Pricing interior design services has to be one of the biggest questions interior designers ask. All the time. And there is a crucial part many interior designers are missing.
Pricing Starts with the Three Amigos
One of them is a cheap playa, Billy. Everyone has had him. But the other two are both pretty fly. After seeing Ethan and this Hooker, how could you ever do it again with Billy?
Yes, Billy is nice; he does the job right now. But he won’t be there a few years from now. He’ll be lying in a dump drowning his sorrows in cam bolts. Sadly telling all the other Billy’s about how he thought he was going places. But the only place he was destined for was the dump.
“Jenny, my dear daughter… I am beyond excited to finally pass on to you my beloved Billy Bookcase. It’s an heirloom piece.” – Said no one ever.
We all have had those clients. The one who can’t see the value of paying for a higher end piece of furniture. Billy, the Ikea bookcase will work. It’s functional, it does the job. It serves a purpose.
But we all know if we had our way we would drive our clients directly over to the "real" furniture store. But once they had their glimpse into the land of cheap furniture, trying to get them to take a tour of real furniture land is slim. And having them commit to Ethan or even a Hooker is a pipe dream.
The reason our interior design clients don’t see the value of the real furniture is because it’s not sitting right next to the cheap pieces.
It is about positioning and giving them an anchor.
Imagine if you put a piece of furniture made out of real wood next to the Ikea piece, people would get it. Like really get it. How could they not?
And when they saw this real piece of furniture that would within stand a move, that it would look fabulous years down the road, that it oozes quality people would maybe save their dollars to spend on that Hooker or Ethan instead of that cheap slag Billy.
The same comes when we talk about your design packages pricing.
You need to position your three design packages just like Billy, Ethan and the Hooker.
Pricing Interior Design Services Step #1
I know you want to be able to help people so you offer them a Billy. Well, slightly more than what Billy actually retails for (I hope!), but an entry level design service. This is your anchor. It sets the beginning of your pricing levels. This is really your most affordable option, but it doesn’t have all of your most awesome services you offer that your adoring fans want.
Pricing Interior Design Services Step #2
Next, you put your mid-level package right there next to the entry level package. It costs a bit more, offers more and is right at the sweet spot for most people. Most everyone will want to take Ethan home, but not without seeing what the Hooker has to offer.
Pricing Interior Design Services Step #3
Next to your sweet mid-level Ethan package spot is your deluxe Hooker offering. This is the balls to the wall awesome package that costs a bit more than your mid-level Ethan design package. People who really dream of being taken care of will want this Hooker package, but few will buy it. But you must have it to make your mid-level Ethan package look absolutely dreamy.
Because when Jenny is considering your interior design services, she’ll wish she could have the deluxe treatment from you and know that the entry-level service isn’t going to satisfy all of her needs. So your mid-level package looks like the perfect solution. And when compared to the deluxe Hooker it looks like a deal and your “Billy” package almost seems too inexpensive.
And once she’s tried your happy medium Ethan package, she may be inclined to next time treat herself to your deluxe Hooker package after having a taste of the good stuff you provided in Ethan's package, er your mid level package. It’s all relative. And without three packages how could Jenny decide what was in her best interest?
Alycia Wicker is a business coach for creative entrepreneurs. Her clients land more of their own dream clients and make more cash, period. Celebrity gossip whore. Elvis-obsessed.