Let me start with a confession: When I first started my interior design business, I had no idea how to price my services. I’d undercharge to win clients, only to end up overworked and underpaid. Sound familiar? It wasn’t until I discovered the right pricing strategies that I started earning what I deserved, without losing clients. In this blog, I’ll share everything I’ve learned about pricing, from setting your rates to communicating value. Let’s get started!
1. The Myth: “Clients Only Care About the Lowest Price”
The Reality: Clients care about value, not just cost. If you can show them how your services will make their space last longer and improve their lives, they’ll happily pay a premium. You just need to learn how to say and teach them VALUE in a way that they’re convinced enough to pay your price.
Do This:
- 1. Communicate Your Value: Highlight your expertise, unique style, and the results you’ve achieved for past clients. If not, go pick any space around you and design it from scratch. Document and put it up in your portfolio with what was the problem you solved.
- 2. Offer Tiered Packages: Create options for different budgets (e.g., basic, premium, luxury) so clients feel in control. BASIC will have block estimats of important items with very affordable resources, PREMINUM will consist of a better range of materials and in LUXURY put up the best in the market. Try to keep them in the middle (premium) or if needed, create a range between basic and premium.
- 3. Showcase Your Process: Explain how your step-by-step approach ensures a stress-free experience and stunning results. Tell them everything from Onboarding to contract to payment plans and execution plan. If you don’t have an Onboarding System check this – (Tap Here)Client Onboarding Templates for both Residential & Commercial Projects.
Real-Life Example: Shea McGee of Studio McGee charges premium rates but justifies them with her impeccable designs, transparent process, and strong brand reputation. Even all the other Top designers you look upto are ALWAYS transparent with every phase and charges INCLUDING THE MARGIN. I’ve always heard designers come up and say to me “Siya, how will I tell my clients my margin?”. I tell them see “Firstly I don’t believe in taking commissions. Still, If you want commissions from vendors then go tell your clients that you will. But if it’s a low ticket client then be prepared to lose all the trust & respect. And for a high ticket client DON’T take commissions from vendors, charge the client your premium”
Advice: Use before-and-after photos and client testimonials to demonstrate your value.
2. The Comparison: Pricing Models That Work
Model 1: Hourly Rate
- • Best For: Consultations or small projects.
- • Pros: Simple to calculate; clients pay for the time you spend.
- • Cons: Can feel limiting for larger projects; clients may worry about costs adding up.
- • Example Rate: ₹1,500–₹5,000/hour, depending on experience and location.
Model 2: Flat Fee
- • Best For: Full-service projects with a clear scope.
- • Pros: Predictable for clients; you’re paid for the value you deliver, not just the time.
- • Cons: Requires accurate estimates; scope creep can eat into profits.
- • Example Fee: ₹50,000–₹5,00,000+ per project, depending on size and complexity.
Model 3: Cost-Plus (commonly known as commission / mark up)
- • Best For: Projects with a lot of material and furniture purchases. But the catch is, this only works if your client fully understands and agrees to it. In India, this pricing model has a bit of a bad rep. Many clients assume designers are just inflating costs, so if they don’t trust the process, you’ll struggle to maintain respect and credibility. DON’T use this if you are trying to build long term relationships and want repeat customers because the history has proven that the client eventually comes to know “you took commission”. After this, be ready to get your respect SHATTER earned over the years. That’s all I have to say about this.
- • Pros: In theory, it’s transparent because clients see exactly what they’re paying for. But in reality? Most Indian clients still feel like they’re being overcharged, no matter how open you are.
- • Cons: Can feel expensive, especially if clients don’t understand that your markup covers not just profit, but also the effort of sourcing, negotiating, and ensuring quality.
- •Typical Markup: 10–30% on materials and furnishings.
Model 4: Square Footage-Based Pricing
- • Best For: Residential or commercial projects where space size is a key factor.
- • Pros: Easy to calculate; clients understand the correlation between space size and cost.
- • Cons: May not account for complexity or custom requirements.
- • Example Rate: ₹100–₹300/sq. ft. for basic designs; ₹500–₹1,000/sq. ft. for premium designs.
