I’m having a difficult time deciphering which software I should use. Can you help?
We talk through some software options that could help rev up your efficiency. But, you don’t have to use them all and certainly, if you are using platforms that are working well for you – don’t switch (that’s the opposite of efficient).
I highly recommend using task management software (we love Asana). There are plenty of designers that download the templates from Asana and use the info in other task management software. This is a great topic to talk through with our peers, consider reaching out to your accountability group or the Facebook community to discuss.
→ GOOGLE DRIVE ←
When you archive documents from Google Drive, do you actually archive them in the Google Drive?
No, I create a folder in the drive called “Archive” and archive the files there.
Do you have your CAD folders within each client project broken down any further other than PDF and Archive? My CAD files end up with lots of versions.
The most updated version is stored as a file in the CAD folder for the client and all previous versions go into the archive folder – all dated.
→ DESIGN SOFTWARE ←
What design software do you use?
I’ve tried many on the market, but I’m not in love with one enough to recommend it. The Facebook community is a great place to start this conversation (be sure to include info about your biz as someone with a 15+ person team will have different software needs than a one woman show).
→ ASANA ←
Do you use the paid or free version of Asana?
I use the free version of Asana.
I’ve used my Asana trial and am not seeing an option to continue on a free plan, is that correct?
They make it tricky to continue on the free version. Just keep clicking where it gives you the option to not upgrade.
I don’t see an option to set up a team in Asana, how do I go about doing so?
You have to be an organization rather than a workspace. Find out how to create an organization here: https://asana.com/guide/help/organizations/basics
Does your team do any internal communication through email?
No, we all communicate via Asana.
Do you communicate with clients and vendors through Asana?
No, I communicate with clients and vendors through email.
How do I add the Asana Templates to ClickUp?
Use this article on how to export templates (projects) from Asana to Clickup. The only downfall is that it looks like you have to create an Asana account first and then upload our templates. Then in your click up account, you will follow these directions to quickly upload all of our templates (projects) at one time:
https://help.clickup.com/hc/en-us/articles/6311064163479-Import-from-Asana
→ WECORA ←
Can items from Wecora be downloaded into a design software, or do you manually enter them into a proposal after they are all set in Wecora?
No, item information cannot be downloaded from Wecora into other software. I avoid double work because I don’t pull product info into Wecora, as I’m only shopping there – just looking at dimensions and aesthetics. And, I don’t pull images into my proposals, since I only show products on design boards.
You can link out from Wecora to individual items, then use the clipper from your Proposal Software to clip the info (if your software has that feature).
Do you use Wecora to keep track of custom or one of a kind items that are not available online?
Yes, I will take photos of finishes and fabrics, download custom CAD, etc. and upload them to the Wecora board.
Can the template offered as a resource in the Wecora lesson be uploaded into Wecora?
It is a screenshot of what my template looks like in Wecora. Create a new project and create the same “groups” that I have shown in my template.
Is there a more efficient way to upload photos to Wecora?
If you use Google Chrome, install this Wecora Chrome extension “clipper”. It lets you “clip” photos from anywhere on the internet just like Pinterest which eliminates the uploading image process.
→ DESIGN AGREEMENT ←
What’s the difference between Exhibit A and Exhibit B?
Exhibit A is presented when the design agreement is signed – it has the furnishings investment estimate that was calculated in the ‘Design Fee & Furnishing Investment Estimate Calculator’ (numbers based on past projects with similar scope and size). These numbers are very high level ballpark estimates to make sure you and your client are in the same stratosphere. They are based on historic averages and will be tightened up in the Conceptual Design phase.
Exhibit B is presented at the Conceptual Design Meeting – it includes the cost of furnishings that are based on the design direction you are preparing for your client, tied into the ‘line-by-line investment amount’ with items pulled from your layout. This number is agreed to in the Conceptual Design Meeting and will guide your selections in the detailed design phase.
When you have the client sign the design agreement, do you leave Exhibit B blank?
Yes, this gives me a chance to explain that the Exhibit A numbers are based on historical data and that Exhibit B will be their actual investment amount, based on their custom design direction presented at the Conceptual Design Meeting.
Do you ever have people back out of purchasing once you have procured everything?
Unfortunately, I have. From an unexpected move to an illness in the family, projects have had to pause or stop entirely mid-way at times. That is why your Design Fee needs to cover you completely – separately of markup on product (which then needs to cover all the time and effort related to procurement). If you’re keeping your fees super low to get the job and putting all your profit dreams into the purchasing basket, this will be devastating. You have to balance your design fees and profit from purchasing.
In addition, if it’s not an unforeseen emergency, but a choice to delay, do what you can to keep the project moving. Reference the “on hold” language in the design agreement. Remind your client about how long lead times are and the likelihood of significant price increases, as well as the fee to restart delayed projects.
