Furnishings Labor Shortage – What’s Going On?

It seems everywhere you go online or on TV, the news about the supply chain is grim and getting grimmer. (Is “grimmer” a word? Autocorrect seems to think so!) Yet, all of the stories seem the same – shipping has slowed, there’s a container shortage, and the ports of entry on the West Coast are overloaded. Then too, we hear, it’s difficult if not impossible to find workers and the shortage of skilled workers has led to a furnishings labor shortage that may last indefinitely.

Oy, what’s going on?

According to many experts, and despite news sources, the real issue is not so much a transportation bottleneck as it is a labor shortage in virtually every industry. Yes, shipping containers are in short supply and leasing them is more expensive than ever. Cargos ships from the Far East are filled to bursting and must wait to offload outside their usual ports before docking. Then, offloading them is taking days or weeks rather than hours because stevedores are also in short supply.

According to an opinion piece from Jerry Epperson, Founder/Managing Director of Mann, Armistead & Epperson, Ltd. at FurnitureToday.com, the ongoing labor shortage in the US is not limited to the furnishings industry but has become a universal problem. (This is true for not only skilled but unskilled factory workers.)

He wrote, “In September the consumer media seemed uninterested, while in October, they woke to the severity of the problems and offered daily coverage. A few recent articles were encouraging with container shipping costs trending down slowly, fewer Asian factory closings dictated by the COVID-19, and major efforts at the larger ports to improve congestion and get things moving.

“The problem everyone faces is labor. I just read a long thesis about the labor issue by the New York Times that found that American families are so well off financially that fewer need to work. Yes, the stock market and home prices are up handsomely, and Uncle Sam has been generous recently with pandemic-related giveaways, but it still doesn’t feel right for 4.3 million [workers] to walk off their jobs in August.”

The Skilled Labor Shortage is Very Real

In a piece from March at BusinessWire.com, we learn that “While millions of Americans affected by pandemic job loss are still looking for work, the number of skilled trade jobs in the U.S. is far outpacing the supply of qualified workers to fill them. A new analysis by the skilled trades division of staffing leader PeopleReady finds that the most in-demand skilled trade jobs are remaining unfilled the longest, roughly a month on average, due to the shortage of qualified workers.” (emphasis added)

Further, “The skilled trades are in dire need of workers right now, with a particularly high demand for apprentice-level and skilled labor positions. These are steady, well-paying jobs that hold a bright future, even in an unpredictable economic climate,” said Jill Quinn, executive leader of PeopleReady Skilled Trades. “For the millions of Americans who are struggling in their job hunt right now, our message is simple: Consider a career in the skilled trades.”

The reason(s) for the scarcity of high-quality and artisanal workers are two-fold (at least). While it is true that “The skilled trades labor shortage, predominantly driven by a mass exit of baby boomers retiring from the sector, can be an opportunity for people looking for work, especially those who have little to no experience in the skilled trades and need job training.” (emphasis added)

It also appears to be true that “Although the skills shortage in manufacturing has been a pervasive issue for the past several years, our research shows us that far more manufacturers today (54%) than a year ago (38%) are having a particularly hard timing finding candidates with the right skills to fill critical job openings. At the same time, 54% of manufacturers say that negative industry perceptions are impacting their ability to recruit Millennial and Gen Z talent, which is equally challenging.” (emphasis added)

It’s a Nuts and Bolts Issue (Literally)

As an interesting side note, the supply chain problems for luxury furnishings extends beyond the foam shortage and shipping issues we’ve mentioned before.

In an unusual source for industry-related news, Slate.com, we’re told, “Additional fallout from the February storms [which is the original cause of the ongoing foam shortage] has left other factories playing catch-up in churning out domestic supplies of nuts, bolts, fabrics, drawer rails, and brackets for holding together chairs and shelves. This tends to affect more expensive products.” (emphasis added)

And, “Lumber is the other crucial raw material for furniture that’s become much pricier and more difficult to come by … [and] a lopsided supply-and-demand dynamic has been playing out in the sector. There’s been a run on wood not only due to the demand for furniture, but also because of a boom in home building and renovations. At the same time, sawmills pared back operations after the Great Recession and now don’t have the capacity to ramp up production, even if the timber they want to cut is in plentiful supply.” (emphasis added)

Unfortunately, it seems few solutions for any of these problems are being offered by “experts” in the media. However, despite that lack of advice on how to fix things, good news can be found, as evidenced by an article at WoodWorkingNetwork.com:

This included increases in orders as well as decreases in order backlogs. We also saw increases in furniture production and, despite the soft labor market nationwide, employment numbers in October were also on the rise.

