Find Alternative Methods for Financing Remodeling Projects & Close More Design Deals

As outlined in a previous post, titled Interior Design Tips: Dealing with Client Fear, most design clients list the potential cost of a remodel as their number one fear. As we stated then, what they truly fear is taking a risk or making a blunder, often preventing them from moving forward. And, while this remains true, cost remains an impediment to closing the deal on a remodeling project. Knowing this, a sharp designer will find alternative methods for financing remodeling projects – and, by doing so, will close more deals.In the cost-related post, we offered this advice: Being realistic and honest with your clients is the key to overcoming the fear of cost. Whether the project stays within budget will depend on how thoroughly you’ve thought it through for them. If you have done your research on what things cost, requested quotes from contractors, and truly nailed the scope of the project, you can expect to be within a realistic range that your client can accept.We also offered this potential solution: Plan the project thoroughly, know your parameters and limitations and do your research so that you have a realistic budget to work within.Here, we would like to present you with another solution that may help you overcome the cost objection to your interior design projects:How to Pay for a Home Remodeling ProjectAccording to an article at Houzz.com, the majority of home remodeling projects are paid out-of-hand, with clients using cash or savings. Naturally, the fear of depleting their cash reserves can add to a potential client’s fear of the price you quote them to complete a project. For the savvy interior designer, however, presenting alternative methods for financing a remodeling project will help allay this fear – and may be the key to closing the deal with a client who is on the fence.It may surprise you to know that some 85% of 2017 home remodeling projects were paid for with cash (according to the Houzz survey). However, it may be just as surprising to learn that just 54% of those projects were paid for using only cash as the client’s sole method of payment. This information opens to door to you helping your clients find alternative methods for financing remodeling projects.Below is a graph which outlines the ways in which most design clients pay for home remodeling projects, along with alternatives for financing them.Alternative Methods for Financing Remodeling Projects

• Credit cards – The options here are store-specific cards and credit cards not tied to a specific store. The upside of this method is that your client could earn rewards points, but the downside is potentially paying interest. According to the survey, 33% of homeowners used credit cards to pay for home renovations in 2017, though most were combined with the use of cash.
• Secured loans – With secured financing, your client pledges collateral; an asset that would serve as a default payment in the event they fail to pay off the loan. There are several types that can be used to pay for a home remodel. Again, each of them would come with interest on the principal portion of the loan.
• Home equity lines of credit – Also known as HELOCs, these are revolving lines of credit that can be taken out against home equity. Essentially, the client borrows against the equity in their home, and the house is used as collateral for the debt. As the loan is repaid, the line of credit is replenished, meaning they can borrow against again, it in the future. Some 7% of homeowners surveyed who renovated in 2017 used HELOCs to pay for their projects.
• Cash-out refinancing – This is a home mortgage refinance in which the new mortgage is for a larger amount than the existing mortgage, with the difference converted to cash for the homeowner. Some 5% of homeowners surveyed, who renovated in 2017, used cash-out refinancing to pay for their renovations.
• Home equity loans – A home equity loan is a type of second mortgage that allows your client to borrow against the value of their home. It may be a general loan, a construction loan or a home improvement loan. About 4% percent of homeowners used home equity loans to pay for their renovations last year. (Additionally, since this is a home loan, any interest paid may be tax deductible.)
• Unsecured loans – These are loans that don’t require collateral. Qualifying for such a loan is based on your client’s credit score and income and, of course, there is interest that must be paid over the life of the loan. Just 2% of homeowners Houzz surveyed paid for 2017 home renovations with unsecured loans.

Since a home remodeling project will often require a significant investment by the homeowner, a clever interior designer will often present prospects with alternative methods for financing remodeling projects. Where possible, the designer may even build a relationship with a local bank or credit union to offer such financing. By researching and offering this information to your prospects and clients, you will surely close more remodeling deals.Looking for more interior designer marketing tips, new design trends, and design product ideas? Get in touch with TD Fall today.

Online Marketing Strategies for Interior Designers – Revisited

online marketing tips

We’ve spent a great deal of time and effort during the past year working to educate and illuminate the ways in which online marketing strategies can help you grow your interior design business. Looking back, we can’t help but wonder if you have taken any of this information and put it to use for your own business.

