Archive for category Interior Design Business

Holiday musings

The living area in Montauk

I’m taking this week off to spend in Montauk – there’s nothing quite like a week at the beach to get me re-energized. That said, my mind’s been spinning and I thought I’d get it off my chest here and hear what you all think.

In the last few weeks I’ve had discussions with prospective clients, other designers and people in the creative field. From the client’s point of view, they’re asking me to reduce my commission – in one particular case, substantially. Other designers that I’ve talked to have told me that they’re reducing their fees and altering how they work to be more flexible, bending more to satisfy the clients wishes. Some of the designers are saying they are shopping more and allowing the client to be much more part of the process. I’m in a quandry. As somebody who’s been working for 37 years a certain way and who has been charging 35% commission since I started in business (and I think this is a fair amount – I don’t mark up, I don’t charge hourly and there’s no design fee, other than rendering).

Do you all feel that this is how things are evolving? Do you feel that our market is changing where clients were much more interested in fine design finished project, now it’s much more at the level of reality tv? Are you being asked to cut your commisison and alter the way you’ve always worked? Do you feel that this is a long-term thing and that times are changing?

I would love to hear your opinion.

16 Comments

Social Media Connections

Again, for one who is ignorant about the byways and highways of social media, I think it’s interesting how people can use it to connet. It was so flattering that one of my Facebook friends made friends with someone else who is on my list and, because of this connection, will now be working together. It makes the world even smaller, doesn’t it?

Here’s the note I received from my Facebook friend, outlining the situation (I have changed names and other facts to keep it anonymous):

Hi Vicente!
I will make this short… You have opened the door to my life long dream of being in Interior Design…. Recently you have become virtual friends with “Jane Doe”. Something compelled me to click on her picture when I saw it on the minifeed. It turns out she is a known interior designer near the city where I live. So we met up for coffee this morning in town and she had a look at my portfolio and guess what??!!!!…we are going to be working together this Fall! Dreams come true as we also really clicked.
But YOU have made the magic happen!
So THANK YOU for being my friend… (No, i’m not listening to Lionel Ritchie as I’m typing this… lol)
ps: I love reading your blog and of course everything you do!
Cheers,
“Joanne”



I’m so happy I could help you meet a like-minded soul. Best wishes to the both of you.
To all the readers out there, if we are not yet Facebook Friends, please link your page to mine here.

7 Comments

Selling your ideas

Face it. We’re in a business where we are constantly having to sell the ideas in our heads to people around us. And it can be daunting – especially when you have to sell these ideas to clients who are paying you good money for your creative vision. If you don’t sell your ideas clearly and succinctly, you may not succeed. Over the past 37 years I’ve found ways that work for me.

When doing a presentation to new clients, I think it’s a combination of having very clear drawings or photographs to help you put your thoughts across. Have all the elements that comprise the room – in large enough samples and finishes to make the client understand what you are thinking about – handy to support your words. Make sure you have a rendering, elevations or whatever it requires for you to feel that they will get a true picture of what your idea is.

You have to be very organized in how you present, not just rambling or jumping around, but starting off with walls, ceiling, floor, window treatments, upholstery, fabrics for upholstery and setting all the elements in an organized way. Halfway through the presentation of a room I go back to the beginning to recap the original thought.

My big secret is a pad and pencil for them to write questions on so they don’t interrupt the flow of my presentation. At the end of each room there is time for them to air their issues and when they say they don’t like someting I ask them WHY, what it is that bothers them – in detail. When they give you that, it gives you the first clue of how to solve the situation to your advantage, because many times their perception of what you’re presenting may not be the right one. Once I’ve heard their objection, I try to diffuse it with logic, explaining why I designed what I did and how it ties to the other elements in the space. It’s an arduous battle, but one that, if you do win, gives you great satisfaction.

When you win this battle, it means that you’ve been able to sell what your vision is and it is proof of your power of salesmanship and the clear vision of your design. It’s always important to point out that it’s not about the individual piece, but rather about the overall picture of the space. Often, clients get hooked on minutae because maybe that makes it easier to understand or hang the hat of their thoughts. Sometimes it’s easier for them to focus on what they can understand than those things they are unable to grasp. Sometimes I will rehearse a presentation with the people in the office so it becomes a smooth process.

