4 UK Designers on Ways to Help Clients Understand Pricing is Fair
Three UK interior designers on Houzz share their strategies for ensuring clients feel confident about their fees
Amanda Pollard
28 June 2021
Senior Editor at Houzz UK and Ireland. Journalist and editor specialising in interiors and architecture.
Senior Editor at Houzz UK and Ireland. Journalist and editor specialising in interiors... More
A client’s budget and their perception of the value your firm offers can have a huge impact on whether they hire you – and can affect your professional relationship as the project progresses. This can be particularly important at a time of rising material costs and supply-chain challenges, so that’s why it pays to follow these simple steps to make sure your customers feel confident they’re getting value for money.
Explain why quality is key
Clients are often unsure about whether to go with a lower-cost service or one that’s at the top of their budget. Some guidance from you can make them feel more confident about their decision.
“I explain what they get for my time, essentially how I save them money in the long run and help to prevent them from making costly mistakes,” says interior designer Natasha Burton of NB Interiors UK. “I make them aware that quality does come at a price, that it’s a false economy to go cheap. I also explain that, from past experience, going cheap can cost more overall, as you have to replace items sooner. It’s part of my core values and that’s what I try to convey to my clients.”
Clients are often unsure about whether to go with a lower-cost service or one that’s at the top of their budget. Some guidance from you can make them feel more confident about their decision.
“I explain what they get for my time, essentially how I save them money in the long run and help to prevent them from making costly mistakes,” says interior designer Natasha Burton of NB Interiors UK. “I make them aware that quality does come at a price, that it’s a false economy to go cheap. I also explain that, from past experience, going cheap can cost more overall, as you have to replace items sooner. It’s part of my core values and that’s what I try to convey to my clients.”
Be open from the start
There’s no point skirting around the issue of price, say the professionals we interviewed. Instead, address it head-on at the start. This is especially important amid the current challenges, with increases to material costs and difficulties affecting local and global supply chains. Your clients may need you to help them understand that challenges such as these can result in longer work hours for designers, which can affect the pricing of a project.
“I think it’s always best to be clear from the very first conversation, follow up in writing and highlight you’re happy to have a conversation to discuss, should they wish,” says interior designer Caroline Nicholls of Slightly Quirky. “Communication both ways is the key.
“We’re very clear from the first phone call what our daily rate is and how we work out our fee proposal,” she says. “We discuss this again on the first meeting and it’s documented on our Scope of Work and Terms and Conditions. We feel how we charge is straightforward and upfront, and we give a detailed breakdown of how we will apportion our time.”
You can easily communicate your fee by using the Proposals and Sourcing tools on Houzz Pro. The Product Clipper feature, for example, will allow you to create a library of goods which you can simply add to a proposal template to share with your client for approval.
There’s no point skirting around the issue of price, say the professionals we interviewed. Instead, address it head-on at the start. This is especially important amid the current challenges, with increases to material costs and difficulties affecting local and global supply chains. Your clients may need you to help them understand that challenges such as these can result in longer work hours for designers, which can affect the pricing of a project.
“I think it’s always best to be clear from the very first conversation, follow up in writing and highlight you’re happy to have a conversation to discuss, should they wish,” says interior designer Caroline Nicholls of Slightly Quirky. “Communication both ways is the key.
“We’re very clear from the first phone call what our daily rate is and how we work out our fee proposal,” she says. “We discuss this again on the first meeting and it’s documented on our Scope of Work and Terms and Conditions. We feel how we charge is straightforward and upfront, and we give a detailed breakdown of how we will apportion our time.”
You can easily communicate your fee by using the Proposals and Sourcing tools on Houzz Pro. The Product Clipper feature, for example, will allow you to create a library of goods which you can simply add to a proposal template to share with your client for approval.
Decide on your business model and stick to it
Whether you choose a fixed or hourly fee strategy, it’s important to be consistent. Any changes to this could reduce your client’s confidence.