The restart fee is the cost to re-initiate the project. From setting it back up in the systems, adding it to the pipeline and team workload, communicating the update to all related trades, reacquainting the team with where we left off, and then most time consuming, re-quoting and updating all proposals – as all quotes will have expired. We will run into discontinued or backordered items as well and will need to assess re-selection fees on top of the restart fee, when necessary.
Have you ever taken anything back even though your policy states “No Returns”.
It’s very rare. Most of what we sell is custom and thus, cannot be returned under any circumstance. In the case of quality issues, I only buy from trusted vendors that work with me to fix anything that came in with an issue.
How do you enforce “Please note that this fee structure is based on all purchasing and execution going through us”? Have you had to address this with clients who want to buy products directly?
I have had a client shop for a cheaper nightstand (once we outlined the perfect size, finish and aesthetic direction, of course). Tough love is the only answer. In person, via a call or – worst case – an email if you just can’t get in front of them. In this case, I had to send an email.
This was my reply:
“I wanted to circle back on your questions below regarding the mix of high-low furniture selections and the investment in general.
Although right now you’re in the depths of moving, construction, and having your house turned upside down, I promise if you have faith and stick with us through this, the results will far exceed your expectations. I can totally understand where you are coming from. It seems obvious in hindsight to swap out a few items for less expensive retail options. I hate to have to say no to a client, but this isn’t how full service works.
Our agreement is that we set an investment amount together, then furnishings are purchased through House of Funk. I’m attaching Exhibit B vs. proposal with the actual pricing for your review. We are on track with the investment amount upon which we agreed in Exhibit B.
Also, we have completed the one round of revisions for Detail Design on the Master Bedroom. We would need to assess additional design fees to make another round of edits.
This is my business model and I have to stick to it to make my flat fee functional. We need to keep our process intact. If you want to revise the investment amount and do another round of revisions, please let me know and I’ll price that additional design fee for you.”
The design agreement says you are not acting as a GC, but you are hiring and managing trades?
I do not hire or manage licensed trades (electricians, plumbers, general contractors). Research your state regulations – it can vary widely depending where you are located.
Do you have an agreement for designers who do just build/renovate?
I use the exact same agreement for design only and build / renovation projects. If you’d like to customize the agreement further, consulting your lawyer would be the next step.
How would you suggest I get over the fear that if I ask a prospect to wait until there’s space in the pipeline that they might move on to someone else?
Take a deposit against the design fee to hold their spot. 1/4 to hold spot, other 1/4 to kick it off… then fall back on the Standards for the rest.
→ PRICING ←
What do you markup custom products?
For completely custom products that don’t have a retail price, I charge 100% markup.
If a client asks how our flat fee is calculated, what should we say?
“It’s based on the size and scope of your project as well as our historical data.”
What should my price per square foot be?
Whenever a designer asks me about their price per square foot, I share this video. In a nutshell, as the head of the program, I cannot weigh in on your pricing. That said, if you are looking for confirmation that you are on the right track, the facebook community is supportive and quick to give honest input.
On the Design Fee & Furnishings Investment Calculator, what is the difference between Build/Reno Only and Build/Reno & Furnishings?
Build/Reno only would be if you are doing a spec home (no furnishings) or building a home for a client around their existing furnishings, or some circumstance where you are designing an empty space & not selling furniture as part of the project.
On the Design Fee & Furnishings Investment Calculator, what is the difference between Build/Reno Only and Build/Reno & Design and Design Only?
Build/Reno only would be if you are doing a spec home (no furnishings) or building a home for a client around their existing furnishings, or some circumstance where you are designing an empty space & not selling furniture as part of the project.
Build/Reno and Design includes designing the interior spaces and purchasing the furnishings along with the Build or Renovation.
Design Only is designing the interior spaces and purchasing the furnishings with no build/renovation involved.
How do you estimate the numbers for the line-by-line investment amount presented in the conceptual design meeting?
Use your previous project data (similarly to what you used to price Exhibit A) and estimate the costs of each item. It should be on par with what you have in Exhibit A.
Don’t have past project data? Use this opportunity to go back to the suggested exercise of designing a full room with vendors you would use for clients so you have that for reference.
I do 100% build/reno projects and very often with my remodel work there is an addition being put onto the existing house. How would you recommend calculating a flat fee based on square footage when the ultimate square footage of a project isn’t known at the outset?
Follow the scope creep procedure outlined in the Project Process Asana Template and calculate another flat fee and corresponding timeline. When you know a renovation or addition will be coming down the pipe, be sure to build that into conversation / structure from the beginning. Ie, communicating that once layout is confirmed, you will assess additional fees & furnishing estimate.
How exactly is your project management fee being calculated as the design agreement implies that your fee is assessed separately from the design fee in the contract.
