After I received her e-mail and sent my response, she said I should turn the response into a blog entry or article. So, here you have it. (Some names have been changed to protect the innocent.)

~~~~~~~~~~~~~~~~

Monday, February 22, 2010

Dear Ashley,

I know when I met with you several months back, you mentioned I should probably raise my rates. I raised them just 10% and now, I’m wondering if I raised them enough. In your honest opinion do you think they need to be higher?  Since I just raised my rates a few months ago, should I stay at this awhile and then set a date to raise them?  I want to be in line with my market, but not over charge.

I really appreciate your input on this.  I know you work with a lot of designers & stagers and you have good feel for what I should be doing.

Thanks for you help,

“Debbie Designer”

~~~~~~~~~~~~~~~~~

Monday, February 22, 2010

Dear “Debbie Designer”,

I wish you could have been at the Real Estate Staging Association Conference where I delivered a course onPricing Strategies!

A common mistake that many designers make is they set their rates too low and forget to consider that they don’t get to charge anyone an hourly rate when they are doing all of those other things involved with running a successful and stable design business (i.e. bookkeeping, training, marketing, driving to and fro, basic business operations.) If you’re not charging enough, you’ll find that by the time you factor in your fixed expenses, variable expenses, COGS/COS & taxes, your net isn’t that much. It’s worth REALLY taking the time to see how much you are actually making, vs. how much time you are working. Calculate the # of hours you spent last year on your business. Include the obvious (i.e. meeting with clients, book keeping, etc.) but also factor in commute times, arranging for child care and even the time and money it takes to get dressed up to look like a savvy & stylish designer. Now, look at your bottom line and divide that by the # of hours you worked last year. How much did you truly make an hour last year?

When you see this net hourly rate, it will usually be a rude awakening which will motivate you into raising your rates. Think about the time you spend away from your family and the time you take away from yourself – is it worth it? I’m all for charity work, I just don’t think “Mrs. Jones” in her $500,000 home who wants custom draperies but doesn’t want to pay our price qualifies for a charity case. Nor does Mr. Jones, who agrees that staging a home increases the perceived value, but doesn’t want hire an expert and pay the expert’s rate to properly execute a staging. If I’m going to donate my time, it will be for a homeless shelter, Haiti, child advocacy, Humane Society, etc. People who truly need it, NOT MR. OR MRS. JONES!  You only have one life and one family. Why whittle it away by charging less than you’re worth? Profit is not a bad word or an embarrassing thing and you shouldn’t feel guilty about making a profit to earn what you’re worth.

With that said, I definitely think you would be justified in a rate hike. If you don’t feel comfortable doing it right away, there are lots of ways to raise your rates, without a flat out rate hike:

• Revise the discount structure.

• Change the minimum order size.

• Charge for delivery and special services.

• Invoice for repairs.

• Charge for engineering, installation.

• Charge for overtime on rushed orders.

• Collect interest on overdue accounts.

• Produce less of the lower margin “widgets”.

• Write penalty clauses into contracts.

My mission for 2010 is to combat the plague of under-earning in our industry. When I spoke before 250 stagers at the Real Estate Staging Association Conference in January, and asked the room how many felt their net profit at the end of 2009 reflected what they are worth, and how many felt like, “Yeah, that’s fair. That’s what I should’ve made.” You know how many stood up? 5. I knew it wouldn’t be a lot, but was stunned at how few.

It’s an epidemic. It’s got to stop. If we don’t value ourselves and our work, no one else will. We’re giving away our most precious commodities — our time, our talents, ourselves. For what? For the Jones’ so they can keep up with the other Jones while we struggle and sacrifice ourselves and our time? And so we can work ourselves into the ground for leftovers? I don’t think so!

I won’t go into the details, but during my presentation, I walked everyone through a simple exercise involving “Sally the Stager” who charges $50 an hour. At the end of the exercise, we see how Sally actually makes less than $6 an hour if she’s charging $50 an hour to her clients. Needless to say, most people left the room vowing to increase their rates as soon as they returned from the conference.