“The furniture manufacturing industry experienced strong sales and orders in October and was ranked as the third-highest growth sector in the rankings compiled by the Institute for Supply Management (ISM) in its latest report on manufacturing activity.”

Patience and Optimism are Needed

Based on what we’re seeing currently, not everything is negative so patient optimism seems to be the order of the day. And, though the furnishings labor shortage remains a moderately short and serious long-term problem, we may be seeing light at the end of the tunnel.

Ted remains available for business consulting to the trade and may have the answers you need to cope with our current market. Call us today for the latest on lead times from the Kravet Family of Brands

Online Marketing & The Value of Researching the Competition

Knowledge is a wonderful thing, yet real-world experience is even more valuable. It’s likely because of the importance placed on what’s known as ‘book learnin’ that so many experts take certain details of their niche for granted. That is, they expect their clients to know things they do not. Not only does this happen among interior designers, furnishing dealers, and manufacturers, it frequently happens among those they rely on to support them: for example, business coaches and online marketing experts.

One of the areas in which this commonly happens is market research. Many think they know what the term means yet find it difficult to explain or perform well. It’s a bit like the phrase, “I can’t describe it, but I know it when I see it.”

Well, that’s  really not good enough for the person who is supposed to be doing it – or for the person who needs it done – and done well.

First, we ask, what exactly is “market research”? According to the online dictionary Wiktionary, it is “The systematic collection and evaluation of data regarding customers' preferences for actual and potential products and services.”

That’s a nice, concise explanation as far as it goes but, it’s all about the wants and/or needs of potential customers or clients. Where it falls apart, at least for our purposes, is that it never mentions the competition. After all, none of us live or work in a vacuum free from competition. And, just as it’s critical to know what the market demands, it’s equally important to know how and if other businesses are meeting that demand.

What’s the Other Guy Doing?

Quite simply, if you don’t know what “the other guy or gal” is doing in your market, your chances of cutting into their customer base are low indeed. Further, the business coach or online marketing expert you may have hired will be inclined to believe you already know not only how important this is, but also that you either know it or know how to find out. (That is what we mean about experts taking things for granted, by the way.)

And now, we offer some guidance on how to perform market research on your competition:

What services are the busiest interior designers in your area offering? This one is pretty easy to answer. Jump online and check out the websites or social media profiles of the top designers or dealers in your area and look at their “Services Provided” or “Products” section. For designers, how do they describe their services and what are you seeing most often? For retailers, which lines are being offered in your market, and to what extent?

For both, are they a full-service provider or do they make more of a “one and done” type of impression? For the latter, it should be obvious you could fill in the gaps. (More on that a bit later.)

Which categories of design services are not being offered in your area? Again, researching the competition will enable you to build a list of the most frequently mentioned services or product lines being offered in your area. This list can then be compared to other possible services or product lines that are missing from your market.

That is the list you want to focus on – what we call the “List of What is Possible”. That is, the design services and/or product lines you believe can make an impression on potential clients who are currently unable to find them.

What home renovation or design challenges do customers have in your area? This is an area where the details matter. So many designers go for The Big Job and forget the importance – and number – of smaller and potentially more profitable projects. While it’s great to work on high-dollar, high-profile projects, it’s also a fact of life that many such jobs are quoted with lower margins and end up costing more than anticipated, reducing profits even further. (Landing those jobs is also an ego boost that a sharp designer shouldn’t need.)

Choosing to focus on a higher volume of higher-margin projects that can be completed more quickly is a fantastic path to building your business and your reputation. And, since interior design is a local business (as we keep saying), building your rep as a creative, reliable professional will be your key to long-term success. (PLUS – smaller projects often offer the potential for more repeat business; that is, instead of renovating an entire house, doing one room at a time over time.)

What Are You Doing?