When we hire and manage trades (wallpaper installer, upholsterer, etc.), their quote/proposal goes through us and we add a markup to their proposal. We disclose that in the design agreement ((i) Project Management Fee. When trades are hired and managed by DESIGN FIRM, a Project Management Fee will be included in the related proposal.)
Most projects will include some form of general work like painting, lighting installation, etc. that are not necessarily full renovation. How exactly is your project management fee being calculated?
General project management (trades not included) is covered in the design fee. If most of your projects include general work like you’re referring to, then your metrics will include overseeing that work naturally. If you come across a project where there’s more or less of that, scale your number up or down to cover accordingly.
Does your furnishings investment estimate calculations include the general contractors costs?
The furnishings investment estimate does not include general contractor costs. I do not attempt to ballpark GC numbers. I partner with a few great GCs to get those ballpark estimates at the beginning of the conversation.
Then, I get general contractor bids in the Conceptual Design Phase.
Do you have a markup you generally use?
Refer to the lesson “Wealth Manifestation” in Module 2 to determine the best markup for your business.
Is your furnishing investment estimate based on costs or cost + markup?
Cost plus markup.
Do you ever charge more than what they can find it online for if they were to look?
I’m really a stickler for to-the-trade only products, whenever possible. As more products are creeping online, it’s important to set the tone that you are providing a full service custom design experience. You are creating a complete bespoke environment – with access to sources and customizations that will allow us to be completely unique to their aesthetics.
I never give a client an individual product image (as they are easily shopped online via reverse image search). I only give clients design boards with multiple images, saved as a PDF.
Also, I present pricing by room, not by item, so they aren’t able to compare item by item even if they find the item or something similar online. When asked for line item pricing, I tell them that we are in line with the investment amount that we agreed upon together on Exhibit B and that they can reference the line-by-line investment amount from Conceptual Design if they need a reminder as to “how we got here.”
Is your “reasonable retail rate” similar to MSRP, etc.?
Yes, reasonable retail is MSRP (Manufacturer’s Suggested Retail Price), also known as the List Price.
Do you have a sliding scale of markup? e.g. I don’t think I could charge 66% on a lot of expensive things, like a Holly Hunt or Rose Tarlow piece.
Scale as you see fit. Sometimes you will get a great discount, other times you won’t. My target is always the suggested retail, if available. If not, you need to understand what your market (clients) can bear.
Also, 20% markup on Holly Hunt is probably the same profit as 70% on Kravet, so that’s important to keep in mind. There are many ways to make this work. Go back to the wealth manifestation spreadsheet and play with the budgets, margins and design fees that work for you and your market.
How do you get a 66% markup on tile, plumbing fixtures and countertops without being a distributor/fabricator?
On items like plumbing, tile, stone, shower glass, I charge reasonable retail, since they are so easily shopped. This is typically my lowest mark up – around 20 – 40% depending on my trade pricing. I am looking for an AVERAGE of 66% markup across the whole project.
How should I charge for just art, lamps and small lamp tables for 10 offices? No construction or large furniture. I was thinking of basing it off my time to source per piece. Any suggestions?
I would handle this the same way I handle all partial furnishing proposals. I would think about the scope as a percentage of a complete room. For example, art and lamps may be 10% of a complete room (you pick the percentage based on the space). I would then calculate that same percentage of your furnishing fee for the whole room. So, if your ‘Design Fee & Furnishing Investment Estimate Calculator’ came up with $50,000 needed for the entire scope, 10% of that would be $5,000 for the partial scope.
I usually leave my design fee the same for partial furnishings, but in this case, that would be too high. Though, I wouldn’t use the same 10% metric, rather more like double that percentage. So, 20% of my normal design fee, as there is a ton of set up, admin, ongoing client management and customer service involved in each additional client you take on.
Still having a tough time understanding how to be profitable with your pricing model if I don’t have deep trade discounts with vendors but want to charge “reasonable retail”, especially with renovation projects that don’t have a lot of furnishings. For example, a bathroom project where the tile vendor doesn’t even offer a trade discount. How do you handle that?
Two words: Project Minimums. I don’t get involved in projects that historically haven’t been profitable for me. I know that those are smaller projects, smaller budgets, kitchen or bathroom only renovations.
I can do a lower margin bathroom remodel as part of a larger project where I’m making great markup on the rest of the project. And, I charge double my design fee for build/reno for this very reason.
Your minimums can be whatever you need them to be for you to be profitable and joyful. If your bread and butter are kitchens and baths, you need to work on your trade pricing. If that’s not available where you are, you need to adjust your design fees to carry most of your profit. Go back to the wealth manifestation spreadsheet and play with the budgets, margins and design fees that work for you and your market.
When looking over the case studies there is Build/Renovate Furnishings Fee per sq.ft, Full furnishings fee per sq.ft, and Partial Furnishings Fee per sq. ft. Can anyone explain what those fees are/include?
