Photo provided by Tays & Co. Design Studios
Time is money—and so are your experience and expertise. But how do you communicate and uphold your value while balancing client needs, budgets, and expectations? And how do you stay competitive in a Midwest market teeming with talented designers, builders, remodelers, and architects? Laura Tays of Tays & Co. Design Studios has explored strategies to navigate these challenges. Here, she shares her key takeaways, practical solutions, and expert advice for structuring a thriving, profitable business—one where every invoice gets paid.
Balance & Manage Client Expectations
When prospective clients discover a design-build firm through social media or print, they often seek the same level of design—without fully grasping what it takes to achieve it. “Many people don’t understand the amount of time, labor, and just overall expense those types of projects took to complete,” Tays says. “Explaining this reality to clients can sometimes feel like you are shattering the dream of what they thought they could have for their budget.”
The Solution
- Set realistic expectations from the jump
- Adjust the project scope accordingly
- Complete the project in phases to spread costs over time
Photo by Spacecrafting
Get Real About Rising Material & Labor Costs
According to Tays, it can be difficult even as a designer to keep up with changes in material and labor costs—let alone a homeowner or prospective client who is removed from the process. “The same project we designed five years ago would likely be almost double if completed exactly the same way today,” Tays says. “That is a very fast increase in overall costs in a fairly short amount of time.”
The Solution
- Limit smaller projects with low budgets
- Focus on projects that can support this reality
Explore Percentage-Based Fees
“With percentage-based fees, we are able to give [clients] a clear picture of what their fees will cost right from the beginning,” explains Tays, who cautions against hourly pricing in certain contexts. “Hourly charging forces working fast and making quick decisions [to ensure] a client doesn’t question why it took 20 hours to select or customize the perfect sofa for their space. I don’t want that kind of pressure.”
That’s why Tays suggests basing fees on a percentage of the overall project completion cost. This strategy makes it “clear to the client exactly what they will pay you at all levels of budget, which will avoid frustration or questioning of your invoices,” she explains. “It allows you to set that percentage at a competitive industry rate based on your skills and level of services your firm offers, and ensures you are always paid— even if there is scope creep.”
Photo by Spacecrafting
But… Don’t Entirely Write Off Hourly Rates
A percentage-based fee might not be best for every service you offer clients. “We avoid hourly rate charging as much as possible, but we have found a few times it makes the most sense,” says Tays, referencing installation needs, for instance, which can vary dramatically depending on project scope.
“We might have a whole home of furnishings to install ranging from furniture, wall art, custom window coverings, bedding, and sometimes even dishware and kitchen accessories, organization of closets, or other storage of things kept behind doors,” Tays explains. “This installation time will take much longer than one we are only bringing in a few rooms of furnishings for. So, charging by the hour makes the most sense in this situation.”
Another time hourly charging makes sense, according to Tays? Consulting on a project for a few hours versus taking on all aspects of the design.
Avoid Charging by Square Footage
“No design square footage is created equally, [so] charging this way can be inaccurate—at least in our instance where everything is highly customized and to the exact needs of each of our clients,” says Tays, who still acknowledges it could indeed be the right approach for certain firms. “Should you be a designer at a design-build firm or one that works strictly with allowances, this could be a reasonable way to charge.”
