Fast Furniture and Client Satisfaction – Oil and Water Don’t Mix

Phrases like “social distancing”, “contact tracing”, and “flattening the curve” have been popularized in our cultural lexicon thanks to a couple of years of the pandemic. The interior design industry is no different as the phrase “fast furniture” has been coined as a somewhat derogatory term for what used to be known as mass-produced furnishings.

From products by Ikea and/or Wayfair to higher quality ready-to-ship pieces from Pottery Barn, Crate & Barrel, and Ethan Allen, homeowners and designers have been filling homes across the country with readily available pieces. This is understandable in some sense since not everyone can wait two to ten months for their new, designer furniture to be delivered.

In the middle of the work-from-home crisis, office furniture led the way in this trend, but ongoing supply chain issues have perpetuated this need for many homeowners.

The Good, Bad, and Ugly

According to an article from the New York Times, while design clients and DIY’ers have been largely satisfied with such solutions, many in the trade are worried that these easy-to-get products will have a short shelf life, resulting in clogged landfills over the next few years.

“The e-commerce furniture market alone was worth more than $27 billion in 2021, and [is] projected to reach more than $40 billion by 2030, according to a report from Next Move Strategy Consulting. Ikea is opening an average of [fifty] new locations per year; Amazon, the world’s largest retailer, now has two private-label furniture brands, the midcentury-modern Rivet, and the more farmhouse-chic Stone & Beam.”

While this is all well and good for the US economy, at least on a micro level, as sustainability expert and author Ashlee Piper is quoted as saying in the article, “It’s quite a big problem, both spatially and also because of the way a lot of fast furniture is made now, it’s not just wood and metal. The materials don’t biodegrade or break down … We’re creating this Leviathan problem at landfills with the furniture that we get rid of.”

To confuse the issue, even more, the article tosses us another positive aspect of fast furniture’s popularity: “For all of its flaws, fast furniture offers millions of homeowners the opportunity to live in a stylish home at an affordable price point. As young people contend with skyrocketing housing prices and economic anxiety, even those who would prefer to browse antique markets or shop for custom pieces simply don’t have the resources to do so.

The Sustainability Issue

Quick production schedules and fast turnaround times create issues with sustainability in the furniture industry. However, “Over the past decade, a number of sustainability-focused companies have entered the market in the hopes of presenting a solution,” the article explains.

Though “sustainability-focused companies [that] have entered the market” is a positive step, it begs the question of what established furnishing manufacturers may be doing.

For example, as the oldest manufacturer in the US as well as the industry leader, the Kravet family of brands has developed its Green Initiative, outlining a company-wide commitment to sustainable manufacturing solutions.

“The Kravet family of brands is dedicated to conducting business with a focus on providing a sustainable future. Our goal is to do our part in the worldwide effort to protect the planet with impactful initiatives. As a fifth-generation family business, we understand the importance of building a legacy built on reliability with a promise of a brighter tomorrow. These are the steps we are taking to secure that promise.”

And, of course, the creativity of design and quality of their products ensures a long shelf life in the homes and offices in which they are placed.

For alternatives to the fast furniture trend, and for more information on quality home-furnishing lines like Kravet and others we represent, simply… Contact TD Fall today.

Design Industry Trends – Shifting Priorities and Practices (Part 2)

As promised last week, we’re continuing to explore shifting industry trends based on an article at BusinessOfHome.com. In it, author Caroline Bourque shares insight into the results of a survey of some 900 interior design firm owners relative to shifting design industry trends, priorities, and practices.

It should go without saying (yet here we go saying it anyway) that the past few years have been some of the most challenging in the history of the design trade. From what some believed to be the end of the design business to a relative boom, challenging times persist. Whether you find yourself dealing with twitchy clients or coping with ongoing supply-chain issues, the survey reveals a few other hills to climb moving forward. (We know where you can get some great hiking boots!)

Increasing Labor Costs Forcing Design Rates Upward

“As [interior design] firms increase compensation, squeezing a business’s net profit and margins, they’ve also been forced to raise their rates – a decision that’s being met with some client pushback.”

This “pushback” from clients appears to be a direct result of those aforementioned escalations in interior design fees and “long timelines in the wake of [ongoing] supply chain issues and material shortages.”

The response from many designers has been an exploration of set fees. “While the report reveals that 80 percent of designers still charge hourly fees or hourly plus markup, [other] firms are beginning to trend toward fixed fees, which are used solely or in addition to hourly rates by 40 percent of respondents [to the survey].”

This then creates a new problem for a significant number of designers: undervaluing their services and setting their fixed fees too low. “Nearly two-thirds of all firms charge $200 [per hour] or less, with most charging $150 [per hour] or less. Meanwhile, the majority of smaller, newer firms charge less than $150 per hour.”

Administrative Challengers are Increasing

“Changing billing practices was one of the top strategies to address current business challenges,” for a majority of respondents. Further, “maintaining contact with current and former clients; increasing networking with local building and real estate professionals, contractors and service providers; and improving social media presence” were also problematic.

“Along with a detailed look at information like average gross sales, salaries, and benefits, the report also includes observations and insights about this period of new industry highs and lows.”

If you have questions about these design industry trends and how they are affecting your business, Ted remains available for business consulting to the trade. Simply… Contact TD Fall today.