Reference Module 2, Lesson 5 to learn about what should be included in those fees and estimates. Make sure to check out the accompanying resources below the videos and start dropping in your own numbers. In a nutshell, what’s in your numbers will come from what’s included in your data.
If you are looking for a line item list of what typically goes in each space, check out the Typical Room List located in Module 4, Lesson 3.
And, if your eyes start to glaze over when looking at spreadsheets, call your numbers lovin’ friend or bookkeeper and have them watch it with you. It’s worth going back and getting this right.
Do you price by room or per item?
I present pricing by room, not by item, so they aren’t able to compare item by item even if they find the item or something similar online.
How do you respond to a client who wants line item pricing?
I tell them that we are in line with the investment amount that we agreed upon together on Exhibit B and that they can reference the ‘line-by-line investment amount’ from Conceptual Design if they need a reminder as to “how we got here.”
When determining flat fee – do you include hours done by the team, assistants etc.?
Yes, all of it.
It mentions you don’t charge for time in the procurement stage – does the design fee incorporate all the time it often takes for the punch list (e.g. items damaged, delayed, repairs etc)?
The markup on product covers the time I spend on procurement. The design fee covers project management throughout the entire project.
If you have a living room that is mostly furnishings (therefore D for design) but you are adding a built-in that you will have to oversee, does that still stay a D (design only) or is it an R (renovation)?
These numbers are flexible. If your cost per square foot for Design is $20, scale it is $22 to cover overseeing the built-in or however much makes sense based on your data.
I am a new designer and business owner, without historical project data, and I’m having some difficulty creating mock data to determine my multiplier for furnishings. I tried to model it with the info you shared but find that my estimates are still quite a bit lower than the estimates produced using the ‘Design Fee & Furnishing Investment Estimate Calculator’ in the case studies that you shared. What do you suggest?
What’s provided in the case studies are examples. If you are pricing your mock projects with vendors who you have great discounts with, adding a healthy markup, and your margin is in the sweet spot (refer to Wealth Manifestation) then keep what you have.
My “case studies” for my flat fee are all over the map. Every project is completely different. What should I do? Just guess an average? Try to do more of one type of design? Etc.?
Create a mock project that has the best (and most profitable aspects) of all of your data and find an average rather than guess.
A client asked if I mark up product, how should I respond?
I smile and politely say, “Yes, that’s the part that makes this thing called interior design a business. I purchase at a trade price, and I sell to you at reasonable retail. You are in complete control of what you want to invest in this project the entire time that we work together.”
If they want to know the percentage: “The percentage varies, as I have accounts with various vendors and trades, but you’re always purchasing at reasonable retail.”
Or, use an example to illustrate simple fair market economics: ”It’s just like when you are purchasing anything else; If you see a sweater that you love, you are in the market for a sweater, it fits, the price feels like an appropriate exchange of value, then you buy it. If any of those factors are off, you don’t buy it. Apply the same principles to our work together. And remember, at no point do you tie the purchasing decision to the wholesale cost of the sweater.”
** Telling a client a markup percentage alone is a completely irrelevant number, as it in no way takes into account any related expenses. Don’t ever cave and discuss your mark up. Once you have the script that you feel most comfortable with to handle these questions, anyone who presses further is pushing too far, in my opinion. That’s a big red flag that they are always going to be looking to wheel and deal.
How much do you markup your trades?
The markup on trades will vary business to business due to the relationship one might have with their trade, location, etc. Find the sweet spot that makes sense for your business. If it’s skewing your profit margin, you need to make up the difference in your furnishings mark up. That’s where if you make sure you’re getting the best discount possible, you can often offset those lower margin items like trades.
For the trades that I put through my firm (window treatments, custom upholstery, wallpaper installer, etc.) we make sure that we are getting a good discount for our repeat business, then charge reasonable retail. We also propose by the room, so all of that gets rolled into grouped pricing whenever possible.
For the trades that I’m not putting through my firm (general contractors, architects, licensed plumbers), I capture the time it will take me to liaison with these trades into my Build/Reno design fee.
My design fee for a full house renovation/new build is really high, splitting it in half still seems like too much of a barrier. What do you think?
If you have a large design fee for a build or multi room project, you can have your client set up an automatic monthly payment over the course of the project – set to be paid in full the month prior to scheduled completion, with a clear note that no money can be withheld for any reason (issues, completion, delays, etc.). Be sure to set up a larger chunk up front prior to sharing your intellectual capital. You can’t take back your great ideas once you’ve expressed them. You’ll need to consult with your lawyer to set this up and protect yourself in the case on non-payment. Will you stop work for a payment delay, etc.
I’m curious how you would charge (per sq ft) for travel time and expenses?
