Today we’re talking about the taboo subject of money…
Having a conversation about money can be an awkward situation. However; its important to discuss the budget upfront with clients throughout the design process for transparency sake and to manage expectations in the beginning. There is a huge difference in what a design budget is and what a client would like to spend. They are usually not the same thing.
Generally when the question is posed about a client’s budget or potential investment, the client will throw out a number. Usually there isn’t any research behind this number in terms of what things actually cost; it’s just a number that the client feels comfortable giving or spending.
When the number is provided, it can set the tone for the rest of the conversation and can sometimes stifle the creativity process. What do I mean? This number can suppress the grand ideas and creative range of your project.
However; this is where a good designer will help educate a client about what an actual budget should be and set clients' expectations.
I understand that clients don’t manage budgets frequently; but I do. I understand that clients rarely go shopping for a turn-key full service project layered with all the bells and whistles of beautiful furnishings, fabrics, window coverings, accessories and styling; but I do. I realize that most clients don't think about all the hands that touch their products; from the artisans, factory workers, freight carriers, receivers, and delivery people; but I do. Finally, I know that clients don't have the resources, skillset, knowledge and abilities to bring it all together; but I do.
So when the budget conversation is broached, it is to have an open and honest dialogue; to get the client’s thoughts about what the project will cost out in the open. My goal as your interior designer is not to spend your last dime or to disregard the amount you have to spend. However; I also would be doing a grave disservice to you if I took that number, which is usually much lower than it should be, and try to create a space that will not be its best.
I like to educate my clients as much as possible on what the “real number” should be. Now if this ideal budget truly isn’t in the client’s range, then we can discuss reducing the scope of work, phasing out a project to only include one or two rooms at a time, possibly providing an eDesign Only Consultation that allows the client to implement the design themselves, or it may mean consulting with me on an as-needed basis through my Decorator By Your Side services and only pay for that time. I’m all about flexibility. It really boils down to assisting clients with the best use of their money while still providing a beautiful design. I’m a consumer too so I get it. I want to make sure I’m spending my money on things that will make the biggest impact in my home in a good way.
The flip side of this awkward money conversation coin entails how designers make money. Curious? Well, I’m happy to discuss. We are a business too plain and simple. As designers we make sure every item we select for clients work perfectly for your aesthetic and functional needs. But we are also the retailer that you purchase your furnishings from. So like every other retailer, we make a profit as well.
Designers have expenses just like any other business. So part of how we create revenues for ourselves is that we sell the very same products that we present to clients during the design phase. Instead of collecting a design fee, creating a design and then handing it to clients to go do it on your own; we also bring clients the convenience of purchasing and managing the products for you, even using the services of receivers and white glove delivery personnel.
This part of the design process works very much the same way as any retailer and should come as no surprise. Just like your local PB or RH stores of the world. Essentially, we buy at the lowest price we can and sell at a fair price below retail. This means that you the consumer saves money from retail costs and we make a bit for the health of our business. It’s a win/win.
I enjoy what I do however, this is not a hobby for me. Sometimes there are clients that may see it as that and don’t respect the fact this is a business and I should be able to make a profit on the products that I sell. Any business that wants to be sustainable is all about investing back into itself. This is achieved by increasing your skillset through education, attending industry events (High Point Market), hiring employees, etc. All of these things cost money. But you need to make money first.
Alright, enough of all this money talk!
The next time you decide to call in a designer for your home project, be open to the budget question and understand that he/she will have a better grip on what your project will cost than you. Keep in mind that you are paying us for the grand visions, ideas and skills that you don't have, and therefore clients should allow their respective designer to be creative and bring those ideas to the table without limitations.
Surely the budget in some cases will be more than clients want to spend. At that point decisions can be made about what to remove or find alternatives to get closer to what you have to spend, while still maintaining the integrity of the design. It should always be an open conversation, and a good designer should be flexible enough to make changes and meet clients where they are. It should never be a point of contention, and no, you have not hired the wrong designer if they are bringing you brilliant ideas with a price tag to match.
Be sure to keep an open mind and have fun!
