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How much do Interior Designers charge in 2023?

Interior design costs, fees and prices: explained.

August 4, 2023

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Talking about money is often described as crass or unwelcome, but if we don't talk about charging, who will? Also, what is wrong with learning more about the financial basis of designers' roles? We work with members of the design community on a daily basis, and we've seen how incredibly hard it is to set a pricing strategy that works.

So, in this article, we'll cover the latest trends in the interior design industry; from tackling inflation and recession fears in the UK to leveraging online tools and AI advancements, we'll explore how technology is transforming the interior design game. We'll also break down the different cost structures, including consultation fees, hourly rates, flat rate or fixed fees, and commissions. Additionally, we'll discuss key considerations for setting your prices, such as knowing your audience and estimating project scope.

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Understanding the Interior Designer business in 2023

Much of the interior design industry has remained unchanged for decades, but new technological advancements and economic factors are reshaping the landscape. In this section, we will go through some of the most important industry trends that might affect the business of interior design.

Inflation and recession fears

Unfortunately, the current inflation and recession fears can have a significant impact on the demand for interior design services. During periods of inflation, the cost of materials and labor may increase, affecting project budgets and overall costs. On the other hand, during recessions, clients often become more budget-conscious, seeking flexible pricing options.  Additionally, increased competition between interior designers may lead to lower prices as designers strive to attract clients.


Online, AI and DIY tools are changing the game

With the rapid advancement of technology, online and AI tools are revolutionizing the interior design industry. These tools provide designers and clients with convenient platforms for remote collaboration, breaking down geographical barriers. If that sounds like something you've been looking for, check out Portaire. AI tools, on the other hand, offer invaluable assistance in various tasks such as space planning, colour selection, and 3D rendering. Also, DIY tools have allowed customers to take renovations in their own hands, decreasing the silos of knowledge between designers and clients.


How much do interior designers charge?

No two designers are the same, and no two projects are the same. As such, talking about price is complex, and must take into account for the interior designer's experience, location, and the scope of the project. Then, we need to think about the type of pricing model used.

Consultation fees

Consultation fees are an essential aspect of working with a professional interior designer. These fees are charged for the valuable time and expertise that designers provide when evaluating a space and discussing design options with clients. It's common for some designers to offer a complimentary (free) initial consultation as a way to establish a positive rapport with potential clients. This is a good idea, as it allows clients and designers to gain professional insights and advice before committing to a larger design project. To ensure transparency, it's important to clarify the terms and expectations regarding consultation fees upfront, avoiding any misunderstandings.

interior designer working

Hourly rates

Hourly rates are a popular model to charge as an interior designer, as it is flexible yet compensatory of the time put into a project. Hourly rates charged by interior designers can vary based on several factors, including their experience and location. Additionally, interior designers may charge different hourly rates for different services, such as consultations or full project management. Forbes estimates that interior designers charge between 100 and 200 USD per hour, while other sites estimate anywhere between 50 and 150 GBP. If the lower end of the spectrum is applied, there might be other pricing structures at play, as we'll talk about later on.

interior designer working

Flat or fixed fees and packages

When it comes to pricing in interior design, there are two popular options to consider: flat fees and fixed fees/packages. Flat fees provide a clear, upfront cost for specific services, ensuring there are no unexpected charges along the way. On the other hand, fixed fees and packages offer comprehensive design services at a set price, catering to all the client's design needs. The choice between these pricing structures depends on the client's individual requirements and preferences. Flat fees offer flexibility, allowing clients to select specific services a la carte. Fixed fees/packages, on the other hand, provide a bundled approach, ensuring that all design needs are met. Packages can include just a design, design and documents, or an end-to-end turnkey approach. Prices for these three are estimated to go up to 5000 and 20,000 GBP for the first two, and upwards of 20,000 GBP for the latter, according to CheckATrade.

interior designer working

The role of commissions in the Interior Design rate

Commissions, also known as markups or trade discounts, play a vital role in the pricing structure of interior designers. These commissions serve as a significant source of income for designers, particularly when it comes to procuring furniture and accessories for their projects. Typically, commissions are a percentage of the total cost of the item or service being acquired. However, some interior designers may negotiate lower commissions with suppliers in order to offer competitive pricing to their clients. The exact amount of commissions can vary depending on factors such as the type of project, supplier relationships, and the designer's level of experience. In our trade-only platform, you can trial out this approach.

interior design working

Key considerations for setting your Interior Design prices

When setting your interior design prices or figuring out your interior designer cost estimates, there are a number of factors to keep in mind. Firstly, it's important to understand your costs. This includes calculating expenses such as materials, labor, overhead costs, and your desired profit margin. Additionally, researching the market is essential. By analyzing the pricing of other interior designers in your area, you can determine a competitive rate. Your expertise and experience should also be taken into account when setting prices. Consider your qualifications, skills, and years of experience in the industry.