Go through the exercise of figuring mileage, local hotel, per diem for meals, etc., then roll all of that (with markup – it’s a business) into the flat fee. Take the “trip charge” x number of trips included in the flat fee and let them know – if additional trips are needed, they will be billed ahead and paid in full at the “trip charge” rate. You could do travel as reimbursable – but you know I HATE having anyone owe me money. A little research and some good boundaries, and they’ll know exactly what they are in for (and so will you).
How do you explain the freight number to the client?
Reference the freight resource in Module 2, Lesson “Determining Your Fees” to see what’s included and create language that will help you communicate this to your client.
How do you work out with a contractor what they purchase/manage and what you purchase/manage on larger renovation projects? Many of my contractors manage and therefore markup tile, cabinetry, plumbing fixtures, flooring, etc.
When I ask a GC to bid a project, I let them know what items we’ll be purchasing. Typically, I will do the ordering for anything that is aesthetic in nature (plumbing fixtures are ours, leaving roughs for them). In the Schedule, I write out explicitly what will be purchased through us and therefore not quoted by them. I also make this differentiation in my drawings. I always put it on the GC to send us quantities for what I will be purchasing (tile, wallpaper, etc.). If they don’t want to bid the job under my terms, they don’t have to.
When determining what to price out for a project, how do you decide which installed items are purchased through you and which ones are not?
My rule of thumb is that if it is behind a wall or doesn’t need my aesthetic input, it’s purchased through the GC or trade. For example, plumbing that isn’t exposed should be quoted in my Trade’s pricing and purchased through them. Things such as tile and grout, decorative millwork, bulbs and light fixtures, sinks, tubs, toilets, faucets and drains are on my proposal and purchased through us.
Wanted to ask about areas that require little to no furnishings – bathroom or closet for example – Do you ever leave the furnishings level off and only do the build/reno on the design fee?
No – always at least hardware, flooring, wall finish, lighting, art and accessories to consider.
If you are proposing a full new construction house project, Do you still list each room with the proposed design fee for each room on the agreement then with the total at the bottom? When it’s a whole home or build, I price as such (whole home numbers only).
What do you tell a client when they ask how much you think construction will cost?
I do not ballpark other people’s numbers.
When using the ‘Design Fee & Furnishing Investment Estimate Calculator to quote a build/reno, what is not included? When we quote, everything is in there soup to nuts. Cabinetry, counters, finishes etc.
If you built your Build/Reno number based on your past Build/Reno projects, then include whatever you typically included in the past. If you don’t have that historical data, and are working from an example, the examples do not include cabinetry, appliances or labor.
Do you ever worry your clients will ask you to break up your design fee invoices into more than 2 payments? How would you do this if you collect payment before you show your designs?
I ask for payment before Conceptual Design since I will be presenting my intellectual property and I won’t be able to take it back once I present it. I’ve found that the clients that can afford and value my services do not have a problem with this at all.
What do you guys charge for a restart fee and how much of a delay do you consider “significant”?
It’s at the designer’s discretion, but if the client were to put the project on hold for any amount of time that requires us to pause and then reacquaint ourselves with the project, complete the administrative work that goes into pausing and restarting, get new quotes with updated pricing, rehire freelancers, etc. we would assess a restart fee.
When it comes to what to charge, I’ve been basing it on a ballpark estimate of how long it will take us to get back up to speed (at my ideal hourly rate), as well as recouping any loss incurred from the pause (paying employees without work to do, etc.) with a healthy margin, of course.
One of the most important points about the restart fee is that it needs to be discussed during the potential client presentation and again when the project is put on hold (or when the client is considering putting the project on hold – as it may act as a deterrent). When it’s time to restart the project, the clients cannot be surprised about the restart fee. And, like anything else, the restart fee must be paid in full prior to restarting.
How do you handle price increases?
Usually the markup should be able to cover the cost of an increase. If it is a significant increase, you can pass it onto the client. If you’d like to add price increase terms into your design agreement, feel free to use this language after reviewing it with your lawyer: Price Increase Terms: Price Increase Invoices are valid for 3 business days, after that, they are null and void, the item will be canceled and your money refunded (minus any associated fees).
At the design stage, is there any guide about how to charge after one round of revision?
Think about how much of the design they are asking you to revise? Is it one sofa? 5% of the room? Is it a whole different design from what you’ve already done? 100% of the room. So you can look at it from a percentage of the total fee for that phase. And / or, make sure your design fee covers the time you will spend.
And then, make sure it’s substantial enough that it prohibits them from wanting to go outside of those guidelines again. At the end of the day, revisions slow the entire process down, even if you are well compensated for them, so I make sure that my additional fees related to being out side the 1-1-1-rule (one round of revisions, one week after the presentation via one communication) are cost prohibitive. For instance, I may estimate the additional fee via percentage or a time estimate and then I would double it.
