Marketplace Challenges for Interior Designers – Have Yours Changed?

From finding installers and other tradespeople to ongoing lead time issues and rising costs, the various marketplace challenges for interior designers are being impacted by geography, local competition, the general economy, and consumer skepticism. (Run-on sentence, much?)

According to a piece at DesignersToday.com, the biggest issue facing interior designers right now also include managing expectations, finding talent, the “speed” of business in the luxury furnishings industry, and dealing with unrealistic client budgets.

We guess it goes without saying that, when one asks designers for the “biggest issue” they are facing at the moment (that is issue, singular), they offer not one but many (14, 15, or 16 depending on how you count them)! (Hey, that’s almost like the way we’ve written not one, not two, but three run-on sentences in a row. How designer-like are we?!?)

For example:

“Overall, I think it’s managing expectations – internal and external.  If I could highlight some of the top ones we see on our end, I’d say: Talent (it’s still a challenge to find the right talent when hiring); Industry speed of business (I find the industry still moves quite glacially, as a whole); and budgets, a perennial favorite that never really goes away. Clients’ expectations of how much things should cost versus how much they really do cost. And in general, the rising costs of it all.” ~ Alex Alonso, Mr. Alex Tate Design, Miami, FL

Furnishing Supply Chain Issues Persist

As for consumer skepticism, Claudia Leah of Claudia Leah Design in Naples, FL shares her thoughts:

“We are in this weird spot where on the one hand, we are still experiencing supply chain issues for certain quality items, components, and trades, literally designing around availability. Yet we are also facing the threat of discounted overstocks on the retail side where mass-produced container items are being shoved into our clients’ inboxes, making them question if we as designers are telling them the truth about those long lead times.” (emphases added)

Brittany Farinas at House of One in Miami agrees:

“One of the biggest issues facing designers today is the lead time on materials. We are still working through this [despite being] post-pandemic.”

Finally, the exponential growth of online shopping for anything and everything for the home – including luxury furnishings, designer wallcoverings, and hand-woven rugs (among so many other high-end items) has led to pricing pressure on designers and furnishing dealers alike.

If you find yourself losing sleep because of the regularly shifting marketplace challenges for interior designers, Ted is available for business coaching and consulting to the trade. Simply… Get in touch with TD Fall today.

Designer Business Tip – What About Engagement Fees?

Well now, as we move forward from the craziness, excitement, and fear that we’ve missed something important at Spring Market, we would like to lighten things up a bit. Besides, we can’t work that hard ALL the time, right? And so, we have a quick designer business tip on charging your design clients an “engagement fee”. (You know, a trivial little subject that hardly matters!)

According to Sean Low, “the go-to business coach for interior designers” at BusinessOfHome.com, for designers who know their value, an engagement fee is a must. However, those who doubt themselves and continue to “hustle” for design projects like a newbie might want to reconsider.

(If there’s one thing we know about Mr. Low, it’s that he pulls no punches.)

Are You Worth It?

Answering the above question depends largely on you. If you’ve established a solid reputation as a designer who delivers what you say you will, dependably and creatively, why would you think otherwise?

As Mr. Low says, “Your talent, wisdom, and experience have intrinsic value and deserve to be recognized (and compensated). Your willingness to dedicate the time necessary to fulfill your … promises needs to be appreciated and paid for. That’s where an engagement fee comes in. It’s not a deposit or retainer; it is a fee for your talent and attention that goes against nothing and is non-refundable.” (emphasis added)

In other words, they are paying you – for you – and all that may include!

“If you ask a client to invest a significant sum in you to create the transformative environment they seek, the more likely they will give you what you need to make the transformation happen. As much as they are investing in you, they are investing in themselves. Once invested, you will be better able to receive the kind of information you need to create as you must.

What Do You Owe After the Fee?

“You do not owe your clients anything other than your best work. You have nothing to prove, only the willingness to share your talent, wisdom, and experience with those clients [who] truly care about your work and how it will come to be for them.”

