I entered the design profession in the 90′s, so I am no stranger to running to the design center for resource options. I think I even had to swear on the life of an unborn child that I would bring a fabric sample back on time. As I worked as a designer and then transitioned to the marketing side of the industry, I have witnessed many challenges to designers’ business practices.

Based on my research and conversations with many in the industry, I think this is an exciting time for designers to reposition themselves and take more control over their businesses. I hope designers can find a way to develop a business model that places more value on the services they provide and less financial dependence on the products they sell. I believe that creating a more transparent process and open door policy with clients and the public as a whole will benefit the profession.

This is an educational process that will take time, but I think it is an important step for the design profession. In addition, I hope more resources can be developed to help designers acquire the business skills and confidence they need to adjust their business models and support their professional success.

Jenny Schrank, Allied ASID, is a writer and marketing consultant for the architecture and design industry.

by Gail Doby, ASID

We discovered celebrity and high-earning designer’s secrets to financial and business success in the 2012 Fee & Salary Survey, and we’re ready to share them with you in the new 2013 Interior Design Fee & Salary Survey Results eBook.

Approximately 1,006 interior designers participated in the November 2012 survey.

For most designers, their financial results and satisfaction with the profession have been mixed and even dismal:

• 98.5% of interior designers feel underpaid for the amount of work they do
• 94% of designers want or need to make more money
• 72.6%  of designers feel overwhelmed
• 80% want to feel more satisfied with their level of success
• Almost 60% of interior designers earned less than $45,000 in 2012, and approximately 6% earned $0.

SHOCKING STATISTIC! 23.2% of all interior designers left the industry between May 2008 and May 2011 according to the Bureau of Labor Statistics.

Discovering new strategies that financially successful designers use to earn six-figure+ incomes can transform how you approach your businesses to achieve higher incomes and more satisfaction with your career. You can “peek behind the curtain” for the first time to discover the reasons why celebrity and high-earning designers accomplish seemingly impossible results in challenging economic times.

Modeling high-earning designers is the “easy button” and can save you a lot of time, stress and money, and though you may not have considered this as a strategy, we give specific tips and resources that you can use even if you’re not well-known yet:

• One of the key strategies celebrity designers use is “high visibility.”
• The higher-earning designers are likely to be members of professional associations and feel that being involved is critical to their success.
• Additionally, these high-earners invest in professional development because they understand that it is a shortcut rather than learning by trial and error.
• And, the majority of high-earners have a team.  More designers are using outsourcing today, and that strong trend is great news.  It means that designers understand that they can’t “do it all” and have a high level of satisfaction and even income from their businesses without help.

Design Success University’s goal is to stop the attrition in the interior design industry by showing you and your interior design colleagues the vital business and marketing skills to survive and thrive.  Our 180 page book is the first step you can take to change your results – and it is free. You will get more answers, strategies and advice when you download your copy at 2013 Interior Design Fee & Salary Survey Results eBook.

About Gail Doby, ASID, DSA, IDS – Gail is a practicing interior designer with her NCIDQ certification, degrees in finance & banking and interior design.  She has a passion for construction, renovation and mentoring other interior designers.  Gail co-founded Design Success University with Erin Weir on March 8, 2008 to help their colleagues achieve greater success by showing them shortcuts to a more profitable and passion-filled interior business. DSU offers coaching, classes and consulting to over 10,000 interior designers in 43 countries.

10 – Biological concrete promotes vertical gardens. http://ow.ly/gpdMD

9 – 12 unusual ways to squeeze into a tiny home. http://ow.ly/g0vh0

8 – Dragon den inspires budding interior designer (particularly a luxury bathroom!) http://ow.ly/gggWm

7 – Tight on space? Try this new Flatmate Desk by Müller Möbelwerkstätten http://ow.ly/gpfOB

6 – Chennai, India becoming a new hot spot for interior design. http://ow.ly/gggC8

5 – RT@asid: “5 Hot Home Trends for Winter” via Decorative Center Houston http://ow.ly/fMLjh

4 – A one-on-one with Modern Family interior designer. http://ow.ly/ggiUM

3 – Treeasy, a “Christmas tree for lazy minimalist.” http://ow.ly/fSsLs

2 –Interior Designer gets her hands on the White House… for Christmas. http://ow.ly/ggfVb

1 – Can you name at least 15 places interior designers impact a person’s daily life? http://ow.ly/eX3W2

And the top retweet of December: “An artist is paid not for labor, but for his or her vision” – James Whistler

For more daily interior design updates, subscribe to ASID Twitter.

