Well, maybe the actual question should be how much should interior designers charge? I’ve gotten this question several times over the years from readers who are thinking of starting their own businesses. Most of you know, I’ve been officially out of business for a while now (with no plans in the foreseeable future to go back to it—locally, at least). So, while I’m not sure my answer is the most up-to-date or qualified one to offer, I’m happy to be candid with you.
image: BHG
Let me start by restating that I’m not a designer by degree. Mine is in PR, so I technically worked as a decorator. While some would say the degree determines the price you charge, I believe that’s quickly changing in today’s design market. I personally believe that price is most determined by demand. And, thanks to the exposure that the internet (namely blogs, Pinterest, online design sites, etc.) can give you, demand now comes in a variety of different ways. In my experience, having a blog gave me enough credibility to not start at the bottom of the pay scale (whatever that may be. . .).
So, here’s the deal—and why you’re probably actually reading this post: I charged anywhere from $75 (at the beginning) to $125/hour when I was doing design work. (Side note: I was working in Charlotte, which helped. I’m sure location determines rate, as well.) Sometimes, I billed clients hourly and other times, I guestimated the number of project hours and billed them one amount up front.
And, here’s the kicker: I made almost zero profit.
Yep, next to nothing. I don’t think my hourly rate was out of line, but here’s where I believe I messed up (now that I’ve had several years to think about this):
-I rarely charged for consultations. There are differing opinions on this, but time is money. (Time to travel there, time to get ready, time away from your kids, time you pay for a sitter, etc.)
-I almost never marked up product. (And, I would spend way too long looking for deals, based on the price I would pay.)
-I didn’t always build in enough hours to pay for an install assistant, a handyman, an electrician, unforeseen issues, taking returns to stores, etc. (I actually paid for part of a client room once. Bad business and makes you quickly not like your job so much. . . )
-I undervalued my time and ability, when I should’ve been more confident. (This is the biggest one. Yes, decorating is fun—but your ideas are valuable, fun or not.)
Rebecca Atwood via The EveryGirl
Man, this doesn’t sound any good, does it?? It wasn’t all bad, but I feel like I’ve found my niche in blogging full time and am pretty happy about that. IF I were to offer any advice to someone starting out, I would say research the heck out of the business first. Get familiar with your costs, the time involved, what other new (and seasoned) designers/decorators in your area are charging. Build your portfolio so you can justify your asking price. Ask to shadow/intern under a more experienced designer. Consider what your time is worth, along with your talent. And, whatever you do, be confident when you meet with a client. (You probably know more than you think you do. . .)
So, any experience you want to share as a designer or as a client?
I’d love to hear your thoughts on how (and how much) to charge.
Just a quick comment – some states regulate the use of “interior designer”. Check with IIDA or ASID for more info.
Thank you for this! I started my Home Styling business over a year ago and made so many mistakes because I didn’t know how to charge! I was charging a flat fee and completely underpaid myself. I also agree on charging for a consultation…made that mistake before. You can meet someone and give them your ideas and then they don’t hire you, but take your ideas with them! Now, I charge an hourly rate ($75 since I’m just starting out) plus 10% on any purchases I make. I’m still figuring out if I charge for travel time, communication, etc. It’s a process and I’m learning as I go. Always helpful to have someone share their wisdom so many thanks!
XX, Bliss Chick Style
I couldn’t agree with this more. Confidence is huge and believing in your value! Especially for young people starting out…don’t let anyone take advantage of you. I cringe when I think about how little I sold my artwork for in my 20s simply because I was naive, lacked confidence, needed money and let customers take advantage of that and talk me into charging them less for my original work which took hours upon hours. I hope those just starting out read your post and get something out of it…wish I had all those years ago!
As obsessed as I am with design, being a designer is not an occupation I could handle. I’ve read too many horror stories of what designers have to put up with. I think it’s more about knowing how to run a business & how to deal with people. Neither of which I’m good at.
I went to school for interior design and currently work for a designer. Her hourly rate is $150 per hour and mine is $75 per hour. The industry standard markup is 30% for product that we pay either wholesale for or it is drastically discounted. Honestly, that is not much money for the product. Interior design is not a business that you can get rich at. (By the way, I do not get paid $75 an hour. That is what the client is charged.)
I actually think that our time, thought, and energy are worth more than that. The kicker? Getting a client to pay you what you’re worth. I’ve had so many people expect design advice for free or next to nothing because they happen to be an acquaintance. I think the situation applies to anyone in the “artistic” community, really. It’s a shame, too, especially when one realizes how much of an impact a designer’s work has on one’s ability to love and enjoy his or her living space.