Let me know if you need anything else! You’re taking all the right steps and you’ll soon reap the rewards! Keep at it & stay focused. You’re definitely moving in the right direction.

- Ashley

www.theinterioritycomplex.com

P.S. Sorry to be so long winded. Can’t you tell I’m passionate about this?

P.S.S. If you want to take the Pricing Strategies course online, you can now apply it towards your RESA Pro Designation. Here’s the link w/ more info. on RESA-PRO Designation and the classes. (The Pricing Strategies course is under “Business Principles”.)

~~~~~~~~

Tuesday, February 23, 2010

Ashley,

Thanks so much for all of the valuable information and input.  Wow…you are passionate about this!  Yes…I am going to raise my rates.  I think it might be a good idea to roll that increase out with our rebranding so that it all lines up at one time.

I have already felt much better about hourly consultation after raising my rates the first time, and so I know everything you are saying is so true.

I so appreciate all of the great advice and support you have been to me over the years.  Please let me know anytime you need a favor back.

“Debbie Designer”

CEO, Ashley Whittenberger Companies, Inc.

www.ashleywhittenberger.com

FACEBOOK | TWITTER | LINKED IN | STAGING & DESIGN PRO’S

_________________________________________________________________________________________

AWC-Inc. Websites:

Interiority Complex, LLC
The International Association of Design Industry Entrepreneurs Design Biz Radio

Want To Use This Article In Your Ezine or Website? You have my permission,  as long as you include this complete blurb with it: Ashley Whittenberger is the Principal and Chief Decorating Officer of Interiority Complex. You can visit Interiority Complex, access the free article archive of design prescriptions or learn more about home staging and creative design therapy at www.myinterioritycomplex.com. Ashley lives in Austin, Texas with her husband, son, two dogs, and two cats, and she is proud that she has learned to successfully live and thrive with her compulsive and chronic rearranging and re-designing disorders.

Don’t forget to tune in to www.DesignBizRadio.com — the design & home staging industry’s first trade radio show!

There is much talk and confusion nowadays about how to make money as an interior designer.

So I thought I would define most common ways which can bring you money.  In no uncertain terms.  Without commentary or opinion.  Just straight up list – clear, succinct, and to the point.

1.      Hourly rate only.  National rates usually fall within the $75-195 range.  The rates usually differ based on the service rendered:  design work, architectural work, shopping, project management, construction management

2.      Product – cost plus, where the designer adds 30%-100% to the cost supplied by the manufacturer, supplier, or subcontractor.

3.      Product – discount off of retail, where the designer takes 10%-50% off the retail prices supplied by  manufacturer, supplier, or subcontractor

4.      Flat, project-based fee.  Designer charges one fee for the entire project.  This requires clear identification of the scope, previous knowledge and experience for accurate calculations,  and tight management of time.

5.      Tiered pricing.  Viewed by some as a subset of project-based fee, I break it out here because these are predetermined packages based on time, complexity, and attention involved.

6.      Per square foot.

7.      Combination of all of the above.

While on the surface all of these ways seem straight-forward, like anything in design, the devil is in the detail.  Some the ways are complex, fraught with pitfalls, and are potentially costly if not done right.   And in this lies the confusion, frustration, and anxiety mentioned by me earlier in the article.

If you’re tired of feeling frustrated, confused, and anxious, you must get ALL the knowledge you can get in the subject of pricing.  And your first step is the Business of Design: Smart Pricing Strategies in the New Economy – a 3-hour virtual tele-panel of experts speaking about this very subject.  Get more information herehttp://www.kickstartcart.com/app/?Clk=4012460

What is interlaced through designers’ often hap-hazard efforts and panicked attempts to adjust their pricing, is the internal rejection that it is even necessary.

Designers feel that things are changing around them.  They see the bank account not growing.  They hear the buzz about modern pricing strategies.  But, deep inside, they really have not come to terms that it’s for them, it’s for real, it’s here to stay, and they must change to survive.

