March 2024

How interior designers charge and how to get the most for your money.

Interior designers use several business models that determine how they charge. Here is a list of four models with pros and cons.

Fee-based model

An hourly fee is charged for all services. Some services may have a flat fee for design time. Furnishings are sold at designer’s net cost but may have a small processing fee.

Pros:

• You can enjoy designer services at any level, even if you don’t need to purchase anything or prefer to handle purchases yourself.
• You can save money because you will not be oversold on more items than you may need or at higher price point, since the designer’s profit comes from fees and not a retail mark up.
• You may save money on a design project with high-end furnishings from to-the-trade brands, since the fees will likely be smaller than a retail markup.

Cons:

• You may not know the exact cost of the project because it’s not always possible to have an accurate estimate of the time needed.
• You may need extra design time if you tend to make many changes after the design has been approved and that may run up the cost.

Retail model

Some interior designers operate retail furniture stores. Interior design is complementary, free of charge.

Pros:

• There is no time limit on design services if furnishings are purchased from the designer’s shop.
• The shop’s inventory may be available for sale and that saves time on delivery.
• You can try floor samples for fit and comfort.

Cons:

• There may be limited options because the designer may be offering only the lines that the shop carries. The designer is also a dealer for these brands and makes a profit from the markup.
• The designer may be more focused on selling items than on creating a cohesive interior design to meet your needs and desires.
• The interior design services will be tied to purchases.

Combination model

This will be a combination of the first two models. This arrangement requires a very clear understanding of the specific terms. Often, design services are charged by the hour, but the purchases are sold at a discount or at a cost plus percentage. The pros and cons for this model are similar to the fee-based model.

Retail chains with free interior design

Think about Restoration Hardware, Ethan Allen, House Works and others. These companies usually have large well-appointed showrooms that give you a full emersion in their brand’s aesthetics.

Pros:

• You can experience what the final project will look and feel.
• You have a designer at your disposal to coordinate your furnishings.
• You may save money on high-end furnishings as compared to similar items from designers’ to-the-trade showrooms.

Cons:

• You have to like the style of the brand because this is all they offer. When you enter their display room, you have to feel that you want to live there.
• Not everything that the brand may carry is of high-end quality but still may have high-end prices.
• You may experience pressure to purchase the whole room from their store, even if it is not needed.

As you can see all models have its pros and cons. There are no bad models, but there may be bad choices if what you pick does not meet your needs, does not match your consumer habits or your personality.  I highlighted some important features of four options for using interior design services to help you make a good choice for creating your happy and beautiful home.