You see, here’s the thing, the strategic marketing information we’ve shared with you over the past 12 months was not mere opinion. We’ve done the research and consulted the experts in internet marketing, email marketing, and social media marketing, as well as an expert in designer marketing. Based on what we’ve learned from them, we believe we’ve put together a fairly comprehensive list of strategies and techniques that, if used correctly, will enable you to:

• Increase traffic to your design website

• Enhance your online reputation

• Grow your email subscriber list

• Boost engagement with your audience

• Enable you to build relationships with both clients and prospects

These are all important marketing goals for any business with a presence online these days. But, they are goals that require a focused effort and consistent implementation.

New Year’s Business Resolutions

As we head into a new year, it’s important to remember that some 80% of New Year’s resolutions fail within the first 30 days. This is true of business objectives as well as for personal goals.

The reason for such a stunning failure rate is simple: New goals are often too general and vague. Successful goal setting requires specific, realistic objectives, combined with a comprehensive plan to achieve them. To say you want to “increase sales this year” is simply too ambiguous to maintain focus.

Instead, you should target a number: a percentage or dollar increase in the number of sales you want to make over last year, for example.According to HostGator.com, if you want to improve your design business in 2019, you should resolve to:

• Review and update your business plan

• Consider your staffing needs for the New Year

• Check in with your customers

• Revisit your pricing

• Research new software solutions

• Create a customer review policy

• Do a website review

• Improve your marketing plan

Of course, that last one is where we have been focusing all year and, to help you accomplish this most important goal, we would like to remind you of some of the many posts we’ve published about online marketing strategies for interior designers.

Click on the links below to read them again (or for the first time):

• Designer Marketing Tips – Interior Designer Marketing Plan

• Online Marketing Tips – SEO Basics

• Designer Marketing Tips – The Role of Content in Online Marketing

• Designer Marketing Tips – Facebook Advertising - 3 Types of FB Ads

• Grow Your Interior Design Business – Analyzing Your Market

• Online Marketing Tips – Why Video Marketing Work Best for Online Sales

There were many more than these few, of course. So, if you're still curious, feel free to visit the TD Fall Blog and take a look around.Looking for more about online marketing strategies, interior designer marketing tips, new design trends, and design product ideas? Get in touch with TD Fall today.

Interior Designer Marketing Tips: Are You Struggling to Find New Clients? [INFOGRAPHIC]

It’s no secret that most designers go through periods where they struggle to build their client base. While we’ve shared many interior designer marketing tips in the past at this blog, it’s always helpful to know why you might be having trouble finding new clients – and, you do not have to think it’s all your fault!In a recent article at DesignersToday.com, we discover that cost and lack of need are the two biggest barriers to hiring a designer among all generations, according to exclusive research from Furniture Today.Of course, this information is not exactly surprising; yet there is a huge value to be found in understanding more clearly what the data have to say about the demographics involved. It’s equally valuable to understand precisely where today’s consumers are willing to invest in interior design services.Interior Design Client DemographicsAccording to the research, consumers are much more likely to consider working with a designer for complete room overhauls, while preferring to tackle redecorating projects themselves.

• A complete kitchen renovation is the home project for which consumers are most likely to consider using a designer, with Millennials most likely at 54%, significantly more than Generation X at 45% and slightly more than Baby Boomers at 52%.
• Overall, the cost is the strongest deterrent for Generation X, at 79%, slightly ahead of Millennials at 78% and Baby Boomers at 76%. Lack of need, at 65%, is a bigger barrier for Baby Boomers than both Millennials (62%) and Generation X (57%).
• However, not all barriers to hiring a designer stem from perceived negative aspects of the designer experience, with 57% to 62% of all demographics declaring they simply prefer designing themselves.

For more, check out the infographic below.Economics of Interior Design BusinessYet, despite these somewhat depressing numbers, all is not lost. The interior design industry generates a significant amount of revenue each year across the US. In fact, based on the most recent data we could find, the total annual economic impact (direct, indirect, and induced) of the interior design sector in the United States was estimated to be $96.3 billion in 2016, which can support 522,400 jobs annually.

