10 Ways: Pitching, Winning & Managing Business For Interior Designers

Decorex

Decorex 2011 Logo

I have worked on, sold and managed many projects in the corporate world as well as in the interiors world. It strikes me that the nature of ‘projects’ is very similar across all industries.

Often how you propose to engage with the client to tackle the project will win you the business. Price and competence are obviously important. New clients might not trust you enough to feel they can commit to your services for the full duration of the project; so bear that in mind. Sometimes elements of risk in the project are high or unknown – you must deal with these in you proposal/pitch (Nugget 1: By highlighting risks where others haven’t could win you the project on the risk issues alone).

Anyway, the point of this article is to summarise different approaches to charging for projects. You’ve probably heard of most of them but maybe not all:

1. The design fee

“I’m an interior designer and I provide a fantastic service. I charge you for my skills and you benefit from me being able to buy things for you at trade price, I don’t make a profit on the things I buy for you”.

This is a fair and honest pitch. Well done, I’d think about buying from you. It probably won’t differentiate you from anyone else though.

2. The markup

“I’m an interior designer and I provide a fantastic service, I’m going to do it for free for you though. I have to make a profit so I’ll make that on the difference between trade and retail prices for the things that I buy for you.”

I really don’t like this and yes I know it is widely used in the industry. Firstly your service is so good that you are giving it to me free? Really? Things that are given away free are generally valued very lowly in business. This approach might appeal to a cash strapped buyer though, so don’t dismiss out of hand. Secondly can I trust you to charge the fair and correct margin? Probably not (I don’t know you, how can I trust you?), you probably won’t have any degree of transparency on your purchases and their true retail and trade prices. Besides a savvy client can get many things at trade price anyway, buying is easy (ish) – selecting and creating is more the art, that is where the value lies.

3. Fixed Price

This is the best way to make money. Read on, I know you don’t believe me!

Many of the top consultancy companies in the world manage their fixed price projects very, very carefully and in great detail. They win the projects essentially because of their low price BUT that price is conditional upon lots of conditions. Once those conditions cannot be met by the client then the price goes up (a lot). After committing to a company the client finds it very hard to pull out later and change suppliers. In any case they share the blame for not properly specifying the project at the outset, so in itself that really is not a reason to think of ditching the new supplier.

(Nugget 2:) For this to make money, lots of money, you have to really understand what you have to deliver, in detail. You have to know all the risks and where things can go wrong and how you will handle those eventualities. You have to be clear about what is and what is not included. (Of course add-ons for what was not originally included will cost a LOT, later on when the client changes their mind!)

This relies on you being organised and the client less so. In the corporate world many buyers are themselves now very organised and so this approach to projects is consequently becoming less profitable. These projects often become acrimonious unless one side gives in over points of contention that arise “I thought XXX was included” – you’ve been there.

Remember that when you are extracting every ounce of $/£ out of your client, at least be nice and polite and friendly about it. Seriously.

Of course if you’re new to the industry you might just go for this approach to win the business and you MIGHT just strike it lucky based on little or no detailed preparation. Or you might not.

4. Phased Approach

This works best where there are unknowns that the client appreciates exist, it’s a good and fair way of making money.

You identify the phases of the project: scope, functional design, technical design, aesthetic design, etc – whatever you choose to call them are unimportant.You come to a financial arrangement for each phase before it happens. When the first phase finishes you definitively quote for the subsequent one. You might have earlier given an indication on the cost of all phases but you make it clear up front that you have a chance to revise prices as some of the risks become more clear.

The great things about this approach are inertia, deliverables and risk.

‘Inertia’ because clients are unwilling to change suppliers unless really annoyed – in which case it’s probably a good time to move on as you’ve messed up and lost their trust.

‘Risk’ because you MUST plan for all risks in this approach. Your prices include the risks, you say you are charging a lot for phase H because of risks X, Y and Z.

‘Deliverables’ because when you revise (typically up) the cost of a subsequent phase it’s because the deliverables have been changed by the client (no matter how small the change).

Oh and of course its easier for the client to commit to small sums of money rather than the whole thing.

5. Mentoring

Here’s one you probably haven’t considered.

Sometimes you just know that a client is fishing for ideas for their project. You just know they are going to do it themselves. (Nugget 3:) Well if you know that then why not tailor your proposition around that fact? “Look Mr X, here are the 8 phases of an interior design project, you can probably do much of them yourself but you are not experienced. I am. Let me work with you on a half-daily basis to help you along in the various stages. If there’s one bit you are not happy with like instructing builders or architects I can do that bit for you”

“I really like this approach,” says client A. “I’m not a designer but one day might like to be, it can’t be that hard and yes I know I don’t yet have all the skills, so having someone to help me along would help.”