He concludes with, “While a significant engagement fee might make your firm more money, that is not my ultimate aim. Instead, I want you to establish a relationship dynamic from the very start that will yield the greatest opportunity for success.”

There now. How was that for a lightweight, frivolous topic following the hectic week at Spring Market? You’re welcome!

And remember, Ted remains available for questions and answers about things like charging an engagement fee and other designer business tips to help you grow your business. With more than a quarter century in the business, Ted has the experience and knowledge to offer high-quality business consulting to the trade. Simply… Get in touch with TD Fall today.

Spring High Point Market 2023 – Preview of Coming Attractions

As always, this year’s Spring High Point Market will offer much more than exhibitions of new products from manufacturers like Kravet and dealers like TD Fall & Co.

There will also be entertainment and educational opportunities galore. We feel comfortable in assuming you’ll be able to find the entertainment yourselves. With that in mind, we will preview a few of the more important educational opportunities for you.

Spring Market Classes and Events

Two of the more important educational offerings at Spring Market will be a presentation on last year’s CPSC Ruling with another by Jaipur Rugs, which we proudly represent.

• Get the Facts: The CPSC Ruling and What it Means for Retailers and Interior Designers

Regulatory and compliance issues can be complicated, and there is a lot to know regarding the CPSC ruling, the Study Act, and new ASTM guidelines. Join Bill Perdue, AHFA’s vice president of regulatory affairs, as he breaks down the new guidelines and how it affects retailers and interior designers. What are manufacturers doing to address the ruling? When does it go into effect? How will this impact my business? Get the answers to all these questions and more on April 21 at 10 a.m. in the Universal Furniture Learning Center. (RSVP Required) Speaker: Bill Perdue

Location: Educational Commerce Concourse, Universal Furniture International, Inc. Shuttle Stop: 15 (Red Line)

• Jaipur Living – Rugs 101: Rugs, Design, Manufacturing, and Sales

Class is in session as Jaipur Living hosts IDCEC-certified CEU Rugs 101. Learn exactly how a rug is made–from the design process to material selection and yarn dyeing to construction. This course is the ideal entry into the world of rug weaving and will assist interior designers in gaining the rug knowledge necessary to help guide clients to the perfect rug selection. Attendees who complete Rugs 101 will receive one CEU credit. (RSVP Required) Speaker: Matt Peterson

Location: Market Square and Elm, Rugs 101 – CEU, Jaipur Living, Commerce & Design, Floor 4, 4B, 4N, 4P Shuttle Stop: 14 (Red/Green Line)

10am - 11am Friday, April 21

Spring Market Keynote Series

No Market would be complete without keynote presentations by industry experts. In quick succession on the 22nd, you may attend discussions on creating, growing, and sustaining an interior design business from well-known names in the trade. In today’s market environment, we consider these to be “Don’t Miss” events for virtually any young design house owner.

• Designing a Business You Love Keynote Event

In this casual conversation, moderated by Business of Home podcast host Dennis Scully, design stars Joanna Gaines, Amber Lewis, Jean Stoffer, Julia Marcum from Chris Loves Julia, and Carrier and Company's Mara Miller and Jesse Carrier will share their experiences in building design-oriented businesses with staying power. Sponsored by Loloi. Doors open at 1:30pm. Following the discussion, a mixer will be held in the Loloi showroom, IHFC D-320. (Sponsored by LOLOI)

Location: High Point Theatre (located in the Transportation Terminal)

2pm - 3pm Saturday, April 22

• Honoring Heritage While Building a Business for the Future Keynote Event

Third-generation owners Chad & Ashley Stark of STARK CARPET & founders of ASHLEY STARK HOME, discuss forging the future at a legacy brand while holding onto their heritage - plus growing & launching new businesses while staying hyper-focused on building world-class client experiences. (Doors open at 2:30pm.)

Location: High Point Theatre (located in the Transportation Terminal)

3pm - 4pm Sunday, April 23

Where to Find Us

Of course, we would love to see you next week. You’ll find TD Fall & Co at this year’s Spring High Point Market exhibiting our lines at our exhibit. Or, simply… Get in touch with TD Fall today.

