For my first two years as an independent designer I billed by the hour. It was fair on paper and miserable in practice. Clients worried about every meeting, and I was penalised for getting faster.
One price, agreed up front
Now every project gets a fixed price, written down before we start. The quote covers a clear scope, a timeline with dates and one number. If the scope changes, we talk about it and I send a new quote. That happens less often than you might think.
What goes into the number
Four things, all of them written into the quote.
The time I expect it to take, estimated honestly and then rounded up.
Rounds of feedback, usually two per stage.
Production: print specs, press checks, handover files and a small library.
Risk. A new market or a tight deadline costs more, and I say so.
What I send
The quote is two pages. Page one restates the problem in the client’s own words, so we both know what we are solving. Page two lists the stages, what each one delivers, the dates and the price. Payment is split in three: at the start, at the halfway review and at handover.
It is not the cleverest pricing model, but clients can plan around it, and I can concentrate on the work instead of the timesheet.