Interior Design Pay

by jessimorganhome | Jan 9, 2023 | Interior Design

It’s been so fun being in school but challenging at the same time. 

My recent lesson involved interior design pay. Yes, the sensitive subject of payment and compensation. That is such a sensitive and uncomfortable subject for many and I understand why. But here are the 4 ways that interior design pay works. Some are better than others and it all depends on the situation and where you are in your career. 

1. Paid by the hour
2. Pay a flat rate
3. Commission on each item purchased
4. Combination

Let’s explore each:

1. Pay by the hour - This involves being paid per hour based on a hourly rate for your services. Sounds like a good idea but there are some cons and there are certain timeframes where this would work.
   1. Cons - If you are starting out and charging $30 an hour, a client may find that expensive and also may not understand why they need you you so much. Remember we aren’t lawyers who charge $150 an hour for their services. 
   2. Con #2 - How do you calculate per hour? If you are shopping for a client and find something else for another client, how do you split the time? 
   3. Con #3 - The client can’t see the work. If you are working on plans or a visible presentation, the client has no idea how many hours it took. They might not accept that it took 6 hours etc to put your proposal together. So hourly is not ideal. 
   4. When to use - Use this method when you are physically decorating and putting a room or space together. Meaning when all the pieces have arrived and you are going in there to set up the home or space. How many hours it takes to put together is when a hourly rate would make sense. 
2. Pay a flat rate - So you decided to charge a flat rate for your services and lets say that is $2,000. Seems like a lot right? Well it may not be.
   1. Con #1 - A flat rate means that the client can change anything and use you for as many hours as they please. You may be changing something or spending ample time with them unlimited. 
   2. Con #2 - Could take away from a another client. If you have a client who wants additional time and they paid you a flat rate, that could take away from you booking another job till you are 100% complete with them. 
   3. When to use - Use the flat rate for your proposal and for your first set of meetings possibly. Of course have the meetings timed to an hour or so. Here’s the thing, if a potential client wants you to present to them your ideas you can of course have a 30 minutes free consultation to start off. But if they want you to do a actual visual to see your idea come to life, the flat rate should be used. This is important especially if the client does not go with you. You don’t want to create this amazing presentation and they take it and go with somewhere else. If they do, at least you got paid. 

1. Commission - Honestly its one of the best concepts. If you charge 25% on every item you purchase or pick out for your client’s space this will help to make you feel like you are doing everything for a reason. And your client will see that as a better deal.
   1. Pro #1 - Also when you become a interior designer or decorator it is great to be part of a trade program or two. Trade programs will give you discounts on certain company’s furniture. So if you have this and then charge 25%, your client will feel they are receiving a great rate due to the discount in the first place and even if you add on the 25% they will not see the difference because regardless they are getting a deal. 
   2. Con #1 - If you are decorating a space and doing just a nursery you may not make that much money off the job. Also, it comes down to the client’s budget as well. 
   3. When to use - Use this method when you are purchasing the furniture only. 

1. Combination - Honestly the best concept out there for this field. You have to combine all 3 above to have a profitable business. Here are my suggestive steps:
   1. Offer a free 20 min meet & greet/consultation
   2. Charge a flat rate to create visual design (no more than 3 options) to your client to see and make a decision. (This will ensure that you have a client who is serious in hiring you)
   3. If they take you on, then you write up a contract and offer different services:
      1. Consulting - Charge by the hour for this service. This means getting paid by the hour for any physical work onsite that you are doing as well as phone calls or syncs. 
      2. Shopping and ordering pieces - Use the commission method. Every item that you purchase or pick out should be a 25% or more of commission. 
      3. Renderings - This is when a architect is involved and is building the actual design with exact measurements etc. This should be a flat rate. Till the client agrees on hiring, renderings should not be done yet. 

I hope this was helpful if you are pursuing a career in interior design or interior decorating. Interior design pay is the key to making sure you stay successful for the talents that you will be showcasing to your future clients.

XoXo,

Jessi Morgan