The most challenging task you might be facing today is to determine the right amount to charge on interior design services. A part of your mind wants to come up with a fair price that is transparent to clients, at the same time, you are opting to gain a profit too.
Apparently, focusing on one of these desires can lead your business to ruin soon enough. Good thing that there’s a way to pursue both and grow the business you love.
Knowing the wise way to charge fees for your interior design services and implementing it consistently and transparently will allow you to gain the trust of your clients. It will also result in finding better clients and more projects where you can earn generously.
While constantly implementing this method, you’ll also discover better interior design practice that you can be proud of. It will lead you and your company to massive growth along the way.
Ways to Determine Right Interior Design Services Fee
Generally, clients, as much as possible, want to cut cost and control the money they shed. In the same way, they avoid surprise additional cost. So what we are about to share in the ways you can use to determine the best interior design services fee. This can make your clients comfortable paying your service.
Fixed or Flat Rate
Flat or Fixed Rate is probably the most popular interior design fees today. At the same time, it is also the most complicated rate to calculate. However, If you have been in the industry for years, determining a fixed or flat fee can be simpler. It is because you already have an idea of what a particular project requires.
The best thing to do when using this kind of service charging is to base it on hours and then include 15% or above extra buffer. This protects you against unexpected overruns. How can you get an advantage of using this method?
Offer a fixed or flat rate at a lower price that has to be compensated in full and then works at a fast pace to wrap up the project. It obviously a win-win situation for both you and your client.
By Square Foot or Meter
Among all the methods in the list, charging your interior design services by square foot or meter is the simplest. It is ideal for projects involving sizeable spaces such as master bedroom, great room, as well as a good sized kitchen.
Like so, you can use a price range of $10 to $17 per square foot. For example, if you are working on a 15X20 room then your fee is from $3000 to $5100. You can strictly use it for your services and just add an extra percentage. This is to cover the chosen furnishings as well as management contractors for remodel or renovation type of projects.
To charge small space projects, this method may not work well for you. This is where you must choose another way of charging a fee.
By Project Cost Percentage
This is likely the favorite most favorite method of interior designers. Not only that it’s simple in terms of invoicing, but it also provides complete transparency. Charging by protecting cost percentage offer clients project estimates which includes fixtures, furnishings, finishes, contractors, installation, and so much more. Calculate the 30% to 45% of the project cost for a particular interior design rate to ensure you get a minimum fee.
In terms of invoicing, schedule payments parallel with certain project benchmarks. Before the date, make sure that everything is ready including your copies of vendor billings to showcase complete transparency. This is actually optional, choose what practice works for you the most.
By Retail Pricing
There are only a few designers utilize this method. It is a challenging way of charging the interior design services fee since discount and promos are everywhere. The technique here is to provide a product that is entirely unique to a client. Something that they can never find anywhere else.
You can only gain charging fee by retail pricing if you can keep your client interested with your designs. Otherwise, you’ll lose money fast.
Charging interior design services hourly is one of the traditional methods used until today. It varies from where you are, what are your experiences, as well as your skills.
Beginners often start with a range of $75 to $125 while those with experience charge $150 to $450 per hour. Apparently, the challenge is to make clients understand how long the process of a design takes.
Other interior designers might find one method good but not great enough. This is the reason why some choose to utilize a combination of charging method to fit for their needs.
However, make sure to be transparent as possible with your charges you apply. Assuming that your client can passively pay what you ask is obviously a wrong move.
What matters the most in charging interior design services fee is transparency and value. If you are transparent enough to make your payment billings acceptable for your clients, this can help you gain much more.
With the methods above, make it your goal to maximize your profit as much as possible while giving your clients the satisfaction acquiring your services.