Melanie, I am constantly venting to my husband asking why WHY does everyone I know expect me to design their homes for FREE! Ahhhhh it’s so frustrating. He always reminds me though that it happens in every profession, and it does. It’s awkward and I still have no idea how to approach this. :(
I am a software developer and am frequently asked for free technology advice. It really does happen with every profession!
As I was reading this, I said to myself it applies to other professions as well. My husband is a civil engineer and many times people want engineering advice without paying for it.
I totally agree!!! I am a Kitchen and bath designer and I get the same thing…
” Ahh, what do you think I can do to my kitchen”!!!!!!!!
WE ARE PROFESSIONALS!!!!!!!!!
So ALWAYS think of yourself as a “PROFESSIONAL”!
Donna
Love your blog, Emily! Such a great post…I’ve had some experience with hiring expensive interior designers who didn’t have much talent or thought about my own style. They would up charge furniture and draperies or work out of a shop. I’ve recently had an absolutely amazing experience with a designer (sylamoreandco.com) who charges $100 an hour with no additional up charges and finally my home is stylish and a represention of me! This is a tricky business because style is so personal! It’s critical to find the right person!
You make an important point about expensive designers who really aren’t that great. In residential design (depending on where you live), almost anyone can call themselves a designer and anyone can be decorator, so there’s definitely a range of people working in the business. It’s really important to get a thorough look at a designer’s portfolio and it’s never unreasonable to ask for references (a smooth process is just as important as aesthetics!). I do want to chime in and say that an “up-charge” is typically a way of accounting for time spent ordering a product and taking responsibility for any issues and dealing with any problems if it shows up broken/the wrong color, etc. Some designers who don’t markup products account for it in their hourly rate but that’s a relatively new approach to the market. Significantly undercutting market prices as a designer can also damage your relationship with vendors and other designers that you rely on for business. I only say this because in the age of internet shopping I see a lot of clients feeling resentful of designers who aren’t willing to sell things at deep discounts or wholesale. Designers aren’t necessarily being greedy by charging a markup, they’re making sure they get paid for the time.
If you pay a designer a flat fee to cover design and material procurement would it be ethical for them to also mark-up material prices without disclosing it to the client?
Wow, this post is so helpful – thank you. I am considering getting into design consultation, but have so many questions. I really appreciate the insight on your experience. I have so many other questionsww, like: How do you determine the completion of a project? It seems like they could drag on forever if you let it. Also, what do you do if a person doesn’t take your advice? Still charge them? Does it leave them feeling like they didn’t get their money’s worth?
Ale, in my experience I have always billed by the hour. Clients know this upfront. My consultation, time driving, shopping, installing… that is all billable time. And yes, if you present to clients and they don’t choose to work with you I still bill them, and in my experience this is expected by them– I’ve never had a problem. Many clients like to take your presentation boards and do the work themselves with the direction you’ve provided.
The best advice I can give you regarding all your questions is to have a well-defined scope of work from the beginning of a project. Work out all the details–what room you’re working on, what you’re sourcing, whether you’re helping with accessories, etc.. Define your deliverables and the client-feedback process (how many “rounds” of sourcing/feedback is included). Your job is to manage client expectations with confidence, and to help them make a decision. The design process can go on forever if there are endless options and nothing that forces someone to make a decision, and many clients hire a designer so that they can finish a project and stop spinning their wheels.
Yep….super great post….thanks. The other bad news is too many clients watching HGTV. They think their place can look like that in a weeks worth of time…….
Ikr, and at the ridiculously low prices that HGTV claims.
Great advice, especially about mistakes…They way I convinced myself to charge for consultations was to realize that if a customer did not value my time at the beginning of our relationship (and that starts with me valuing my ability and time enough to charge!) they were not likely to value my time (and be willing to pay me) going forward. It is VERY important to convey value to prospective clients who may not fully understand what they are getting for their money, but I ‘ve found that charging for consultations weeds out those who are not serious about moving forward with a project or those who just want free design advice.
Oh got not charging what your worth takes time and some getting taken advantage of to figure out.