Knowing your audience

Understanding your target market's budget and preferences is crucial in determining pricing strategies. Tailoring your services and pricing to meet the needs and expectations of your specific clientele is key to success. By conducting market research and staying up-to-date with industry trends, you can gauge what your audience is willing to pay. Offering different pricing packages or options can attract a wider range of clients and accommodate various budgets. Building strong relationships with your clients and understanding their values and priorities can help you provide personalized pricing solutions. It's important to remember that each client is unique, and taking the time to understand their individual needs will ultimately lead to better pricing decisions.

interior designer working

Estimating the scope of the project or renovation

Understanding the scope and scale of the interior design project at hand is crucial for both designers and clients. It helps determine the time, resources, and expertise required to bring the vision to life. Several factors influence the project scope, such as the size of the space, complexity of the design, timelines and client expectations. By accurately estimating the scope, designers can provide fair pricing that aligns with the work involved. Detailed consultations with clients play a vital role in gathering information and assessing the scope of work, which allows for more accurate cost estimation and minimizes unexpected surprises throughout the project (even in smaller projects!).

Assessing the size of the space

As a design firm, assessing the size of the space is crucial. This factor plays a significant role in determining the scope and complexity of the project. It's important to consider the square footage, number of rooms, and layout when evaluating the size of the space. Larger spaces often require more time, resources, and attention to detail, which can impact pricing. Accurately assessing the size of the space allows for a more precise cost estimation and ensures a fair pricing structure. Additionally, the size of the space also affects the amount of materials, furnishings, and fixtures needed, which can influence the overall pricing.

Allowing for mistakes

In the world of interior design, it's essential for fee proposals to factor in a margin for error when determining your pricing. Allowing for mistakes allows you to cover any unexpected costs or revisions that may arise during a project, ensuring that both you and your clients are protected. By including a contingency fee in your pricing structure, you create a buffer for unforeseen circumstances, demonstrating professionalism and transparency. This approach also enables you to provide more accurate estimates to your clients, giving them confidence in your ability to manage their project effectively.

How to Maintain Quality while Being Cost-Effective?

Striking a Balance between Quality and Affordability

When it comes to interior design, striking a balance between quality and affordability is crucial. As an interior designer, it is important to source materials, products and decor that offer this balance. A way to do this is by prioritising where it is key for money to be spend. You can do this by understanding your clients' needs, and allocating more budget to where it matters to them. Them, you can identify areas where cost-saving measures can be implemented. Researching and exploring alternative materials or techniques that offer comparable quality at a lower cost can be an exercise in creativity and ingenuity, so don't be scared to shape things in the way that is best for the client. By finding this equilibrium, you can provide exceptional interior design services while keeping costs reasonable for homeowners and clients.

Tips to Attract Consistent Clients and Ensure Business Growth

To attract consistent clients and ensure business growth as an interior designer, there are several key strategies you can implement.

When considering business growth, we need to talk about branding. In traditional interior design and freelance work, developing a strong, recognisable and beautiful brand is key. To do this, you should create a strong portfolio, marketing plan, email strategy. You can find more information on this here.

While growth is important, retaining good clients is key. To do this, you'll need to have consistent fees and establishing strong client relationships. By establishing trust and satisfying client needs through effective communication, designers can secure repeat business and positive referrals. Regularly checking in with clients demonstrates that their opinions and input are valued, further strengthening the relationship. Going above and beyond to exceed client expectations fosters long-term loyalty, as happy clients are more likely to leave positive reviews and recommend the designer's services to others. Nurturing client relationships is a key aspect of running a successful interior design business and can have a significant impact on its overall growth and reputation.

We hope you enjoyed this article, and that you feel more secure in your pricing choices as an interior designer. For more content, check out our journal, or in particular, our article on stretching a low budget and the best free softwares and tools for interior designers.

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