You’re a designer because you love to design. You step into an empty space and imagine its story unfold as you transform it piece by piece for your design client. This antique chair HAS to live in this space, and just envision the entire room covered in sisal wallpaper! But reality of the situation is that your client is not a designer. What they’re thinking goes more along the lines of: Will I like it and is it going to be worth my money?
Your work as a designer is intangible, and it’s difficult for people to understand the value of something that they can’t immediately see, touch, and feel. It can also feel awkward putting a figure on your own worth. While we love to focus on the creative process here at the Kuotes, you’re running a business, so today we’re talking about the right way to discuss your rates with clients and demystify the design process so you can make a deal.
1. Never Talk Rates with your Client at the Initial Consult
During an initial consult, your client is going to be at their most vulnerable. The goal of an initial consult isn’t to make a transaction, it’s to meet the client and get to know them, inspire them, connect with them, and gain their trust. This is why you should never charge for your initial consultation and never bring up your fees unless they specifically ask. See if your sense of aesthetic and workflow mesh well.
It’s okay to bring up budget so you can get an idea of what you’ll be working with, but your personal rates can wait. It’s also a good idea to give design advice during your consultation. Obviously you can’t spec’ furniture or draw out a plan without payment, but providing free general design advice will demonstrate your ability and make your fees more understandable when it’s time to talk money.
2. Assess if the Client is Right for You
If budget is an issue, your client may be focused on getting the best deal. Redirect them so they begin to focus on getting the best designer. If your client is looking for a modern-Scandinavian, budget-friendly living room and your projects are mostly high-end coastal homes, there’s going to be an obvious problem. Don’t be afraid to turn down a client, and if you can, refer them to a designer who may better serve their design needs. If you find yourself having to convince your client that you’re right for them…you may not be the right fit.
3. Speak About The Needs of the Client First
Your initial client meeting should be all about gauging the scope of the project. What are your client’s needs, and how do you envision designing their space to fulfill those needs? If the client asks about cost, you can then give a them a broad idea without going into specifics—because chances are, if you help your client rethink the space in a way they haven’t considered, there’s a good chance they’ll hire you. Other things to cover on your first meeting: design style, how they’re going to use the space, and any special requests or needs.
Show your work. One great way to justify your rates is to bring previous designs so your client knows what they’re paying for.
4. Make Cost the First Topic of Your Follow Up with Your Client
If we’re advising not to broach your fees and rates during your initial consult, then when should you bring it up? In an ideal situation, it should be the first topic of discussion in your second meeting or follow up. At this point, you should know that you and your client will work well together.
Try this phrase: “Here are the rates for my services and the contract I need you to sign, and then we can get to all of the fun stuff and start designing!” By addressing payment upfront, you’re 1) getting that uncomfortable conversation out of the way and 2) demonstrating your commitment to the project and your eagerness to move forward.
5. Discuss Cost Face-to-Face with Your Client
Or at least over the phone. Nothing feels more corporate or impersonal than an email asking for payment (or worse, an invoice with no context). When you put your cost in an email, you’re taking away the client’s power to negotiate or feel like they have a say in what they’re paying. While you should always stick to your fees (see the next tip!), the cost conversation should be presented as a dialogue. It’ll provide your client with a more personal experience and allow them to trust you more with your design decisions.
6. Stick To Your Design Fees with Every Client
If this is your client’s first time hiring an interior designer, they might seemed shocked by your design fees. You have to understand their reaction from an outsider’s perspective. They don’t realize all of the time and hard work that goes into interior design. Take the time to explain to them how your role is more than just picking out paint colors and fabric swatches. A house with furniture is a product. A home crafted by a designer to fit your needs and personality is a process. That’s what they’re paying you for. Stay true to your design fees and believe in what you’re worth. Once word gets around that you charged one client lesser than another, your business loses its credibility.
7. Explain Every Charge to Your Client & Provide Examples
A few rare clients may not care too much about cost, but most people want to know exactly what they’re paying for, as they should. No one wants to pay for something if they don’t know what they’re getting in return. Bring in examples of your previous design work. Provide samples so clients can experience the look and quality of the product you’re spec’ing for them.