Another I’d is add that you often have to be a therapist (how much do therapists make.) People often hire a designedr because they can’t make a decision, don’t know how to communicate what they want, or can’t make compromises with their spouse. As a designer you have to to negotiate with all these personalities and make them feel confident in the decisions they are making on top of doing design work.
oh wow…..this just described me to a T. I know I undercharge, I give hours away, and do so much that I shouldn’t that clients begin to expect it. I think it has a lot to do with being a woman, and being taught to “help” when we were growing up. At least for me. I SO have to change how I do things. One of my dear friends who is also a designer told me, that if “you don’t value your work, then they won’t either.” When I heard it put that way, it makes SO much sense! Thanks for this post Emily. :)
My advice to designers looking to open their own business is to go work for a larger Interior Design firm for at least two years. You won’t make much, but it will teach you everything you need to know to go out on your own and be successful. I can’t imagine starting from scratch and learning how to deal with expensive mistakes with my own money. Also, to be profitable, I think it helps to have a small store where you can both advertise your ID business and run your office out of AND get all (or most) of your furniture and decor at wholesale then sell to both your customers and ID clients at retail (standard is a 50% markup).
Great advice. I think many people (like myself) go into it because they just love to make things pretty. So much more to it–as I quickly learned!
Great insight. I am considering relocating and have this vision of selling everything and starting over, in hopes of hiring someone to do my next home. I know it will be pricey, but HOW pricey, I am absolutely clueless.
As a consumer, I definitely want a reasonable deal. I’m not in the upper crust – just someone who would like to have someone who is an expert help me make my new home comfortable and stylish. But I certainly don’t expect that expert to not make any money!!
I’m so sad to hear you made zero profit but I can absolutely understand it. My husband is a small business owner in construction – I like to think of him as an artisan :). While he does make a bit of a profit, the amount of work that he puts into it – which is similar to what you described (consultation, traveling, samples, etc) – is more than what he makes.
Great information. Glad I stumbled on this from http://www.theimpatientgardener.com/2016/06/friday-finds-hoe-winner.html.
I’m with you. How can you know in advance what the fair cost will be? How can you know whether the designer/decorator can guide you to the choices you will want to live with, and that it will be your taste and style that will show? How can you know that your place won’t look like a furniture store display? How can you know whether your designer can work well with your contractor? I am so caught up in all these questions that I will most likely just continue to limp along on my own. I know: first world problems.
Forgot to mention: I did sell everything and I am starting over. It is much harder than I expected.
Hi, Sallie50.
Congrats to you! I am 62 years old and reinventing myself as a designer…well, decorator since my degree is in education. That said, I’d love to show you my portfolio of work. Maybe two people who are starting over could be a good design match?
Cynn Taibbi
These posts are always so interesting to me. I worked for a decorator for 2 years , got an MA in interior design, and now I work as a designer for a design+build company that does major renovations and additions. If any readers haven’t already listened to Grace Bonney’s second-to-last episode of her After the Jump podcast, she discusses how much people are willing to charge/pay and the changing market of creative work. They talk about a public perception that an industry that seems “fun” shouldn’t demand much money (they specifically talk to an interior designer, floral designer, and two photographers). With internet shopping changing the way designers do business so much, it’s more important now more than ever to charge enough for your time and reinforce the perception that design is a valuable SERVICE and not just a finished product. We can’t rely on the sale of goods to keep our businesses afloat. Good design requires expertise and experience and we should be paid for our intellectual property.
Very informative and so many great comments! I’ve wondered what the current rates are. I have a degree in interior design, but I haven’t worked for a fee in years. I worked in commercial design for an office supply company right out of college and loved that. I had a salary, but I billed $25 an hour for the company, in the early ’80’s. That fee was subtracted from the bill if they purchased, but was billed if they didn’t. I quit when I had children and have never gone back. I still love design and have been on design/decorating committees at our church and country club. I’ve also done some offices with my husband. One of those I plan to update soon. My next project though, is our kitchen, so I’ve been following closely!
Great article and comments. In the beginning I got stuck in “portfolio building” instead of making a profit. I got burned out and almost threw in the towel! And agreed – charging for a consult is a must. Thanks Emily for your honesty and for touching on this subject!
Great tips, Emily!
A easy way to avoid billing hourly is to upcharge materials by a percentage- 35-65% markup on everything from drapery to furniture to art. If you are able to open accounts with the vendors and purchase these items wholesale, even with the markup it is comparable to retail pricing for the client. That can cover your cost pretty well!
I actually have not found this to be true, in 14 years in the business.