I’m here to tell you that it’s for you, it’s for real, it’s here to stay, and you must change to survive.

Why?

Here are just a few reasons:

1.      There has been a real generational shift in how we value things.  We no longer make purchases for their life-time value, as our grandparents did, or even as we once did.  Now, we are looking for faster, more updated, and more relevant – even at the expense of long-lasting.

2.      Inspired and propagated by TV, design is supposedly cheap and quick.  We know it’s not true.  What matters, though, is what our customer know, think, and perceive.

3.      Internet and social media – do I need to say more?

If you want to know how to navigate in the new economy, determine your best pricing strategy, and charge what you’re worth, you must check out the virtual event Business of Design: Smart Pricing Strategies in the New Economy – a tele-panel of select guest experts sharing their tips on how to get paid what you deserve.  http://www.kickstartcart.com/app/?Clk=4012460

We are entering the home stretch of 2010, and it’s time to start planning for 2011. Not only does this time of year help you to get a fresh start and unleash new ideas, it supports us all to think smarter about our decisions each day. We each have such a huge purpose here on this earth and I hope you know we are here to support you every step of the way.

For the next ten days, (until December 10th) if it serves you, we are offering 25% off our Annual Member Dues, and a flex-pay plan that will allow you to purchase your membership in affordable monthly installments. You will find that the Member Benefits you’ll receive with our association are listed here, but we’ve included a quick overview of what we are sure you will find to be the biggest benefit of them all. Our Monthly Online Workshop Series & LIVE Q&A calls are the most popular benefit we offer.  During this monthly series, we cover the following topics, in-depth:

• A Step-by-Step Guide to Crafting Your Design Biz Plan & Operations Manual (A 3-Part Online Workshop Series with everything you’ll need to launch, grow or reinvent your design biz)
• Insider Marketing Secrets for the Bootstrapping Design Biz Owner: Creating a Successful Marketing Plan on a Shoestring Budget
• Uncovering Your Brand, Niche and Unique Offering
• The Art of the Purpose-Driven Design Biz
• Pricing Strategies for Stagers, Designers and Retailers
• Organizational Growth Strategies: When and How to Hire & Manage a Team
• The Secrets of the Wealthy Designer: Creating Multiple Revenue Streams
• PR for the Design Biz Owner: Getting Media Exposure & Positioning Yourself as the Expert in Your Market
• It takes a Village: Building Strong Vendor Relationships, Alliances and Affiliate Partnerships
• Social Media and Social Networking – When, How & Why
• Systems, Processes and Procedures for the Growing Design Business
• Know Your Numbers: Bookkeeping 101 for the Design Biz

Join now and you can get access to the e-learning right away, and join our next live Q&A Call on December 15!

Enjoy the savings and don’t forget to encourage other people to think about their choices each day and to look for the opportunities all around you.

Enjoy!

Ashley Whittenberger, President & Founder
The International Association of Design Industry Entrepreneurs™
www.iadie.com

Are you ready to get a head start in 2011? Click on the subscribe button below to join the International Association of Design Industry Entrepreneurs today for 25% OFF the regular price! PLUS… FOR A LIMITED TIME, we’re offering an affordable flex-pay plan so you can purchase your membership in 6 easy payments of only $49 a month!

We all know that gratitude is one of the foundations for business success and life happiness, but most of us don’t do nearly enough to build and nourish this attitude.  Busily hustling about during much of the year, we usually get in touch with gratitude during this Thanksgiving week, and only long enough to gobble up the turkey.

So before the turkey malaise hits me (and you), let us take a moment to be really grateful for this past year.

1. 1. The economy is seemingly on the rebound, with key economic indicators either improving or staying steady.  Have you felt it yet in your business?  I’m hearing from many designers who already have.  Let’s at least be thankful that 2010 was much better than 2009.
2. 2. The amount of available business knowledge is higher than ever!  I know that business strategies can often be challenging for an interior designer, who rarely receives any business education in design school.  And if you’ve been diligent about investing in yourself (whether it’s money, time, or effort), you would have attended quite a few virtual and physical events, signed up for masterminds, and learned from your colleagues (you know I’m always here for you too).  Education is key.  Let’s be thankful that 2010 provided many opportunities to get it.
