Setting Interior Design Rates: From Surviving to Thriving
Episode 86
Are you setting your interior design rates based on what others charge or what "feels reasonable"? In this episode of Design Dialogues, I explore why this common approach is holding you back and how to calculate rates that actually support your business goals.
I hope you enjoy the episode
Beth xx
Why This Conversation Matters
During a recent Health Check session, a designer shared something many of us can relate to: "I'm working so hard, but I still feel like I'm just scraping by." Sound familiar? The problem wasn't her work ethic - it was her rate-setting strategy.
The Wrong Way to Set Rates
Many designers set their hourly rates based on:
What other designers charge
What they think clients will pay
A number that feels reasonable
Market averages
But here's the truth: none of these factors consider what YOU need to build a sustainable business.
The Right Way to Calculate Your Rate
Follow this proven process:
Determine your ideal annual salary
Calculate actual business expenses
Consider real billable hours (hint: it's not 40)
Factor in business growth
Account for expertise and value
Why Undercharging Hurts More Than Your Profits
Low rates lead to:
Professional burnout
Attracting budget-conscious clients
Resentment in your business
Compromised service quality
Stunted business growth
Making the Change
When you charge what you're worth:
You take on fewer, better clients
Service quality improves
You attract clients who value expertise
Business becomes enjoyable again
Growth becomes sustainable
Communicating Rate Increases
Start with new clients
Plan increases around financial/calendar year
Frame changes as service refinements
Communicate with confidence
Focus on value delivered
Expert Insight
"At the end of the day, this isn't about money. It's about respect. Respect for yourself, for your time, and for the expertise you bring to the table. The right clients will value you. The wrong clients will always question your worth."
Ready to Calculate Your True Rate?
Book a Systems and Processes Health Check to:
Calculate your ideal rate
Create implementation strategies
Build communication frameworks
Develop confidence in your pricing
Plan sustainable growth