Finding voids in your market is well and good but will have little value if you are unable or unwilling to fill them. Doing so will require that you rethink your business model to better fit those areas. You may even find that the most needed, and potentially most profitable, service categories are not your favorites. However, if your goal is to build your business rather than to tickle your own fancy, you may need to bite the bullet and offer them.

With these thoughts in mind, expand your research by asking yourself:

Which design services can I provide that are unique, superior, or at a more competitive price point? How can I help homeowners solve their unmet renovation or design challenges? Is there a need for a pro with a different pricing structure?

In what other categories could I perform design work? How many competitors in my potential other categories are in my service area? Is there a need for a pro who can take on small and mid-sized projects?

What will set me apart from the local competition? What can I offer that is different, better, done more quickly, or at a better value? Which lines of furniture, fabrics, wallcoverings, rugs, mirrors, pillows, and lighting might have an impact on your market and, in our current jumbled world, which of them have shorter lead times and/or greater availability?

Use these questions to research your area and to evaluate your own business. Your market research must include all of these factors to see if there’s an unmet need you can fulfill to attract new and/or repeat clients and close more deals.

If you struggle with research for online marketing of your furniture or design business, consider working with a more experienced consultant. Ted is available for such business consulting to the trade. Just… Get in touch with TD Fall today.

The Supply Chain – Make that the Supply Ball and Chain

It’s all well and good for a blog like this one to share hot home design trends and uber-cool new home furnishing lines from various manufacturers like Kravet but – there just hadda’ be a “but”, right – but, we still have serious supply chain issues. And, according to some, the problems won’t be ending any time soon.

We don’t want to beat a dead horse on this subject but, while this particular horse is very ill, it’s still far from meeting its maker.

In a recent article at BusinessOfHome.com, author/editor Ray Allegrezza began a multi-part series that purports to analyze the problems with the supply chain and predict some sort of resolution. (Or, at least the potential for resolving these challenges!)

“Perfect storm isn't just a metaphor,” he declares. “In February, severe ice storms shut down the power grid in the Gulf of Mexico, shuttering four major chemical plants in Texas and another in Louisiana, which drastically reduced the availability of chemicals needed to produce foam used for furniture.

“Key upholstery sources began telling customers to expect a series of price hikes on goods, [along] with surcharges to help offset skyrocketing container and transportation costs. And since this was all part of the movie we are calling “The Perfect Storm”, this series of problems – raw material shortages; price hikes for fabric, foam, wood, metal, and more; and related disruptions in trucking, logistics, workforce, and beyond – hit precisely when demand was going through the roof.”

The “Perfect Storm”, indeed.

Doxing the West Coast Docks

Is it doxing if the info you share is true and already public? Who knows.

What we do know for certain is that the largest ports in the US; Los Angeles and Long Beach in the San Pedro harbor of Southern California, usually handle the great majority of imports from Asia. Currently, however, some 100-150 container ships are floating nearby and unable to dock and unload.

Further, once a ship does unload its cargo, there is a backlog of containers waiting for trucks – and drivers – to haul them across the country. Ports up the coast in San Francisco and Seattle simply do not have the capacity to handle the overload.

As a result, other ports in Texas, Georgia, and even Florida have begun to see a substantial increase in shipping. This, despite the added time and expense of traversing the Panama Canal (if it’s not backed up, as well).  These ports are also nowhere near as large as those in Southern California, meaning they do not have the capacity needed to relieve the backlog anytime soon.

If patience truly is a virtue, those of us in the furnishings and design industries must learn to possess ourselves with it.

“Another indicator that industry challenges will persist is a just-tabulated survey taken among 1,500 independent sales reps who are members of the International Home Furnishings Representatives Association. When the survey asked them to share how the pandemic has impacted their businesses and when they foresee these issues improving, 33 percent said mid-2022. Another 29 percent said late next year – and, tellingly, 30 percent said things would not improve until the very end of next year.”

So, according to the sales reps, those who should know since they exist between the manufacturers, dealers, and designers, we’re in for another six to twelve months of this craziness!

What Can You Do?

Besides being patient and hoping things get better for no discernable reason other than faith, the best path for dealers and designers to cope with the supply chain mess is to keep working with suppliers you know and trust. Keep these relationships open at all costs, and keep the lines of communication as wide open as possible between you, your suppliers, and your clients.

