· Results reveal wide range of fee structure pricing and FF&E supply models in use
· Almost 60% of respondents said that they charged up to £75 per hour for their
services, challenging assumptions that professional interior design does not
represent good value for moneyIn the first report of its kind, the British Institute of Interior Design (BIID) has published the findings of a
new research project into interior design fees in the UK. At its recent annual conference Inside
Knowledge 2019: What is an Interior Designer Worth? the BIID, with support from Houzz, the leading
platform for home renovation and design, shared the results from their research collaboration, which
explores how interior designers price their services.
Harriet Forde, President of the BIID commented: “Fees continue to be a hot topic for the interior design
industry and this research delivers a fascinating insight into how interior designers are pricing
themselves in today’s competitive market. For many years, designers have been asking the BIID for
information on fees, so this in-depth research has enabled us to build a clearer picture to share with our
members.”
“As we’re always looking for ways to support the Houzz professional community, we are delighted to
share these findings, giving interior designers greater confidence in how to value their services as well as
providing homeowners with more transparency and a better understanding of how these professionals
work”, said Inés Cid, Managing Director for Houzz UK.
The Interior Design Fees Research reveals key insights from an in-depth survey of almost 250 interior
design professionals from BIID members and the Houzz professional community. The results provide a
wealth of industry insight which uncovers what interior designers are charging for their services, the
difference in fee structures and business models in use, and how designers charge for sourcing and
supplying of FF&E.
The research, published for the first time today, reveals an interesting picture of how UK residential
interior designers are operating:
About the Profession
· The majority of interior design businesses operate as limited companies (58%), and a high
percentage operate as sole traders (33%)
· The majority of businesses operate as sole practitioners, with a smaller percentage operating with
teams of 5 or under
· The majority of designers polled (40%), work on 1-4 projects per year
· 57% of respondents had a company turnover of £100,000 or lower in the previous financial year
while 5% had a turnover of over £1 million.
Fee Structures
· The designers surveyed were asked how they charge for their design work excluding any fees they
charge for supplying furnishings, fixtures and equipment. 21% work on a fixed fee basis, 18% on an
hourly rate and only 6% on a percentage of total project costs. Over half of respondents use a
combination of fixed fee, hourly rate or percentage charges depending on the project and the client.
· Recipients were asked ‘What % of the total project cost do you charge?’ – the majority (53%) fell
into the 6-10% banding.
· Of designers stating that they charge an hourly rate for their design services, the survey asked how
much the company charged for the most senior designer. Almost 60% of respondents said that they
charged up to £75 per hour and just over 40% stated that they charged between £76 and £150. No
designer chose the category for over £150 per hour challenging the assumption that interior design
services are excessively costly.
· When asked about whether businesses list their fees on their website, the vast majority (80%) of
respondents chose no.
· The survey asked; when do you charge for your services? Interestingly this was the highest
percentage answer of any question in the survey – 85% of respondents stated that they charge in
stages throughout the project with only 12% saying they charge before starting and 3% saying they
charge at the end of the project.
Sourcing
· The survey asked how businesses charge for sourcing FF&E. The responses were split, with the
majority charging a % handling fee based on the trade price, but closely followed by businesses
charging the retail price and keeping the difference between the two. Only 7% of designers said that
they charge an hourly rate for the sourcing and supply of FF&E and only 5% said they charge a fixed
fee for this service.
· Interrogating that further, the survey asked designers who charge a percentage based handling fee
for sourcing FF&E, what that fee is. For those that charge on the trade price the results reveal that
44% of respondents charge above 16%, 29% of respondents charge between 11 and 15% and 22% of
respondents charge between 6 – 10%. Only 4% of respondents said that they charged less than a 5%
handling fee.
· For those that charge on the retail price, 65% of respondents charge between 11 – 15%, 29% of
respondents charge between 6 and 10% and 22% of respondents charge between 6 – 10%. Only 6%
of respondents said that they charged less than a 5% handling fee, and no one selected over 16%.
· The survey asked designers on what legal basis they supply FF&E to their clients. Whether they
work as an ‘agent’ acting on behalf of their client, whether they act as a ‘principal’ by purchasing
FF&E from a trade supplier and then retailing it directly to their client, or whether they use a
combination of both models. The results reveal evenly distributed results. 30% of respondents
choose to work as an agent, 35% work as a retailer and 35% combine both models.
· For any respondents who said they work on a ‘retail’ model, the survey asked if respondents inform
their clients exactly what they paid for the goods. 68% of respondents said that they don’t inform
their clients of the trade price they paid for the goods that they are supplying. The remaining 32%
said that they do inform the clients exactly what they paid.
Harriet Forde, BIID President comments:
“The survey also revealed that designers biggest struggle when it comes to deciding on fees and charges
is the challenge designers have in explaining the value of their professional design services to their
clients. The results reveal that many businesses struggle with knowing the market rate and then face the
challenge of potentially underselling themselves. We hope this research paints a broader picture of the
market for interior designers and their clients, as well as sparking much-needed industry conversation
on fees.”
Visit biid.org.uk to view the research results in full.