| You face more challenges than ever before as an | | | | offer services outside of your market, even |
| interior designer. You're probably feeling the | | | | globally, through social networking sites or even |
| impact of external pressures like never before. | | | | on your own website? Yes. In fact, should you be |
| What are the ten biggest threats to your interior | | | | thinking of ways you can offer services to many |
| design salary today? | | | | at one time instead of a few clients? Yes. That is |
| | | | a passive income strategy that you should be |
| 1. The recession is obvious to all of us. Many | | | | considering. Some of the top designers have been |
| interior designers provide services to the affluent, | | | | doing this for years with product licensing. That's |
| and yet the affluent are feeling less wealthy | | | | not for small design firms, so don't expect to do |
| these days and they are questioning | | | | that easily. Besides, that route has many |
| everything...especially your fees. | | | | challenges, too. |
| 2. Consumers are more savvy today than every | | | | 4. Also, a few social networking sites are selling |
| before. They are shopping on the Internet for the | | | | trade only products now. Granted they're selling at |
| products that were traditionally available only | | | | retail, but the consumer doesn't have to buy |
| through you. | | | | through you. You can't force the genie back into |
| 3. Some social networking sites are selling services | | | | the bottle, the cork has been thrown away. |
| that are commoditized and limited in scope, but | | | | 5. If technology is overwhelming to you, you are |
| are designed to make our services more | | | | not alone. If you're a seasoned designer, say over |
| affordable to the masses. Even interior designers | | | | the age of 40, you may not love computers, but |
| that understand how the consumer attitudes | | | | they are here to stay. The trick is figuring out |
| have changed are offering packages of services. | | | | what you absolutely must use to run your |
| 4. These same social networking sites are also | | | | business effectively and efficiently. Clients will not |
| offering purchasing services to the consumers | | | | tolerate paying for services from designers who |
| and this is resulting in designers being bypassed | | | | resist the trends. It makes your firm look dated. |
| for purchasing and/or design services. | | | | You can outsource, or even hire young designers |
| 5. Technology is changing so rapidly that few | | | | who have graduated in the last few years to help |
| people can manage the overwhelming amount of | | | | you adapt your technology. Many tools are free, |
| data and emails, much less understand which | | | | so the biggest expense is your time to learn and |
| software products to use to manage your | | | | implement the products. A great benefit is the |
| businesses efficiently. | | | | ability to have a phone or laptop and do business |
| 6. Social media is the latest buzz phrase, but what | | | | anywhere in the world. It's actually quite exciting. |
| does that mean? Most designers don't even have | | | | 6. Social media is here to stay. In fact, it is hard |
| websites, much less a blog. What sites should you | | | | to anticipate what sites will stay and which will go. |
| use? How do you figure out a strategy? | | | | Here are the major sites you should include in |
| 7. HGTV has created interest in interior design, | | | | your marketing strategy: your blog, Facebook fan |
| and many consumers now want to do their own | | | | page, Twitter, YouTube and Flickr. This may be |
| projects. Frankly, they want the thrill of getting | | | | heresy to some, but you don't need a website |
| the kudos from their friends and family, and they | | | | any more. The central hub of your online efforts |
| are also interested in saving money. | | | | should revolve around your blog. Also, be sure |
| 8. Consumers can rate you online, and they can | | | | you check out Ava Living and Decorati. It's |
| talk about you even if you don't have a website. | | | | important that you understand what is happening |
| If you have a challenging relationship with a client, | | | | in the broader market that is affecting you even |
| it may be published online. Do you know what | | | | if you are in a small town. Another huge trend is |
| they are saying about you? | | | | mobile technology. You haven't begun to see what |
| 9. Consumers are losing patience with time billing, | | | | is going to happen with that. Hold on to your cell |
| and quite frankly, it makes your services seem | | | | phone...it's going to be a wild ride! |
| like a commodity instead of a service that | | | | 7. HGTV has been good and frustrating at the |
| provides real value at a reasonable price. | | | | same time for most of us that are professionals. |
