Tips for Pricing Your Interior Design Services

Sep 2

Updated August 2023

Pricing your services accurately is probably the hardest part of being an entrepreneur, and it's especially difficult when you're a service provider in a creative field because the creative process is never fluid. Throw in project management, contractors, vendors, client approvals, and the gazillion other people you have to rely on to get from A to Z and it becomes even more difficult.

Below I’m sharing a few ideas to help you feel more confident when you price your next project. To go even more in depth, be sure to download my complimentary Guide to Pricing Your Interior Design Services and check out Pricing & Proposals Workshop here.

Write out a detailed step-by-step list of what you’ll do for the project.

Literally, make a list: Review client questionnaire and images (.5), attend new client kickoff meeting (2.0), create floor plans (3.0), etc. Then total up the hours, multiply by 1.2x and that's probably going to get you close to the hours it will take to complete the project.

Tip: I know this can take a long time for a big project. But I also just helped a client send a $115,000 fee proposal and that’s how we were rock solid on that number. PS: client signed and booked with no problem.

Track your time.

Guess what? Last year I increased the price of one of my services by a substantial amount because of what I discovered from the hours my team and I tracked for each client project. I quickly realized one of my services was losing the company money. Do you think I continued to offer it at that price? NO!!!! I immediately changed the price and was 100% confident sharing that price with potential clients because I had the data to back me up: at this price, we are being compensated appropriately for the product and service we are delivering.

Look back at previous data to see actual fees and product costs

What did you charge in fees for a full-service single room design? How many hours total did you bill for the new build design? What does a single room of furnishings come in around? By looking at your financial reports, you'll be able to see how many hours were billed per project (so you have facts to base your starting prices on) and you'll be able to see how much different types of rooms cost you to design (example: the last three living rooms you designed came in at $41,000, $37,000, and $64,000. The last three bedrooms you designed came in at $19,000, $33,000, and $29,000. You get the idea!). Now you have some solid facts to base your pricing on AND when you share it with potential clients, you know what your minimums are.

Be aware of your mindset around pricing and your “money story”

Okay, don't roll your eyes this is a true thing that even I as a fast action taker know has been critical in my business. My parents worked very hard to start and grow their businesses (my dad owned a restaurant and catering business, and my mom had a web design company and did in-home treatment foster care). What I saw growing up is that making money requires a ton of work and a lot of stress.

As an entrepreneur, I originally repeated that story: Making money is hard; Stress is required for success; If you want to be successful you have to work allllll the time (if this sounds like you, check out my blog on starting your own business).

Even after the goals were hit, the to-do list was done, clients were happy--I was still feeling in the weeds. But then when I realized, oh wait, I can be successful and it can be easy (okay, easy-ish), things really changed for me. This is especially true if you are so gosh-darn talented that your work feels easy. You could do it in your sleep. There may be some guilt around charging appropriately because you think, “How could I possibly charge someone $250/hour when it's SO EASY FOR ME”. Just know that you can have a successful business and it can be easy. In fact, when my clients are working in alignment with their true talents, it feels so easy they think something is going wrong (Why aren’t we busy? Why are there no fires?…when in actuality they are making more and working more efficiently).

A few more pricing tips:

Choose a pricing model that works for YOU and that allows you to be profitable. Grab my complimentary Guide to Pricing Your Interior Design Services here.
Do what you can to productize your services so it is so easy for clients to “put it in the cart" because they know exactly what they're getting and the result you'll bring them.
Use price anchoring to point people to your higher-priced service.
Lay your services out on your website with the highest price first, then go down from there. People see the first service and want it all…then with each smaller service, they'll feel like they are losing the things that were included in the larger service.
Throw out the advice “Charge what you’re worth”. Eww. Your worth cannot be defined by a dollar amount. Your worth is priceless. You ARE SOMEONE’S ENTIRE WORLD. There is no price for that. Charge so you are compensated for your expenses, for your time, for your expertise, for the value you bring to your clients. Charge so you actually enjoy your business and your projects and everyone gets the best of you. But never ever ever ever charge what “you’re worth” because ain’t nobody can afford that and your worth is not tied to a dollar amount. And if you’re finding that you are at the top tier for pricing and cannot charge more (pro tip: not true), then you need to increase efficiencies with your processes, your team, and your software to watch your margins increase.