Further, it’s our fervent hope that you think of TD Fall as one of those reliable suppliers. We also hope that our relationship with you has made you confident in our ability to not only meet your product needs, but that we also keep you informed of anything that may impact them. If you have questions or need more product information, feel free to… Get in touch with TD Fall today.

When Instant Gratification Isn’t Possible - Who Pays for Design Project Delays?

Instant gratification can be a good thing – as long as you're the one being satisfied. For an interior designer though, trying to ensure your client’s remodeling project is completed quickly and smoothly has likely become far more challenging recently. With upholstery foam shortages and shipping problems worldwide, design project deadlines that seemed reasonable in the past may no longer be possible.

But who bears the brunt of these design project delays, you or your clients? Beyond simple scheduling problems to iron out, who absorbs increases in costs that extended lead times can cause? Finally, how do you even explain these problems to your clients in ways they can accept?

First, you can take some comfort in the fact that you are not alone – absolutely not alone. And, as explained in an article at BusinessOfHome.com that answers some of these questions, there are more than enough reasons that were out of your control to allow you to remain guilt-free.

“You [never] could have predicted that a cargo ship would get stuck in the Suez Canal for more than a week and hugely interrupt international shipping, nor could you have known that a deep freeze in Texas would virtually destroy foam production for months. And the once-in-a-hundred-year pandemic? Guessing you could not have foreseen that one either.”

Always, Always Be Professional

Next, it’s your responsibility to be the adult in the room. As Sean Low writes, “While these are extraordinary times, they are not without precedent. Price shocks and delays happen all the time, just not as suddenly and pervasively as now … do the hard work of having frank conversations. The fair solution is the right solution, even if some feathers are ruffled along the way.”

Neither you nor your client will benefit from temper tantrums and name-calling. A professional consultation that follows an open and honest initial interview and project contract will go a very long way toward smoothing the waters – for both of you.

Further, you have no ethical or professional justification for taking advantage of the situation. That is, when the costs of materials and labor increase, your client should bear the brunt. However, you are not entitled to make more money because of it. You and your work have value, of course, but that value does not change simply because the cost of kitchen cabinets has risen.

“If you have synced the cost of production with your percentage on purchases, you will now have to do the work to explain that the percentage was always a shorthand to get to what it takes to have the design come to life in their house once it is out of your head. If that work has not changed, then neither should your price, even if the cost of materials and labor have risen considerably.”

In other words, you have no right to charge your client more for the same amount and type of work. (Beyond being unprofessional, doing that would be unethical in the extreme!)

Don’t Eat Project Cost Increases

Time delays cost everyone and the cost must be borne equally. If your cash flow is tied to the timing of certain project goals, or “you earn a percentage on items purchased or charge a flat fee, there is very little you can do to increase revenue in the event of a delay. And do not kid yourself if you charge hourly, the delays will likely not result in enough work to compensate you for the loss of other work. (While you might get more money relative to those charging flat fees or percentages, you will definitely not get enough money.)”

All of this is to say that, while price increases for furnishings can be explained and justified (if not necessarily accepted painlessly), you cannot afford to bear the increased costs from time delays on your own. Fair is fair, after all. And, when the fault lies elsewhere, say with Mother Nature, they do not become your responsibility by default.

As Mr. Low explains, “My position is that time delays ought to be borne by both you and your client almost equally, perhaps through an additional monthly fee to recognize that the project is extending and you need to have the resources necessary to finish the job to the level you both agreed upon when you first started.”

While there is no way for us, or him, to suggest solutions that fit every situation, he does offer some nice insight and advice in the article. Again, you can read it at the BofH Business Advice column.

If you're looking for a more hands-on approach to coping with design project delays and keeping your clients satisfied (if not exactly instantly gratified), Ted is available for business consulting to the industry. Get in touch with TD Fall today.

Still No Cushion from the Foam Shortage Or Shipping Problems

See what we did there? Not to put too fine a point on it, and jokes aside, the combined impacts of the foam shortage and worldwide shipping problems have put a bit of a damper on the recent surge in the home design industry. Worse yet, the experts are not exactly optimistic about when (or if) things will return to normal.