Of course many clients will find their project too time consuming or their skills lacking. That’s fine though because they have already committed to you when they realise that and so you will be there to take over and finish it. At a price of course!

The secret of this one is to snare the project that others have no chance of winning because of their approach.

6. Selective Phase Bidding

I don’t like this one.

You essentially bid for just the phases that you are expert at. Essentially if you do this you will rarely win.

Many clients do not want to deal with many suppliers, they want one monthly invoice.

Yet you might not feel comfortable to handle all aspects. The solution is partnership with another supplier. Partnerships are fraught with danger but can sometimes work out well. (Nugget 4:) Make sure you work with someone you trust and make sure they know that partnership involves reciprocation ie they have to get you involved in their next project.

7. Capped Price

“I will charge you based on my time and the cost of the materials. However you have a budget so I promise I will not exceed it.” Crazy, don’t get involved in this type of project unless you are desperate. How do you benefit when you are taking on all the risk, this could lose you thousands.

8. Floor Price

This sounds more like it! A minimum price! However you have to sweeten this with discounted rates above the floor price so the client understands that if the floor is exceeded then you are making much less than you normally do and that you will strive to avoid that situation happening as you want to only do profitable work.

This one can work well, get your numbers worked out before you start.

9. Time Boxing

Read the rest of this entry »


Luxury Cashmere Throws & Blankets: Why is cashmere the best wool?

Luxury Cashmere Throw
Luxury Cashmere Throws

We would always recommend 100% Cashmere Wool for luxury throws.
Cashmere wool is made from the fibres of the undercoat of the cashmere goal (capra hircus laniger). The fibres are extremely fine, not exceeding 19 microns. To ensure that the high quality undercoat fibres are used a criterion exists to ensure that 97% of the fibres are below 30 microns.
Cashmere wool thus feels ‘fine’, is lightweight and provides good insulating properties without the weight typified by other wools for the same degree of warmth.

No other commercially available wool offers as high a level of quality as cashmere.

So to ensure the best quality Cashmere Throw it is important to specify 100% Cashmere Wool – neither a blend nor any other wool is as good.

Click <here> for further information on Luxury Cashmere throws.


Fabrics I like

Reblogged from thehousewhisperereu:

  • Click to visit the original post

When I  was working as a full time interior designer I would always work with  fabrics from famous companies. My favourite fabric designer in the eighties was Manuel Canovas, well known for his bold designs of flowers in the most elegant colour combinations assorted with an astonishing variety of plain fabrics as chintz, silk velours and satin cottons and this in the most marvellous colours. This was in the pre beige,greige, grey linen period we live in at the moment. Another master of fabric creation …

Yes the Jack Lenor Larsen stuff is timeless. And it is always interesting to go though our own back catalogues of Homes & Gardens. My how things change!

purple inspiration

Reblogged from my favourite colour is SHINY:

Click to visit the original post

When people ask me what my favourite colour is, I don’t actually say shiny. I know, its a shock. Mostly I say purple however recently I’ve realised I don’t actually own many purple clothes or have any purple things around my house.. What a phoney! So I decided I need a little purple inspiration.   Mrs S x

Nice clean images and I like the recurring theme!

Interior Designers – An Update On using Facebook, LinkedIn WordPress blogs and Twitter

heather buckley Follow me on Twitter I have a ...

Interior Designers have been moving much of their sales and marketing into the digital world over the last few years. Maybe this was because of great looking Apple products or maybe just because as new, young designers come into larger business they bring in with them the gadget trends of youth. Or maybe because all this digital e-stuff actually can work and can work quite cost effectively if done right.

I’ve written a few articles on this general subject over the years (I’ll reference some of them at the end of this post. However things have moved on in the real world and some of what I’ve PREVIOUSLY written has been superceded or improved.

1. Blogs, Twitter, Web sites, LinkedIn and Facebook – linking them

It’s still mostly true that you will use your web site as your show case for your business. Your blog will be a part of your website and, unless you sell products that require an up-to-date online catalogue, it is your blog that will contain the information that CAN AND SHOULD be regularly updated. (That will boost your google position). Twitter, LinkedIn and Facebook come in as networks you are building. All good stuff.

The problem used to come in  how you would simultaneously update all these networks without having to manually re-submit the information. That would obviously be time consuming as would installing and keeping working additional pieces of software that glued all the bits of your marketing together.

