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WHAT YOU WILL LEARN IN THIS EPISODE:

HOW TO NAVIGATE BUDGET CONVERSATIONS WITH YOUR CLIENTS

WHY THESE CONVERSATIONS FEEL SO TRICKY

HOW TO BUILD TRUST WITH YOUR CLIENTS DURING BUDGET CONVERSATIONS

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Navigating budget conversations with our clients is something most designers struggle with, including myself! Honestly, it can be one of the most stressful parts of the job. The reality is that clients can be nervous about sharing their finances, and designers, we often feel anxious about discussing money confidently. 

These conversations are not only important they are essential. That’s how we set our boundaries. We manage expectations and ultimately ensure our own profitability. That all comes from being able to discuss budgets and expectations with your clients.  

Without profitability, your work is just a hobby. And none of us are here for that. 

So, it is really crucial for you to get to a point where you are comfortable talking about budgets with your clients early on in the discussions. 

Why these conversations feel so tricky

It isn’t easy to discuss money, period, let alone with a client. Add on to that mauve you’re worried you’ll scare off a client if you start throwing out bigger numbers than they anticipate. But how do you know what to anticipate if you’re not having this discussion?

Or, maybe you’re just not confident in the numbers you need to discuss which is something you can and need to be working onto dispel that worry in your own head. 

Unless this is a repeat client, you are still building trust. And you’re essentially strangers at the point in which you should be discussing budgets, and that is in the first, second, and third conversations. You don’t want to seem pushy or cavalier with their money. You don’t want to seem like you’ll spend every dime they have budgeted for this project. 

A lot of times I hear designs say that they are underpricing themselves just to win the project. And that my friends, is a losing proposition and will move your business straight into being a hobby. 

The client’s perspective

For many clients, you might be their first designer experience. So, think about that. One, that’s intimidating, I’m sure, for our clients. Maybe they’ve never been able to afford something like this, and they’re feeling fancy. Maybe their friend group doesn’t work with interior designers, and they’re feeling entitled. Maybe it is just all about them. And they’re insecurities. Wrap that up with their lack of knowledge, about our business and how we run, no wonder they can feel nervous about sharing their budget, especially if they’re coming to the table worrying that it’s going to be too low. 

Remember, at this point, we’re still basically strangers and still building trust. So, on the surface, it makes sense that they would be holding back or hesitant. 

So, how do you put an end to this?

It starts with being confident in your numbers and knowing what the project will actually cost, as well as allowing you to be profitable and then stand your ground when presenting them to your client. Then, the client can decide whether to change the scope of work or move forward. You can always offer to split the project into two. Give them a budget for project A, and then do project B the following year. That’s always an option and one you should be presenting along the way. 

It comes back to a client really, truly not understanding how much things cost when they’re creating their wish lists. 

As a designer, your job isn’t to guess what a client can afford or to accommodate every request at the expense of your profitability. 

I had one designer say, “Well they had a multi-million dollar home, I figured they had the money.” Yes, that’s a good assumption, but it gets you nowhere. Just because someone has a multimillion dollar home, and a huge bank account, doesn’t meant they want to spend the money on that project. 

Your job is to present the scope and the budget clearly and confidently based on what the project actually requires. 

If the client can’t or doesn’t want to afford it, then that’s got to be ok. It is so much better to know up front than to invest time and energy into something that won’t work for either of you. I don’t want you twisting yourself into a pretzel to make your numbers fit some magical number a client has given you. 

A lot of this not only comes from confidence in your scope of work, confidence in your budget numbers, but also the importance of setting boundaries, early, very early in the process.

When you’re clear about the scope, the budget, and how decisions will be made, you are setting the tone for the entire project. You will be positioning yourself as a leader who is in control, and you’re creating a framework that protects your time, your energy, and your profitability.

Let’s be honest, they are hiring you for your expertise. They expect you to be the expert. 

So, on some level, they’re expecting you to take control, whether they can verbalize that or not. 

One of the things I find most helpful in order to maintain your boundaries is by working on your mindset. 

These conversations aren’t just about numbers; they’re about how you view yourself and your role in the process. It’s not just about, hey, can I make this project work for the client? It’s also do I want to take on this project? Remember, there are only so many hours in the day; therefore, there are only so many projects you can work on at any given time. Do I want this project? To take up my next 12 weeks knowing I just twisted myself up in pretzel to make the numbers work for Mrs. Jones. 

More often than not, designers do this out of fear. Out of fear that there won’t be another Mrs. Jones. 

So I would much rather you know your numbers, be really confident that that is exactly where you need to be, and then make decisions based on that. That shift from trying to fit into the client’s expectations to standing firm in what you know is right for you and your business is huge. 

Lastly, with the upcoming Thanksgiving holiday in the U.S., as designers, it is always easy to feel like we’re ‘on’, but again, boundaries aren’t just about your projects. They’re about your personal life, too. I have not been good about this in the past, and I have had to learn the hard way. I have felt disconnected, stressed out, and anxious over holidays and long weekends when I should have been relaxing and being with the people I love. 

A really critical part of your ability to relax is preplanning. 

When you are aware of everyone’s schedule and they are aware of yours, and things are humming along as should be, that’s when you can put the out-of-office email in place and silence your texts. Do not be afraid to tell your clients, “I am on vacation.”