So, what the heck is going on right now? We will try to explain.

Where Did the Foam Supply Go?

Beyond the problems created by the pandemic last year, severe weather early this year pretty much knocked out the foam chemical producers in the Gulf Coast region. And yet, while the weather has improved vastly since then, both chemical and foam production continues to lag. (HomeNewsNow.com)

“The answer, it appears, has less to do with what the industry might call “normal” supply of foam and chemicals for foam than with the relentless surge in demand for product that has yet to abate. Think of it this way, says Steve Rusing, executive vice president and president of U.S. sales for Tempur Sealy International: If the chemical suppliers are running at 100% capacity … industry demand continues to run at 120% or 130% of that capacity. The chemical suppliers simply have not been able to catch up.”

In an industry that rarely maintains a cushion of inventory in case of emergencies, this very well might have been expected. The good news is – you’ll have to wait for better news to be optimistic about the immediate future:

“Industry analyst Jerry Epperson said he doesn’t know of anybody who was expecting industry foam shortages to be over any earlier than June. And from what he’s read and from the executives he’s talked to in the bedding and upholstery manufacturing segment, all are saying it will be September at the earliest and probably year-end ‘Before we get back to the levels they were (supplying) before those storms hit in February’.”

Worldwide Shipping Crisis Update

Yeah, the experts are calling it a worldwide crisis, not just a “situation” or lead time “problem”. And, the most cringe-worthy part of this is – they don’t expect relief until next year (at best!).

According to a recent article at BusinessOfHome.com, “The flip side of the boom in the home and design industry over the past year and a half is the global shipping crisis. Demand has never been higher, and wait times never longer … Experts are now saying that it will be at least the first quarter of 2022 before shipping lead times will stabilize.”

Beyond the supply problems shared above, there appear to be three major reasons for the ongoing problems: increased demand, congestion at ports, and a serious shortage of shipping containers.

“Says journalist Rachel Premack, who has reported extensively on the crisis for Business Insider, ‘We’re continuing to see a remarkable increase in demand, coupled with a shortage of shipping containers and massive congestion at ports,’ she explains. ‘The reason we’re seeing 2022 as the point when this calms down a bit is that people are expecting that demand will continually decrease as society goes back to normal. Once that happens, ports can work through the existing backlog of containers’.”

At the moment, patience truly is a virtue, for suppliers, manufacturers, retailers, and designers around the globe. Oh, and yes, for your clients, too. So, be as upfront and honest as possible and share more information rather than less. Despite the ongoing foam shortage and delays in shipping, your bottom line will thank you for it.

We Can Deliver

At the moment, Kravet is only running a few weeks behind its normal production. In fact, their QuickShip frames, which normally would ship in two weeks, are shipping in 15 working days. All other frames, which normally ship in eight weeks, are currently shipping in 10-12. There are some caveats and disruptions but the customer is always kept informed!

Of course, the fact that all Kravet SMART frames and fabrics, which are the foundation of the QuickShip program, are guaranteed produced right here, in the USA, is sheer genius when it comes to lead times that are quicker than the competition.

Also, Ted remains available to work with you on an individual basis, consulting on how your business can best respond to the shifting demands of the marketplace, and the needs of your design and furnishings clients. Get in touch with TD Fall today.

What Do You Love About Running Your Business? (And why aren’t you doing more of it?)

There are usually two reasons entrepreneurs start a business: necessity or love. (No, not THAT kind of love.) If you truly love running your business, it’s unlikely you got started out of the basic need to earn a living or because you simply hated your old job.

But, no matter the reason you went to work for yourself, there will always be things you dislike (hate?) about being “The Boss”. The question then becomes, “Why are you doing them instead of the things you enjoy?”

Maybe this quotation from world-famous, serial entrepreneur Sir Richard Branson will help us make it clearer:

“I believe that drudgery and clock-watching are a terrible betrayal of that universal, inborn entrepreneurial spirit.”

Admin tasks, payroll, bills, and so many other things can interfere with doing what you love about being a designer, designing! Or, if you're a furnishings dealer, selling! So, why do you let all that stuff take up 40%-60% of your time, energy, and focus?

If You Don’t, Who Will?

If You Don’t, Who Will?

