How much does Interior Designer earn from a renovation project? – Vincent Interior Blog | Vincent Interior Blog

How much does Interior Designer earn from a renovation project?

Many homeowners might be wondering about how much does their Interior Designer earn from their renovation projects. I am going to provide you with some information about how the Interior Designer make their money and how it affects your decision making regarding your renovation.

How Interior Designers compute their quotation

Basically after getting all the requirements from the customers, the Interior Designer will usually list out all the job items and calculate the estimated cost of the materials and labour needed. The cost estimation will include those shown to the customers and those additional hidden cost. He will then add a certain percentage on top of the costs which are listed in the quotation. The usual percentage added by “normal” Interior Designers is between 20% to 30%. For some items, the percentage can go even higher in order to cover the hidden ones (for example 3D drawings, referral fee to property agent, etc). For really exceptional designers whose selling point is in unique design, they will charge a even higher percentage than “normal” Interior Designers. Some of them even add design fee because they have to crack their brains for many hours.  An example:

To supply labour and materials to build 5ft feature wall at living room with selected laminate. Cost: $1200. Selling price: $1500. (25% mark up)

How much does a Interior Designer earn from a project?

Selling price: $30,000 (25% mark up from cost)

If the Interior Designer is a employee, they will have to split the profit with the company. The usual practice is 50% each and lower profit sharing for junior designers.

Therefore, for a 6 weeks project, the employee typically earn $3,000 per $30,000 project.

The truth

The Interior Designer will have to be lucky in order to make the expected $3,000 using the example above. This is because there are many unexpected factors involved. Sometime due to miscalculation, unexpected events, non payment by customers  and bad decision making can add unexpected cost to the Interior Designer which will lower his profit or even losses.  Once a while, the cost happens to be lower than expected and the Interior Designer gets a higher profit.

Due to stiff competition, lower demand and limited spending power of most homeowners, some Interior Designers are even willing to do a renovation job for 15% margin. When the margin is too low, the Interior Designer is at the risk of not making any profit or even making losses.

Other income

There are referral fee for bath accessories, furnitures, curtains and other works. This may add up to few hundreds to a thousands depending on the amount (usually 5% to 15% of the amount purchased). This usually happens when the Interior Designer bring you to the shops that they recommended.

What does it means to you (as homeowners)