Gemma Hill of Bayswater Interiors says her firm uses an hourly pricing structure, as they feel it’s fair for both parties. “Clients only pay for what we’ve provided,” she says. “In the past, we’ve had projects where clients have increased the scope of our work, or changed their minds unexpectedly midway through the process, and expected us to start again to incorporate their new ideas, which ended up costing us money in lost hours. This way, we’re invoicing for work completed and are not out of pocket, and this is clear and fair to the client throughout.”
Nicholls, on the other hand, prefers a fixed pricing structure. “When we put together our fee proposal, we estimate the amount of time we’ll spend on a project, using similar jobs as a benchmark,” she says. “Once we’ve given our fee proposal, our fee doesn’t change unless the scope of work changes or there are unforeseen circumstances. We would then discuss this with our client and adjust the fee if necessary.”
Whether you choose a fixed or hourly fee strategy, it’s important to be consistent. Any changes to this could reduce your client’s confidence.
Gemma Hill of Bayswater Interiors says her firm uses an hourly pricing structure, as they feel it’s fair for both parties. “Clients only pay for what we’ve provided,” she says. “In the past, we’ve had projects where clients have increased the scope of our work, or changed their minds unexpectedly midway through the process, and expected us to start again to incorporate their new ideas, which ended up costing us money in lost hours. This way, we’re invoicing for work completed and are not out of pocket, and this is clear and fair to the client throughout.”
Nicholls, on the other hand, prefers a fixed pricing structure. “When we put together our fee proposal, we estimate the amount of time we’ll spend on a project, using similar jobs as a benchmark,” she says. “Once we’ve given our fee proposal, our fee doesn’t change unless the scope of work changes or there are unforeseen circumstances. We would then discuss this with our client and adjust the fee if necessary.”
Track your time
The most accurate way to illustrate a fair pricing strategy is by tracking your schedule. This works for both hourly and fixed models, as it can be done ahead of time or during the project.
“We use our diary to schedule when we’ll be spending time on which projects,” says Nicholls. The schedule helps to inform the fixed price her firm provides ahead of project commencement and is a clear way of conveying the reasoning behind a fee structure.
“I use the Houzz Pro Stopwatch and track my time for each project,” says Burton. “This is a great way to see how long certain projects take. It also ensures I’m pricing correctly for similar future projects.”
Your turn
How do you communicate your pricing effectively? Share your tips in the Comments, like this story, save the images and join the conversation.
More
Need more practical business advice? Check out this article –Keep it Moving: How to Feed Through New Projects When You’re Busy
The most accurate way to illustrate a fair pricing strategy is by tracking your schedule. This works for both hourly and fixed models, as it can be done ahead of time or during the project.
“We use our diary to schedule when we’ll be spending time on which projects,” says Nicholls. The schedule helps to inform the fixed price her firm provides ahead of project commencement and is a clear way of conveying the reasoning behind a fee structure.
“I use the Houzz Pro Stopwatch and track my time for each project,” says Burton. “This is a great way to see how long certain projects take. It also ensures I’m pricing correctly for similar future projects.”
Your turn
How do you communicate your pricing effectively? Share your tips in the Comments, like this story, save the images and join the conversation.
More
Need more practical business advice? Check out this article –Keep it Moving: How to Feed Through New Projects When You’re Busy
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From what has transpired in the last 18 months - thanks COVID !! is unforeseen shortfalls in products - at this time timber items are now hard to get and very expensive, and we have a renovation boom so manpower is challenging too. Therefor - in this time - I feel an hourly rate is appropriate. It is the old adage - How long is a ball of string !! depends ( I give an estimate of how much would be required weekly). If I am having to chase items or followup with my trades over and above - I basically am wearing it. As I write Sydney is in a 2 week lockdown - so for me to be inflexible and have a rack rate is unrealisitic. I am a lot busier than ever - but my profit or earnings are the same. That is something I have to accept in this period.
Good article. I, too, inform my clients of the fees and costs at the beginning so that they understand a clear picture of the project.
We use an itemized total price… for example tile work is quoted per square foot including a tile allowance per square foot. If they go over the allowance they know what to expect. People appreciate an itemized quote. Much of our local competition uses a lump sum price. People tend to view the one price strategy as deceptive.