Interior Designer Resources Directory :: Interior Design Article
The Real Value of Design
Part 3
What is your value? Over the last 2 articles we have discussed the value of interior designers...what the public perception is and the designers' perception of themselves as well as what value truly means. Now, let's get personal. What is your value?
Well, you say, I charge $100 an hour or I charge $250 an hour, or I charge $40 an hour. Or, you charge nothing at all and add a percentage to your sales. Or, perhaps you say, I charge a fee. OK, that's fine. But, these are ways of charging for your services and have nothing to do with your value. Designers most often see themselves and their value as how much they can or do charge. Consequently, clients often see them in the same light.
Then, what is your value? Of course, that depends largely on what you think of yourself and what you do. I have heard from some of you that you value what you do and your clients value you as well. I believe it. Now, ask yourself this question. Can I double my fees tomorrow and keep my clients? For some of you that may be a stretch. For others, you could triple your fees and gain clients. Strangely, as we have already said, it is not about money!!!
But, for the sake of argument, let's say it is about money. Money does seem to be the thing that the job always comes down to. Part of the reasoning for this is the many ways designers charge and how they relate those ways to the client.... and, how the public perceives this charging.
Did you know that there are 10 different ways for a designer to charge a client? Clients seem to think this is confusing because it is different from designer to designer. In many cases, they equate this with shadiness and compare designers to used car salesmen. Here again, it is perception. But, we have already learned that perception is 95% reality. It is hard to argue with what someone believes.
In the case of fees, the profession has done this to themselves. Each designer chooses a way to charge and sets their “value" accordingly. Compare this to the way an architect charges. It may be on a flat fee basis, an hourly basis, a percentage of the job or a square footage basis....the same as designers. The difference is that they offer all these ways of charging to their clients. This is presented to the client as a choice and, indeed, they may suggest one of the ways to work because some projects really lend themselves to different ways of charging. But, the public perceives this as professional from the way it is presented.
For example, one project may involve just the design and the client takes the design and uses their in-house contractors and facilities managers to oversee the project. This could be billed on a flat fee basis. Another project may involve the design and project supervision. This could be billed with a flat fee for the design and hourly time for the supervision or it might be billed as a percentage of the contract. If the contract is a large one, the percentage may be a better way for both, as it is certainly going to result in higher fees for the architect and there is a cap on the fees for the client.
The entire process of design should be a win-win situation for everyone. Believe me when I tell you that you do not have a single client who comes to you expecting not to pay for your services in some way.
So, for future projects, you might think about how is the best way for you to work with a particular project. You may actually work different ways with the same client depending on the project. Set it up so that they begin to expect this from the first. Explain it to them in the first meeting. Tell them that there are a number of ways you could charge them but you would like to determine what they want you to do before you discuss your fees with them. You may even have an “Explanation of Charges" sheet you go over with them, explaining the possible ways you might work with them.
For your information, in case you have not already figured it out for yourself, the 10 different ways to charge are: Fixed Fee, Percentage of Contract or Sale, Hourly Fee, Square Footage, Retail Sales, Cost Plus Sales, Retail Less Sales, Value-Oriented, Consultation Fee or a Combination of any of the these. Actually, a combination usually works quite well, particularly when sales of merchandise are also included. Incidentally, Education-Works has a great 6 hour seminar that covers this quite beautifully and also helps you develop a contract.
But, remember I said earlier that your value is not really about money. It is not. It is about professionalism, knowledge, confidence and follow-through. Let's look at these. We will skip over professionalism for now and start with knowledge.
Knowledge is a key factor in your value to a client. Can you expect a client to see you as an expert on antiques if you do not know the difference between Queen Anne and Louis XV? When we speak of knowledge, only you know where your areas of expertise lie. Many designers are, by necessity, jacks of all trades. But, you also need to remember that the common perception here is “jack of all trades and good at none". Value is derived from bodies of knowledge. Remember that Wickipedia defines the value of the individual as “growing his / her knowledge and skill sets to showcase benefits delivered in a transaction and thus getting paid for the job....the more knowledge and skill sets, the higher the value, the more the perceived value is worth. Today it is harder than ever to keep ahead of the client. Knowledge is everywhere and so easily attainable. I am not speaking here of product resources, but basic knowledge of the areas of design. Product resources are merely the tools you use to illustrate that knowledge. Knowledge is life long learning. You only get the basics in school. Make a list of your specific skills and knowledge base. Can you build on them? Building a set of knowledge skills pushes your value up and allows you to increase your confidence, another value oriented perception.
Confidence is derived from knowing that you are qualified to do your job because you have that knowledge required. Confidence also comes from feeling good about yourself and looking like it. Confidence simply stands out in those who have it. It shows in the way you present yourself, how you speak, what you say, how you say it and when you say it. Let's face it, no client wants to entrust hundreds of thousands of dollars to someone they do not trust to have confidence in themselves, their abilities and their decisions. But, confidence can have a razor edge. It can creep over into arrogance and a dictatorial attitude. Your value goes up when you can communicate confidence to the client without intimmidating them. Think of the best designers you know...those whose value is perceived to be very high and who charge accordingly. How do you perceive their confidence level? If you have trouble in this area, determine why and get help. Confidence is one of the major percpetions of value in our field.
Another perception of value is follow-through. In other words..."Say what you will do, then do what you say"....when you said you would do it. Unfortunately, this is not as simple as it sounds, though it should be. In order to get the job, many designers promise what they knowingly or unknowingly cannot deliver. It only takes one really bad experience for your value to drop beyond redemption with a client. It is better to lose the job than get into this position from which you cannot recover.
Let me illustrate by giving you an example. A number of years ago I was approached by a client who was a doctor in a group practice. Each of the other doctors had their own designers and they were having a difficult time choosing a designer to design their new office building. My client asked me if I would do a design for their building for which I would be paid, as they were asking all the designers to do. Then the doctors were going to choose which design they liked best and hire that designer. I explained to my client that I could not work that way, that I needed to spend too much time in research for the project to design it to best meet the needs of the project. He was understandably upset as he had offered to pay for this. I explained that if my firm were not chosen, then I would have expended too much time to be adequately compensated. I also told him that I thought it was a waste of money for them to decide on a designer in that way, that they should interview designers, look at examples of their work, then hire the one they could work with. I knew when he hung up that we had lost that job, but I also knew I could not do a good job and be adequately compensated. One month later, the firm called me back to say they appreciated my candor, believed I was right and hired me for the job...without the interview. I can trace over one million dollars worth of work on various other projects that came directly from that project. The perceived value here was that I could not follow through on something I did not believe I could do as they wanted me to do it....and if I could not, most likely, the others couldn't either. Clients place a very high value on follow through and professionalism.
That brings us to the fourth leg that supports the perception of value, professionalism. Professionalism encompasses knowledge, confidence and follow through,but it goes a step beyond. It is the whole package...education, experience, examination. Clients perceive professional designers as having more value than those who are not. It doesn't mean they will necessarily hire the professional but they would pay them more money.
So, when I say the perception of value is not about money, I mean it. Just because you say your hourly rate is $250 does not mean your perceived value is any higher than someone who charges a different way. But, your perceived value will allow you to charge...and get....higher prices if you can build on the 4 leggs of the foundation of value: Knowledge, Confidence, Follow Through and Professionalism.