And remember, the more you share of the entire vision you’re presenting, the less the chances of them tearing it apart. Each time you present something new to that space, it can become a new hurdle you have to cross.

How do you sell your creative ideas? Any tips that you’d like to share?

5 Comments

Negotiations

It is always a minefield when one is negotiating with a client at the beginning of a job. What with trying to figure out how much to charge, considering whether you’re consulting on finishes, materials and architectural changes on a project and then also dealing with wanting to keep the client happy – and actually getting the job! Clients then start trying to alter your fees or even reducing what you’re charging and you’re expected to keep a pleasant demeanor and a positive attitude.

I cannot say that I do not become a little apprehensive when a prospective client is trying to reduce my fees, which I’m always steadfast on. I feel my pricing is fair and that the amount of energy we put into these projects need to be compensated for. So I empathize with the designers out there who are starving. If I’m being squeezed and bargained for all I have, how you all must feel? I’m lucky that I’ve been doing this for 37 years, so I have some backup, but if you’re new in the industry, I feel for you. Don’t give in. Don’t feel alone. Just do the best work you can.

5 Comments

Trusting your instinct

Each time I don’t listen to my gut, I pay the price.  And I’ve come to realize that sometimes it is better to face the music at the beginning than to try and fool yourself into looking at the world through rose-colored glasses.

Recently I had a prospective client come back to me after two years and we started the process all over again. The first time we got the ball rolling and they just disappeared – much to our frustration at the time, and after hours spent working on this project. Well, they came back now, professing to wanting to start work immediately and being very excited about working with us – both here and at VW Home. We had a one and a half hour meeting where, from my recollection of the house, we discussed what could work and what wasn’t working and I gave them some really good ideas. They asked for a contract, it was sent out.

A week went by. We followed up a few times and the phone calls were not returned. Then we finally received one to inform us that they had decided that they wanted to work with their contractor and were going to be managing the process themselves.

The thing is, when they first came back I had a sense in my gut that the same thing was going to happen, but I wished for better. And when it did (again), I went through the whole “What did I do” / “What did I say” / “Too many ideas” / “Not enough ideas” and after beating myself up a little. Mostly thanks to my shrink I realized that it had repeated itself from the first time and it had nothing to do with me. I had put my best foot forward and that this is just they way some people work.

You need to listen to your instinct and when something seems to be one way, don’t disregard it. Certainly look at it and question your role in it, but don’t beat yourself up. I’m guessing that, had we gone down this road with these clients, the same thing would’ve happened in some form or the other. I know it happens to many other designers and invariably  you end up question yourself. But sometimes you look at situations and you just know.

Have you had this happen to you?

19 Comments

Commissions and Charges continued…

I received an email from EM and I wanted to share it with you all:

Dear Mr. Wolf,

As the “EM” mentioned in your most recent post, I would like to clarify my post that you quoted. If I remember correctly, a woman wrote in saying that she was a decorator and worked out of her home, and was happy with the 20% markup she charged. In response, you told her that you didn’t see how she could be profitable with anything less than 30%. My thinking was that if she worked out of her home with no employees, she had no overhead, so her 20% was quite robust. By contrast, you have (I believe) enormous overhead what with payroll taxes, NYC rent, travel, so I could understand a larger markup. If a decorator who worked out of their home with no overhead charged the
same as one with a more professional office, I would, frankly, think they are overpriced. As I am sure you understand, margins are only one piece of a business’s financial success. The other very important
component is cash flow–ergo, if the decorator who wrote in was, as she claimed, making enough money to cover her expenses plus profit, I didn’t agree with your advice to charge a higher percentage.

I called myself the “Befuddled Future Client” because I am trying to budget for a decorator’s services in about 5 years. In response to a few queries I have sent out, I have been told that 1) no designer would do one room, because it would never give them the enough photographs for a magazine spread, that 2) no designer would work with a client who had a small collection of fine art and antiques because it wouldn’t allow them the necessary creativity they required, and 3) no designer would ever agree to be paid for a master plan to be executed over a period of time because of the same reasons mentioned in #1.

