My Interior Design Client Went Behind My Back And Contacted My Furnishing Vendors

Dear Dakota,
What do you do when your client goes to your supplier and gets access to your trade pricing by pretending to work at your design company? I landed my dream job working on a penthouse with a fantastic client. I used all the Dakota Design Co. templates to set up the process, including contract terms and conditions. The client was great to work with, she always paid on time, and we got to know each other quite well. She's paid me in full for the initial contract but has been waiting on bespoke furniture orders that have been delayed in customs. I've been communicating with her about these pieces and was working with her on some additional work for wall paneling and custom desks. She emailed me yesterday to say she followed up on her two furniture pieces with the two different suppliers because she “didn't want to bother me” and got invoices from both. Now she's asking me why there is a difference between what she paid and what I paid to the supplier!
Needless to say, I am furious with the suppliers for providing this information to my client and for putting me in this awkward position. They are not my standard vendors, but the client requested I use them. To resolve this problem, I spoke with both suppliers who were extremely apologetic, one even sent an email to the client explaining the price discrepancy as an order fee. I've explained to my client that my design fees are set at a competitive rate and I do not offer my trade pricing to clients. As a gesture of goodwill, I offered her credit for the delivery fee on the other piece of furniture which is about to be delivered, but now she wants to cancel this order even though I do not accept refunds on bespoke orders, as stated in the contract that she signed.
She then returned some of the ordered furniture that she slightly damaged along with some accessories purchased from my showroom. To maintain what was initially a great relationship, I accepted these returns and offered her credit minus admin fees and a reduced rate for the damaged pieces. I applied these credits to the bill for my additional work and communicated with my client kindly and respectfully throughout the whole project process as I would like to keep her happy because I wanted to photograph her home since the final products came out so beautifully. What should I do to prevent this from happening in the future?

Receiving a message from a client who went behind your back to contact suppliers and uncover trade pricing can be a jarring experience. This issue is complex and emotionally charged, touching on professionalism, trust, and maintaining client relationships. In today’s Dear Dakota, I’m going to share the specifics of the situation, explore what went wrong, and discuss how to prevent similar issues in the future.

01 | Only Work With Vetted Furnishing Vendors

To start, working with vendors the client recommends that are outside of your approved supplier list can be tricky. Yes, you want clients to share ideas and give examples of brands and styles they like and don't like, but as an interior designer and business owner, YOUR name is on the line and you will ultimately be responsible for any items you order through any to-the-trade vendors.

You can certainly take the client’s suggestions but tell them you only source from your vetted, trusted vendors. If the client pushes back, let them know your experience has been that working with your reliable vendors will ensure a smoother project flow and better outcome. With a new vendor, you don't know their customer service team, their quality measures, their claims process, or how they deal with all the potential things that could go wrong resulting in loss of time and money for you as the designer.

If clients insist on using outside vendors, clarify that you'll evaluate these suggestions but will ultimately decide based on your professional relationships and past experiences.

02 | Set Clear Expectations for Custom Orders BEFORE Ordering

The client calling the vendors and pretending she worked at your company is terrifying. But it also tells me the client has lost confidence in what the designer is telling her and feels the need to take matters into her own hands. There was clearly a communication breakdown.

In the future, you must be upfront and set expectations around bespoke furnishings and how long those orders can take. When you present items, include detailed timelines so the client can make an informed decision about whether that solution works for their project. Interior design clients should sign off or approve all items being presented. This should also be documented in your contract.

03 | Provide Frequent and Consistent Project Updates

Once the client decides they are okay with the timing, and has signed off on purchasing the piece, you’ll want to implement a standard cadence for providing updates to the client on their orders. Whether it’s once a week or every other week, these project updates will put the client’s mind at ease and they’ll be less likely to go around you to get information.

Based on what happened with this situation, I am guessing the designer wasn’t providing frequent and consistent updates on these orders which caused the client to go around the designer to get the info herself.

04 | Use an Airtight Interior Design Contract

Something that probably saved this designer more headaches (and cash) is that they were using our full service scope and service agreement. If you aren’t using our contract template, you’ll want to make sure your contract includes clear terms about custom orders, non-refundable deposits, final sales, and procurement fees. Remind clients of those terms during your presentation, and then when you present the order and the client submits payment, have them sign off to acknowledge that “by approving this order/remitting payment, I understand that all sales are final.”

The client in this case is now mad the interior designer marked up their products and feels duped for whatever reason.

I don't think this interior designer should accept back the used pieces, but I understand they wanted to smooth over a rough situation, so it is probably best to call it a loss on these two furniture pieces.

Accepting returns on used or damaged items to smooth over a rough situation can be a tough call. While it’s important to maintain client relationships, operating outside your contract terms can set a risky precedent. Stick to your policies on custom orders and avoid giving discounts or accepting returns that aren’t covered by your contract.

Be sure to address these potential situations in advance of someone signing on with you. Let them know how you price your products (and I do NOT mean you need to tell them “this is what my markup is”. NOOOOO THAT IS INTERNAL PROPRIETARY INFO), the services they get when they purchase furnishings through you, and that you have a carefully vetted list of vendors you source from regularly and have great relationships with.

05 | Handle Difficult Situations with Professionalism

In the future, be direct and include the client in the decision making process when there is a complaint, as long as the solution is in line with your contract terms. Something like “these orders are already in production so we can't cancel them. You signed off on them, payment was authorization to order (or whatever your contract says). Let's talk through some other possible solutions to get this room completed. I want to see you happy and have this beautiful space come to life, and hopefully photograph the final product.”

This project went south quickly. The designer already gave money back and accepted returns, which complicates the situation. The goal now should be to cut losses as swiftly as possible. While it's uncertain whether the client will allow the designer to photograph the home, addressing the issue directly and involving the client in finding a solution that aligns with the contract terms may help salvage the situation.

In the future, remember that you as the interior designer and business owner set the standards in your interior design contract and onboarding process. Consistent and clear communication throughout the project helps manage expectations and prevents clients from taking matters into their own hands.

Use your contract as your guide and stick to it to protect your business and foster positive client relationships.

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