FEATURED ON THIS EPISODE:

NANCY GANZEKAUFER FREE RESOURCES PAGE

FIND OUT MORE ABOUT LESLEY AND FOLLOW HER ON INSTAGRAM HERE

WHAT YOU’LL LEARN IN THE EPISODE:

THERE IS NO ONE WAY TO PRICE YOUR PROJECT

PRICING HOURLY VERSUS A FLAT FEE

MARKUPS AND MARGINS

OVERCOMING THE FEAR OF STATING YOUR PRICE

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I am so happy to have my friend with me today, Lesley Myrick. She comes to us with a wealth of knowledge not only in interior design but in construction management. 

Lesley Myrick is a recognized design media personality and the CEO of Lesley Myrick Interior Design, a full-service boutique interior design firm based in Macon, GA.

Having lived and worked internationally, Lesley specializes in designing personality-driven, playful, and function-forward “forever homes” for professional families.

Media outlets including Architectural Digest, People, Forbes Home, Insider, and InStyle magazine have celebrated Lesley for her signature aesthetic of bold, colorful, and collected interiors that offer a fresh take on Southern design.

In today’s episode, Lesley shares her experience being on a panel at HighPoint where there were three experts sharing about pricing projects and profitability, and each one had a different viewpoint. 

I’ve been searching myself for three decades and still haven’t found the perfect formula! Now, just because there isn’t one perfect way doesn’t mean you can’t find your perfect way. 

Not only do you have to figure out your pricing upfront, but it’s also really important to look on the backend and actually analyze your jobs to understand if you’re making money. You might be charging ‘$250 per hour,’ but if you run your numbers and figure out the actual time you spent, you might only be making $58 per hour.

It’s easy to trick yourself and bury your head in the sand, but front-end pricing and proposal are just as important as the back-end post-project of looking at everything and making sure you’re on the right track. That’s how you get better at pricing – because you look at your numbers, what worked, what didn’t, and what do I need to course correct next time? Do I need to change my pricing structure? Do I need to increase my hourly rate? Do I need to say no to this project because it’s going to be a disaster?

And I know no one wants to do this, but you need to if you actually want to have a profitable business and have enough money to go to HighPoint, hire great photographers, and take vacations and to have that balance in your life that we are all craving.

This will take whatever it is you’re doing, from a hobby to a business. Because if you aren’t making the money, it’s a hobby.

Pricing your project hourly vs flat fee

You need to first and foremost educate your clients on an estimate of how long a project may take. You can’t just say your hourly rate is X and go. 

When you’re new and don’t have past projects to analyze, hourly can be a smart starting point. 

Lesly says, “I love the idea of going to a flat feet. It is sexy. It is tidy. It is upfront.” 

Charging a flat fee isn’t JUST for seasoned designers either. A lot of the time, though, the problem seems to be that new designers don’t have the confidence to ask for the fee that it takes to get the job done. 

Saying a price is scary- we get it. But it is so important to give yourself time to go over all the details, research, and talk to fellow designers, a friend, or a coach before telling your potential client what your price is, whether hourly or a flat fee. 

“Spewing your hourly rate or fee over the phone because you’re so excited about the possibility of a new project is the death of that project and your profitability.” says Lesley.

Give yourself time to get the price right.

Markups and Margins

There’s a lot of talk lately on markups and margins. Should you even be making money on product etc….?

During Covid, Lesley shares how making money on products was so inconsistent that she set herself up to make sure she was profitable through design fees.

It really comes down to however you write your contract up, and your client agrees to it, is the right way.

If you’re transparent and their signature is on it, then run with it.

There’s a real fear of profit and making money, especially for women. It is hard for us to accept that we can have extra money doing this. So often, we want to just get enough. We’re also people pleasers, and not walking away from a client who isn’t the right fit can be the hardest lesson to learn.

But remember, these clients came to you. You get to lead the process. You get to tell them what it looks like to work with you. You did not go knocking on doors in your neighborhood trying to peddle your design services to someone who wasn’t interested. They came to you. It is your business. You decide what it looks like to work with you. And they can say yes or no. 

Designers need to switch the mindset of “I hope they work with me. I hope they choose me.” to “Do I choose them?” Nobody wins if you take the wrong projects. 

“If it’s not a fit, it’s not a fit. You’re precious energy and time will be sucked up, and it’s so easy to get resentful because this is not an easy job.” Lesley 

There can be dreamy clients on all scales that are sincerely looking for the skills that you designers have. You just need to find them. 

Today’s episode is full of value! Grab your pen and paper, and get ready to take some notes!