• Total revenue for the interior design sector is estimated to be $49.0 billion, generating nearly 200,000 jobs annually.
• The interior design sector generates an additional $47.3 billion in ripple effects each year, supporting 323,136 more jobs in the country in annually.
• Among the total, 110,141 workers were employed directly in interior design industries, and the rest were interior design workers in supporting industries. (IIDA.org)

Needless to say, as the economy continues to improve, and the housing market continues to grow, the future looks bright for the savvy designer who can target their market accurately and offer the services sought by each client demographic.Looking for more interior designer marketing tips, new design trends, and design product ideas? Get in touch with TD Fall today.

The Key to a Successful Design Business – Selling Value Over Price

At TD Fall & Company, our goal is to help designers by providing innovative solutions for their interior design challenges. We do this by providing you with access to outstanding products that will empower you to fulfill your client's dreams, enabling you to build a successful design business.Perhaps foremost among those challenges for most designers is the struggle with trying to convince their clients of the true value of buying a higher quality product that really belongs in their homes. From flooring to wallcoverings and from window treatments to upholstered furniture, many design clients become fixated on cost with little regard for value.There are basically two ways to handle this particular challenge:

• Target better – Create an ideal client profile that is based on your market research. In a perfect world, you would generate a client list for whom “money is no object”. In the real world, however, you’ll need to be a bit more practical. A well-researched and thought-out ideal client profile is a tool you and your team can use to identify the specific segment of customers that will bring you the best business. Then, once you begin focusing on certain types of clients, you're likely to attract more of them. As the old adage goes, “Birds of a feather flock together”, and referrals from such clients will help to bring you more of your ideal clients.
• Sell better – Known as “upselling” among professional salespeople, you must learn to create a compelling story that will convince your design clients to buy quality over price every time. Not only will this put more money in your pocket, you’ll also build your reputation as a designer who focuses on value, creating a greater sense of client satisfaction and trust, while increasing the odds of more of those referrals we mentioned above. Making an investment in a quality sales training program would certainly help with this approach.

Ultimately, your goal must be to sell the value and the benefits of your product or service to your customer. This can only be done by keeping your focus on explaining and expressing the impact of the choices they make on the client. If you focus on the benefits and value of a higher quality product, the price will become less and less important. If you don't focus on value, the only thing you can talk about is price – playing right into their perceived need to resist the more expensive options you present.Building your sales skills will have long-term benefits that are difficult to quantify; which is also true of researching your market and creating an ideal client profile. Both will generate increased confidence in your ability to “close the deal” with more prospects, even those who don’t match the profile.Regardless of your talents and skills as an interior designer, if you're a small business or solopreneur, you must accept that your ability to analyze your market and sell to a variety of prospective clients will determine whether you are able to build and sustain a successful design business.Click here for tips on Analyzing Your Market.Click here for tips on Helping Clients Focus on High-Value Improvements.Looking for more new design trends, marketing tips, and ideas? Get in touch with TD Fall today.

