If you work in kitchen, bath or full-service interior design, you are likely feeling two pressures at the same time. Prices for products, freight and labor continue to rise, while at the same time clients are becoming more cautious and asking more questions about cost, timing and value.
This combination can be unsettling for the most seasoned design professionals. How do you navigate this environment? It is all about being prepared. If you understand how to communicate with clients about prices, design smarter and watch your bottom line, you can protect your business and keep projects moving forward even in uncertain times.
- Don’t Buy into a Doom-and-Gloom Attitude. There have been many economic downturns, and yet our industry has survived.
- Know Your Numbers So You Can Lead the Conversation. Be the professional in the room. Clients are looking to the expert (you) to be prepared and crystal clear on costs, timelines and contingency plans. You need to be the linchpin – not the client and not the contractor.
- Make Sure Your Cost Estimations Are Accurate. Update pricing on cabinetry, plumbing, tile, counters, hardware, installation and shipping. Get quotes with cost guarantee timelines, and make sure your clients know what these are. If they are not ready to commit, they need to know that prices can fluctuate, which will affect the contract totals.
- Be Confident. This is not the time to negotiate your design and project management fees. Address client questions with a true representation of what is happening in the world regarding costs.
- Don’t Apologize for Your Pricing. You are managing a complex process of scheduling, design, procurement and management. Give your clients an overview of what goes into a project. Give concrete examples of how long it takes to develop the design; how long it takes to order and schedule each item that will be required to complete the project; the time to manage the delivery, installation and completion of that project; the number of people included in that; and manufacturing time for the materials.
- Help Clients Understand the Value of the Remodel. Even in tighter economic times, clients are spending money, but they are being more selective in how they are doing so. Remind them of the strategic value their investment will return in value to the home, their daily experience and quality of life.
Quality in design and materials will always triumph over fast and cheap. Buy well instead of repairing or replacing a poor renovation. Use industry reports to demonstrate how kitchen and bath renovations are major factors for home buyers. These rooms influence the perceived value of the home in a positive way.
Connect design decisions to how people feel in their homes. In kitchens, that might mean an ergonomic layout, better lighting, quieter ventilation and storage that reduces clutter and stress. In baths, emphasize emotional well-being through spa-like showers, layered lighting and comfort features that make mornings and evenings calmer.
Tips to Help Clients Feel Comfortable Working With a Design Pro
- Have a variety of price points to present to a client. Think of this as a “Good, Better, Best” project development outline.
- Spend your client’s money wisely. Combine a well-priced field tile with a curated accent in a niche or feature wall.
- Be honest and open about offering options in selections without compromising the design. Allowing the client some say in the process will go a long way in calming anxiety over products.
- Provide concrete budget numbers for all materials, and use that good, better, best scenario. If you provide construction numbers, make sure you are realistic in those costs as well. Don’t just throw numbers around; that’s the fastest way to lose your clients’ trust.
- Always be in communication with the client. Let them know where they are in the process: when payments have been made, what has been ordered and what is coming next.
- If you don’t have solid processes in place, that should be a warning sign. When you know your numbers, communicate clearly, design strategically, protect your margins and stay visible, you position yourself as a steady partner in an unsteady moment.
- In uncertain times, clients are afraid of three things: being overcharged, being surprised and losing control of the process. Clear systems will help reassure them that you are there for them.
In a shaky economy, the instinct to discount fees can be strong, but it is also dangerous. Once you discount your professional value, it is difficult to rebuild it. Work within a specific scope of work. Phase the project into current and future segments. Focus on the highest priority spaces first. Once the client realizes your value and builds that trust, they will want to continue working together. I have built a very successful business around this very idea.
