What to do When Your Client Asks for a Discount
Though interior design is a luxury service, it is surprising how many clients ask for or expects a discount. This is why I clearly state my pricing in my contract.
Clients are wary of designers and think that most are charging huge markups. Like any service offered, whether it is website design or seeing a plumber, there is a vast range of prices. It is because interior design is a luxury service that clients sometimes think that there is a large margin.
Acceptance of pricing comes from a place of trust. One of the most effective ways to manage clients is to get them to trust us. They have to believe that we are giving excellent service, and though our services are not cheap, they are receiving value.
Step 1: Be transparent about your charges.
Your contract should state your fees- whether they are hourly or fixed. You should also be upfront about administration costs, warehousing, freight and handling. Include details such as printing costs, parking and travel expenses. You can divide these costs between your fees, regular expenses (where you don’t need to inform the client ) and additional expenses such as cleaning, professional movers and consultants.
Step 2: Help your clients arrive at a realistic budget and stick to it.
It’s tempting as we are purchasing to look at beautiful pieces and present them to our clients even though they may be slightly (or very) out of range. Your clients will love you for the skill you bring to the design process by presenting them with options that are within their budget but give a lot of bang for their buck.
Step 3: Check with your clients throughout the project if their budget has changed.
Having done a lot of building myself, when it gets to the end of the project, and you have spent many thousands of dollars, you may want to economise a bit. The numbers can seem huge, and the client still hasn’t seen the project fully realised. This often occurs at the styling stage of the project. These pieces may make your design sing, but your client may not see it this way.
Step 4: Be transparent about the margins that you charge when you purchase on your client’s behalf.
You do deserve to make a profit, and if your business plan includes taking a margin, that is totally fine- just be upfront with your client from the very beginning. Often clients want the total discount, or they may try to shop around. However, remember the service you are offering if you purchase on behalf of your client. You are taking the responsibility for ordering and following up on orders. You receive the orders, unpack and deal with any deficiencies. You return unwanted styling items on their behalf. In my case, I share the discount with my client as taking responsibility for the ordering and delivery means I can meet my project timelines efficiently, and I am providing a valuable service and a great experience for my clients.
Be upfront with your client and develop a candid relationship where you can honestly converse with them. An empathetic ear is always appreciated. The building and design process is stressful enough without your client worrying about money.
Hi 👋🏽 I’m Joanne!
I’m an interior designer, educator and business coach. After studying Economics and Education at uni, the design world beckoned, drawing me to Christie’s in London, where I completed post-grad studies in art & design and then to Hong Kong, where I founded Eclectic Cool, a design firm and design store. . Eclectic Cool represented international brands such as Gubi, &tradition, HAY, Armadillo Rugs & Dinosaur Designs to name a few. My work and store have been featured in Monocle, Conde Nast Traveller, Elle Decor, Expat Living, Cathay Pacific inflight magazines, South China Morning Post and the ABC (Australia) network and more. I live on the south coast of Australia on a country property between the beautiful Australian bush and the Pacific Ocean with my husband and cavoodle. I’m the mum of three adult children.