10. In 2012, we welcomed some new faces, including our new CEO/EVP, Randy Fiser, who started in February and has been busy meeting with members on an extensive listening tour, developing new partnerships and …

9.  Creating collaborations with industry partner organizations including the International Interior Design Association (IIDA), the American Institute of Architects  (AIA) and the U.S. Green Building Council (USGBC) as well as leading industry companies like …

8. Dwell Media. We partnered with Dwell to host our national conference at Dwell on Design , taking place June 21 – 23, 2013, in Los Angeles. (Stay tuned for registration details!) This event promises to give our members all of the great programs you love and more, including the first-ever L.A. event for …

7. GO PRO, the industry’s most popular networking event for emerging professionals. GO PRO/NYC 2012, held in September, had the highest attendance in the program’s history. Even though they get to rub elbows with some of interior design’s best and brightest, our emerging professional and student members still believe in …

6. Keeping it real by participating in programs like RealWorld DesignWeek, the ASID national job shadow event, which took place in November. But we can all agree that being a part of ASID is also about …

5. Having fun and giving back! We were thrilled to see all of the creativity our members put into designing 200 pairs of TOMS shoes at our community outreach event at NeoCon. ASID donated the shoes and raised $2,000 through a silent auction for our non-profit partner, Samaritan’s Feet. We even created a photo album to showcase our talented shoe stylists.

4. And the giving back didn’t stop there. In November, we announced an alliance with the 1% Program of Public Architecture to encourage and recognize the pro bono work our members our doing in their communities. Our members not only give back, but are also …

3. Paying it forward through their support of the ASID Foundation. Through these generous contributions, the ASID Foundation delivered $85,000 in scholarships and $115,000 for research in 2012 alone. It’s never too late to contribute, click here to support the Foundation today.

2. The future is looking even brighter according to our first annual State of the Industry report,  the industry’s bellwether for trends and forecasts, which predicts 2013 to be a growth year for interior design!

1. And most importantly and appropriately, 2012 ended with the launch of a brand new ASID website that’s designed to give our members the tools to engage with clients, expand their resources and excel in today’s marketplace. Be sure to check out www.asid.org to see all of the great improvements and pay special attention to MyASID, a completely revamped online profile and portfolio for you!

Happy New Year and best wishes for a prosperous 2013!

The ASID Interior Design Billings Index declined slightly in October–by half a point–but  remained well into positive territory.

The AIA Index was up in both October (52.8) and November (53.2), and inquiries were up for both months as well, suggesting a positive trend for the fourth quarter.

Commercial Shows Some Improvement
Panelists reported notable increases in October billings over September in Office (51 vs. 48), Hospitality (52 vs. 43) and Healthcare (54 vs. 48) projects.  Similar jumps were reported last October and may indicate a cyclical trend. The AIA Billings Index for November also reported movement upward in some commercial areas.  Also similar to the AIA Index, the ASID Index shows declines in Institutional and Education, as well as Multihousing.

Single family residential, which has posted the strongest performance throughout the year, has contracted somewhat during the second half of 2012 but continues to be positive.  The October figure fell a point compared to September (53 vs. 54) and has declined 5 points since bouncing back in August after a lull in July.

Activity Mixed Across Sectors
The contraction in residential projects may account for a decline in billings for sole practitioners as a group–down to 50.5 in October from a seasonal high of 55.8 in September.  Small firms and large firms both reported increases (6 points and 7 points, respectively).  Mid-sized firms were unusually low, which may be a result of weak reporting for the month.

Billings were mostly stable throughout the country. All regions reported positive billings, with an increase for the month in the Mid West and South but decline in the Northeast and West.

Designers More Cautious About 2013
When asked what operational or business problems were most affecting their business, most panelists had few complaints.  About a third said poor sales or billings and delayed payments from clients were a problem, and nearly a third expressed concern about the cost or availability of affordable healthcare for their firm.

While consumer confidence and the Dodge Momentum indicator both increased in October, panelists were less optimistic about the short-term outlook for interior design services. The ASID indicator was down five points from September.

