Returning Clients: Explaining Higher Rates in Interior Design

A recent post on Interior Design Community’s Instagram asked a question many designers have wrestled with:

“How do you tell a returning clients that your rates increased?”

You worked with a fantastic client a year or two ago, and now they’ve returned, ready to hire you again. However, your rates have increased since then. Your business has evolved, your experience has grown, and the economy has shifted. The question now is whether to honor their previous rate or to apply your current pricing.

Designers across the country weighed in with honest, thoughtful responses. Here’s what they had to say.

Price the Transformation, Not the Hours

@damngooddesigner reframes the entire issue by avoiding hourly or flat rates altogether:

“We don’t do ‘rates’ but rather price based on the transformation we are bringing to the client. If you do it this way you won’t ever have to worry about ‘increasing rates’ again.”— @damngooddesigner

This approach shifts the focus from time to value. When pricing reflects the outcome, the rate becomes part of the package. Past clients are quoted based on the current project, not past agreements.

Loyalty Pricing with Clear Expectations

@susanelefsoninteriors keeps things simple by honoring original pricing for returning clients:

“I always keep my past clients at my original rate as I appreciate the repeat business. Additionally, these are usually the same people who refer me on to their friends and family. Usually by the time this happens, I am close enough to my clients that I can tell them not to discuss my hourly rate with any potential referrals as it may be different. So far, this strategy has been a win-win for me.”— @susanelefsoninteriors

She builds trust and repeat business by making clients feel valued. To avoid confusion, she sets a boundary about discussing rates with others.

Avoid Surprises

@patricklandrumdesign doesn’t believe in a one-size-fits-all answer. Instead, he adapts based on the client and the circumstances. But he gives one strong warning:

“If you do keep a client at an old rate, be sure they know this and not to share the info, or you run the risk of another client finding out. It’s happened to me twice in 30 plus years. One client understood and it didn’t bother them to be paying a different rate. The other was livid.”— @patricklandrumdesign

Selective pricing only works if you manage expectations carefully. Even well-meaning generosity can backfire if one client finds out they paid more than another for similar work.

Treat Returning Clients Like New Ones

@waldron_designs says that returning clients usually don’t blink at new pricing:

“I have not had an issue with it. I treat them like a new client that I happen to know. Things always change in business, so I walk them through everything. I’ve never had them even mention the rate change, they just move forward.”— @waldron_designs

This method keeps things clean. If the new scope is priced according to your current structure, it doesn’t matter if the client is familiar or not. The work and value dictate the cost.

Clients Understand What’s Happening

@ruben_marquez shared a short, direct view that many agreed with:

“Happens all the time. They are aware of the economic environment and current events and therefore understand the fee increases.”— @ruben_marquez

There is less need for a big explanation. Most clients already expect costs to shift over time, especially when they see it happening in their own industries too.

Smooth Projects Often Come from Repeat Clients

@scotmeachamwood keeps clients at original rates when possible:

“I always keep clients at their original rates if at all possible. Having an existing relationship likely means that the project will run incredibly smoothly. Or at least whatever the idiosyncrasies are, they’ve been noted. I’m always happy for repeat business.”— @scotmeachamwood

Familiar clients tend to be easier. You know their preferences, style, and how they like to work. That makes the project more efficient, which can justify holding the old rate.

Deciding What Works for You

Some designers reward loyalty. Some stick to a firm pricing structure. Others find a middle ground. The right approach depends on your goals, your pricing model, and how much work is involved in the new project.

If you’re unsure how to tell a client their rate has changed, you could use a line like this:

“I’m so glad to reconnect. Since we last worked together, my pricing has been updated to reflect the increased level of service and support I offer. I’d love to walk you through what’s included and how I can support your project now.”

This sets the tone. It doesn’t apologize. It highlights the value behind the change.

When to Keep the Old Rate

You might choose to keep the original rate if:

• The last project wrapped within the last year
• The new scope is similar to the old one
• The client is easy to work with and brings regular referrals
• The efficiency of the repeat work makes the margin still worthwhile

When to Raise the Rate

Raising your rate makes sense when:

• Your experience or team has grown significantly
• You’ve restructured your business model
• The scope is much larger or more involved
• Your overhead or market conditions changed

A past client may understand the new rate immediately, or they may ask why. Be ready to explain your reasoning without over-defending it.

One Guiding Rule: Be Consistent and Clear

Whether you choose to maintain old pricing or adjust it, clarity is key. Inform the client about what to expect and the reasons behind it. There’s no need to justify your worth; simply clarify the new terms.

If you offer a loyalty discount, say so. If you stick to your updated pricing, make that clear from the start. Clients appreciate honesty. Confusion is what creates tension.v

Pricing and Profitability