Well now it is relatively straightforward to have your wordpress blog update your twitter account, your LinkedIn presence and your facebook business page. Similarly twitter can also update your facebook page automatically. Lots of these automatic links now exist within the main software websites (wordpress, twitter, etc) so you only have to write new information (blog posts or tweets or on your wall) once and then the software you use automates the distribution of that information across lots of different web site and online communities. Sorted, no mystery any more.

2. Vanity URLs on Facebook

This area used to be horrendously complicated and thankfully facebook have now simplified how to create a venity URL. What I mean by this is how do you create and use www.facebook.com/kothea …or of course you would have your business name at the end of that.

Essentially you can now just create a PAGE and give it a name (eg KOTHEA in our case) straight away. Gone are the ridiculous but well intentioned rules about having a certain number of fans.

3. Building networks with Facebook

You probably already know that once you have created you PAGE in facebook then you can use facebook as if YOU are the ‘page’. Rather than the person you really are. So rather than having your facebook activities in the name of ‘Joan Smith’ you make comments as if they are coming instead from your business ‘Smith Interior Design’.

google are also trying to “do a facebook”. This is their Google plus network. You can ignore that for the time being.When was the last time you or your kids used it?

Much better for your branding. Remember to be nice ad say sensible things and don’t get carried away!

4. Gadgets

Especially in the Interior Design and Architecture industry lots of people use Apple iphones and ipads. Of course your clients may well also use these devices but perhaps are also quite likely to use other ‘tablet’ devices and other smart phones like Blackberries.

Like you, your clients lead hectic lives. They are on the go and people are increasingly looking for  information on the move. So all the electronic marketing you do needs also to work on these devices so your potential clients can read it and find it.

This is not so hard to achieve. Facebook and Twitter and LinkedIn will automatically do it. WordPress blogs will do it if you check a box in one of the admin features. It might be harder for your web site to do it properly so have a word with your web page designers.

You can use something like http://marketing.grader.com/ to tell you for free some of the more technical things (like working with mobile/cell phones)

 

Here are some of the posts I previously wrote or you can find them all in one go by <clicking here>

 

1. How to get links to your web site 

2. Interior Designers: Why does no-one visit your web site 

3. Interior Design Marketing Strategies 

4. Effective Ad Writing For Interior Designers on Facebook

5. Five Crucial Bits For Your Facebook Business Page

6. Seven Facebook Mistakes Interior Designers Make


Interior Designers: How to specify A Luxury Cashmere Throw For Your Client Projects

Luxury Cashmere Throw
Luxury Cashmere Throws

Luxury Cashmere Throws are often used by many designers to add that special finishing touch. The good ones look great and feel fantastic. As well as being aesthetically pleasing a throw can also be functional – keeps you warm!Bearing in mind how often your client will interact with (touch/use) such an item over time it is very important to specify your cashmere throws properly.

Of course you can buy them from very many places. But how do you get a really good one? I mean really good, the best?

We have put together a series of designers’ worksheets. Here is a link to the main one <click here>. The worksheet goes through some of the things you should be looking for when coming to a decision on what to specify.

When looking at specific designs you might then want to look at this worksheet. <Click here>.

All the worksheets are listed here, <click here>.


Superior Interiors with Kelly Hoppen | Channel 5

Downing Tweet Christmas receptionThe vast majority of us in the Interior Design industry are not in the position to be able to host a TV show like Kelly Hoppen‘s  ”Superior Interiors with Kelly Hoppen | Channel 5“. Such great publicity is obviously a client-winner.

From a business angle the programme is a good watch for interior designers. Of particular interest to me is how she deals with her clients. She is very good interpersonally. But, from a creative point of view, I especially like how she and the programme address situations where the client obviously does not agree with part of her design. Kelly Hoppen is very good at politely sticking by her guns and by the correctness, if you like, of what she is proposing. She is flexible enough to  eventually succumb in but not without a gracious and often persuasive fight.

Of course this raises the perennial issue of whether or not ‘the client is king’ or ‘the client is always right’. However if the client is right and got their way, in such instances, then the client is happy! If the client is not right then at least that reinforces the correctness of the designer’s original  scheme and the parts of it that were followed.


Interior Designers: Why does no-one visit your web site?

Interior Designers can spend hundreds or thousands of pounds ($) on websites. That CAN be a good investment or it can be a total waste of money.