Throughout the year, panelists had expressed concern about the outcome of the national elections in November.  Post-election, they were asked whether, in their opinion, their business would improve or get worse as a result. Panelists were evenly split in their views, with 29 percent saying their business would improve and 29 percent believing it will get worse. Most felt the results would not impact their business either way. Sole practitioners were slightly more likely to say the results would negatively impact their business, especially if taxes were to increase in 2013.

Find a penny, pick it up … and use it as flooring! That’s what this woman did…

Extendable table, without the leaves.

Design + @Anthropologie together? Two of my favorite things! http://ow.ly/f9LWr

Media is multibillion $ industry, but how is ID involved? Find out in ASID’s new State of the Industry report.

Battle of the sexes: Over 2/3 of interior design firms are ____ owned. Find out if your guess is correct!

Quirky design elements for the fun in all of us.

For more daily interior design updates, subscribe to ASID Twitter.

The ASID Interior Design Billings Index inched up again in September, falling only slightly below the previous quarter’s mark. ASID firms reported positive growth in billings, posting an Index score of 55.3

The fluctuations in the Index between June and September may be due, at least in part, to seasonal patterns. The AIA Billings Index for September also pushed into positive territory, at 50.2, its best reading since April.

Residential Continues to Improve, Other Sectors Stay Flat
The residential sector continues to be the bright light for interior design in the current economy. Only ASID firms serving the residential sector showed consistent billing growth over the quarter. Although the multifamily residential sector was below 50 in July, it has rebounded during the past two months. The single family home market has experienced a steady increase, reporting a score of greater than 50 for each of the last nine months.

The news was not so good on the contract side. For the past quarter, all Commercial sectors have reported decreased billings. The Office, Retail, Entertainment, and Hospitality sectors have shown declines, reporting scores of less than 50. Although Institutional billings earlier in the year appeared to be healthy across all sectors, recent monthly scores of below 50 indicate revenues have fallen off.

Sole Practitioners Get a Boost
The stronger billing scores are from small firms with nine or fewer employees, with sole practitioners reporting a 5 point increase over August. These readings have been consistent since the beginning of 2012. Firms with greater than 9 employees are reporting no change in billings.

The pace of strong revenue gains continues for all regions on a year-to-date basis. Since January 2012, the Midwest, South and West regions have reported monthly billing increases. The Northeast has gained points in each of the past two months.

Outlook Positive, If Hazy
At present, both the short- and long-term outlook for the next six months appear positive, although growth is expected to be modest. Uncertainty, particularly related to the impact of the recent elections and the “fiscal cliff,” could slow growth in the 4th quarter of 2012 and possibly the 1st quarter of 2013.

Panelists Amanda Dameron, editor in chief at Dwell Media, and Kelly Porter, a designer and blogger addressed questions such as: What new business models are designers using to shift their design work online?

When asked how someone should approach blogging and transitioning into an online client service model, Dameron and Porter agreed that the essential first step is to find your voice and then put it to work positioning yourself as a thought leader in your niche. Second, be patient and cultivate your online persona just as you would any other brand. Both cautioned that just like any business, it could take months or even years to see a return on your initial investment: the payback is proportional to the care and attention invested throughout that time.

Fiser engaged Dameron and Porter in a thought-provoking discussion about the ways designers and consumers currently use the internet. “Many established designers use their blog to provide thought leadership, while others are taking it a step further and designing for clients via the internet,” explains Porter. “Several of my current clients came to me through my website; I’ve never met them in person.”

Using data from consumer research that Dwell conducts each year, Dameron painted a picture of a client who comes to a designer knowing exactly what they want in their space. “They even come with pictures of rooms and furnishings torn from shelter publications and printed from the web,” she explains. “The value of a designer today is that they create an aesthetic that matches each client but do it in a way that ensures the room functions to meet the occupant’s specific needs.”

Melinda Skea is ASID director of communications.

The ASID Interior Design Billings Index moved up slightly in August, reversing a downward trend that began in May.  ASID firms reported positive growth in billings, posting an Index score of 53.4,

The Index has not been as strong in the third quarter, which may may reflect seasonal changes.   Interior design continued to perform better relative to architecture. The AIA Billings Index for August improved but still fell below positive territory, at 48, a gain of almost 3 points from July.

