The Art of Pricing: Why Some Interior Designers Charge $5,000 and Others $50,000 (for the same work!)
Here’s why some designers only charge $3,000 while others can charge $50,000 for the same work!
Why does one interior designer charge $5,000 in fees for a project while another can ask $50,000 for the same work?
In the design industry a variety of factors influence how designers set their fees and this post explores what some of those factors are and gives you some tips for how to increase your pricing.
1: Experience and reputation
Clients will pay a premium to work with a brand that has a strong reputation. Designers with years of experience and a well established reputation are likely to charge more for their services. Their portfolio often includes a wide range of projects, possibly some of them high profile, and they may have received awards or been featured in industry publications.
2: Geographic location
High end clients value their time above all else. They will pay more for designers who can take the stress out of their project and handle all the details for them. Designers based in high end locations normally charge more. This is due to the perceived value of their services in these markets.
3: High vs low value clients
Designers working with high value clients will price higher as they know their work adds substantial value. High value clients will see design fees not as an expense but as an investment. They understand that excellent design will likely increase their property's value and/or save them significant time and effort in sourcing, planning and managing their project.
4: Market positioning
If you are positioning yourself as someone who helps clients “work on a budget” or you offer “budget design services” you are attracting low value clients. Designers that deliberately position themselves as luxury service providers can price their services accordingly. For them a high price point is part of their brand's appeal and is aimed at attracting the types of clients that value their work.
Tips to increase your pricing:
If you’re a designer looking to increase your pricing, here are some actionable strategies you can start to implement...
Reassess your ideal client avatar - are you currently attracting high or low value clients?
Update your brand and messaging - to attract high end clients your portfolio needs to display your experience with this kind of work
Upgrade your network - partner with other professionals who are already servicing high value clients (e.g. builders, cabinet makers, suppliers)
If you are currently booked to capacity with client work it’s time to start raising your fees. Increase your fees by 5-10% each time you quote a project until clients start saying no
Implement value based pricing - i.e. instead of charging an hourly rate or a flat fee, price your services based on the value you add
Research the market and know what others are charging and what they offer for that fee
Use social media platforms to build your reputation as an expert in the field - create content that appeals to high end clients and solves high end problems (budget content will attract budget clients)
Overall fees set by designers reflect a myriad of factors, from their experience and market positioning to the specific demands of their clients. The key is to find the right balance between what you offer, the problems you solve for your clients and how you position your brand in this diverse market.
Interior design is not a budget service. To make good money you need to attract high value clients that value the work that you do.
This is how to build a profitable and sustainable business that you enjoy working in (and where you feel the effort you put in is worth it).
Thanks for reading and catch you in my next post :)
Clare x
Dr Clare Le Roy
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