Interior Design Pricing Explained: Hourly, Flat Fee, and Price Per Square Foot

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What You’re Really Paying For and How to Choose the Right Model

Interior design pricing can feel confusing, especially when you start comparing proposals that look wildly different on paper. One firm charges hourly. Another offers a flat fee. Another quotes a price per square foot. Some seem surprisingly inexpensive. Others feel costly with very little explanation.

If you are planning a commercial remodel or furnishing project in Phoenix, or investing in a home that supports your lifestyle and personal taste, understanding how interior design pricing works will help you make a smarter, more confident decision.

At Mackenzie Collier Interiors, we believe pricing should be transparent, predictable, and aligned with the actual work being done. This guide breaks down the most common interior design pricing models, explains the pros and cons of each, and highlights what to watch out for in 2026.

Why Interior Design Pricing Varies So Much

Interior design is not a single service. It is a layered process that includes strategy, technical expertise, creative direction, coordination, and logistics.

A commercial project may involve:

• Space planning and code-conscious layouts

• Coordination with architects, contractors, and consultants

• Finish and furniture specification

• Procurement and installation oversight

A residential project may include:

• Remodel or new build design support

• Furniture and decor selection

• Custom upholstery and lighting

• Delivery, installation, and styling

Different scopes carry different levels of complexity and risk, which is why pricing structures vary. The right pricing model depends on how defined the project is and how many unknowns are involved.

The Most Common Interior Design Pricing Models

1. Hourly Interior Design Pricing

What it is
You pay for the actual time spent designing, coordinating, and managing your project.

Best for

• Remodels and new builds

• Complex commercial projects

• Projects with evolving scope

Pros

• Fair and flexible for complex work

• Allows designers to respond thoughtfully when surprises arise

• Well suited for construction projects with unknowns

Cons

• Can feel unpredictable without clear estimates

• Requires transparency and strong communication

How Mackenzie Collier Interiors uses hourly pricing
We use hourly pricing for remodels and new builds, both commercial and residential. However, we do not leave clients guessing.

Our proposals include:

• A detailed outline of every phase of the design process

• Estimated hours for each phase based on historical data

• A built-in contingency to account for the unexpected

• Clear communication throughout the project

If the contingency is not used, it is returned. This approach is especially important in Phoenix, where construction timelines, permitting, and subcontractor availability continue to fluctuate heading into 2026.

2. Flat Fee Interior Design Pricing

What it is
A single, fixed design fee for a clearly defined scope of work.

Best for

• Furniture and decor projects

• FF&E specification only

• Well-defined commercial or residential spaces

• Projects with minimal moving parts or contributing parties

Flat fee pricing works best when there are fewer variables, such as no active construction, limited contractor involvement, and little to no custom fabrication.

Pros

• Predictable and easy to budget for

• Efficient when the scope is clear

• Encourages momentum and timely decision-making

Cons

• Requires a very clear scope and process

• Not ideal for projects involving multiple contractors, architects, or custom elements

• Less flexible if the project changes significantly

How we use flat fees
For furniture and decor projects, our process is so refined that we know exactly how many hours each phase requires. This allows us to offer flat design fees for:

• Furniture layouts and space planning

• Material, finish, and upholstery selection

• Lighting, art, and accessory specification

• Design presentations and revisions

This structure works especially well for busy professionals and commercial clients who want clarity, efficiency, and a streamlined process without a lot of outside coordination.

3. Price Per Square Foot Interior Design Pricing

What it is
A design fee based on the size of the space, quoted as a dollar amount per square foot.

Best for

• Commercial interiors

• Larger-scale projects

• Early budgeting and feasibility planning

Pros

• Simple to estimate upfront

• Scales with project size

• Familiar framework for commercial stakeholders

Cons

• Does not always reflect complexity

• Smaller, more detailed spaces can require more work than larger simple ones

How it is typically used
Price per square foot pricing is common in commercial design, particularly when teams need a high-level way to forecast design costs alongside construction budgets.

At Mackenzie Collier Interiors, we use price per square foot pricing for commercial furniture and decor specification (FF&E), where the scope is well defined and the work scales directly with the size of the space. This allows commercial clients to budget accurately while still receiving a detailed, clearly outlined scope of services. For projects with more variables, we rely on detailed scopes and time-based estimates to ensure accuracy and fairness.

