Interior Designer Fee Structure

6 years ago

I am in the beginning stages of planning a custom home and am looking to hire an interior designer. One that we really liked has a full kitchen/bath center (pretty large shop), and sells all of the cabinets, tiles etc.

I was surprised that in addition to the $175/hr fee, the products are also marked up. She said the end price to me would be equivalent to what other contractors pay due to her high volume.

Is this structure common? I of course want to fairly compensate the designer, but the other designers I am interviewing are either hourly or fixed cost.

Featured Answer

PRO

Kristin Petro Interiors, Inc.

6 years ago

last modified: 6 years ago

I'm a designer that is also a cabinet dealer. I also resell plumbing, tile, lighting, etc. I charge an hourly fee and a markup on product. My markup generally still affords the client a better price than retail, but if they find the product less expensive somewhere else, they can purchase it themselves (and deal with any issues that pop up ie damage, incorrect items shipping, returns, backorders, discontinuations, etc.). When a client makes a purchase from me, I do not charge my hourly fee to manage the purchase.

Designers are not obligated to sell you product less than anywhere else, regardless of their hourly fee. I do not price match. If you want me to handle the purchasing, arrange the deliveries and deal with any issues, you pay for this service via my markup. My hourly fee is for design services.

You can't really compare the price structures of designers. One might be a better fit for you, so you pay what they charge. If she is charging $175 plus markup, it means she can.

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Comments (13)

PRO
Jeffrey R. Grenz, General Contractor
6 years ago
Kitchen designer or interior designer?
Denita
6 years ago
Have you considered a ID that isn't tied to a cabinet shop?
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Jeremy Seger
Original Author
6 years ago
She is an interior designer that also sells kitchens. I’ve considered it. Are there downsides to using one with an in house cabinet sales?
PRO
Flo Mangan
6 years ago
An independent designer is best. No conflicts of interest. This doesn’t smell right.
User
6 years ago
An independent not selling products would be a heck of a lot higher hourly. Product markup is a standard part of any designer compensation. You still end up cheaper than buying retail. Or, you can buy retail, plus $500 an hour, and see how you like paying more than market rates when you could have paid less and gotten way better help doing it.
Jeremy Seger
Original Author
6 years ago
Thank you. I should clarify if I am being charged an hourly fee to manage the purchase.

So if you were designing kitchen cabinets for a customer, and they bought the kitchen cabinets from you and fixtures etc. would you still charge your hourly fee for the design?
PRO
Kristin Petro Interiors, Inc.
6 years ago
Yes, I still charge my hourly fee for the design, even if you buy product from me. With my hourly fee, you are paying for my expertise in designing your kitchen. With my markup, you are paying for the product and for my time to manage the purchases.

You can clarify with the designer whether she charges an hourly fee to manage the purchases, but if she does, again, it's because she can. She may simply be a better designer than your other options...in demand, experienced and knowledgeable. Like with anything, you may not get the experience or quality you want if you go with the designer/contractor that charges less. Only you can know whether there is VALUE in the designer you select, regardless of cost.
cpartist
6 years ago
I think first you need to get your house design working.
WestCoast Hopeful
6 years ago
I don’t think there is anything wrong with lining up who you want to work with now.

Our ID charged a range for interior design. We didn’t micromanage the hours etc. We knew the range and ended up shy of the top end. She did not work for any companies.
RTHawk
6 years ago
Go to https://stylebyemilyhenderson.com/blog/how-much-it-really-costs-to-work-with-a-designer for an example of design time breakdown.
Suyin Lee
5 years ago
I am working with a designer now who told me that charging an hourly rate and marking up supplies from a vendor that the designer works with is “double-dipping”. Designers typically are not transparent about the arrangements they hav
Suyin Lee
5 years ago
...they have with the vendors they work with. This came up on my current project bc the estimate for bath supplies just pushed my budget completely over. I did my own research and did price comparisons with other local vendors, and the difference in price was astonishing. When I called the vendor and asked why there was such a difference in price, I was told bc the designer gets a percentage for bringing me as a client, and that percentage gets tacked on to the price. When I confronted my designer saying that I thought I was paying her an hourly rate for her services, she was honest about it and said that she would not be taking the percentage from the bath supplier. So then my estimate went from 41k to 29k! I have had simila