The Damewood Difference: Pricing
In an unregulated industry, anything goes. Anyone can decide what they deem is fair and right. Not everyone has morals or ethics or even a conscience. We experienced that hands on, which is why we’re different and we stand by it.
There are many ways to run a company and everyone says their way is the best way, the only way, the one way you’ll be successful. However, that isn’t true.
What is “normal”
Typically, interior designers make their money in two ways: services and sales.
Services
There is no perfect formula to pricing your services for what hourly rate you’re “worth”. Some designers price because of their experience, their cost of living, or just because they can.
I’ve seen designers charge hourly rates anywhere from $75 to $500. With more experience and education, should come a higher rate.
A good designer is always worth the cost but it’s up to you to decide how much you’re comfortable spending and what value you’re looking for.
Sales
Designers get discounts from just about every company they source from. Sometimes 10%, 20%, I’ve even seen up to 45%. Most designers don’t pass that savings along, typically they mark it up.
I’ve seen designers charge 2.5x their cost and I’ve heard designers explain how they markup items 40% of their cost. It’s always different.
There is no limit or cap to what they’re allowed to charge. It’s up to the consumer to determine whether the price is worth the piece.
At the start of my career, I was shocked how businesses were charging. It blew my mind that a company would add so many fees and mark ups. Obviously a business has to make money but to see something marked up 2.5x the cost of the good or to add a $95 fee plus an additional 30% to the cost of a change order, I was surprised to say the least. I’ve seen companies jokingly laugh about adding a PITA tax. The Pain In The Ass tax. If you’re difficult to work with, you’re likely accruing hidden fees you had no idea about. That was when I realized everyone was out here just making up their own rules. It’s like the wild west and there’s no sherrif.
Those unethical practices are why I want to be very clear about how we price and why we’re different than most interior design pricing models.
Why we price different
Our pricing model is focused on being a service based business, not a furniture store. The primary revenue of the company comes from our active design services that are based on our skills, knowledge, and expertise in the industry. We want working with Damewood to feel like you’re getting more than you paid for. Our goal is for everyone to win and feel like they’re better off because they worked with Damewood.
To ensure that feeling, we price differently than anyone else we know in this industry:
Our hourly rate is based on fair value and skill level. Our intention is to be realistic, fair, and honest with our fees. We are not the most expensive designers becasue we understand that while what we do is truly unique and extremely valuable, it’s only as valuable as it is achievable for clients. We strive to make good design accessible, even on smaller budgets, we do our best to make our services possible. With that being said, as our designers become licensed, add certifications, and gain experience, they’ll be paid more and our rates will increase. Good designers know more and are worth more.
We give our clients our discounts. We pass along our savings because that’s a huge benefit of working with a designer. You get access to better pieces and better pricing. Plus you won’t be disappointed in two months when the pricey sofa you’ve been waiting on just isn’t quite the fit you thought it would be!
We don’t add markups. You’re already paying for our services, why would we need to make more money for something we don’t even touch? Often artists and makers we partner with are stunned that we don’t add finders fees to their work. In our eyes, it doesn’t make sense to add additional costs. They are doing the work, they are creating the artpiece, we are facilitating it and we’re already being paid for our time to find, source, organize, order, and install. We want more art in the world, keeping it at it’s true value benefits the client who understands what they’re paying for and benefits the artist who isn’t priced out of a project.
We LOVE small business. We want to see other entrepreneurs suceed, so we offer discounted interior design services to small businesses, entrepreneurs, and the like. It’s easy to be taken advantage of in an unfamiliar industry; but we make sure that doesn’t happen. We act as guides and advocates to protect your investment, protect you from crappy contractors, and ensure you get what you’re paying for so achieving your dreams can be your only concern.
Why we stand by it
The age old rebuttal: “You’re leaving money on the table!”
So? We are compensated fairly for our work and we don’t strive to be millionaires. We don’t need to double dip or add hidden fees just because it’s become terribly normal in the industry. The outdated idea that you must take advantage of others to be profitable just isn’t accurate nor is it how we do business. We’re already paid for our time to design, source, order, track, receive, schedule, and install, we don’t need an additional fee on top just because other people are doing it.
We’re growing a sustainable, honest company where people feel valued.
We aren’t sure if our way is the best way but you can bet we’ll continue to learn and grow and adapt. In another 5 years, we may have a whole staff of designers and make changes to how we price but regardless of where the company stands, one thing will hold true: we will always be transparent, honest, and open with our clients, because they deserve to know the value of what they’re getting and where their money is going.
We’ll be sharing more opinion pieces soon but if you have a specific topic you’d like to hear our input on, let us know by emailing emmy@damewooddesigns.com.
Cheers!
xx - Emmy
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