→ FINANCES ←
If you take a 50% deposit of the Design Fee, do you take the full amount into revenue immediately or do you have some method of matching the revenue to actual time spent on the design?
I take it into revenue immediately. It’s just simpler that way. You can spread it out internally if you and your bookkeeper prefer.
Do you track your time?
Yes, the entire design team tracks their time so that I can use it in my financial analysis to ensure that we’re still charging the right amount per square foot.
Will you be showing us what type of financing reporting you review regularly?
Yes, in Module 6, you will receive an Asana template that shares the types of financial data I review in my business.
Do you take payments online?
Yes, many moons ago I built my credit card fee into my markup, and made sure there was wiggle room in the design fee as well. I have found that adding the credit card option, moves the process along much faster.
We’ve been doing a lot of design consulting on new builds. We charge them a per sq ft fee for our service to make the design selections, floor plan optimization, etc. We have tile, flooring & cabinet vendors that the builders will be using – do we give the developer our trade discount since they are also industry professionals or do we charge them full cost?
Discuss upfront. Do they want specs only & they’ll do purchasing (at which point your design fee will be your only income on this, so be sure you love your profit on only that!) And, know that you’ll still get roped into some questions & purchasing issues naturally, so charge accordingly.
Or, if they want you to purchase, then it’s reasonable retail & an agreement that ALL purchasing & execution goes through your firm. Be frank: you’ll be paying me the difference between cost & retail to do the purchasing work, even though you could purchase on own at trade pricing. Set budgets and stick to them. Be clear that there’s no changing your mind mid-project on this. It’s exactly the same as with a client, except you point out the option.
If we charge full MSRP cost what happens when they ask is this wholesale cost?
If they ask, you say “I’m charging you retail cost because the difference in retail and wholesale covers me for the time spent on placing orders.”
Further more “why are you making a profit on those products aren’t we paying you a design fee”?
Design fee is time spent to make selections and all your knowledge and expertise, the profit made on selections covers my time spent on ordering, procuring and any issues that arise.
Now for regular clients who are homeowners we always mark up but what happens when they are also industry professionals that could also just get these items at trade cost?
Think about added value you could offer if they go through you – maybe they don’t want to deal with placing orders or issues that arise, that could be your selling point.
Should I take on new clients while going through the Standard process? I want to refine my process before taking them on but I feel conflicted turning down a new client.
It just depends on where you are in your journey. For me, when I realized I need a shift, I was in a position where I was able to not take on a new client for 3 months until I fixed my pricing model, systems and the communication. I had a team who was still working with the current clients. But instead of turning potential clients away, I told them I can meet with them on x,y,z date in x amount of months while I take some time to improve my business. If you have to keep the business going to feed the beast, you have to keep moving forward with potential clients while you’re improving. If you can buy yourself a couple of weeks to implement, great, if not, keep going. It’s a dance.
I downloaded your potential client template to my asana and I am not sure exactly what I am supposed to customize or how to effectively use this?
Go through the template and either remove tasks that do not align with you and your process, or adapt what we’ve given you and customize it for your firm. This is now YOUR potential client template.
Do you duplicate the potential client process Asana template for each new potential client if the discovery call goes well?
Yes, I duplicate the potential client Asana template every time I get a promising inquiry.
When we start with a new potential client, do we go in and change the “CLIENT” to their actual name on every task? Is there a quick way of doing that?
Yes, change “CLIENT” to their client code (first letter of first name and first two letters of their last name). There is no hack to doing this quickly that I know of (please share if you find one).
Are you positioning your pricing with potential clients in the initial inquiries?
Yes, reference the Asana task called “Initial Call Talking Points” to see the types of info I collect as well as share to determine if they’re the right fit. This Asana is located in THE STANDARD – PC FULL-SERVICE TEMPLATE template.
Where should we take potential client meetings if we work from a home office?
Consider coffee shops, their home, a nice restaurant near their workplace, etc. You can also rent office space or use a co-working space.
If you’re working with a long distant client, Zoom is a second best option to in-person. I don’t like phone calls because I want to pay attention to eye contact and body language, and zoom allows you to do that.
How long do you allow between initial consultation and the proposal meeting?
3 to 5 days.
How do you transition a potential client to a full service client in the process?
Go through each step at the end of the potential client Asana process template and the beginning of the project process Asana template for step by step instructions on how to make this transition.
Do you use any CRM software? When you tag clients for the holiday card list, is that data house in ActiveCampaign or elsewhere?
I use ActiveCampaign for CRM. Clients are tagged “holiday card” in my design software address book. Since I send physical cards, I do not keep their addresses in ActiveCampaign but rather just their emails. You can most certainly tag them “holiday card” in your CRM software and email them a digital holiday card instead.
What do you do with previous clients if you’ve done a full project for them in the past but now they need help with a one off item in another room (ie window treatments, wallpaper, etc)? Do you take their project? And if so, how do you charge for it, etc?