Residential Improves, Other Sectors Stay Flat

A strong showing in both single family and multihousing projects buoyed billings in August.  A rise in inquiries suggests that residential will continue to do well in the fourth quarter. The news was not so good on the contract side.  Education experienced a positive jump from 34 in July to 54 in August.  But healthcare, government and commercial remained flat or dipped slightly across all sectors–retail, office, hospitality and entertainment.   The Dodge Momentum Index, a leading indicator for construction, shows positive signs and suggests designers can expect greater expansion in the months ahead.

Small Firms Post Bigger Gains

Small firms enjoyed the biggest increase, gaining more than 4 points over July.  Sole practitioners and large firms remained flat, but medium size firms declined substantially, perhaps due to the weak commercial activity.

Regionally, the South and the Northeast reported the biggest gains, and the West improved slightly.  The Midwest, which had posted gains in July, fell to its lowest point since January.

Hesitant Clients Holding Back

When asked which factors had the greatest impact on whether clients were willing to undertake new projects, panelists overwhelming pointed to clients’ “wait and see” attitude.  Nearly 8 in 10 panelists cited a decline in consumer confidence as a drag on business, and 6 in 10 mentioned a lack of confidence in the nation’s leadership to take action to improve the economy.  More recent positive economic and consumer spending news may improve confidence in the months ahead.

In today’s economy, it’s tempting to lower your fees to win business. But doing so will bring you more trouble and heartache than it’s worth. Read on to learn three reasons why you don’t want to be the lowest price, and what you can do instead to win clients you love.

1. It sets a precedent for a dissatisfied and demanding client. When you’re the lowest price designer, or if you discount to win the business, you’re setting an expectation with your client that you’ll always charge this price. Even if you feel the rate is lower than they could possibly get anywhere else, your client will feel differently. You’ve set the bar for what you charge, and if you try to change it in the future, be prepared for a backlash from a very dissatisfied client. And remember, dissatisfied clients will tell four times more people about you than satisfied clients.

2. It teaches your client to de-value you. The less something costs, the less value people perceive. Conversely, the more something costs, the more value people perceive. Would you prefer your clients to place a high value on your services or a low value?

3. It attracts Nightmare Clients. People who select a designer because they’re the lowest price are penny pinchers, and more often than not, turn out to be nightmare clients. In other words, they are not your Ideal Client. Moreover, when you take on penny pinchers, you attract more of them. Is this how you want to build your business…attracting clients who don’t value what you do? The clients you take on today are like the bricks you use to build your business of tomorrow.

So what should you do? Here are five things you can do instead to win your Ideal Clients:

1. Know what makes you different. First and foremost, you need to know what makes you different. Why should your client hire you over everyone else? What is your Unique Value, or how can you uniquely solve your client’s problem? If everyone sounds the same, your client has no choice but to choose the lowest price…it only makes sense, right? When you can answer these questions and use the right words, your Ideal Clients will HEAR you and HIRE you.

2. Build value. Your goal as a designer needs to be to maximize your value to your client, because the more value they perceive, the more they’ll pay for your services – period. When you demonstrate that you truly understand them and their goals, how you are uniquely qualified to help them achieve their goals, and help them picture themselves experiencing the finished result, you’ve won yourself a client.

3. Work on your mindset. There is nothing else that will contribute more to your success than having the right mindset. Oftentimes, designers charge less than they’re worth because they don’t have confidence in themselves; they were raised with beliefs like money doesn’t grow on trees, and other limiting thoughts. You need to identify the beliefs that are not supporting your goals and re-frame them, and I teach my clients to re-frame them by using what I call Magic Mindset Shifters.

4. Give them a unique experience. There’s been a distinct shift in consumer behavior from paying for ‘things’ to paying for ‘experiences’. So if you make working with you a unique experience for your client, they will perceive more value and not only choose you over other designers, but they’ll pay you more for it, too.

5. Give them more value that they pay for. The best way to not only win but serve clients is to strive to give them more value than you charge, so your client feels they’re getting more value from you than from anyone else. You do that by applying the four suggestions above.

For more information, attend a free presentation, “Discover the Secret Formula to STAND OUT from Other Designers & Communicate Your Value So Your Prospects Are Willing To Pay TOP DOLLAR For Your Services!” from Design Success University.  Click here for more information.

Maria Bayer, the Authentic Sales Coach for Design Success University, shows interior designers how to take charge of their clients and make more money without being salesy.

Gail Doby, ASID co-founder and Chief Vision Officer of Design Success University