The almost ubiquitous answer from busy entrepreneurs is, “Well, somebody has to do it!” Right… But the solution is in your answer: SOMEBODY. And, that somebody does not always have to be you!

Back in June, we shared some thoughts on Outsourcing Admin Tasks. Since a few of you have yet to turn over all of that work to a virtual support team, we thought we’d remind you of a few salient points.

1.      As a small business owner, your time is your most precious commodity. It’s an asset even more valuable than your expertise as a designer or furniture dealer.

2.      And yet, your time is also your greatest restraint; the ultimate factor that limits your ability to put your energy, talents, and creativity to their most effective use in the service of your clients.

3.      By delegating mundane business tasks to a virtual team or other sub, you free up more of your time and energy to service existing clients and acquiring new ones. This is what generates revenue, after all – and this is where your focus must be!

We don’t want to belabor the point, but running your business does not have to include more of doing the drudgery you hate than the creativity you love. In fact, if you hated your old job enough to take the leap and start your own business, it makes no sense at all to struggle with tasks you can’t stand.

Looking for Help?

If you're having trouble deciding which parts of your business you should outsource, and which to spend more time on, Ted is available for business consulting and coaching. His more than two-and-a-half decades of experience in the industry, along with running his own business, make him a wonderful foil for your ideas, limitations, and challenges.

Just… Get in touch with TD Fall today.

Relationships with Past Design Clients – The Key to Repeat Business

In a recent perusal of the blog at BusinessOfHome.com, we were intrigued by a post on how designers generate repeat business. In it, author Haley Chouinard asked a dozen designers how they go about maintaining relationships with past design clients to foster new or additional business.

We’re happy to recommend taking the time to read the ideas shared by the designers in the article but, what caught our eye, in particular, was this comment: “Whether I randomly see a home decor item they may like or do an activity that reminds me of a certain client, I will share it with them afterward.” (Tiffany Brown, Brown Builders Design, Charlotte, NC)

“Why?” you may ask. “Because,” we would answer, “doing this would not only be an excellent way to reengage with a past client, it could also be the perfect lead-in to meeting with them and proposing another project.”

“How so?” You may further ask. “Thusly,” we would likely respond…

Reengage Past Clients for Repeat Business

First though, a quick reminder about the value of repeat clients over new ones, which we shared in this post back in March:

Based on the latest research, designers and dealers will do themselves a favor if they can devise ways to retain or reengage existing and past clients. Why?

• New clients are 7x more expensive to acquire than keeping or reengaging existing or past clients.

• The probability of converting an existing customer is between 60% &70%.

• The probability of converting a new client is just 5% to 20%.

• Repeat clients spend an average of 33% more than new clients.

• Repeat clients are 60% to 70% more likely to buy an up-sell.

These are just a few of the reasons that re-engaging and working to establish customer loyalty is critical to the growth of your business.

Relationships, Relationships, Relationships

And so, back to thusly…

Obviously, and by definition, there is already a relationship between you and previous clients. Following the advice offered by Ms. Brown presents a great opportunity for re-engagement on a highly individual basis.

By sending them a quick, “I saw this and instantly thought of you and (that room/space in your home)” note, you tell them you haven't forgotten them. Not only that, you’re still actively thinking of them and their ongoing design needs. And, as she also said, “This thoughtful reminder that someone is thinking of you is [a] feeling we all hope for in our daily lives.”

Imagine the different responses they might have to your note:

·         A quick “Thanks for thinking of me” note, then silence.

·         That same note with a request like, “Can you tell me more?”

·         Or, and this is what you are most hoping for, a note that says, “Thanks so much for thinking of me. Can we get together and talk about where you think it would fit best in my home?” (Cha-ching!)

That last one could be the goose that’s getting ready to lay a golden egg – right on your doorstep.

Take the Reins and Ride into a New Project

Let's take it a step further, shall we? Imagine you were at Market or in a showroom recently and saw the perfect sofa for a previous client’s living room. You know it’s perfect because not long ago you redesigned their kitchen for them and wondered how you might inspire them to renovate a room that made you think, “Ew!”.