If they are an amazing, excellent, best-client-ever, and you are dying to take on the work, shoot them a new design fee (scale to project) and design agreement to get started. Work the exact same (lengthy) process no matter the scale, which is why I’m much more likely to do the following: Let them know your project minimum and inquire if they have a few additional rooms, etc. that could round out the scope and thus be compatible with your firm minimum. Remember, all the admin / project management and communication is the same across projects, so take on tiny projects with great, great, great caution.
When you know a client isn’t a fit, how do you turn them away?
Reply with clear and simple language, “We’ve reviewed the project and have decided that we’re not going to take it on. Thank you for your time and consideration.” Avoid making up excuses. The last thing you want are people sharing with their friends that your pipeline is too full to take on new projects if that’s not the case.
What happens when the PC’s budget is far lower than what you expected and you’re unable to make it work?
I thank them for their time and tell them that we just aren’t a fit, as our typical projects cost approximately XYZ per room. I’m always thrilled for both of us that we figured that out BEFORE we’re 6 months in and all very unhappy.
Do you ever discuss or mention a design fee as a “per square foot price” to a client, both up front in the PC initial call or in the agreement? How do you handle this if in the initial call they ask because they are comparing to other designers quoting a square foot fee?
If someone asks, I let them know it’s based on both the size of the room and the level of design.
What do you say when a PC is not comfortable with paying the whole project in 2 installments and when most of the job will be completed months later?
I have yet to run into this issue. The most important bit when discussing fees and payment terms is to be 100% confident. These are your firm policies. This is how it’s done. This is the industry standard.
If you are still getting push back, you may need to build trust by having the potential client call some references. Often a few happy client contacts will smooth that right out.
→ ADMIN ←
How do you share project files with clients?
I send all files over email via PDF files.
Do you have a spreadsheet or resource to look at project timelines that will help indicate when you can start taking on more work?
Use the Forecast Revenue Pipeline to schedule out projects.
Agenda/Notes/Next Steps – is this an internal document & to be used as talking points at the client meeting or something printed and given to the client to go over with them at the meeting?
I create an agenda for the meeting, that we print or include in the PDF presentation. We then take notes directly into that agenda during the meeting, then I clean it up and send it to the clients as meeting minutes.
I was wondering if your conceptual design and detailed design phases were both still 6-8 weeks long even for new builds?
No, my phases are longer for build/Reno. I need more time in design, and the contractors need more time to prepare bids. I keep it somewhat flexible to scale to the size of project & speed of contractor quotes.
→ CONCEPTUAL DESIGN PHASE ←
I’m a little confused by the ‘line-by-line investment amount’ mentioned in the conceptual phase. I’ve always presented budgets by room (and thought I understood the Standard to also recommend this). Can you clarify?
The ‘line-by-line investment amount’ is provided during the Conceptual Design Meeting (and signed off on in Exhibit B) to show the clients how we get to the total investment amount. This is an example investment amount – not tied to actual selections yet, but tied to the layout and scope of the project. It’s more accurate than the investment estimate (Exhibit A) given prior to signing the design agreement – and what we commit to holding to when we dig into selections and proposals. In the Detailed Design Meeting, I present pricing only by room, not by item.
What do you typically allow (is there a standard percentage) for accessories and artwork in the Conceptual Design Phase investment?
Typically 20% of the investment is for art and accessories. In the ‘line-by-line investment amount’, I tend to outline larger items to break up that number a bit. IE 60” art over mantle is $8k and coffee table accessories are $3k, etc.
How do you deal with existing furnishings and accessories that the client wishes to use?
I take all of the dimensions and make sure that it fits with the design. I do not charge less in my design fee for a partially furnished room because it is just as much work to work with existing pieces as it is to start with a blank slate. I have no problem saying to a client, “You know where this would look great? I noticed there’s a guest bedroom with an empty wall.” or, “this is going to send us in a different direction than we discussed” if there is something that isn’t working for the design.
You said you don’t send client images to prevent being shopped, but aren’t you sending them images via the mood boards?
Yes, the singles images are on a PDF with many other images/furnishings that are in the room making it more difficult to reverse Google image search the item.
What’s the agenda on Trade Day?
We review and clarify the scope of work with each trade, one at a time. We go over high level plans, elevations, inspiration images, finishes – whatever we have pulled together thus far – and discuss design intent as well as feasibility. My goal is to clarify feasibility, talk through best options and get ballpark estimates from the Trades to present at the Conceptual Design Meeting. My clients are invited but not required to attend Trade Day.
Sandra, do you have just one particular trade you would use to quote and get details of a job (ie: one electrician, one contractor, one carpenter for millwork or built in, etc)?
I have some areas where I only have one resource (window treatments, wallpaper installer, etc.) and others where it may make sense to have a few options (GC’s, architects, etc.). Clients often want more than one bid when doing a large renovation, so knowing a few good GC’s in your area is key.
