Should You Use Cost Plus Pricing in Your Interior Design Business?
Pricing is one of the most debated topics in the interior design industry. Get it right, and your business thrives. Get it wrong, and you’re constantly justifying your fees to clients who think your trade discount should be their trade discount.
One designer in our community shared their frustration:
“At my previous firm, I hated high markups and clients questioning pricing. I’ve even had people reverse Google search my selections! I work with contractors who are cost plus, so I was thinking of charging hourly for my design fee, then letting clients choose whether I handle procurement (cost plus) or they buy on their own. Am I crazy?”
Not crazy—just pragmatic. The real question is: How do you structure pricing so you’re paid fairly without clients pushing back?
How Designers Structure Cost Plus Pricing
| Pricing Model | How It Works | Pros | Cons |
|---|---|---|---|
| Cost Plus | Charge a markup (20–40%) on trade pricing | Higher profits per item; Clients often see a discount from MSRP | Clients may price-check or push back |
| Flat Fee | Charge a set fee for procurement services | Simple and transparent | Hard to price fairly for large projects |
| Hybrid Model | Hourly for design + cost-plus for procurement | Covers all time spent while ensuring product markup profits | Requires clear client education |
Many designers use a mix of these approaches depending on the client and project type.
“I charge, very transparently, cost + 35%. But I don’t charge hourly for procurement. The ordering and tracking is done by an admin assistant, though I step in when needed. Clients see the value in having orders handled, and it avoids confusion.” — rebekkahdaviesid
How to Handle Clients Who Question Markups
1. Be Upfront About Your Pricing Model
Nothing erodes trust faster than a surprise invoice. Address pricing before the project starts.
💬 What to Say:
“I source directly from trade vendors, securing exclusive pricing not available to the public. My markup ensures you get a better price than retail while covering the time and expertise involved in sourcing, tracking, and managing orders.”
Transparency is everything. If you set expectations upfront, clients are far less likely to push back.
“I can absolutely understand how awkward it can be when someone asks you to justify any part of the profit you need to make to be and stay in business. Especially when some things are easily searchable and defending your pricing feels like you are losing trust in people.
This is about having consent BEFORE they sign with you. For many designers, they actually do not make enough just doing design to be able to stay in business. It takes longer than people think and they often shave hours and hours off tasks because they feel like they can’t justify it.
Clients don’t have an idea of what you actually do for them. Explain it. But don’t apologize for making a living.” — interiordesigncommunity
2. Set Clear Procurement Boundaries
If you let clients purchase independently, make sure they understand what that really means.
“I’m very open about my cost-plus pricing, but I have firm boundaries: If a client purchases on their own, they handle everything—orders, delivery, warranty issues. I don’t get involved.” — lanotthecity
💬 What to Say:
“Clients who purchase independently are responsible for handling orders, tracking, and any delivery issues. If you prefer a full-service experience, I manage procurement for you, ensuring items arrive on time and in perfect condition.”
Most clients don’t actually want to handle procurement themselves once they realize what’s involved.
3. Reframe the Conversation About Value
If a client starts price-shopping your selections, shift the focus from cost to value.
“Anyone using a luxury service like interior design should not be asking their designer to justify their profitability. If they do, ask them how they make their living. Would they expect a coffee shop owner to justify an $8 latte?” — paradigm_texas
💬 What to Say:
“The price you see online doesn’t reflect quality control, vendor relationships, or the time required to ensure every piece fits your space perfectly. You’re paying for expertise and a seamless experience, not just a product.”
4. Offer Options (If You Want to Give Clients a Choice)
Some designers let clients opt-in or out of procurement to avoid pricing disputes altogether.
💬 How to Position It:
“You have two options: I can provide a shopping list, and you handle purchasing, or I can manage procurement for you, ensuring a stress-free experience.”
This eliminates resentment because clients choose the service level that works for them.
Final Takeaways: Make Pricing Work for You
If you’re struggling with client pushback, consider these strategies:
✔ Charge MSRP or just below it – Clients feel they’re getting a deal.
✔ Use a hybrid model – Charge hourly for design + cost-plus for procurement.
✔ Offer procurement as an option – Let clients choose full service or DIY.
✔ Be firm about your value – If they question your rates, they’re likely not your ideal client.
Your pricing should be clear, confident, and structured to support your business—not just what makes clients happy.
How do you structure pricing for procurement? Drop a comment and share your approach!