3. Our industry is changing.  Let’s be thankful for that. Although, never comfortable, change brings about tremendous opportunities for those flexible, capable, and strong enough to handle it.  There is no doubt that we will be stronger and more robust in 2011.

If you want to know how to handle our changing industry and this changing world, as we enter the second decade of the 21^st century, you must employ the right business strategies.

And if you want more information on how to do that, check out this virtual event:  Business of Design:  Smart Pricing Strategies in the New Economy – a tele-panel of select guest experts discussing how to charge what you’re worth and do it with confidence.  http://www.kickstartcart.com/app/?Clk=4012460

Join us as we hear from some of the home staging industry’s top experts and industry insiders who are going to share their secrets for success, and give us a sneak peak of what we can expect at the next RESA Convention which will be taking place in Las Vegas on January 23-25, 2011! If you are a home stager, an affiliate of the home staging industry, or if you want to learn more about integrating home staging into your business, this is A CONFERENCE YOU WILL NOT WANT TO MISS!

(By the way,  last year’s convention SOLD OUT, so don’t wait until it’s too late to register.)

So what are you waiting for? Tune into Design Biz Radio RESA Convention Highlight Show:

• Date:  Wednesday November 10 and Wednesday November 17
• Time: 9am PST/11am CST/ 12pm EST
• Where: Design Biz Radio; Listen via phone by calling: (347) 934-0921 or listen online by clicking here.

Part 1 (November 10, 2010) Design Biz Radio Show Guests & Topics:

• Shell Brodnax, President & Founder of RESA: An introduction to the RESA Convention
• Jackson West, Staging Guru of Industry Trends & Information: How to close more sales and raise your profits by perfecting client proposals
• Sandy Dixon, Staging Strategy Specialist: Going for the gold – building a dynamic repeat and referral based staging business
• Jana Uselton, Successful Staging Business Owner & Trainer: Growing your business by bringing on other stagers
• Ashley Whittenberger, Chronic Entrepreneur: Wealth building strategies for home stagers

Part 2 (November 17, 2010)  Design Biz Radio Show Guests & Topics

• Shell Brodnax, President & Founder of RESA: An introduction to the RESA Convention
• Audra Slinkey, President of Home Staging Resource: How to effectively use accessories, art and color
• Melissa Marro, Founder of First Impressions Home Staging & Interior Redesign : Turning numbers into sales – using statistics to grow your business
• Christine Rae, Founder of Certified Staging Professionals: Revitalize your business in 2011 with green
• Dan Eason, Founder of Energized Seller: Staging your business
• Matt Finlason, Staging Celeb:  Staying motivated by diversifying and sustaining your brand in fluctuating markets.

Stay tuned as we post information on all of the FREE resources and information our featured guests will be offering to our show listeners!

Topics we’ll be discussing include:

• How to stay motivated
• Diversifying & Growing Your Business
• Building a DYNAMIC Repeat & Referral Based Business
• Closing More Sales & Raising Your Profits
• Effective Use of Accessories, Art & Color
• Inventory Management
• Proving Your Value to Prospects
• Get Results Without Being Salesy
• Using Stats to Grow Your Business
• Wealth Building Strategies
• Revitalize Your Business with Green Staging

Click here to learn more about this year’s Real Estate Staging Convention and the line up of staging industry experts and featured speakers.

What are the new trends we are seeing in hard window coverings?

What can we expect in 2011 and beyond in terms of materials and innovation?

What does this mean to the window covering retailer? Designers? Workrooms?

How can we leverage this information in order to better serve our customers and increase our bottom line?

We’ll find out the answers to these questions and more on our next episode of Design Biz Radio featuring window covering and design industry guru, Deb Barrett!

• When: Wednesday, November 3, 2010
• Time: 11:00am  CST
• Where: Design Biz Radio; Listen via phone by calling: (347) 934-0921 or listen online by clicking here.

About Deb Barrett

Deb Barrett, Window Covering Trend Guru