→ DETAILED DESIGN PHASE ←
As you are presenting the design board for each room, do you also have a separate spec sheet for each item with a larger image of the item, dimensions, etc. ? Or just the image on the full vision board?
I only provide the image on the design board with the rest of the items so they can visualize the entire room. I give them all the client facing specs within the proposal. The proposals do not include images, vendors or item numbers.
→ PURCHASING AND EXECUTION ←
How do I address lead times with clients?
I shared the following sentiment and links with my clients earlier this year but think it would still be valuable to you and your clients now. Check it out:
We are running into lead time issues and price increases, and it’s not just us. Price increases are part of a larger economic situation – of which, I’m sure, you are well aware.
And, a few weeks later, another note to those clients that just aren’t getting that it’s not at all personal…
We appreciate your patience as we navigate these new waters. We are running into lead time issues and price increases, and it’s not just us. Unfortunately, experts are saying that it probably won’t go away any time soon. We appreciate your patience as we navigate these new waters.
Of course, update language and search out a more relevant or up to date article as needed.
We have a client that REQUIRES us to provide him with vendor links to every recommended product so he can “research it” before buying. How do we tell him that that’s not how we work?”First, things like a client requiring you to do anything shall be banished. This is your business and you now have a strong design agreement and great boundaries. Any potential client that came through with that request would be sling-shot out of my office like the pile of red flags that it is.
But, prior to the Standard, you may have some clients that think they make the rules. Be kind, kind, kind – yet firm. Let him know that you’ve done the research for him – that’s your role as the expert in this capacity. Let him know that providing links to items is no longer in alignment with your business model, as that is proprietary information (obviously, you need to work under the terms of your current contract until that ends).
I have a client who refuses to purchase a piece of furniture without sit testing it first, how do you handle this?
I let potential clients know up front that they will be purchasing based on images & samples only, and that these to the trade items are not available for sit testing. If they aren’t on board with that from the beginning, they aren’t a fit. They need to purchase from a retail store or find a designer that offers shopping with clients in design centers.
What would you do if most of your furnishings were ready to be delivered except that one item that was pushed out drastically?
I will install when I have about 90% of the room’s furnishings and we’re at the timeline that we’ve been targeting. I let my clients know of any outliers. I always prefer a complete install if possible.
Do you send things like lamps, pillows and accessories to your receiver?
I try to send as much to the receiver as possible. I’ve covered myself with the freight to be able to do this. I don’t have enough storage space and if it’s sent to me, the responsibility is on me to check for damages and transport, etc.
In what program do you keep a running list of items for your Punch List?
I provide two options: you can keep this in the Punch List schedule resource provided in Module 4 or the task in the Full Service Process Asana template called “Punch List”.
I agree that sourcing from vendors that are less shoppable on the web is ideal. Do you already have a list started that you can share?
This is a great Facebook community conversation.
Do you always use a GC or can you just bring in trades without them being managed by a GC?
Depends on your state but I bring in a general contractor whenever I can, as I love to hand off wrangling electricians & plumbers whenever possible. : )
What constitutes contract labor for you?
Contract labor is any labor that is done by a licensed trade (general contractor, plumber, electrician, etc.).
I love the idea of negotiating deeper discounts, but I’m a new firm and am pretty far from being able to do this. What else can I do?
I completely get it. I remember wandering the halls of the D&D in New York, just trying to figure out who’s who in this industry, let alone having accounts set up. When you are first getting started, look for a local trade showroom that sells multiple to the trade lines (without having to do your own opening order) or an online buying group. This is a great conversation for the FB community.
Have you ever stated that clients must use your trades people? If so, do you have wording for that? Where could that go in the contract? I would like to start doing this as I have clients who have been shopping all of my trades ppl like GCs, millworkers, etc. and I’m wasting SO much time on this.
I have not stated that clients must use my trades people. When a client wants to shop around, I stay open to that. I think of it as a way to source new contractors and trades (sometimes they bring a contractor you’ve been dying to work with).
That said, if I don’t recognize the trade, I suggest they get and call many referrals. That they go to previous projects to vet workmanship and quality in person. That they research reviews and the BBB online for any issues the trade may be having. They may even want to do a background check or find out if there are any liens or legal actions taken with the trade.
Last, I give them my honest opinion of if they are qualified for the job. Both from a skill level, project management level, communication level and of course, if I feel they will be an excellent team player. I explain that a big part of the value that I bring is my vetting and long term relationships with these trades, my trust and understanding of their abilities is paramount to a smooth project. By they time we’re done with that conversation, they often want to go with my recommendation (or meet with two of my recommendations).
I recommend having your lawyer draft language and adding it into your agreement where they think it fits best if you are leaning toward a firm change.