True dat, Sister. Ashley is describing how interior decorators have charged historically— like way back before the title Interior Designer was even coined. Most designers are moving away from this business model because it is unworkable in today’s marketplace. The Internet, Trade resources selling directly to the public, etc. have led to an increase in clients “shopping” their designers on price, and if the designer is exclusively counting on product markup to get paid for his/her time, creative vision, design renderings, floorplans, research & selections, the client can — and often does — get all that work for free by simply purchasing everything elsewhere on their own. Markup alone is also problematic because it takes the same amount of time to source a $10K sofa as it does a $2K sofa, but the same markup % would yield vastly different compensation to the designer. So billing hourly enables the designer to be appropriately compensated and the client to pay a reasonable, transparent price for furnishings regardless of the project budget. Furthermore, pricing design services via product markup alone leaves you open to endless rounds of revisions with certain clients who can’t make up their minds, or who completely change their minds about what they are even looking for in between meetings…
This post is fantastic and informative. I am just starting out and need to beware of these mistakes, which I am bond to make. Thanks for keeping it real. I need all my clients and futures ones to read as well!!
I didn’t read any comments so this may have been addressed….I have worked with many levels of designers. Some very cut and dried as to pricing, some who charged hourly, some by the job, (I have owned and decorated 15 homes, some with help, some by myself). The most successful ones were with people who had similar taste, do your research, look at the porfolios, talk to the designer, but pay for that time…no estimates without pay! I like the hourly fee with a percentage over cost for product, I pay for all physical labor such as electrical, painting, upholstering, etc. I want the house to be mine but with new ideas that I get from professionals. I look at so many generic decor blogs, follow the trends, don’t be unique, they All look the same.
Wading this water is such a tough one. Helping others is something I enjoy and the money seems good, but you’re so right…I’m constantly undervaluing myself and clients who fully appreciate what you can offer are often few and far between. I always charge for consults (more than I do hourly actually) but I usually give a lot of advice during them. I love working with people who have good taste and can do things themselves but just want that nudge and someone to guide them.
I struggle because I think “I wouldn’t pay someone that much to do that..” but that doesn’t mean others wouldn’t. With so many forms of communication these days I’ve found it really hard to keep track of hours but I think it’s the best way to fairly be paid for both parties. I have an app on my phone that allows me to start a clock and I turn it on when I’m emailing, sourcing, or even texting with a client. I can then export the time sheet and show the actual hard numbers to a client. It gives me peace of mind and assurance that I’m being fair. Love this post!
What’s the name of the app?? Sounds like just what I need!
I use an app called Toggl.
I have been an Interior Designer for 32 years so needless to say I have seen many changes in this field. I love blogs and Emily’s is one of my favorites. I love HGTV but of course watch and enjoy them knowing it is not real life or real budgets! What does concern me is the perception that an Interior Designer simply picks furniture, fabrics, and accessories. That is only 30% of what I do on a daily basis. I did receive a degree in Interior Design and take classes regularly to maintain my license. My field is a technical one not merely an artistic one. I charge $150 hourly and this can include doing Design Intent drawings (electronically), doing lighting and electrical plans, doing Demolition Plans, as well as furniture layouts and furniture specifications. I would say this is 60% of a project and will add a lot to the budget. I provide one layout and give two revisions free of charge. I have certain furniture, fabric, lighting vendors I know and trust so I use them routinely. This way I’m not “reinventing the wheel” with each project. This does not hamper creativity given all the ways you can tailor furniture with finishes and fabrics. Again, I present one design proposal (furniture, fabrics, finishes, lighting) and then do two revisions at no charge. I don’t buy anything until the customer has signed off on it. I also use vendors who give a Design Discount (usually 15 – 20%) and that is for me. If I decide to share this savings with the customer I may give them 5-10% and then I still get something. I love what I do but I don’t believe in doing it for free! Good customers will appreciate that. Good luck to all of you young designers out there. Don’t put yourself on sale!
thank you for your words of wisdom, Becky!
Hi Becky,
I run an interior design business as well and also rebate 5-10% of my discount back to the client. My struggle is explaining this to my clients without sounding like I’m trying to pull something over on them.
Nonetheless, I have to maintain this practice to cover what I call “un-billable” hrs and the more difficult clients that require extensive revisions and hand holding. It’s tough to navigate.
Just getting around to reading this post and glad I did! I’ve been doing little projects here and there for friends and friends of friends and hate when it gets down to the money part. My husband even jokes that I “hate money”. Obviously that’s not so, it’s just that I feel funny charging someone when I’m not a true designer by any means, this is just a hobby I really enjoy. So, I appreciate your comments on how you felt and how time is money and how confidence is important (something I could work on!). Thanks again for this post!
