As an industry, interior designers offer a wide variety of services. These are often dependent on the size and capabilities of the business, and most designers strive to evolve throughout the time that they’re in business. In this article, we’ll be looking at four possible tiers you can consider an interior design business to be part of. We’ll also explain how to maximize each level. No level is incorrect or wrong, as a smaller or younger business may struggle to offer the services in the higher tiers. But every tier has its benefits and ways to maximize profits within it. Design businesses can even offer multiple of these tiers, which can attract a wider variety of clients.
Tier 1: DIY Guidance and Consultations
The first tier of interior design services includes one-time consultations, design audits, or e-design services. These services can be a fine profit generator. They require relatively little input from the designer compared to full-service design. However, the downside is that they may still be low-margin, as clients could be unwilling to pay a premium for these basic services. Plus, you’ll struggle to add to your portfolio, since you won’t be doing the full design on any spaces.
You’ll likely attract DIY enthusiasts looking for expert input, or other budget-conscious clients who prefer to shop around for contractors and materials themselves. For most interior designers, these are not ideal clients. They are often one-time clients that are simply looking for a quick tip, and then they’ll be gone—no repeat purchases, and no referrals. Plus, if you give them an inch, they may take a mile. These small transactions may push clients to ask for more and more. And if your business is still small and young, you might just give more than you can handle.
To make the most of this entry tier, you should offer a variety of templates, products, and purchasable guides that can generate passive income even when you’re not working on your business. Consider creating a lead magnet—a free offer that can be accessed in exchange for signing up for your email newsletter. Then use this newsletter to advertise your affordable digital products further.
It’s important that you set expectations to avoid being taken advantage of. Clearly name and label your consulting packages, and set clear bounds on them, like a time length for a walk-through or session. Also be sure to know your own worth and charge appropriately for your time.
Tier 2: Partial Design and Single-Room Packages
When your design business is ready to move into providing dedicated design services, many designers choose to start small with single-room services. When you don’t have an expansive portfolio to show a potential client, it can be difficult to land a full-home design project. However, a client may trust you with a single room. You can choose to specialize in one room (kitchen, bedroom, etc.) or offer services for each. At this tier, you may be offering partial design services. This usually means you’re doing the design, but then the client hires their own contractors to execute your plan. If you don’t yet have contacts in the industry for procurement and other services, this may be a good middle ground for your business.
To make the most of this stage, you should build in opportunities to upsell clients. Services like furniture procurement or 3D renderings can be add-ons. If your client will be doing the purchasing themselves, try using affiliate links to get a cut of the sale. Again, build in clear boundaries so you aren’t taken advantage of. Specify the number of revisions, if you’ll be available for follow-up on the project, and what aspects of the project are off-limits for you. If possible, have a few design packages ready to go to tackle specific rooms and styles. You can make these packages visible to the client or not. What’s important is that you have a library of materials and furniture that you can start from for each project, so you don’t waste too much time in the design process.
Tier 3: Full-Service Design
The full-service design tier is when your business becomes a serious operation! This means you’re designing full homes, and taking a project from start to finish. From concept to final install, your design services encompass it all—procurement, project management, organizing contractors. You’ll be approached by high-end clients who may have different goals. Some may have a style in mind, and will trust you to provide a package that suits them. Others may want a closer relationship that gives them more control, and they may want to see multiple options for finishes and furniture.
This is where most interior designs strive to be, even if they aren’t quite there yet. It takes time to build the appropriate connections and experience in the industry. Once you make it here, you have probably also solidified your unique value proposition, your distinct interior design style, and you have clear processes in place for all areas of your business.
To maximize your revenue at this tier, be sure to charge what you’re worth. In addition to the proper hourly rates or project fees, charge a markup on items that you procure. Your design process should be clearly structured and documented. Have a client onboarding process, a method for presentation and revisions, an ordering and procurement process, and fallbacks for common problems that could arise. You can also still upsell at this stage, offering add-ons depending on what your base offerings are.
Tier 4: Premium and Bespoke Services
The final tier of interior design is very similar to full-service design, but with an extra layer of polish on it. In addition to everything in that tier, this level features additional offerings that appeal to affluent clients who seek exclusivity. This can include custom furnishings, concierge design, and the possibility of traveling outside of your city or state for the project.
To make the most of this tier, price accordingly. This clientele can afford luxury, and they expect it. Your ideal client at this stage can likely afford whatever you charge, as long as they see the value in the investment. Build a VIP experience that treats the client how they expect to be treated—your highest priority. Emphasize a stress-free experience and a sense of privacy, both of which are highly valued by affluent clients.
Consider the Whole Picture
Regardless of which tier you find yourself in or strive to achieve, always make sure that you keep your eye on the bigger vision. Don’t just sell a package and be done with it. Do what you can to nurture your clients and customers through a pipeline. Even when you’re only selling digital templates or single-room design packages, you should keep clients engaged, so that when they’re ready to take the next step in their design journey, they know who to call. No one is a lost cause—you just need to make sure you’re top of mind when the time comes. If you’re stuck in tier 2 or tier 3, and you’re looking to elevate your design business, Pearl Collective can help. Let’s talk!