and cons, so it comes down to what works best for you.


In the beginning, I recommend starting with an hourly rate. This is because you are still figuring out how long things take to design. With some practice, you will soon determine the average time to complete a project. Then, you can transition to a project-based fee.



Hourly Rate Pricing


Pros:

  • Fair Pay for Time: If a project turns out to be more complicated or time-consuming than expected, you’re covered because you’re being paid for every hour you work.

  • Less Pressure: You don’t have to stress about accurately predicting how long a project will take, which can be hard to do when you're starting out.

Cons:


  • Income Cap: You’re limited by the number of hours you can work, so if you’re working hourly, there’s a hard ceiling on how much you can earn.

  • Tracking Time: You’ll need to track every hour (and minute) you work, which can feel tedious.



How To Calculate Your Hourly Rate


Step 1: Calculate Your Expenses

First, list your monthly business expenses. These can include:


  • Software (Adobe Creative Cloud, Procreate, etc.)

  • Marketing costs (website, ads, etc.)

  • Studio materials (paints, pens, sketchbooks, etc.)

  • Office supplies and equipment

  • Professional memberships (like surface pattern designer networks)

  • Health insurance (if you’re freelancing full-time)

  • Rent (if you have a studio space)


Once you have your total monthly expenses, multiply that by 12 to get your annual business expenses.


Step 2: Account for Taxes

On average, you should set aside 20 to 30% of your income for taxes, depending on where you live. You’ll want to include this percentage in your calculations to factor this into your rate.


Step 3: Add Your Desired Profit

Profit is what helps your business grow, so it’s essential to add this to your rate. Decide on your ideal annual income (including profit and covering living expenses), then factor that into your hourly rate calculation. In general, a healthy profit margin is between 5% to 10%.


Step 4: Calculate Your Annual Work Hours

Think realistically about how many billable hours you can work per week. Don’t forget to account for admin tasks, time off, and breaks! For example, if you want to work 30 hours per week for 48 weeks a year, that’s 1,440 billable hours per year.


Step 5: Calculate Your Hourly Rate

Now, it’s time to put it all together!


Your hourly rate should be...


(Annual Expenses + Desired Annual Income) divided by (Annual Billable Hours)


To make it easier, you can use my FREE hourly rate calculator spreadsheet to calculate your hourly rate! (Please be aware that I am not an accountant. This spreadsheet is for educational purposes and should only be used as a guide.)



Project-Based Pricing

Pros:

  • Clear Expectations: The client knows exactly what they’re paying upfront, and you know how much you’ll earn. This eliminates any surprises on either end.

  • More Freedom: You can work at your own pace without worrying about the clock ticking.

  • Better Earnings Potential: If you're efficient and work quickly, project-based pricing can help you earn more in less time.

Cons:

  • Scope Creep: If the client keeps asking for "just one more thing," you might end up doing more work than you initially agreed on. Be sure to outline exactly what’s included in the price and charge for extras.

  • Underpricing Risk: If you underestimate how long a project will take, you could end up working for much less than you intended.


Rough Averages for Freelance Illustration & Surface Pattern Design


If you need help determining how to charge per project, you can start by calculating the estimated number of hours per project and then multiplying that by our hourly rate. (Don't forget to use my FREE hourly rate calculator spreadsheet as a guide!)


Below is a rough pricing guide based on my experience as a commercial illustrator for the past 20 years (prices in AUD).


  1. Custom Illustration: $60-$150+/hour

    • Detailed illustrations often require more time and attention, so charge accordingly.

    • Take into account the size of the illustration. For example, an A5-sized artwork will cost less than an A3-sized artwork.


  2. Custom Repeat Pattern: $300-$1000+ per pattern

    • This can depend on the complexity of the pattern and how long it takes to create it.

    • Don't forget to consider the licensing options and end-use. A non-exclusive pattern design will cost less than an exclusive pattern design.


  3. Additional Colorways: $50-$100+ per colourway

    • These are often faster since the base design is already done, but don’t undervalue your time!

  4. Artwork Spec Sheets: $100+ per sheet

    • This includes technical details about how the pattern or illustration should be used, so it's essential for production.

    • This may consist of a CAD or mockup, Pantone codes, dimensions, and artwork layering specs (for example, colour-separated artwork for screen printing). For more information, check out my blog post here.



Final Thoughts on Pricing

Pricing your work as a surface pattern designer is not a one-size-fits-all answer. It depends on your experience, the complexity of the design, the scope of the project, and your personal goals.


Generally, start by figuring out how much you need to cover your living and business expenses, then work backward to set your rates. Don’t be afraid to experiment and adjust as you go. And remember, your work has value - don’t sell yourself short!


So, whether you charge hourly or per project, work with exclusive or non-exclusive licensing agreements, or factor in all those pesky business expenses, make sure you’re pricing your work sustainably for the long haul.


Remember! This is not a cute little art hobby. You are running a business!


Need Guidance?


If you are feeling lost and still need help, don't fret!


You can join my Facebook group, "Freelance Artists and Surface Pattern Designers." We have some fantastic designers there willing to answer your questions for FREE!


Feeling stuck and need help now? Why not book a 1:1 consultation call with me today? I can review your portfolio and online marketing presence, clarify your goals, and help you strategise ways to achieve them.


As usual, you can reach out to me via email if you have any questions about my 1:1 coaching sessions or textile design in general: hello@carolynquan.design


Happy Designing!


Carolyn


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