Tuesday, January 26, 2010

Designer Pay (Part 2)

So, here is the second entry on how designers may charge you as a client, and how the design industry works. Last time I talked about designers who just charge an hourly fee. Today I will simultaneously tackle options #2 and #3: designers who only get paid through designer discounts, and designers who both charge an hourly fee and collects the designer discount.

Designers have a wealth of product knowledge (or should have), and they usually rely on a few showrooms to provide them with the product(s) they need. Where a designer shops and takes you shopping is largely dependent on the trade pricing offered to the designer for bringing clients into that particular showroom. Retail discounts vary widely in the industry, but they usually fall somewhere between 10-20%. Often, you as a consumer can negotiate a better price when buying furniture yourself, but it will never be as low as what the designer cost. Obviously, the designer usually stays loyal to a showroom where he/she receives the biggest discount. The designer then passes the cost savings to you. This is usually a huge benefit for all involved.

Having said that, many chain retail locations do not offer trade pricing, as their products are usually priced to sell more easily, e.g. the Wal-Mart strategy: lower prices equals more quantity. So don’t expect your designer to shop with you at these places, unless you have negotiated a hourly fee across the board from the start.

There is also another little twist to this story. There are locations in every major city that sell to the trade only. This means that the public may (or may not) be able to enter these bastions of style to peruse, but they will need to employ a designer to purchase. And whatever you do, don’t expect to get a price quote from showroom attendants. The classified secrets of the Pentagon are more easily obtainable. The price that the designer gets here has already been discounted, and the designer will usually add 20% and give you an invoice on his/her pretty stationary. Nice, huh? This should be used for those instances where you, the consumer, want a really special key piece, as this can be expensive.

Most designers, myself included, use a combination of both an hourly fee and the discount given to us by the retail locations that cater to us. This is, in my opinion, a fair solution. For example, I start working with a client and we are developing a concept, color scheme, mood, etc. At this time, I may do some computer renderings of the space, develop a furniture plan, and pick out a palette of fabrics. I am going to charge by the hour for this work. Once we start to shop for the major pieces of furniture (I usually source things out beforehand to streamline the process), I stop charging an hourly fee, and I am paid by the difference between the retail price of an object and the discount given to designers. I always make my clients aware of the entire process from the start. Then, if I am to pick out accessories, artwork etc. I ask the client to give me a budget, and then I bring / purchase items for them to approve. The client either gives me the money that is in the budget for such items, or I purchase them and get reimbursed.

I know that this all seems like a lot of work. The client, however, really does not (and should not) feel like this is a burden. This should be fun, educational and most of all exciting. There is nothing more enjoyable to me as a designer than to receive a phone call from a client after an installation with a tone of elation.

Hopefully, this little information can help you as a potential client to a designer and as an informed consumer (and you if are in the Boston area, please feel free to look me up). I realize that this info may make my industry sound a little off-putting and sneaky. At the end of the day, it is not meant to do so. A designer can save you thousands of dollars per project. You will be more likely to make the right decisions, you will have access to many more product lines than you can imagine, and you will have a unique living space that speaks to you, reflects your tastes, and makes you proud.

Monday, January 25, 2010

Designer Pay (Part 1)

So, I am now beginning a few entries on how the design/designer business works. For clients, this can a daunting task to understand how this operates. I realize that this may upset some of my colleagues, but I have always prided myself on my integrity and honesty with my clients. I run my business with openness and honesty, and I hope to reveal some of that honesty here.

Here is the 4-1-1 on how designers operate and how the design field works.

When you make the decision to hire a designer for your project, no matter how large or small, one of the most important and critical discussions you will have is how the designer gets paid. There are three basic ways this happens. Let me explain:

  1. The designer charges an hourly fee…much like a lawyer or doctor.
  2. The designer waives his/her hourly fee, and collects just the designer discount given to him/her by the retailers and/or suppliers used by the designer (more about this later).
  3. The designer charges both an hourly fee, AND collects the designer discount from his/her retailer and/or supplier (definitely more about this later).