Well, you’re very talented so you should feel confident :)
Emily-
Thank you so much for this post! I have a degree in interior design and work for myself. It has never been a full time job for me. However, I have decorated 9 or 10 complete homes through the years. I totally agree with what you’re saying. People and friends especially can expect this service for free. In the beginning (20 yrs ago) the going rate was $75 for a designer, so I charged $50. I always gave free consultations which I had to stop doing. I was giving out my ideas, and probably gave away too much free design advice. I did come up with something for those diy-ers who don’t want to pay a a designer to finish their room. There seems to be alot that fit in this category. I charge a $75 consultation, but do not give out any ideas at that point. Just ask a ton of questions, usually have them show me their Pinterest board of what they love, or magazine pages. Then, if they just want the ideas, I make a binder full of everything I would put in that room, and where to hang or place it. However, no sources are given. They have to do the research themselves, which for many people, that’s fine. Depending on how detailed the room is, I charge anywhere from $375-500 for this. I also just limit myself to how many hrs I can put into this. It’s not great money, but it helps avoid giving away ideas for free.
I have also noticed people expect free design advice when they know you. One time a friend hired me to do a consult, and she ended up getting angry with me for my fees, which I had explained beforehand. I decided in the future, I would not charge close friends again. It wasn’t worth losing friendships over, which is unfortunate. I wouldn’t call a doctor/friend and expect them to treat me for free.
People seem to be terrified of the hourly rate, especially before you build that trust. I always feel better giving a client a base rate estimate.
Confidence is definitely an issue. We should be more confident in what good design is worth! A well designed room can have a huge impact on the people that live there. Not everyone has the ability to visualize what a room can be. For those of us who do have abilities in that area, we should not feel guilty for wanting to be compensated for our ideas and hard work. This is something I definitely have to work on!
We still absolutely LOVE the room you designed for us! 7yrs ago, can you believe that?! You’re very talented my friend!
I’m so glad. Hope you and all of your boys are doing well :)
I’m obviously a little late for the party… but the information is timeless. I really appreciate this blog as I just started my own business and have found myself making the same mistakes. My first project I actually spent more of my own money and lost way more than I gained (upwards of $600+). I priced myself at $55 per hour and quickly caught on that I was selling myself way short. I have since upped my hourly to $75 and upon completion of my next few projects, I plan to increase to $100 per hour. I too have not been charging for the first consult, but I do not give out any design advice on the first consult. I literally use it as an opportunity to meet the client face-to-face, view the site and take measurements. I present the client with my contract and if they agree to move forward I charge a $250 retainer fee. (Which I am about to increase as well) I am quickly learning that if I want to make any kind of profit I have to:
First: get myself organized and create a regular process for how I deal with each project from start to finish
Second: Be confident, I have a degree and most important, I am talented at what I do, that is valuable. I need to assert myself as a professional who is worthy of their salt and that needs to be reflective not only in the way that I look and handle myself, but also in the way that I charge. The cheaper my fees, the less valuable I’m saying that I am.
and Third: Create a singular upcharge for resellable goods. I too have designer accounts with many vendors and I was trying to share the discounts with clients, Wrong-O! I have been losing money with freight, shipping, returns, installation and assembly. I now know that not only can I not share my discount with clients, but I need to upcharge to include a profit, tax, shipping/delivery and if necessary, assembly. This may make the client feel like they are being overcharged, so in that case, I just allow them to go out and do all the shopping and paying for items on their own. They soon come to realize that I was not exaggerating costs and find that it’s easier to just pay me than to try to take it on by themselves. Others who have a hard time giving up control, may actually appreciate the ability to shop for themselves and that’s fine. I just add on consultation time for my approval and expertise on the pieces they select.
It’s a crazy business and it’s not at all fun and games, but if you love it, you do it and I plan to have many years in the business as my own leader.
Best wishes to any and all out there trying to do the same!
Really? I think most of this smacks of unprofessionalism and inexperience. If any of you actually have a degree in design and work experience as a professional, I would like to hear what you think. Those who are “thinking about doing this work or are doing it on your own without education and knowledge” are the ones hurting the industry. Professional industry standards are not 75.00 an hour and truly there is a huge difference in a designer and a decorators abilities and qualifications. Not that there isn’t some crossover but in the industry a designer works directly with the architect for choosing all interior surfaces, they may hire the kitchen and bath specialist if not desiring to do it themselves and same with hiring a decorator to finish the decor work specified and chosen be the Interior designer. They all defer to the interior désigner who then clears all with the architect. sorry folks but if you went to school you would know this is the way it is supposed to work. Thirty-five long years in the business. IIDA affiliate
I have a degree in interior design and I’ve been practicing design for 29 years. I’ve always marked up furnishings & accessories and charge for consultations. It’s truly par for the course. Many designers like to pass their discount along to the client. Attorneys and plumbers don’t, we shouldn’t either.