Design Industry Trends – Shifting Priorities and Practices

Over the next couple of weeks, we’ll explore a few important industry issues based on an article at BusinessOfHome.com. In it, author Caroline Bourque shares insight into the results of a survey of some 900 interior design firm owners relative to shifting design industry trends, priorities, and practices.

It should go without saying (yet here we go saying it anyway) that the past few years have been some of the most challenging in the history of the design trade. From what some believed to be the end of the design business to a relative boom in business, challenging times persist. Whether you find yourself dealing with twitchy clients or coping with ongoing supply-chain issues, the survey reveals a few other hills to climb moving forward. (Gee, thanks!)

Labor Challenges Persist

As this snapshot of the design businesses reveals, Top of the Pops so to speak appears to be hiring. “The survey found that roughly a third of firms increased staff size in the past year, with slightly more planning to do so in the coming year. Meanwhile, nearly half of all firms attempted to hire staff during the past year, even if they weren’t successful with design assistants and interior designers as the most in-demand new roles.”

The major challenge in the current labor market seems to be the increased expectations of the candidates, “with priorities that include health benefits, flexibility, engaging leadership, and much higher compensation.”

“Candidates today have higher expectations of new positions. In some cases, the survey found entry-level candidates with one to three years of experience requesting salaries in the mid- or higher-level range, up to $50,000 rather than the former entry-level standard of $30,000.”

“In turn, designers seeking new hires reported a lack of candidates that were available: qualified, affordable, and a good cultural fit for the firm … which, coupled with many designers leaving established firms to start their own businesses during the pandemic, puts the onus on firm leaders to adjust their own practices to attract and retain new talent.”

For smaller firms whose owners often struggle mightily to compete in the marketplace, both a lack of candidates and demands for greater compensation will require them to focus on culture and values. This will likely include honesty, customer service as a value, a focus on creativity, and making the workplace fun.

Design Fees, Margins, and Profitability

Stay tuned for more insight on design fees, margins, and profitability we’ve gleaned from the article and survey soon. For now, we believe you have plenty to think about from what we’ve shared above.

If you have questions about these design industry trends and how they are affecting your business, Ted remains available for business consulting to the trade. Simply… Contact TD Fall today.

Business Growth and Change – Lessons Learned from Both

A couple of interesting articles at the IandS.Design website recently caught our eye(s). From managing client expectations in our recently changed world to lessons we might learn from the past (where else could they be from?), we began pondering just how much these changes might affect business growth.

Not to get too philosophical here but, the Universe has managed to once again remind us that change is the only constant in our lives. How we respond to it, and the lessons we learn from it, will largely dictate our success in both life and business. And, not to get too pedantic about it but, acceptance is the key to adapting to the changes recently wrought upon our world.

Business Lessons Learned – Design Client Needs

Many designers like to declare themselves a “boutique house”, with all that implies. Too often, such houses are more than happy to sign just about any client who comes along, contradicting their claims of a customized, intimate feeling that makes their clients seem special. Rather, growing the business is their true priority, often beyond their ability to control.

This type of business philosophy is counter to what the average homeowner wants their interior designer to offer.

For author Michael Thomas, business growth is no longer a priority: “The first lesson is to keep a small, manageable number of clients – where quality services can be consistently provided. In times past, it seems that growth was added for the sake of growth – taking advantage of abundant numbers of clients and seemingly lucrative projects. It was the ‘bigger is better’ mentality that overtook a number of us. Adding more projects often meant the need to add more staff, additional workspace and with those, the increasing costs associated with such overhead.”

Further, many of today’s homeowners feel the need for increased emphasis on mental well-being. As explained by Pierluca Roccheggiani, U.S. design director and vice president of luis vidal + architects in another context, folks are "increasingly looking for specific areas dedicated to relaxation and calmness, like yoga rooms and meditation areas. Bringing natural light and open buildings to exterior views plays an important role … Another design aspect that has been increasingly sought-after post-pandemic is access to outdoor space. It’s becoming a vital component for comfort and well-being.”

Naturally, the first concept, that of keeping one’s client list smaller and more manageable, makes the second concept much easier to follow, that is, knowing your clients well enough to offer them the well-being they’re seeking.

Business Lessons Learned – Designer Needs

Perhaps one of the most difficult lessons for interior designers and even furnishing dealers to learn is again expressed by Mr. Thomas: “The next lesson is to become much more ‘choosy’ about which clients to take on.”

After all, when someone is offering hard cash for your products or services, it seems exceptionally counterproductive to refuse their business. Yet, one must keep in mind that not all clients are created equal and that too many of them are more trouble than they’re worth. Running a business (and a life) is difficult enough without the hassle of a bad client.

“Next, build strong alliances with others who have the same or similar profiles of clients. Collaborate with professionals whose expertise is complementary (not competing) with your own. Develop ways to share common workspaces, as well as marketing and operational expenses such as administrative staff.”

In other words, shared values, a similar business philosophy, and acceptance of the fact that finding business allies with whom we can engage will make all of us stronger and more adaptable to change.

Finally, feel free to display your expertise in a niche that matches your talents and training. Clearly, doing this will increase your comfort level and should help you to find the business growth you need to succeed without overtaxing your ability to keep your business running smoothly.

If any of these ideas resonate with you but you’re having trouble implementing them, Ted’s 25-plus years in the trade makes him an excellent business consultant for both interior designers and luxury furnishing dealers. Simply… Contact TD Fall today.