| 10. Magazines and newspapers are struggling to | | | | It's not reality TV at all, but the consumers really |
| survive. Many designers were used to getting | | | | don't understand that. What is interesting though is |
| feature articles and now, the opportunity for the | | | | that more consumers are spending time watching |
| third-party endorsement is diminishing in offline | | | | videos on the Internet than TV, so that's actually |
| publications. | | | | positive. However, the misconceptions about our |
| What should you do? It's hard enough running a | | | | industry are still there and won't be going away |
| successful business in good times. | | | | any time soon. |
| You have alternatives, but it will require changing | | | | 8. Sites such as Angie's List, Yelp and Merchant |
| how you think and run your business. Let's talk | | | | Circle give consumers the opportunity to rate |
| about each challenge and what your choices are: | | | | your services. If you've had challenging client |
| | | | relationships in the past, you really do want to |
| 1. We've been able to do business our way for | | | | work on selecting better clients even in a |
| years by charging an hourly fee and a mark-up or | | | | challenging economy. It isn't worth the potential |
| discount from retail. Ironically, a few years ago, | | | | damage to your reputation to take on a client |
| ASID did a study and approximately 70% of | | | | that is difficult just so you can pay the bills. Also, |
| those surveyed wanted a flat fee for design | | | | you do want to improve your people reading and |
| services. What percentage of designers price their | | | | customer service skills. Consumers won't settle |
| services in this way? 5.6% of the designers we | | | | for average services any more. They want an |
| surveyed offer flat or Value Based Fees. What's | | | | exceptional and personal experience. |
| wrong with this? If the consumer wants their | | | | 9. The old methods of charging are rapidly |
| services one way and we make them fit into our | | | | becoming antiquated and will not work in the |
| mold, we've already created friction and | | | | future. SInce so many opportunities are available |
| potentially difficult times getting paid for our work. | | | | to purchase services online, many designers who |
| It is vital that we start adapting to what the | | | | were used to charging for every single minute |
| consumer wants. | | | | cannot get away with that any more. Frankly, it's |
| 2. Many manufacturers and retailers are selling | | | | never been a good way to work. It's important |
| directly to consumers, and with the financial | | | | to learn how to charge for your value, and that |
| challenges, even the most affluent don't mind | | | | perception is different for every client. We can't |
| saving money. Can we as designers really | | | | cover all of that in this article, but I can guarantee |
| mark-up our products any more? Yes and no. | | | | you that you'll have to consider how you can |
| The conversation needs to change. If you have a | | | | work more effectively with your clients. |
| client that really prefers to do their own | | | | 10. Some magazines are now online, but they are |
| purchasing, you have to decide if you're willing to | | | | also suffering from low advertising revenue. It is a |
| work with them. Also, not all products for every | | | | challenge, and if you are wanting to get coverage, |
| job should be purchased through designers. It | | | | you'll probably have to provide your own |
| makes sense for consumers to buy products for | | | | photography. Reporters and editors are stretched |
| secondary areas like basements and guest rooms | | | | thin because of the declining budgets, so the |
| from retail stores. Why fight it? If you do, the | | | | more you can do the work for them, the better |
| client will think you're only interested in the | | | | the chance you'll have of getting published. |
| mark-up and not what is right for them. This is an | | | | If you don't mind change, these are exciting |
| inherent conflict. Why not offer purchasing | | | | times. If you do mind change, you have some |
| services for things they don't know how to do | | | | decisions to make. Our industry will never return |
| such as draperies and complex customer | | | | to the days when we had clients anxious to work |
| furniture? | | | | with us on our terms because of our reputations. |
| 3. It's time to start thinking about doing business | | | | Today, you have to provide a unique service with |
| in a new way. In some ways, we've struggled | | | | a unique pricing strategy. More importantly, you |
| with an inefficient model for too long. If we only | | | | have to be found, so that means you have to |
| sell our time, it is a limited resource. Can you now | | | | have an online as well as an offline strategy. |