You will teach him to not work for free by choosing someone else. He should already know that, and there's no good lesson in business practices like a hard lesson.

If he spent a lot of time there, why not get him a gift (certificate to local restaurant for 2), sit down with him, and explain your choice. He sounds as if he did a good job and who knows, you might be calling him in the future for some other job.

I agree with Lucille.
My ex- would put his heart into estimates, doing is best to offer options, appliance costs, all kinds of things. People seldom went with others, but when they did, he was out a lot of time. Frankly, I know he took it personally, too, which sure, in a business environment he shouldn't have, but...

And let him know you're going to honor your promise not to steal his work. If you felt so inclined, you could show him what you're choosing. You sure don't have to, goodness knows, but he might be interested.

I'm looking at this from the personal prospective you are.

Do what you believe is the right thing to do.

If the second guy developed a design so unique and special and never-seen-before in the world of kitchen design, then he really ought to be talking with an intellectual property lawyer. (tongue in cheek) The bottom line is whether you want to compensate him for his time.

There should have been an agreement beforehand.

I have no sympathy for a "businessman" who does work for free. None. Fortunately the marketplace has a lesson for him. He will learn the lesson or he will go bankrupt.

I guess that is one way he tries to get a competitive edge. I did not have anyone ask for a design fee for my kitchen. I don't think that is uncommon they will do a certain amount of that for estimating up front so a customer has info to work with when choosing who to work with. Not sure what you mean by bringing it alive, but if you feel you need to pay for a service or value you received, or will use his design then compensate him accordingly. You shouldn't feel guilted into using him though. Estimates are often without charge and a part of doing business.

ITA with lucille. I did that once when a contractor I'd used and loved before came in too high on an estimate for a second project. He appreciated it, and has been a great resource ever after. Yes, maybe your contractor should have charged for his design. Maybe he will go bankrupt. Maybe we live in a world where asking on a handshake that your design not be snatched is just naive. (We do, especially in kitchen design.) But I have never regretted doing what I felt was the gracious thing in my particular situation. Hey, the contractor you like might get hit by a bus. You might not like him so well another month into the process. You never know.

A call with your decision would is greatly appreciated- that alone is rare. A surprising number of people won't even return a call once they've decided to go somewhere else.
A note is golden, anything more is golden.

There are several business models used by KDs-Retainer, some work then retainer, visit then retainer, talk then retainer, no retainer... each has it's advantage and disadvantage. We all know the deal.

Curious if the guy you are going with has been to the house? his contractor? buying a picture or a service? A layout is not design.

JV makes a good point. A layout is not a design. And their job doesn't end with a good design. Maybe KD2 was trying to give you a feel for what he could do, and for his commitment to the customer and work ethic. Make sure you get a good feel for those things with the other, as best you can.

To answer Jakuvall's question - KD 1 has been to the house several times, calls often to check on things and his contractor is about to come for his 3rd visit to take one more look at something.

I will tell KD 2 that he is not the guy rather then leaving him hanging and I think Lucille's idea of a gift card is a good one.

Thank you all for your advice!

Suggest just paying him - vs giftcard.

Many giftcards go unused, for a variety of reasons (I speak from experience). See Time magazine report which estimates it at $2 Billion in a year.

Here is a link that might be useful: unused giftcards

I agree with mdim, don't use a gift card. Pay money. Wow, $2B a year in unused cards. This is why I seldom give them.

I also agree on money vs a gift card for a number of reasons.

I wonder if a lot of those gift cards are of the refund variety. That is such a racket. I also used to receive them for a particular store and was saving for something. They went out of business. $150 for nothing. Nonspecific Visa cards are better for the receiver anyway.

Also have gift cards for stores that are now out of business (remember Borders bookstore?).

Do not like the fees with the non-specific VISA cards, so will not use them.

Cash is best ; D. Cards are kind of a pain. I have a tattered old certificate to a store I never go. Must be at least 10 years old now. $50!

I would pay him in cash, and profusely thank him for his professional opinions. We are getting some work done in a community of about 25,000 people. I found out that the contractors are talking with each other all the time. THEY know what potential customers are doing. If you treat #2 fairly, the word will get around. If you ever have to go back to him or his contractor, or his friends you will stand a much better chance of a good response.

Conversely, if the contractor community thinks you screwed the guy over, good luck on getting their best work out of ANY of them in the future! That's part of YOUR cost of doing business.

I would pay him $150, and tell him "thank you!"