How To Price Your Interior Design Services

Pricing your interior design services can be a tricky business. You want to make sure you're charging enough to cover your costs and make a profit, but you also don't want to price yourself out of the market.

With nearly 40 years of experience designing both private and commercial interiors, we've learnt a thing or two about putting together costings. We share our top tips on how to price your interior design services in the UK, covering everything from setting your rates to negotiating with clients.

Consider your experience and expertise

One of the most important factors to consider when pricing your services is your experience and expertise. If you're a new designer, you may want to start with a lower rate while you build up your portfolio. However, if you have a lot of experience and a proven track record, you can charge a higher rate.

Put together a slick portfolio of your work that you can share with new clients. If you are charging a higher rate, you'll need to have a proven track record showing why your services are worth the extra investment. It's a good idea to include client testimonials that prospective clients can review.

Factor in your costs

When pricing your services, you need to factor in all of your costs. This includes your overhead costs, such as rent, utilities and insurance, as well as your direct costs, such as the cost of materials and labour.

You also need to factor in your profit margin, which is the amount of money you want to make on each project. A good profit margin will help you cover your costs and make a living. You can have a profit margin sliding scale that allows you to give discounts to first-time clients or clients with smaller projects. This will make your services affordable to a wider audience and encourage repeat business by building loyalty.

Consider the scope of the project

The scope of the project is another important factor to consider when you're pricing your services. A larger project will require more time and effort, so you'll need to charge more. You also need to consider the complexity of the project.

You can decide how you want to approach this - some designers prefer to change their hourly rate according to the size and complexity of a project. Others will have a daily fee plus an overtime hourly rate.

Negotiate with clients

Once you've set your rates, you may need to negotiate with some of your clients. This is most likely to happen if you're quoting for a client with a limited budget.

When negotiating, it's important to come to the meeting prepared. You should have a good understanding of your costs and your profit margin and what that means for your rates. You should know the lowest rate that you are prepared to commit to in advance and be prepared to explain why your rates are fair.

A good strategy is to lower your rate by telling the client that you're prepared to offer a first-time discount. This allows you to manage expectations and gives you the freedom to charge more next time without putting the client off.

Pricing Check List

Here are some additional tips for pricing your interior design services that you can check off your list.

Get quotes from other designers in your area. This will give you a good idea of what other designers are charging for similar services. This is especially important if you plan to start small and target local businesses.
Consider what sets you apart. What is the differentiator that you're offering your clients? Are you an expert in a certain style of design or is it your excellent customer service that brings people back? Set yourself apart and factor this value into your services when setting your rates.
Be flexible. If a client is on a tight budget, you may be able to work with them to create a package that fits their needs and budget. This will swerve you in the long run if it means they end up as repeat customers.
Don't be afraid to negotiate. If a client is asking for a lower rate, be prepared to negotiate. Explain why your rates are fair and be willing to compromise. An open conversation can win people over, even if you can't give them the rate they're asking for.

Summary

Pricing your interior design services can be a challenge, but it's important to get it right. By following our tips, you can set your rates and negotiate with clients in a way that is fair to both you and them.

Part of our interior design business includes offering specialised trade services to design professionals. Whether you're an interior designer or architect, we have a wide range of services designed to help you with every part of your project. From furniture sourcing to logistics management and trader discounts on top brands, we can help you with as little or as much as you need.

Find out more about our services and sign up for your free trade account to access them. You can also take a look at some of our completed interior design projects to see what we have been working on.