As someone who studied architecture in Italy, I have an enormous degree of respect for architects, designers, decorators, and artists. Yes, I agree that they are “worth it.” Unfortunately, without a dollar amount attached to that worth–not just a percentage–I cannot budget appropriately to hire one. The big magazines, as you know, never ever show prices. Many designers’ goods are “to the trade”, also with no prices attached. And so I (and many other people, I believe) really have no idea just how much it costs to hire a quality professional. (At least I have enough sense not to believe everything I see on HGTV and the various Sunday Decorator Blogs.)

I enjoy your blog tremendously. All the best,

-EM

Vicente Responds:
Dear EM -

I’m glad my blog provides readers with a platform where we can discuss these things – and I’m glad you’re a regular reader and contributor!

A few things: Nobody can tell you how much you should spend. You have a set budget for a space and the simple maths is that a designer charges a percentage on purchases. Do you want to go with a designer who charges a fee or one who doesn’t. It’s pretty simple to figure out how much a designer is worth.

Your comment about designers not being willing to design only one room? That is not the case and I think that most designers that I know in New York city would do one room as part of a continuous process of doing a house. I’m currently doing a guestroom suite as the first room in a house and we’re only starting work on the rest of it down the line. Many designers, if you pay them for their services, would come up with an overall plan and as you start working on the project bit by bit you’ll have a roadmap of sorts. Nobody is going to design a whole house on spec, but if you pay them a retainer or a fee, they will design it and as your finances become available, you’ll know you’re on track with what the project should be.

A designer would probably love to work with a wonderful collection of art and antiques – it’s only going to make for a better job. I don’t know who these designers are and what information you gave them from which they drew their conclusions, but in my experience, I would disagree with your statements on all three points mentioned.

In my opinion, what somebody’s overheads are has nothing to do with what they should charge. Is it to say that if you have a low overhead you should charge less? As a business person, we all try to keep our overheads as low as possible. Do departmentstores get to charge less because their rent is lower than boutiques? Or should a doctor who sees patients from his home be cheaper than one who has a consultation room?

I think these beliefs are not unique to you, though. These are some of the misconceptions that exist for those of us are who are in the industry. I still believe that, as professionals, we cannot sell ourselves cheap, whatever our overheads are. How are you going to leave that stage if you’re not making money? It’s out in the marketplace, if people feel that your services are worth it, they will pay. We cannot sell ourselves cheap. It’s better for the industry and better for the designer. The service you are selling is worth every penny.

Any comments from other readers?

32 Comments

Commissions and Charges

This post on commissions elicited a big response on the blog. Here’s one that really got me thinking…

From: EM

The Befuddled Future Client is still confused. One one hand, I have a published designer with 27 years of experience, an office, and a staff that requires things like payroll taxes. On the other, I have a designer with 1 year of experience with (in all likelihood) no staff or additional NYC rents. So why is the 35% markup the same?

Vicente Responds:

I’ve always wanted to make my work accessible to most, but I do wonder, do you charge a lot and get a few or do you charge slightly less and catch more with your net?

On what I charge I find business to be profitable. When times are good I am able to take care of my staff, my lifestyle, my travel and live a very good life. Do I want three times as much money? Of course, but my shrink said to me that you can’t be looking at what other people are making as they may need more to lead their lives. I earn what I need and am comfortable.

Someone’s who’s been in business for two years and earns the same as me, maybe their clients feel that it’s worth paying for their style, even at a lesser level of experience. Consider the art market – artists in their ’20s charge thousands for their work. It’s what people are willing to pay for it.

To me it’s a better perceived value, but we’re not talking here about buying tomatoes. We’re talking about a point of view, a style that people are hiring, so it’s not just about how much somebody charges, it’s about what product and service and perception they’re putting out in the market. And I think a high percentage of prospective clients don’t really research, trying to find what is available design-wise in the marketplace. A lot of it is through social connections and word of mouth. I don’t think most people looking for a designer do their due diligence in finding the best possible match for themselves – style, experience and talent-wise.

