Interior Designer Pricing

[Vishenka69]

I'm trying to determine the best pricing structure. There are two options.

1. Flat fee, plus % of resale (I get trade discount and either share some of that with client or keep the whole difference).

2. Bill per hour but share entire trade discount with client.

Which one would you prefer as the client? 99% of designers use #2. I was originally thinking of doing #1 because right now it still takes me longer to figure things out but then progressing to #2. Or I can start with #2 but not bill for all the hours. Thoughts?

[Ladybug]

I would start with where you are heading. It's confusing to clients to change a pricing structure down the road. I realize that the lower flat fee will pull in some clients initially, but those probably aren't the kind of clients that will spend a lot on merchandise either.

As a client I would prefer #2. It's feels honest and I wouldn't think you were making money by pushing more merchandise on me. I would know exactly what you were going to cost and could budget accordingly. As you get more experience I think you'll be able to give them an estimate/range of what it will cost you to do a room and what it cost to furnish. If you're looking for a way to capture a more economic group then you could offer the plan and design only plus the plan/design/labor to place and remove furniture, arrange and oversee painting/contractors. I would use you for both options depending on the room and it's needs.

I know in photography people JSO offer portfolio building rates (PB rates) until they build a business. The best way to do this (from what I've gathered) is to start listing your full prices on your website, and then list your PB prices that are being offered for a limited time. That way there isn't a backlash when you're prices go full blown. They already knew.

[Ladybug]

Are you going to run a design blog too? I think these are great PR. I love reading them!

[Vishenka69]

Thank you. That was very helpful. I am planning on having a blog, but that's probably a few months out.