Not just interior designers, but people from many industries bemoan the fact that no-one is visiting their web site. Then the next (incorrect) step in thinking goes that “well maybe I need to pay someone to get links to my site”… or something along those lines. And so it goes on, more money is spent on technology, on social media, on the web, on the net, on web 2.0 – whatever you want to call it. I’m sure you recognise the picture, perhaps from other designers you know that have these awesome looking websites…with no visitors!

This all-too-typical situation raises a whole raft of questions, points and observations. I’ll try to cover a few of them here.

1. Why on earth should I visit your web site?

I think you, the interior designer, really have to answer this question. Yes I’m sure your site looks great. Yes I’m sure it highlights your services and showcases your past projects (hopefully!). But let’s say I’m a potential customer, really, why should I visit your site? What’s in it for me? Your site MUST address this issue. IE the issue of your customer. Your web site should NOT be set up solely to gratify the interior design company’s owners or marketing team or web designer…I’m sorry but what you guys think is not that important to most people! You need to add something to the (potential) customer. Ideally something that will take them on that metaphorical ‘voyage’ towards closer links with your company and ultimately turning them into a customer and advocate of your firm.

So, simplistically, your site needs to contain the words and images necessary to give the client the information they need in an appropriate format.

2. Why on earth should Google or Bing or Yahoo visit your web site?

This questions is important because even if your site is set up to cater for the needs of your perfect potential customer that’s absolutely no use whatsoever if the search engines do not place your company on the first or second page of a potential customer’s web search. And even if you understand this issue it is still awfully hard to achieve such a placing in search engine results.

So, part of the solution here relies on your site having sufficient words and properly ‘tagged’ images (I won’t go into that that means here, look elsewhere on this site or the net). Remember that google cannot really see images at all, only words. Look at the sofa/fireplace image below  only ONE OF YOU UK INTERIOR DESIGNERS IN THE WHOLE COUNTRY automatically came up with an image that I can could choose from to publicize on this blog. Only one. Amazing. And who are Rogue Designs? Never heard of them…but google.co.uk, wordpres.com and zemanta.com have and now so have you. Go figure!

interior design oxford rogue designs

So you have to have the right words. You have to know what the words are that your customers use in their searches (not so easy!) and then you have to use those words a lot…but not too much! How much is not too much? No-one really exactly knows. But you have to use them sufficiently frequently and towards the start of the various pages on your site. But just write stuff that makes sense don’t try to write the key words a million times per article… that doesn’t work either.

All well and good you might say. If you’ve got this far…which most people haven’t…you’re a long way down the line.

Now the next problem is that the search engines also look at the frequency of how often your pages change. So now you really have a problem. Even if you did a great web site last year Google will downgrade it’s importance in search results this year because the content hasn’t changed in the 12 months. The solution to this is of course to change your words and pictures a lot….but that takes time. Either your time or the time of someone that you pay for. That’s annoying and expensive. But that’s the way it is. Oh yes, and you quickly run out of interesting things that your customer will want to read. That’s annoying too.

If your web site has some sort of e-commerce facility ie products are sold, introduced, discounted etc etc. Then I think that meets the ‘sufficiently changing criterion’ of the search engines. But you are interior designers and many of you will not have a retail front or an internet based retail front. So you won’t be able to do that or won’t want to do that. So what you would do instead is write a blog. And that blog should ideally be a physical part of your web site not an add-on somewhere else on the internet. It must also be frequently updated with posts that contain the right pictures and keywords.

I guarantee you (with caveats! hmmm) that if you do that, then blog weekly for a month and then write an ‘appropriate’ article/blog page; within an hour or so it WILL be on the first page of google for a suitable ‘keyword search’ (techy term, sorry) but obviously things too generic like bbc or ‘interior designer’ won’t work. Maybe, of course, a week or month later it won’t be on the first page as something ‘better’, or more recent or more ‘trusted’ is written! Sorry again! But at least you will have proof that what I am saying has some truth in it. I did the same thing in about September 2011 for our new ‘Luxury Cashmere Throws‘. Click on that link and see if we still come up. If we do still come up then, of course, I am wonderful (hmm) but the more generic you get such as with ‘Cashmere Throws‘ then the less likely our articles will be to come up. [So here 'Cashmere Throw' is a quite generic search with many results returned; but adding in something specific to the market I am targeting, ie the word 'luxury', narrows the results sufficiently so that my new/well-written post figures highly].

Indeed if KOTHEA’s articles still do have a first page listing for that search then it will be because we have been doing this blogging thing for quite a while. And if you have done just that then Mr Google gives you extra gold stars (pagerank) and you rank even higher in search engine results.

