How Interior Designers charge
The way Interior Designers charge for their unique services varies widely across the industry. Each designer determines what works for their firm and clients. It is crucial to understand fees and charges at the outset.
Design Fees
Hourly Rate. Many interior designers charge an hourly rate for the time spent working on a project. The rate for hourly fees can range from $100 to $500+ based on factors such as the designer's experience, location, and the complexity of the project. Clients are billed for the number of hours the designer works on tasks like consultations, research, space planning, and project management. There may be differing rates for team members and for different services (like project management versus design services).
Hourly rate charges can be assessed as the project progresses and billed at a specified interval (weekly, monthly, etc).
Designers may charge hourly, but sell “blocks” of hours (20 hours at $XYZ) which is charged up front.
Other designers require a retainer at the outset of the project. A retainer fee is an upfront payment that clients make to secure the designer's services. This fee is then applied to the total cost of the project or the designer's hourly rate.
Flat Fee. Project design fees are the industry standard and considered a best practice. The designer determines a project rate based the size and complexity of the project. A project fee eliminates time consuming hourly billing, invoicing surprises, and facilitates better cost projections. Designers who charge a flat fee use a highly structured system which allows them to determine the fee at the outset of a project.
If the client changes the scope of work in a flat fee project, there is a provision for how additional work will be charged.
Combination of Methods. Interior designers may use a combination of the above methods, tailoring their pricing structure to the unique needs and preferences of each client and project. For example, a flat fee may be charged for the design portion of the project and a hourly rate for construction management, site visits, or procuring products.
FABRICS
FINISHES
LAYERS
Products
Marked up Wholesale. For designers purchasing products at wholesale pricing, a mark-up is charged on the designer’s cost. Designers must maintain trade accounts and associated minimum annual purchases with their vendors to obtain wholesale pricing. A mark-up is charged on products to cover the cost of procurement, management, inspection, and resolution of product issues that arise. At Laura Lee Home, items are priced competitively and on an overall project basis are below msrp.
Retail. Some designers charge the manufacturer’s MSRP for furnishings purchased for a client.
Flat Markup Percentage. The designer charges the client for the cost of materials and furnishings plus a stated percentage markup. The markup covers the designer's cost to procure items for the project. This method is transparent about the actual costs incurred. Designers utilizing this method may be purchasing from retail sources or with a trade program for designers versus purchasing a wholesale level.
Freight and Warehousing Fees. Freight fees are charged for upholstery items or case goods shipped from a manufacturer which require a local receiver and dock. This is the safest and most economical way of transporting goods over a long distance. The rate for these charges will vary depending on location and the item size and value. At LLH, freight charges are listed as a separate line item on the client proposal and invoice.
A local receiving company will handle furnishings from receipt to white glove delivery. Each item is inspected and photographed. Designers will work with vendors to resolve any issues or damage. Items are categorized and stored until installation day. Fees for receiving, storage, insurance, and delivery will be billed by the designer (typically monthly).
“An interior is the natural projection of the soul.”
Summary
It's essential for the interior designer and client to have a clear understanding of the pricing structure and the terms of the contract before starting a project. Contracts should outline the scope of work, payment schedule, responsibilities of both parties, and any additional costs that may arise during the project. This transparency helps ensure a smooth and successful working relationship.
What surprised you about the process of how interior designers work? Drop a comment below
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