Since you are a true professional, when you meet to discuss how the sofa would be a perfect fit for their formal living room, you are fully prepared with a plan to improve that space. You might also say something like, “This is perfect for a formal setting, right in front of that beautiful picture window. Or, better yet, two of them facing each other before that gorgeous fireplace!”

They may respond with something like, “Oh, I was thinking maybe the family room”.

“Oh my,” you would respond. “This piece is much more appropriate in a formal setting like your living room. But, hey, I think I remember the perfect choice for your family room, too! Let me just see if I can find it in my notes. Ah, here it is. What do you think?” (We knew you’d have it ready for them!)

Now, suddenly, you're not simply trying to sell them a sofa. You’re talking about renovating two rooms for them, all because you're such a thoughtful human being and a wonderful, professional interior designer! (Go ahead, pat yourself on the back!)

This is the definition of upselling a client. And, because they’re a repeat client, they already know and trust you. Plus, you’ve displayed your concern for them by letting them know you were thinking of them even outside the setting of their home.

And, don’t forget, you are 60% to 70% more likely to make a deal with them than with an unknown prospect. From there, closing a new deal with your repeat client should be easy!

When Opportunity Knocks, You Caused It!

Don’t forget to check out the article we mentioned earlier, either. There are some pretty cool tips there about how to maintain and grow relationships with past design clients.

If any of the ideas we offered above resonate with you, please let us know. Also, if you have more questions about how you can generate new business with repeat clients, Ted remains available to work with you on an individual basis, consulting on how you might best engage or reengage with your design and furnishings clients. Just… Get in touch with TD Fall today.

Outsourcing Admin Tasks – Do You or Don’t You? (And if not, why not?)

There are so many things for which we can be grateful about living and working in the online world of today. We were able to stay connected, virtually, during a worldwide health crisis, despite onerous restrictions placed on most of us. For small business owners, both selling and ordering just about anything is easier than ever. And, especially for entrepreneurs and solopreneurs, outsourcing admin tasks to a virtual support team has become a time and money-saving necessity for many.

And so, we ask the question: Do you or don’t you outsource the daily, mundane business tasks that sap your energy, steal your focus from client work, and wreak havoc on your creativity?

If not, it's time you started.

Can You Delegate Admin Tasks?

As an interior designer, you already work with assorted subcontractors like carpenters, plumbers, finishers, carpet installers, and undoubtedly many more. Obviously, you understand the value to be had in outsourcing such specialized work. So, why not try outsourcing the daily paperwork and other stuff you hate?

(We feel the need to add “probably” to that sentence. Because, against all possible logic and reason, some people actually ENJOY doing admin work for their business! We have no idea where such creatures come from but we’re told they exist.)

Of course, most of the subs you work with perform tasks that are outside your skillset. After all, you're a designer, not a tile installer. And yet, if you're like so many entrepreneurs who are proud of their ability to multi-task, there is something about delegating administrative business tasks to a subcontractor that truly bothers you and prevents you from taking that step.

What is it Costing You?

Here’s another question for you: As a business owner, what is your greatest asset?

Even above your skills, talent, and creativity, your time is your most precious commodity. It’s an asset even more valuable than your expertise. It’s also your greatest restraint – the ultimate factor that limits your ability to put your energy, talents, and skills to their best possible use in the service of your clients.

As the face and voice of your business, your time has inestimable value but it is possible to at least estimate what it can cost you to spend time on those mundane tasks.

• According to the financial education website, MoneyCrashers.com, research done by Microsoft found that workers used only about 60% of their available work time. (Yeah, that always connected online thing can be a massive distraction!)

• The average owner of a service-based small business spends about one day a week servicing existing clients and four hours acquiring new ones. The rest of their 40-hour week (if they don’t spend twice that running their business), is spent on tasks that do NOT generate revenue!

• Looking at this another way, whatever you charge clients for your services (maybe $200 an hour?), is reduced by at least 60% by the time-suck of admin tasks you're doing. That means, in a minimal 40-hour week, what might have been $8000 of revenue generated from client work is reduced to $3200. It also means you're now working for just $80 per hour.

• Your hourly rate just plunged by more than half! And you're the owner!

Remember, when you delegate everyday business tasks to a virtual support team, your goal is to free more of your time to service existing clients and acquiring new clients – both of which will enable you to boost revenue and grow your business!

