“How much is this going to cost me?”
The Problem: We all know the industry. It can be expensive. Not to mention, product costs fluctuate all the time, so even if you work really hard on a budget breakdown, you know it’s bound to change. The real problem is that your clients typically don’t understand the industry. Unexpected fees for shipping, delivery, customization, expedition, etc. easily incur, and it can be difficult to explain to a client why certain materials cost so much or why certain items really, really should be custom upholstered. To them, it looks like you’re just trying to make some extra cash.
The Answer: Honesty and padding. First, come to a very resolute decision on how much your client is willing to spend on their home. Then, you have to design a fee structure. How to charge for your services could be another whole article (and maybe it will be…), but the average East Coast designer will charge an initial design fee along with a retainer and/or a percentage of the project costs. Explain big costs first: any big furniture, structural changes, or electrical work being done. Offer advice on where your client can save money, usually through accessory items or by buying product through you. If you take a commission on product, be transparent about this and offer to split the savings with your client. While it’s great and generous for you to pass savings along to your client, do not feel guilty for earning a commission on product. You are helping your clients obtain cheaper pricing, and you’re curating their product selection for them—that is a service in itself. Lastly, pad your pricing so you don’t go over budget (or just plan ahead on going over budget). If your client gives you a maximum 40K budget, don’t spend 40K on product and your design fees. Allow for something to go wrong so the financials are there for any surprises. If everything goes super smoothly (and let’s face it, when does that happen?), you’ll be saving money for your client either way.