But what makes good taste? Why pay $30 for a pair of jeans at Gap compared to a $1,000 at Versace? It’s what you think is worth spending your money on. That’s the marketplace. Why do you pay more for tomatoes in Wholefoods compared to the same stuff you can get at Gristedes? It’s perceived value and what makes you feel good about yourself.

Hey EM, you got me thinking…maybe I should be charging more.

Have you researched how your income balances out the cost of running your business? Let’s talk about it.

8 Comments

Ask Vicente: Office Space & New Business

From:Jennifer Bramwell
Subject: Question for you

Hi, Vicente, I enjoy your blog and appreciate your willingness to give advice.  Myself and my business partner have an interior design business with a studio in my home.  We have avoided taking on the overhead of retail space for the past five years and enjoy the flexibility and low overhead of not having inventory and a retail business to take care of.  However, we are trying other methods to attract clients including a monthly newsletter and a blog.  We are still facing some dry spells and can take on and need more business.  We are primarily residential and live and work in a four season tourist community north of Toronto so there is lots of business to be had if we had the magic bullet.

Any suggestions?

Kind regards,
Jennifer Bramwell

Vicente Responds:

For many years I ran my business from a separate office in my apartment and was lucky enough to build my business from there.  When I first went on my own, I felt that to feel fully professional, I needed a seperate office where I could be perceived as established and grounded. I think it helped to build confidence and respect from the clients that I got.

If you keep a plant in a small pot it won’t grow bigger, but if you transplant it to a larger pot it will flourish. Think of your business in the same way.

Regarding that magic bullet for new business…I suggest you think of ways in which you can get connected to clients that are out there (and when you find that one that works best, let me know so I can do it myself!).

Here are some of my quick thoughts:

  • Socially, I have no kids (only a cat), but I understand that the school connection is pretty good in helping to get the word out there.
  • Are you published? Perhaps you should target your area’s design magazines with your best job and see if you can get published. That usually gets the phones ringing.
  • Talk to real estate people so you can form a partnership where they can help you sell services when they sell a new apartment.

Maybe some of the readers have additional ideas – let us know what has worked for you by sharing them here!

3 Comments

Ask Vicente: Presentation

Name: Todd Haley

Comment:

Vicente – I would love to know how you present to a client – I always hand them the fabrics and material where possible (if possible after I have handed them a glass of wine) so the client can feel the fabrics “hand” – and I sketch a lot on the plans for an alternate in case a concept is met with less enthusiasm than I presented it with – Angelo Donghia always said he “sold” his jobs based on the renderings he presented to a client.


Vicente Responds:

Todd, I think it’s the sum of the parts, a rendering, a drawing of the room, showing the materials and on top of it all, being a good salesman. My rule is to give them a pad before I start the presentation and then I ask them to write their questions and not interrupt my flow. Be very clear in the completeness of your concept. I never have alternatives. I have what I believe and that is what I present. I don’t believe in second best. I think you will enjoy the new book that’s due out in the Fall. It deals with how I present and what that process is all about in depth and should give you a clear view.

4 Comments

What We Didn’t Know

When I started as an interior designer I had no training and no tools. Because of my dyslexia, going to school was really not the best option for me. But I was committed and determined. I trained myself to do scale drawings, to do all the things required to be able to execute a job. I was an assistant for somebody and saw the pitfalls first-hand, I learned to go to the marketplace and what it took to produce and put a job together. I did presentation boards, drafting and I paid my dues, maybe with a lot of loose change, but I learned through experience and a lot of very hard work.

Very often these days people think that because they like shopping at expensive design stores they have what it takes to become a designer. I think that to start one’s career because of contract or style, without really getting all the things it requires to be able to call yourself a professional in place could be interpreted as unfair to those who have paid their dues – be it by working their way up from the bottom, or by going to school and learning to do it that way. (I’m also considering the clients that are going to have to suffer through one’s learning curve!)

Maybe I’m wrong, maybe those who went to school would say that about me who didn’t go to school. What pitfalls have you who didn’t go to school experienced? And the ones who did go to school? Let’s share our pitfalls with those who feel that merely a good eye and connections can start them in this business.

27 Comments