Model 5: Percentage of Project Cost
- • Best For: High-budget projects where the design fee is a percentage of the total project cost.
- • Pros: Scales with project size; aligns your fee with the client’s investment.
- • Cons: Can feel high for large projects; clients may negotiate the percentage.
- • Example Rate: 10–20% of the total project cost.
Real-Life Example: Many Indian designers, like Gauri Khan and Twinkle Khanna, use a mix of flat fees and square footage-based pricing, depending on the project scope.
Advice: Choose the model that aligns with your values, strengths and the type of projects you take on.
3. The Timeline: How to Set Your Rates
Phase 1: The Beginner
- • What Happens: You’re just starting out and unsure what to charge.
- • Solution: Research competitors in your area. Look at their experience, services, and pricing. Start on the lower end of the range and increase as you gain experience.
Phase 2: The Growing Designer
- • What Happens: You’ve built a portfolio and have a steady stream of clients.
- • Solution: Raise your rates gradually. For example, increase by 10–20% every 6–12 months.
Phase 3: The Established Expert
- • What Happens: You’re in high demand and can charge premium rates.
- • Solution: Focus on value-based pricing. Charge what your expertise and results are worth, not just what the market dictates.
Advice: Sit and try to factor in your costs, desired profit margin, and market rates.
4. The “What If?” Scenario
What If You Could Double Your Rates Without Losing Clients?
Here’s How:
- 1. Position Yourself as an Expert: Share your knowledge through blogs, social media, and speaking engagements.
- 2. Offer Premium Services: Add high-value services like 3D renderings, custom furniture design, or project management.
- 3. Target the Right Clients: Focus on clients who value quality over price and are willing to invest in their spaces.
Real-Life Example: Kelly Wearstler charges premium rates because she’s known for her luxurious, one-of-a-kind designs.
Advice: Create a luxury package with exclusive perks, like highly personalized design concepts or VIP access to post project completion services.
5. The Resource Roundup: Tools to Simplify Pricing
- 1. Odoo – An all-in-one business management tool that includes invoicing, project management, and CRM. It supports Indian currency and is highly customizable.
- 2. rdash.io – RDash is a new-age construction management platform for developers, contractors, and design studios. From Survey to Designs, BOQs to Vendor allocation, office-to-site and planning to handover – all teams can collaborate on a single platform.
- 2. Zoho Books – Needs customization and takes time. Perfect for Indian designers, it handles invoicing, expense tracking, and GST compliance seamlessly.
- 3. Tally – A trusted accounting software in India that’s great for managing finances, including pricing and billing.
- 4. Canva – For designing visually appealing pricing guides and presentations.
- 5. Google Sheets – For creating custom pricing calculators.
Advice: Choose one tool that integrates multiple functions (like rdash, Odoo or Zoho) to avoid handling too many platforms.
6. The “Unpopular Opinion” : Stop Undercharging
The Bold Statement: “Undercharging doesn’t make you more likable instead it makes you undervalued.”
Why It’s True: When you undercharge, clients may question your expertise (without you realising), and you end up overworked and underpaid.
What to Do Instead:
- 1. Set Clear Rates: Be confident in your pricing and communicate it clearly.
- 2. Educate Clients: Explain why your services are worth the investment.
- 3. Stand Your Ground: Don’t lower your rates just to win a project. The right clients will appreciate your value.
Advice: Use testimonials and case studies to justify your rates and build trust.
The Open Letter: To Your Undercharging Self (READ OUT LOUD)
Dear Me,
I know you’re scared to raise your rates. What if clients say no? What if they think you’re not worth it? But here’s the truth: You are worth it. Your talent, your time, your expertise, they all have value. So stop underselling yourself. Charge what you’re worth, and watch how your business (and confidence) grows.
Love,
Your Future Self
As the famous designer Frank Lloyd Wright once said, “The price of success is hard work, dedication, and the determination to do your best.” So, go ahead and CHARGE what you’re WORTH, and watch your business soar.
See you,
By Siya