Does this at least make you think about outsourcing admin tasks for your design business?

We sure hope so. And, if you have questions about how or whom to work with, Ted is available for consultation and guidance whenever you need it. Just… Get in touch with TD Fall today.

Want to Land More Design Projects? Don’t Over-Expertize Your Expertise

OK, yes. We made up a word. So sue us! If it got your attention and made you want to learn more about how to land more design projects, we feel no shame. (Well, we don’t anyway, really. It is our blog, after all!)

Anyway, the point we’re trying to make is (and we mean this with all due respect), becoming an expert in one area does not make us expert in others, nor should it. Sometimes, the more we know about something the easier it is to take for granted that others – like prospects or clients – know something about it too.

To put it another way, our familiarity with a subject need not breed contempt. But rather, the more we know the more likely we are to assume what our target audience knows. This can be deadly when trying to close a deal. In fact, there may be no quicker way to kill one.

Like Attracts Like (Not including clients)

It’s human nature and should come as no surprise, that those with similar interests find comfort associating with each other. Interior designers and furnishing suppliers tend to hang together. Salespeople with salespeople, marketers with marketers. Whole industries can become exclusive and the subjects of discussion among experts climb to higher and higher levels.

But, what happens when you're thrown together with a group of laypeople; or just one, a potential client?

Prospects will commonly express a desire but, because they lack the knowledge to make it happen, they look to an expert. In the internet age, they’ll go online to search for info but surely need more. (Often, what they find will be just enough to make them dangerous – to themselves.)

That is where you come in. And, that is where your experience, and your respect for them and their efforts to learn, will enable you to deliver a message that will resonate with them – and help you land more clients.

The key to successfully landing more projects in such a situation is to remember this… The fact that you know the benefits of a home renovation, or how the features the furnishings you suggest will make your ideal client’s life better, does not mean that they do.

Only Be an Expert When Necessary

Ultimately, you really can’t “know too much”, you just need to always be mindful that many people will know far less. And never forget, it’s your job to help them learn what they need to make an informed buying decision.

The fact that you're the one who taught them should take care of the rest.

Ted remains available to work with you on a case-by-case basis with business consulting that is targeted to your needs and goals. With more than 25 years of experience in the luxury furnishings and interior design industries, he has pretty much seen it all. So, if you're ready to work with a professional business consultant who can help you land more design projects… Get in touch with TD Fall today.

Good News for Q2 2021 – Optimistic Design Project Predictions

Compared to the same time last year, the good news for designers is not found in optimistic design project predictions for the second quarter alone. No, even better, there are actual, positive numbers to support such an outlook.

According to the most recent Houzz Renovation Barometer, “architecture and design firms saw a significant increase in recent project inquiries and [newly] committed projects in January, February, and March. Their score for the Recent Business Activity Indicator of the Barometer increased to 75, an 11-point rise from the prior three months and the highest level recorded since the launch of the Barometer in Q4 2014. Relative to the same period a year ago, the indicator is up 31 points.”

When Bad News is Good News

So, while the most recent Houzz Barometer “reveals continued confidence among remodeling professionals for home renovation activity in the second quarter of the year”, that’s not enough for us. We want proof that things are improving!

Ironically, that proof can be found in what we would normally consider a couple of negative business metrics: project backlog stats and increased project wait times. In other words, “Surging demand for new residential construction and design projects has resulted in a backlog, with wait times of more than two months to start new midsize projects – about double the wait compared with this time last year.”

While backlogs and wait times vary by region, “The Project Backlog Indicator for architectural and design firms averages 8.4 weeks nationally at the start of the second quarter of 2021, up 2.8 weeks compared with the start of the first quarter. Compared with a year ago, when wait times were 3.6 weeks, wait times are up more than a month (4.8 weeks).”

“Compared with the same quarter a year ago, backlogs have almost tripled across all nine census divisions as reported by architecture and interior design firms.”

If your design business has yet to experience a similar surge in new projects this year, Ted is available to work with you on a case-by-case basis with tips to help you grow your business.

With more than 25 years of experience in the luxury furnishings and interior design industries, he has pretty much seen it all. So, if you're ready to work with a professional business consultant who can help you grow your business with reachable goals… Get in touch with TD Fall today.