So if you are just starting out with a blog and use the wrong or widely used keywords then you will not appear on the first page of your customer’s searches. You have got to be in it for the long term.

Now, to complicate things further. Take a closer look at the search I got you to do on Luxury Cashmere Throws. If you actually click through onto the page in question. You, as a customer, may well be disappointed!! (See I am fallible). The pages that were coming up top were an image of ours on FLICKR and a general press release on one of the colours of our throw. So if you were looking to buy a throw then those pages might not have been good enough for you. Maybe you’d have gone off and looked somewhere else very quickly? Well yes probably. Especially because I did not include a ‘call to action’ to take you from that click to our website or request samples page further down the sale process.

So even if you do the right technical things ie intelligent(ish) blogging, then that’s no good if the customer is not drawn further onto your web presence and actually goes on to buy something. So I committed the cardinal e-sin. I got a click but did nothing about it to convert it into a sale.

3. The Big Brands

If you have a big brand then people will visit your site because they know the brand and at least vaguely associate that brand with selling what they want. So in that situation, it is your branding driving web site visits rather than the content of the site per se or how good the search engines think your site is.

So you smaller interior designers have yet another problem to overcome. Branding of course is a whole different kettle of fish of which web-presence is only one part.

4. Link Building

You will probably get hundreds of overseas based companies emailing you every day to say they can boost the SEO of your web site or guarantee you inbound links to boost your ranking. Hint… they can’t really. And even if they can…it won’t last. And even if they do what are they going to link to? Remember you have to have stuff that your customers is genuinely interested in, can they write that? I doubt it. YOU have to do it.

5. Social Media

And now of course you have to have a presence on Facebook and twitter and all the rest of it. Well, yes you probably do. But don’t get your hopes up too much.

Bizarrely I think that Twitter may well end up being the most effective. There will be the odd few of your blog posts, that effectively get syndicated across like minded people on Twitter, and those few posts will hit home to them and turn into something for your business.

Facebook. Only really useful I think as a mechanism for interacting with people on the move (via smart phones) or who just spend their time in that world more than the other parts of the digital world.

If your blog automatically sends updates to your facebook business page and twitter i think that will be enough to cover you there.

Before you embark on building a facebook world for your potential clients think again why on earth would they come to your facebook world for anything other than a cursory look or query? When they do you have to respond to that but the reality is that you will not have some all-singing all dancing interior design world on either the web or twitter. And even if you do who will go there… other interior designers or your clients!

Good luck. Getting clients was never easy – if that’s any consolation.


Luxury Cashmere Throws

Luxury Cashmere Throw

Luxury Cashmere Throw

We’ve added some new designs and qualities to our luxury cashmere throw range. If you click on the main image to the right you will get taken to our main website where there are further designers’ resources for specifying cashmere throws.

We also have downloadable pdfs on the same site giving scanned colourways of our luxury cashmere throws as well as detailed images of  each design and fringe options.

All our cashmere throws are 100% pure cashmere. They are the best quality and most luxurious you can buy. You should specifically look at our higher ply cashmere throws which almost all other UK based cashmere throw companies are unable to source and sell. The higher ply gives a thicker and more luxurious feel. when combined with the quality of the yarn and the attention to detail of our weavers the difference in quality can be very easily seen and felt.

Please <click here> to email us for further information. 

Please note that we only sell to the trade.


Luxury-Cashmere-Throws-Colour-Tea

Luxury-Cashmere-Throws-Colour-Tea by KOTHEA
Luxury-Cashmere-Throws-Colour-Tea, a photo by KOTHEA on Flickr.

A KOTHEA Cashmere Throw or Blanket is the best you can buy.

Of course we only use 100% Pure Cashmere wool, hand woven by expert artisans. We offer an extensive collection comprising beautiful designs in a range of muted neutral colourways.

Via Flickr:
The best luxury cashmere throws available to trade buyers (architects and Interior Designers) in the UK.


Luxury-Cashmere-Throws-Colour-Malt

Luxury-Cashmere-Throws-Colour-Malt by KOTHEA
Luxury-Cashmere-Throws-Colour-Malt, a photo by KOTHEA on Flickr.

A KOTHEA Cashmere Throw or Blanket is the best you can buy.

Of course we only use 100% Pure Cashmere wool, hand woven by expert artisans. We offer an extensive collection comprising beautiful designs in a range of muted neutral colourways.

Via Flickr:
The best luxury cashmere throws available to trade buyers (architects and Interior Designers) in the UK.


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