Interior designer going from hourly to flat fee, how much?

amother

Slateblue

Thu, Dec 22 2016, 8:08 pm

I'm an interior designer, don't want to say where or give many details. I'm posting here because I can't ask fellow designers (everyone keeps their cards close) and I certainly can't ask current or potential clients, so I need your input imamothers!

I currently charge hourly ($85-$115 depending on project). I hate being busy tracking my hours and I think a flat fee would benefit me and my clients alike. Aside from the occasional retail, commercial, or investor home, I mainly do residential custom homes, mid to high end clientele. I'm trying to calculate a fair flat fee. I will have two different tiers to cater to two different client bases I have.

The first is a client where I actively manage the entire project, act as contact person for contractor and trades, choose every last tile, towel bar, etc. This kind of client usually ends up ordering furniture as well, but for now we'll exclude that. I calculated that I often spend at least 100 hrs over a few months on such a project. Is a $10,000 flat fee therefore unreasonable? Would that be off putting to anyone if the total will end up the same?

Next tier is the ones who use me for all finishes but not every electrical walk through, not project managing, etc. This would include kitchen, tile, flooring, lighting, paint selection, hardware, exterior, and basic consults by phone to clarify trade specifications (electrician, plumbing...) Calculating these hours is more difficult because I have some clients I've spent 35 hours on and some 55....not sure if a $5,000 fee would work.

The contract would very clearly state the scope of work covered, 20% would be retained at signing. Additional 40% would be collected once selections have been made and approved and work commenced. The remaining 40% would be collected at completion.

Sorry so long! Please give me any and all input as I've been struggling with this for awhile now!

Thanks!!

Rubber Ducky

Fri, Dec 23 2016, 11:31 am

I went from pricing mostly by hour to mostly by project about a year ago. I much prefer not tracking my time. You already know about how long projects will take. When there's a range you can specify # of changes. You have to make an educated guess as to how much time a client will need.

Your payment plan sounds fine. My clientele is not high end for the most part (although that would be nice!) and your rates are higher (earning your hourly rate would be nice too!). I usually quote a price at the initial meeting after I have a chance to understand the scope of the job and meet the clients. I do charge for initial consultations and for larger jobs generally charge 1/3, 1/3, 1/3.

amother

Slateblue

Fri, Dec 23 2016, 11:38 am

Rubber Ducky, Thanks so much for your response! It's great to hear. Honestly, my rates have gone up to this level only recently because of more demand, but I'm still kind of testing the mid/high end market to see what it will bear. It's helpful to know that you charge 1/3,1/3,1/3. Do you ever have trouble collecting an installment?

Lastly, I remember reading in another thread that you are a kitchen designer, is that true? If so, I feel like it would be so much easier for you to define your scope per job. Mine is never ending so I'm going to need a lengthy contract which I know people won't love.

Rubber Ducky

Fri, Dec 23 2016, 12:21 pm

1) B"H I have not had trouble collecting. Very Happy

2) I hear you. About half my work is kitchens and half everything else. My passion is space planning in general. I love doing whole house remodels. (I do not normally choose towel bar finishes!) Current/very recent jobs include 2 kitchens, 2 whole house renovations (yes they both include kitchens!) and 2 basement conversions.

I'm going to the KBIS show in Orlando in a few weeks to look at cabinet lines. This is my not-so-secret plan to increase income without raising my rates when a particular line at a fair price is right for the client.

OOTBubby

Fri, Dec 23 2016, 3:06 pm

I recently built a new home and used a designer who charged by the hour. I don't know if I'd have used if she charged by the project because when I started neither of us really knew how much she would be doing. She wound up doing a lot, but not absolutely everything so I don't think any full project payment would have been appropriate.