Option one - I work on an hourly rate as opposed to a set price for a one page / three page / ten page etc website which is the preferred method to many website designers. To me, it's not just about the number of pages but the time put in so this seems the fairest way to work.
Option two - I'm happy to work to a budget and the essentials are done first. It also depends on how many 'whistles and bells' you want and how much time you can contribute sourcing suitable images and providing content. If you're happy to have a go and add content and images yourself, I'm all for that too and I can focus on other areas such as infrastructure and user experience.