Pricing is something that confuses a lot of designers (even those who have been running their business for years!).
The way you price your services (and whether clients will pay that price) depends on many factors.
These include:
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your experience and expertise
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the type of work you're doing
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how much competition you have
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the brand you’ve built
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market demand
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market conditions
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your location
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your reputation
And the reason why some designers charge more than you to do exactly the same thing is because they use a value based pricing model.
Value based pricing is where the price of your services is based on the perceived value you provide the client, rather than being related to your time delivering the service (which is what happens with hourly rate pricing, which I don’t recommend).
It's about aligning your fees with the value and benefits the client is going to receive.
As you already know, designers provide significant value through their design services.
Here’s just some of the ways you do that...
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increased property value
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cost savings - via trade discounts or avoiding mistakes
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space maximisation - e.g. improved functionality, expert space planning
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well being - improve comfort, expertise in use of non-toxic materials, maximise natural light
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improved energy efficiency - which means cost savings to clients, reduced energy consumption
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aesthetic improvements - e.g. creating a space your clients can be proud of
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time savings - e.g. handling logistics, coordination and other ways you save clients time
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professional knowledge and expertise - avoid mistakes, make faster decisions
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expert product knowledge
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access to your network of other professionals - which clients are not able to access otherwise
This list outlines just some of the value you bring to projects and why your role has significant value to clients.
These values are what you need to be selling to potential clients during the sales process and in your free content.
And the better you get at sharing the value you bring, the more you will be able to charge.
This is what value based pricing is all about (and is the reason why some designers charge a lot more than you to do exactly the same work).
Part of your role is to educate potential clients on the long term benefits and ROI (return on investment) of a well designed space. And the better you get at doing this the more you will be able to charge clients - as they will see what value you bring that they can’t otherwise access for themselves.
This is a far more superior model than trying to price and compete based on hours spent on the project or the sqm/sqft of the project site.
If you want to earn more as a designer - stop charging by the hour and start implement a value based pricing model.
Thanks for reading and catch you in my next post :)
Clare x
Dr Clare Le Roy
