Create a Client Budget for Your First Interior Design Job

A few weeks ago I did a TikTok post on how to start designing your first room. I'll try to do a blog post on that too to write out the steps for you, but for now, check it out here.

One of the most important steps to interior design that I mentioned was understanding the client budget. There are a couple possible scenarios I mentioned.

1. The client comes to you with a firm budget number.

2. The client has an idea of what they want to spend but want your opinion on if it's enough. 3. The client doesn't have a clue what it will cost & understands that. They want you to come to them with the budget.

All three of these scenarios require the same from you. You must know how to create a preliminary budget for the space. DO NOT give them a number on the spot! No matter how many times you tell a client that it's a rough number & you'll have to get back to them with a realistic number once you've spent the time on it...they ALWAYS go back to that rough number later. That is the number they will remember & it will work against you. The exception to this is if your rough number was exponentially higher than your actual budget number. The problem with that is you run the risk of scaring them away with a number that is too high. So, I repeat...NEVER give a number on the spot. Not for your fee (unless informing them simply what your hourly rate is but never how many hours you estimate) not for the purchasing budget, & not for the labor. Ever. You are only more professional in stating that you need to go back to your office & run the numbers properly. If they don't like that, trust me & save yourself the trouble, this potential client will give you heartburn at best & you're better off not taking the job.

One other thing to consider before you start your budget...learn to read your potential client. YOUR idea of what something should cost, may not match their idea. And you may want to be designing for high end, but is this that client? During your consult, you need to learn to ask the right lifestyle questions, literally read the room (how does it appear that they live/spend now?) and get a vibe for what they may feel is reasonable. Budget according to that assessment. You can always go back & change it later if they want to spend more or less.

So, here is the basic list of what you need to consider & outline for your preliminary budget. I also have a little surprise for you. At Charles Interior, we created a proprietary estimator for preliminary budgets. I am going to share that with you. All you need to do is make sure you're subscribed & then email asking for the Project Estimator. You'll receive an email with the template, & an explanation on how to use it! Everything starred in the list below can be done in the estimator template.

Client Preliminary Project Budgeting:

• *List out every single thing that you believe will be going into this space. From building materials (only those you'll be involved in spec'ing & purchasing - for example you may spec paint, but the painter buys it & includes it in their fee. But tiles you can & should buy) to furniture (FF&E) to light fixtures, specialty outlets, decor etc. List the quantity as well.

• *Estimate what you think the retail cost will be for each piece/item. This isn't an exact science & you'll get better at this over time. You can do this by doing a quick search of some items that may fit the project & what the average cost is in this clients assumed budget range.

• *Look up the sales tax rate in the state the project is in. This will be added to your estimated cost across the board.

• *Determine an estimated shipping cost. If you did some quick pre-spec'ing, you know a basic idea of where you may be ordering from & an average of the shipping. Some places are free, some have set fees no matter what & some are going to be freight costs. Do the best you can.

• *Will a storage space or container be needed? What size? For how long? Determine the estimated cost.

• *Are there going to be items requiring assembly? Building onsite? Is this a Task Rabbit thing or do you need to hire more of a pro? Get a rough estimate of what you think the costs there will be.

• *Labor- are you hiring painters, contractors, sub contractors? This can be a bit trickier depending on the size & scope of work being done. Start with looking up local average costs per SF, err on the side of caution & pick a number slightly higher than the median.

• * Add a contingency %. I generally go with 20% & I make it clear to the client that it's there. This is for unforeseen costs, rates or prices being different than expected etc. This helps the client know that it's unlikely you'll come back asking for more $ because you've planned for the unknown. They like this. Note that in larger projects & certain fee structures, you don't let them know this is included & the all inclusive budget is the final number. If you're budget ends up being lower, it's your profit, if it ends up being higher, you've messed up & you eat the cost. - there are a few exceptions to this but I won't get into that now.

• *If you are marking up these purchases - as is standard practice (If you're brand new & looking to gain experience & build your reputation, you may choose to take projects without doing this as a way to entice clients to try you out - they save money but once you gain some traction, you're running a business & markups are standard.) decide the % & add that into the budget.

• Be sure you're preliminary budget is extremely clear, in writing, if it does or does not include your design fee. Either is fine, but it must be clear or you'll run into trouble later.

I am so excited for you that you are on this adventure to get your first project, or refine your ability to budget. Running your own design game is super tough & I hope my years of learning these steps the hard way, helps you with a smoother ride to success.

As always, if you've got questions or areas you'd like insight & tips, comment here, email, or comment on any of my videos so I know what to do next!

XO

Shira