Let’s delve into option #1 first. This is the quickest and easiest to get out of the way.

At your first meeting with the designer, which in my book should always be a free of charge consultation, you will discuss the terms of how the designer is to be paid. Should he/she charge an hourly fee, here is what to expect. Most designers I know, charge and hourly fee of $75-$150 per hour (and travel time is usually calculated). You can pay more for some star designer with a household name, just so you know. When it comes time to go shopping with the designer for the pieces for your room/project, and more specifically time to pay, you will usually pay and the designer tells the sales representative that he/she is passing on his/her discount onto the client. You may or may not be privy to this conversation – the conversation may have already taken place between the designer and the sales representative prior to your arrival at the showroom. Case closed, right?

(To be continued)

Thursday, January 21, 2010

Crazy or Careful Furniture Shopping?

While I was at home with my mother for the holidays, her neighbors asked for my opinion on a very common problem. I immediately thought, “This is a good topic to write about,” as this happens all of the time.

The neighbors had decided to purchase entirely new bedroom furniture. Both husband and wife had been previously married, and neither had purchased really nice bedroom furniture before. They had been putting money away in a furniture fund for a while. Once they had enough money saved up, they went crazy furniture shopping.

They saw me outside taking out the garbage and invited me in to their home. They prepped me for the unveiling. I walked into the room and was shocked at what I saw: an entire room full of furniture, with barely any room to walk! They clearly should have sought some professional help beforehand. They bought way too much furniture for the size of the room.

Believe it or not, this is all too common a problem. Many people--even though they measure the space--lack the spatial awareness to realize what furniture will look like in their space and/or how much space they actually have. My advice to people, my clients included, is to start with the larger pieces first. Then you wait for the deliver and installation. After the initial furniture is in place, survey the room and decide what you still have space for.

In the case of my mother’s neighbors, they should have started with the bed and nightstands, as they anchor one wall and as one piece of furniture. Then they should have surveyed the room and decided what dressers from the furniture collection they could have fit easily into the space.

Most people prefer to buy everything at once instead of waiting and buying furniture bit by bit. If you are not working with a professional, the furniture salesperson will definitely encourage you not to wait!

I realize that this could be frustrating to some people as they just want to have their project finished and over with. The flip side, however, is that buying certain pieces first and waiting before buying the next batch will help make your space more functional and livable. It will also save you a lot of money and frustration in the long run. And that is just good design sense.

Friday, January 15, 2010

Your Design Blog

I have decided to blog about various design topics that are current.  I hope to be informative, insightful and most of all, an inspiration to you.

Informative:  I hope to cover a variety of topics regarding how the design industry actually works.  One of the most frequently asked questions I get from clients is regarding the compensation of designers.  Who pays whom?  How?  How much?  I want to give you the 4-1-1 on the various ways designers, sub-contractors, retailers, etc. actually work together.  There is a common misconception that “hiring” a designer is expensive, and I hope to explain how this incredibly complex industry works.

Insightful:  I would like to give you tips and hints to various things you can do on a tight budget, or if you still live in an apartment but do not want to look like it, or if you just want a little change.  I also would like to showcase new products that I come across in my travels, plus new applications for old products.  The design world changes and evolves about as quickly as the fashion industry, so there is never a dull moment.  I will provide you with as many resources as I can to help you navigate this crazy world.

Inspiring: I want to provide you with the latest trends in design.  More importantly, however, is to provide you with the ideas and the tools necessary to take these trends and make them you own, or turn them from trends into timeless classics.  There are all kinds of purchasing, painting, and accessorizing decisions which you can make to really personalize a space and make it your own.

I want to take this time to invite you, my readers, to send me your requests.  Let me know the questions you would love to have answered, and I will do my best.  If I personally do not know the answer, I will correspond with my design friends to get the answers you deserve.  I would like this be as interactive as possible, so feel free to start a discussion.

I look forward to hearing from you!

Jason