Procurement and Installation Pricing

Procurement is often underestimated. Ordering, tracking, coordinating freight, managing damages, and overseeing installation requires significant time and experience.

For clients who opt into procurement services, we bill hourly for the time required to:

• Place and track orders

• Coordinate freight, warehousing, and delivery

• Resolve damages or backorders

• Oversee installation and final styling

Clients pay retail pricing for all products. We do not mark up furniture or decor.

Why We Do Not Use Product Markups or Kickbacks

Many design firms keep their design fees low because they generate revenue through:

• Product markups

• Vendor kickbacks

• Referral fees

This often leads to limited product options, inflated pricing, or recommendations driven by margin rather than fit.

At Mackenzie Collier Interiors, we do not make our money on product. We structure our fees around our expertise and time so design decisions are based solely on what is right for the client and the project.

Be Careful With Design Fees That Are Too Low

If a design fee seems unusually low, there is usually a reason.

Common explanations include:

• Inexperience

• Lack of a defined process

• Reliance on hidden markups or fees to make up the difference

In many cases, clients end up paying a similar amount overall, but receive lower-quality furnishings, fewer options, or less oversight. Transparent fees often result in better products, fewer mistakes, and stronger long-term value.

What About Free or Low-Cost Design Services?

There are many free or inexpensive design options available through retailers like West Elm, RH, or online platforms like Havenly.

These services can be helpful for:

• Styling a single room

• Selecting in-stock furniture

• Exploring a look at a basic level

However, common limitations include:

• Product selection limited to one retailer

• No construction coordination or space planning

• No accountability if something does not function well

• Limited support for delivery, installation, or problem-solving

For remodels, commercial projects, or homes with complex needs, these services often fall short and result in rework later.

What You Are Really Paying For

Professional interior design fees cover:

• Strategic problem-solving

• Technical knowledge and experience

• Coordination with contractors and vendors

• Risk management and error prevention

• Time savings and smoother execution

Good design supports how you live or how your business operates. It reduces friction, avoids costly mistakes, and creates spaces that function well over time.

How Interior Design Payments Are Typically Structured

Payment timing is just as important as pricing structure, and it varies by firm. At Mackenzie Collier Interiors, we use time-based payment schedules, rather than progress-based billing, to create clarity and keep projects moving forward even when external factors shift.

Our payment structure looks like this:

• Hourly design projects (remodels and new builds)
  We divide the estimated design fees across the number of months the project is expected to run. Payments are due at the beginning of each month.
  Why this works: it creates predictable billing for clients and ensures our team can stay fully engaged, even if construction schedules shift due to permitting, inspections, or contractor availability.

• Procurement services
  Payment is required in advance. Once products are ordered, timelines, freight, and inventory are already in motion and cannot be paused.
  Why this works: it protects product availability and keeps orders moving without delays.

• Furniture and decor specification (FF&E)
  Payment is collected upfront. These projects move quickly and are typically completed within a single billing cycle.
  Why this works: it eliminates administrative delays and keeps the design process on schedule.

Time-based due dates vs. progress-based billing

• Time-based due dates
  Payments are scheduled based on calendar dates and aligned with specific design deliverables. This is the model we use.
  Benefit: even if a contractor is delayed or permitting takes longer than expected, design work continues and deliverables are met without pausing the project.

• Progress-based billing
  Payments are triggered by construction milestones. While this can feel intuitive, it often creates uncertainty for design teams because construction progress is outside their control.

As a small business, we need clarity around our financial pipeline to properly staff projects and commit to deliverables. Time-based billing allows us to do that while still holding ourselves accountable to clear timelines and agreed-upon scope.

Final Thoughts

Interior design pricing should not feel mysterious. The right pricing model depends on your project scope, complexity, and goals.

At Mackenzie Collier Interiors, our pricing is designed to be:

• Transparent

• Thoughtful

• Aligned with your best interests

Whether you are planning a commercial remodel in Phoenix or furnishing a home that supports your lifestyle and taste, understanding how pricing works puts you in control of the process.

If you are considering a project and want help determining the right approach, we are always happy to talk through it.