5 Ways to Create More Profit in Your Design Business

Let’s talk about profit.

I know, I know. It’s not always the most exciting topic. But the little tweaks you make in your business can add up to a huge difference in your bottom line. So let’s look at five places where you can start.

Pick the Right Market

First, take a good look at who you’re trying to serve.

Maybe you love working with people your own age. But if your ideal client is a 30-something with small children, you may be working awfully hard for a client who simply doesn’t have much money available for design.

So think bigger. Where do your skills solve a real problem?

Maybe it’s space planning and drafting. Maybe it’s new construction and working with contractors. Maybe it’s model homes or styling and accessories. There are plenty of profitable niches out there if you’re willing to look beyond the traditional “I’m an interior designer” box.

Then ask yourself: What am I selling?

The same amount of work becomes much more profitable when the product or service you’re selling is more valuable. And when you’re selling products, buy properly and sell at retail. Your profit comes from creating the right margin on the back end, not from giving your client a deal.

Pick the Right Price

Please don’t fall into the trap of being cheap because you’re new.

You don’t need to start at the highest rate in town, but you also don’t need to spend three years “paying your dues.” Every project you complete makes you better. You know more today than you did yesterday.

Your price should reflect the problem you solve and the pain you take away. The more valuable the solution, the more valuable your time becomes.

And while we’re here, let’s talk about the D word: discounting.

Interior design is a luxury business. You don’t need to apologise for charging what your business needs to charge. Hold your boundary. If someone asks for a discount, you can simply say no.

And watch that scope creep! If a client wants more than you agreed to, wonderful. That’s additional business. Review your letter of agreement, identify what’s outside the scope and happily tell them, “I can absolutely do that. It’ll just be an additional fee.”

That isn’t mean. It’s a boundary.

Grow Your Customers and Your Average Sale

Now look at your leads. Where are they coming from? Whatever is working, do more of it. Then look at what happens between that first lead and signing the contract. If there are bumps in the sales flow, smooth them out. Track those numbers so you know where opportunities are being lost.

And finally, increase your average sale.

Stop selling one little thing at a time. Package the room. Get the budget agreed upon first. Present the whole vision rather than asking, “Do you like this sofa or that one?”

And when you find something absolutely yummy that’s outside the budget? Show it anyway. Put it alongside the original choice as an upgrade. It’s their money. They can spend it or not. Your job is to give them wonderful choices.

So, pick the right market. Pick the right product and service. Pick the right price. Grow your customers. Increase your average sale.

You don’t have to change everything overnight. Just start tweaking each of these areas, and watch what happens to that profit line.

You can listen to the full podcast episode here.

Until then, design something beautiful… and get paid what you’re worth.

With love,

Terri