Designers discuss fee structure in the big debate

The BIID’s recent debate on ’Fees and Getting Paid’ was a huge hit as over 100 interior designers gathered together for a sold-out event,  chaired by BIID Vice-President Dan Hopwood. The panel also included BIID Past President Lori Pinkerton-Rolet of Park Grove Design, Staffan Tollgard of Staffan Tollgard Design Group, and Colin Jones of Hewitsons.

One of the biggest issues of the evening was what charging method to use, with designers present using hourly, fixed or percentage fees, or a combination of the three.  The value of the design process itself was discussed, and the question of whether designers, particularly newcomers, tend to undervalue themselves in terms of fees was raised. There was broad agreement on the importance of designers charging for their professional services, although it was highlighted that some designers do not feel that their clients will pay design fees and therefore they work purely on a percentage ‘mark up’ basis charged on the supply of furniture and fixtures.

‘Getting paid’ was also discussed at length, with several designers sharing their learning experiences around getting paid for their work. The failure of a client to pay for completed work can lead to the collapse of a business and the panellists emphasised the importance of ensuring regular payments, especially when it comes to payment for goods. The problem of ‘buyers’ regret ‘was touched upon, which can be particularly difficult where bespoke items, are concerned.

A designer working in the hotel industry raised concerns about the design tendering process which involves practices having to spend many hours creating pitches for no payment. This did not seem to be as much of an issue in the residential sector where most designers charge for a design proposal.

There was broad consensus over the importance of good communication with your client as this ensures that clients understand your design fee and everything that goes in to it.  Better communication can help to develop a stronger relationship between designer and client.

In addition to the fantastic contributions of our panellists, the designers in attendance were extremely responsive and open about their own experiences.  At the end of the evening the discussions continued amongst members well past closing time, and we hope to continue to enable this debate to develop at future events.