As a design creative and founder of the design firm, Window Dressings, Deb Barrett is a nationally known window fashions designer whose specialty is finding creative solutions to challenging design. Deb is most well known and has built a reputation for cutting edge couture treatments. A five-time winner of the Window Fashions Design Competition, her work has caught the attention of Better Homes and Gardens Windows and Walls, Decorating Ideas and Inspired House among others.

As an energetic and prolific professional, Deb’s career path has taken her in several directions. She is an accomplished speaker, editor and author. Nationally known, Deb regularly speaks at industry and association events on a variety of design, business and trend topics. Barrett’s highly interactive programs reflect her two passions- couture window coverings and trendspotting.

As an author, her books Tools of the Trade and Soft Furnishings Sketchbook are in their second editions. Deb’s regular column, Trendspotting appears in Vision magazine and her new books, It’s All in the Details and Runway to Window launch in 2009. Deb’s highly personal and informative writing style has been featured in print and online with Plinth and Chintz, Threads, High Point Market Report and HGTV. Blog readers enjoy Deb’s inspiration in her blogs, Design Confidential and TrendSpotting.

As a design thinking strategist, Deb’s fascination with what’s around the corner and the constant search for inspiration has led her to travel the world to develop design intelligence and interior forecasts. She regularly works with industry partners, consumers and professionals to impart trend insights through presentations, white papers and trend products.

As an industry expert, Deb and her colleague, Susan Schultz has created Design Business RX a web-based forum for decorators, designers and retailers, created to share knowledge, provide inspiration and give support for sole practitioners and small businesses through their website and DBRX small consultative workshops.

Deb is a WFCP, Expert and IACET CEU certified speaker. You can find Deb on the web, blogging at Design Confidential and Design Business RX or contributing at The Trendspot.

You can learn more about Deb by visiting these websites:

www.debbarrett.com

www.design-confidential.com

www.designbizrx.com

Jessica Jackley is the co-founder of Kiva.org, an online community that helps individuals loan small amounts of money, called microloans, to entrepreneurs throughout the world.  As you may or may not know, at the IADIE, our “charity of choice” is Kiva.org. I encourage you to watch this video to learn more about this awesome organization, Jessica’s story and the story of giving.

Does your business have a cause? A charity of choice? A bigger meaning & purpose and a process for engaging and helping others? Share it with us!

By the way, if you’d like to become a global financier, join Team IADIE on Kiva.org! http://www.kiva.org/team/iadie

property

* What is the difference between trademarks and copyrights?

* What steps can listeners take to protect their trademarks and
copyrights?

* What issues are created by using social media to promote
business?

We’ll find out the answers to these questions and more on our next episode of Design Biz Radio when we interview one of the top trademark experts in the country, Erik Pelton.

• When: October 20, 2010
• Time: 11:00am  CST
• Where: Design Biz Radio; Listen via phone by calling: (347) 934-0921 or listen online by clicking here.

About Erik Pelton

*       Founder of Erik M. Pelton & Associates, PLLC, a boutique
trademark law firm in Falls Church, Virginia.  Established in1999 by
former U.S.P.T.O. examiner Erik Pelton, the firm has registered more
than 1,300 U.S. trademarks for clients, represented dozens of parties in
Trademark Trial and Appeal Board disputes, and practiced before the U.S.
Court of Appeals for the Circuit Court.

*       Creator of Apptorney: IPSM iPhone(r) application for
intellectual property attorneys

*       Named a Top 10 trademark filer by NameProtect’s Trademark
Insider two times.

*       Presented about trademarks and branding for:

* Software Industry Conference (2008, 2009, 2010)

* RESA Home Staging International Conference (2010)

* National Association of Professional Background Screeners Mid-Year
Conference (2010)

* Society for Advancement of Consulting of New England (2009)

* Falls Church Chamber of Commerce (2010)

*       Presented “How to Market Yourself as a Lawyer in 2010″ webinar
for ExecSense Webinars

Connect with Erik

www.tm4smallbiz.com <http://www.tm4smallbiz.com/>

www.facebook.com/tm4smallbiz

twitter: @tm4smallbiz

youtube: www.erikpelton.tv <http://www.erikpelton.tv/>

www.linkedin.com/in/tm4smallbiz

Receive $100 off Pelton’s services for anyone who mentions
this interview!