Designing a Business: How Do I Deal With Client Sticker Shock?
Design business coach Chelsea Coryell offers tips for helping clients understand the actual costs of their projects
In her advice column for Houzz, interior designer and design business coach Chelsea Coryell of Washington state-based consulting and training firm Design for a Living delivers guidance on common home pro issues such as hiring and creating a pricing structure. This time she’s tackling how professionals can shape realistic client expectations when it comes to product costs.
Q. How can I help clients when they’re dealing with sticker shock? How can I make it easier for them to understand how much things really cost?
Q. How can I help clients when they’re dealing with sticker shock? How can I make it easier for them to understand how much things really cost?
Be Upfront About Costs
One of the best ways to overcome the touchy subject of money is to start discussing the costs of the project from day one. Before you select a single item, you need to establish a project budget. This is where most interior designers miss the mark. It’s never easy to ask someone how much money they want to spend, and most clients will say, “I have no idea. I guess if I like it, I’ll buy it.” We all know that’s not reality. You wouldn’t walk into a Lamborghini dealership on a Toyota budget, so simply explain that to them.
Make Some Comparisons
When dealing with new clients, I often use analogies they can relate to, such as cars. Certain elements of the design will be more like a Lexus — high quality with down-filled cushions, long-lasting value with superior construction and a little bling. These elements are naturally more expensive. Other design pieces will be more like a Toyota — sturdy, great-looking and lower-priced.
Maybe a different client would relate more to different kinds of handbags. One brand may be simple, trendy, less expensive and well made. Another may be more expensive, quality construction, with craftsmanship that lasts a lifetime. On the other end of the spectrum, another brand may be mostly a social status purchase. I tell clients, “When I mix all three levels of quality and price in your design, we’ll meet your budget.”
Everything we buy has a different tier in value. If you can get it into terms that they can grasp, a light bulb will come on.
One of the best ways to overcome the touchy subject of money is to start discussing the costs of the project from day one. Before you select a single item, you need to establish a project budget. This is where most interior designers miss the mark. It’s never easy to ask someone how much money they want to spend, and most clients will say, “I have no idea. I guess if I like it, I’ll buy it.” We all know that’s not reality. You wouldn’t walk into a Lamborghini dealership on a Toyota budget, so simply explain that to them.
Make Some Comparisons
When dealing with new clients, I often use analogies they can relate to, such as cars. Certain elements of the design will be more like a Lexus — high quality with down-filled cushions, long-lasting value with superior construction and a little bling. These elements are naturally more expensive. Other design pieces will be more like a Toyota — sturdy, great-looking and lower-priced.
Maybe a different client would relate more to different kinds of handbags. One brand may be simple, trendy, less expensive and well made. Another may be more expensive, quality construction, with craftsmanship that lasts a lifetime. On the other end of the spectrum, another brand may be mostly a social status purchase. I tell clients, “When I mix all three levels of quality and price in your design, we’ll meet your budget.”
Everything we buy has a different tier in value. If you can get it into terms that they can grasp, a light bulb will come on.
Communicate Value
You need to realize that your clients aren’t trying to be cheap and unrealistic, they’re simply not used to shopping for quality furniture the way you are. The average person buys new furniture a handful of times in their life, so they’ve probably never needed to learn the difference between well-made “grown-up” furniture, and the disposable, knockdown, “it looked good in the picture” at a big-box store.
This is my No. 1 rule: Do not lower your prices, simply adjust clients’ expectations and add value. If price is a problem, then you need to express an item’s value and describe it correctly, pointing out its features and benefits. (This goes for your design fees as well.)
How will this specific piece be exactly what they need for their design vision, and why is it worth every penny? As soon as you start lowering your price, you will have created a slippery slope from which you will never get free.
See more tips for communicating your value to potential clients
You need to realize that your clients aren’t trying to be cheap and unrealistic, they’re simply not used to shopping for quality furniture the way you are. The average person buys new furniture a handful of times in their life, so they’ve probably never needed to learn the difference between well-made “grown-up” furniture, and the disposable, knockdown, “it looked good in the picture” at a big-box store.
This is my No. 1 rule: Do not lower your prices, simply adjust clients’ expectations and add value. If price is a problem, then you need to express an item’s value and describe it correctly, pointing out its features and benefits. (This goes for your design fees as well.)
How will this specific piece be exactly what they need for their design vision, and why is it worth every penny? As soon as you start lowering your price, you will have created a slippery slope from which you will never get free.
See more tips for communicating your value to potential clients
At the end of the day, your clients just want the best design for their money. They will welcome an honest, empathetic and professional interior designer who will guide them through the stressful process of designing their home. Let them know that it is OK to talk about money, you are a professional and this is a business. Money is just a natural part of doing business. Now, ask them about their budget expectations and let them talk.
This content contains only general information and guidance and is not a substitute for legal or tax advice. For advice specific to your area or business, consult with a qualified professional.
Have a question for Chelsea? Email it to editor@houzz.com, Attention: Chelsea Coryell, or post your question in the Comments. It could be featured in a future column.
More on Houzz
Designing a Business: Knowing when you’re ready to hire
Designing a Business: How Do I Set My Pricing Structure?
Pro Panel: How Do You Know When a Client Is a Good Fit?
This content contains only general information and guidance and is not a substitute for legal or tax advice. For advice specific to your area or business, consult with a qualified professional.
Have a question for Chelsea? Email it to editor@houzz.com, Attention: Chelsea Coryell, or post your question in the Comments. It could be featured in a future column.
More on Houzz
Designing a Business: Knowing when you’re ready to hire
Designing a Business: How Do I Set My Pricing Structure?
Pro Panel: How Do You Know When a Client Is a Good Fit?
Gasp. Insert knot in stomach.
Every interior designer has heard this phrase at least once in their career, and it’s infuriating. Don’t get me started on how home improvement shows have convinced millions of homeowners they can completely renovate a room in one weekend for under $1,000. Furniture sticker shock is a reality you’ll have to accept as a designer. Today’s consumers are constantly facing so many purchasing options. It’s easy to see how a client could get confused.
Fortunately, there are some simple business practices you can establish when taking on a new client and ways to address money issues without coming across like a furniture snob.
First and foremost, I’m going to assume you’ve prequalified your client as someone who is ready to work with an interior designer before you meet with them for the first time. This isn’t a service most people hire on a regular basis. As a professional, it’s crucial that you educate your clients on the value of working with a designer, explain the importance of investing in quality furniture and then manage their expectations for the project.