Explain the line items on your invoice, markups on furniture, and ask if they have any questions. For example, the Kathy Kuo Home design team doesn’t charge for an over-the-phone consultation, but we do charge on the physical in person consultation since we actually measure, video, and do actual work on the site visit. When you make design decisions, make sure to carefully explain the rationale behind it and point out details your client may not be able to recognize themselves. It may seem obvious, but it makes all the difference.
Kathy Kuo Home To The Trade
Are you an interior designer or architect? We want to work with you through our Trade program! From custom solutions to swatch sampling and volume requests, our trade specialists are here to help you with all of your design needs–from helping you order from the best brands in the industry, to assisting with 3D visualization. Receive a competitive no-minimum trade discount on all orders. Plus, unlock deeper savings as you spend with our tiered pricing program. Plus, you become eligible to have your work featured on our blog!
13 thoughts on “The Right Way to Talk Money with Your Interior Design Client”
So cool,thanks for sharing!
Nice! Really cool and fun ideas!
Hi Kathy,
I just came across your site. This is amazing!! Thank you for sharing your insights. I’ve been in this industry for a long time working for large design firms and I’m now branching out on my own, but I find some designers are very “protective” of their profession and not as open to sharing their experiences and advice, so I really appreciate this site and all the great advice. One question I have, is there a guideline on rates I should be charging? Should I base it on experience? Break it down by phases? Basically, what is the right price to be charging my client?
Hello, is it typical for a designer to “split” their discount and keep 50% of the trade discount on an item I have found on top of billing me for work hours?
Thanks for reaching out! Yes, it is fairly typical for a designer to keep part (if not all) of their designer discount on items on top of their design fee. Remember that in addition to all of their design work (drawing and planning, specifying, ordering, styling, etc.), a designer is also providing exclusive access to items and custom pieces unavailable at retailers. That said, if a designer is keeping part of their discount, they should be providing purchasing, shipping, and after sale management services.
Great read! Thanks for all the valuable information!
Hi, I love your blogs and articles, I’m new here. Living on The Algarve in Portugal. Get asked all the time for the California look, or the Nantucket feel and more often than not – The Hamptons overall look!! Your products and website are perfect for this.
Many Thanks
Bronwyn
Hi Bronwyn,
We’re glad you’ve found our site resourceful! We’re always a phone call or email away if you ever need help. Are you an interior designer? You may get a lot of use from our Trade Program, so feel free to sign up if you’re not already!
Thanks for these tips! The one conversation I always dread having, and would love to know if I could handle it better, is whether or not the client will receive your trade discount. I don’t pass along my discount to clients, but I understand their need to know why, and be as clear as possible upfront about how much they will be charged for items. Do you have a way you talk to your clients about that decision that is sensitive and most respectful for both clients and you. Thanks!!
Hi Chelsea,
This is a great question, and definitely a tough one to answer. Most clients don’t realize that interior designers predominantly make their money on product more than they really do on their design fees. We may just have to do a post on it!
How I typically explain it is: You’re providing your client a service. You’re either getting them product they typically would not have access to, or you’re getting them product they could buy themselves…but you’re doing all the legwork for them. In either scenario, you’re doing work for them and making their lives easier, and instead of charging them for handling purchases and logistics, your payment comes from your trade discount. I think the best method is to gently remind them that procuring and ordering product for them is a service and makes their lives easier, and you’re basically providing this service for no additional fee.
What do you think about “splitting” the trade discount with clients? I.e. If a vendor offers 20% discount, you keep 10% and pass along a 10% discount to the client? It seems that, at least in certain markets, there’s a shift more towards hourly rates as the primary method of income, as opposed to margins on product, especially for clients with less extravagant budgets. I worry about it being very complicated to invoice, though!
Hi Katie,
Thank you for reaching out! Splitting your trade discount is a very common strategy that we encourage designers to use. It provides your clients with incentive to buy, and you also make a small profit on the sale. You’ll find that a lot of designers who charge hourly will still package their hours in bundles or have some sort of minimum so there is still a base design fee. There’s no one right way to do it, and what’s most important is finding a model that works for you (even if it may not work for every client). Hope this helps!
And I’d be remiss if I didn’t mention to make sure you’ve applied to our Trade Program at Kathy Kuo Home if you haven’t already!