New mantra for interior designers, Don’t lower your fees.

Building strategic long term business plans for the growth of the interior design sector

As I talk to more and more designers, I realize they are making the exact mistake I did when I first started my business and that was to GUESS AT WHAT I FELT THE CLIENT WOULD PAY and then meekly charge them that.  I will tell you what it got me.  Yes, I made money, but what I profitable?  HECK NO!  Was I getting what I deserved?  HECK NO.  Was my ROI (return on investment) 2 to 3 times what I was putting in? OH, HECK NO!   Was that a good business model? OK, you can guess.

I was not self employed or running a business, I had a job with absolutely no benefits.  Don’t get me wrong, I enjoyed what I did, but as time went on, I realized that I may as well go apply for a job and get some benefits so I don’t have to pay for everything myself.

I quickly figured out that being self employed or owning your own company making the same or more than you made when you had a full time job means nothing!  You have overhead and expenses YOU now have to pay.  Taxes YOU have to pay. 

So now instead of looking at the dollar amount, you need to look at the ROI to run a successful business.  You cannot afford to price your services according to what you THINK your clients can afford.  I have a great formula for “HOW TO SET YOUR FEES.” 

Click here to see the formula.

After you do this easy formula, you will no longer need to even THINK about how you are going to charge your client hourly. 

I know there are lots of other ways designers charge, but I am a true believer of charging an hourly fee.  Clients are buying your expertise to keep them from making very costly mistakes.  You would never think of going to your doctor or an attorney and telling them that you will pay for the products, but not for their services, would you?  Your services and expertise are just as valid if someone needs them!

I was reading one of the dozens of newsletter and business building emails I get every day (yes, I am an info geek!) and it said the only reason you  should lower your fees is if you really need the business.  I would also add, if you need the business and you are still prepared to put aside that 25% of your time for marketing your own business.  Otherwise, as I always say, you will be working IN your business and not ON it.  And to me, that is not being self employed, that’s having a job without any benefits.

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