Interior Design Budgets – A Designer’s Nightmare Come True

Too often, discussing interior design budgets with potential clients can be a nightmare. So many homeowners think they know what a job is worth yet may not have the knowledge to understand the full range of steps needed to match their dreams. So, while they feel like they “know” what a project should cost – and that may be all they’re willing to spend – it’s your job to educate them about their misconceptions and help them move toward a more realistic number.

Yeah, waking from that nightmare is a huge relief!

Take Command of Conversations About Interior Design Costs

Good thing for us, the folks at Business of Home corralled five interior designers to explain how they deal with unrealistic expectations about design costs with their clients.

Needless to say, it all begins with communication and education with plenty of follow-up during a project, if you’ve accepted the job. Then too, it may not be worth your time, energy, and frustration of the budget is unrealistic. Sometimes, as you’ll soon see, you just need to say, “No thank you”.

This is true for Robin Gannon of Robin Gannon Interiors in Lexington, MA:

“Sometimes that’s just what their budget is, and they’re not a fit for us. As a firm, it’s important to understand what you do and what you do well. You can’t sacrifice the quality of what you do simply because of somebody’s budget.”

The same is true for Helena Brana of Brana Designs in Corona del Mar, CA:

“Transparency with our clients is one of our founding principles. We discuss clients’ budget expectations very early in our communications and estimate costs based on our experiences with comparable projects. [Not all] clients are the right fit for us, and it’s better for everyone to find out early to avoid disappointments later on.”

Adjust Your Design Clients’ Expectations

Doing this is a priority for Daniela Holt Voith of Voith & MacTavish Architects in Philadelphia, PA:

“We seek to set client expectations not just about budget, but also about schedule and fees. We can design a beautiful, functional project for a client based on all the listening in the world, but if it’s not in the budget, it’s a nonstarter. As much as you never want to walk away from an opportunity, if there’s no consensus, it’s better to part ways amicably.”

Handling the budget conversation should be done up front, says Johanna Barger of Johanna Barger Design in New York:

“Design is a very creative field, but it is also a business – my business. And I never shy away from budget discussions. I take the financial aspect of the process very seriously, and one of the first discussions in our initial meeting is cost expectations.”

And further, she says:

“Many clients do not have a sense of the financial commitment it takes to create what they see in magazines or on social media. Part of my service is to educate the client through direct, transparent conversations about numbers while also realizing their design aspirations.” (emphasis added)

Finally, we have these comments from Alison Downey of Downey Interiors in New York:

“The project budget is always part of our initial conversation before moving forward. As our fee is commensurate with the budget, and [considering] clients don’t always understand the vast range of options when it comes to price points, we take the time to educate them from the get-go. In order to determine a realistic level of investment [rather than] ‘budget’, we prepare a project plan that includes a high and low total reflecting the items we anticipate will be used.” (emphasis added)

She continues with:

“If the client doesn’t feel comfortable moving forward, we need to determine whether the project is a fit [for us]. When a project doesn’t align with what’s needed for a successful outcome, it likely won’t be a good experience for anyone involved. That said, we wholly respect a realistic budget that is set at the beginning of the project. We work hard to be as accurate as possible and guide the client when they are veering off course. It is our job to check in with them, let them know where things stand financially, and ensure they are well-informed.”

Conversations about money can be tough, as can dealing with a potential client’s expectations based on their interior design budget. Yet, as we all know, they must take place and must be frank and open. Anything less would be not only a disservice to your client, but to yourself, as well.

If you find yourself regularly getting caught in the nightmare surrounding interior design budgets with clients, Ted is available for sales coaching and business consulting to the trade. Simply… Get in touch with TD Fall today.

Selling Benefits Over Features is What Creates Value

Seems like it’s time to confuse you with selling tips but, if we do our job, we’ll clarify what we’re talking about well enough to un-confuse you! Since we focused on selling value just last week, it may seem contradictory to offer thoughts on selling benefits over features this week.