Grow Your Interior Design Business – Survey Your Audience

In a previous post about analyzing your market, we offered some general guidance about market research that could help you grow your interior design business. Today, we’d like to add a tip that will help you further: Survey your audience.In the world of online marketing, building an email list is considered one of the most powerful tools you have at your disposal for engaging with prospects and clients. What many of the online marketing “experts” neglect to mention is that your list can also be an incredibly valuable resource for developing important marketing information.The feedback you receive from your list may be the most valuable source you have at your disposal because you already know they’re interested in you and your business – they told you that by opting-in to your list.Survey Your Email ListWhether you have a big audience or a teeny tiny audience doesn't matter. What does matter is that you need to be sending out questions to get to know your audience better. And, since your email list is something of a captive audience, they’re an excellent resource for marketing information.Using the information they share with you in response to your surveys will enable you to create more products and services that your audience wants. This will not only increase your sales, but it will also help you to build a stronger social media following and increase traffic to your website. These are very good things!You may have heard that surveying your audience is something that you should be doing but, it’s very likely you are not, and it is tragic if you are not continually surveying your audience on a quarterly basis.We recommend putting this activity into your calendar where, perhaps once a quarter, you get an automatic alert that notifies you that it’s again time to send out a survey to your list.Survey Questions for Your ListA time-tested practice would be to limit your quarterly survey to about five questions. Why just five? You want to respect people's time, and they are going to answer it out of the goodness of their hearts.For example, you might send an email to your list saying something like:“Hey, I’m at this place in my business where I'm wanting to make sure that I'm on target and I'm giving you the best value that I can. So, I have five quick questions for you, and it would mean the world to me if you could take a minute and answer them for me.”One of the questions on your survey should always be:“What's your number-one most burning question when it comes to working with an interior designer?”Of course, you may have a more specific category that is your most burning question for your audience but, you get the idea.You can ask them about anything that matters to you: leather vs. cloth furniture, rugs vs. carpeting, draperies vs. blinds, mass-produced vs. hand-finished products, etc.Whatever you choose to ask about, that is always a must on your surveys because you'll start to find patterns among the answers you receive, illuminating the most common questions people are asking. Once you know what matters most to them, you can begin to shift your marketing to meet that need.Use the remaining questions in your survey to follow-up on that subject, perhaps with questions they might ask themselves – if only they knew what to ask. After all, you’re the expert, so ask the questions an expert would ask.BONUS TIP: Use these surveys to help you create content for your blog, tip videos, and social media too. Frankly, the more people who see you addressing the issues that matter most to your audience, the larger that audience will grow. This will boost your reputation, both online and offline, increase website traffic, expand your list, and increase inquiries from potential clients.That’s a win/win for everyone!Again, your goal is to find out what matters to your audience, without your personal or professional biases leading you in a direction that may not profit you.Looking for more new design trends, marketing tips, and ideas? Get in touch with TD Fall today.

Grow Your Interior Design Business – Analyzing Your Market

There are many ways to gather information that can help you start, build or grow your interior design business. While performing market research can be costly, it does not have to be – if you manage to keep your focus fairly narrow, targeting information that will specifically benefit you.Broad-based research, like that described here at Entreprenuer.com, may tell you a great deal about a wide range of potential clients but, it’s costly and may not offer the information you really need.Instead, you should focus on identifying the services that are in demand in the area you want to work. Doing so can help you shape your offerings, without trying to be “all things to all people”.Next, consider whether it would be best to specialize in one or two offerings, or offer a wider menu of design services, and investigate the major players already in that space.It’s important to remember that most interior design businesses are extremely localized. The national trends that are often identified in design publications may mean little in your local marketplace. New and small design firms need to stay close to home for their information, as well as for clients.With that in mind, here are some questions for which you will need answers as you work to grow your interior design business locally:

• What services are the busiest designers in your area offering?
• What services and categories are needed in your area?
• What services can you provide that are unique, superior, or at a more competitive price point?
• What will set you apart from the local competition?
• Are you able to offer something different or better?

Once you have answers to these general questions, you can begin to seek more specific information that will help you determine where you can best apply your talents, expertise, and energies.Specific Marketing QuestionsBefore starting or expanding a business, researching the market can show you which services are most in demand and give you an idea about the competition. Use this guide to research your area and see if there’s an unmet need you can fulfill to attract clients. (Houzz.com)

• What home renovation or design challenges do customers have in your area?
• How can you help homeowners solve those challenges?
• What services do you currently offer?
• Pull up the Houzz Directory, select your category, enter the location, and select your service radius. How many pros are listed as serving this area?
• Check out the profiles of some top professionals and look at their “Services Provided” section. What services are you commonly seeing?
• What services are you not frequently seeing?
• In what other categories could you perform work?
• How many competitors of your potential other categories are in your service area?
• Look at the average project cost from other pros. Is there a need for a pro who can take on small, medium, or large projects?
• Is there a need for a pro with a different pricing structure? (For example, are the majority of pros charging hourly or a flat fee?)

While these are admittedly basic steps, and a great deal more can be done to research and analyze your market, for emerging designers and those with a limited client base, these marketing tips should be highly valuable in helping you to grow your interior design business.Looking for more new design trends, marketing tips, and ideas? Get in touch with TD Fall today.