It’s not though since, as the title of this post claims, benefits-based selling creates value for the products and/or services you have to offer.

As the marketing mavens at HubSpot like to say, “Features tell, benefits sell.”

While both are important bits of information for the consumer, the majority of prospects will be swayed by the benefits they will enjoy because of the features. “Features are often technical in nature, describing what the product or service does [or is built]. Benefits, on the other hand, paint a picture of success in the prospect's mind of how it will change their life in some way.”

Features or Benefits – Which closes the sale?

The upgraded features of luxury furniture will often be used to justify the greater cost. Yet, for most homeowners, those things will not matter nearly as much as how they will affect their lives.

After all, will having eight-way hand-tied springs supporting the cushions of a new designer sofa improve their lives in some obvious way? Not bloody likely (as the Brits might say).

Yet, as you (and we) know, such a support system will greatly enhance the comfort of any quality piece. This labor-intensive system will also prolong the life of the cushions as well as the piece overall. Not to mention, these springs even reduce the possibility of squeaking due to years of use.

Hmmm… That looks like we have four clear benefits to the homeowner for a single feature! (That’s what we’re talkin’ about!!!)

Though we came up with four benefits for a single feature above, here’s a proven yet simple formula you can use to create value and close the deal:

Feature + Benefit + Benefit + Benefit = Make the SALE!

In other words, the quickest way to make a sale is to present three benefits for each feature.

Since anyone can list the features a given manufacturer might claim for their products, it takes knowledge and experience to outline the advantages for your clients and prospects. You’re the expert, which means you understand the benefits offered by every feature. Use that expert knowledge and hard-earned experience to close the deal.

The beauty of this approach is that it is not restricted to particular products or services. That is, selling benefits works across all markets and industries. If you find yourself struggling to implement a benefits-based sales strategy, Ted is available for sales coaching and business consulting to the trade. Simply… Get in touch with TD Fall today.

Boosting Interior Design Sales – Who is the Decider?

Are you having trouble “closing the sale” with certain clients?

Have you become frustrated with the “objections” (excuses) you hear?

Has your “sales pitch” become stale?

OK, sure, we know you're an interior designer and not a professional sales person but, if you’re making your own sales presentations, you need to be as effective as you possibly can be. In today’s competitive marketplace, that means you must learn to sell your services – and yourself – as well as being a great designer.While the phrase “sales pitch” has gained some negative connotations over the years, evoking thoughts of an overly aggressive used car salesman, it remains true that your presentation is a way to promote, or pitch, your services. With that in mind, it’s also true that any effective sales pitch is a two-way street; a conversation where you listen to the buyer, ask real questions, and offer them a solution to a challenge they’re experiencing.

First things first – Who is the “decider”?

There are so many things to consider when you make a sales presentation that the most important of these is often overlooked. Whether you're offering your design services to a homeowner or business, you must make sure to focus on the “decider”, the individual who not only understands what you have to offer, but who will actually make the decision to buy.Committees rarely make decisions, just as couples seldom do. In most cases, a single person will ultimately decide the fate of your presentation. In your role as a salesperson, it’s your job to determine who this person is and to focus your presentation at that individual.Generally, the questions you ask and the answers you receive will help you figure out who controls the purse strings, and who will make the final decisions on the alternatives you offer. While your intuition can be invaluable in this process, your listening skills will be even more critical, as the decider will normally reveal their role to you in some way – if you pay attention to the dynamics of the group or couple!Experience is often the most valuable tool you have for identifying the decider, yet you also have other tools at your disposal. If your presentation is a result of a referral for example, the referring party will usually be able to offer insight into where you should focus your attention to get the response you’re looking for. When all else fails, when your experience, intuition, and research let you down, you can always ask, respectfully, who will be making the decision. After all, your prospective clients do not want to waste their time, just as you don’t want to waste yours.Do you have other tips for determining who the decider is during a sales presentation? What has worked for you in the past? How do you figure out who makes the decision when you're presenting to a couple?