Interior Design Fee Setting - A Practical Guide (Without Underselling Yourself)

By Leona Coe | Coe Design Studio | Interior Design Business & Sales Templates

If you're not confident about your fees, your clients will feel that uncertainty. And uncertain clients either negotiate you down or hire someone cheaper.

Setting your interior design fees is one of the most important business decisions you'll make. But it's also one that most designers agonize over - and often get wrong. They either undercharge because they're not sure what to ask for, or they charge based on what competitors are doing instead of what they're actually worth.

The good news? Fee setting doesn't have to be complicated. You just need a clear framework.

The Problem With Common Pricing Models

Before we talk about what works, let's look at what doesn't.

Some designers charge by the hour. The problem: you get penalised for being fast and skilled. If you design something brilliant in 10 hours that takes another designer 40, you've just earned a quarter of the fee for the same work.

Some charge a flat project fee based on scope. The problem: scopes change, clients delay, revisions multiply. You end up underpricing because you didn't account for the reality of how projects actually happen.

Some charge a percentage of the hard costs (furniture, decor, installation). The problem: this incentivises you to push expensive solutions, and it makes your income directly tied to how much your client is willing to spend - not how much value you create.

None of these models account for what you're actually doing: using your expertise to create a space that makes your client's life better.

The Framework That Works

The strongest fee structure has three components: your design fee (what you charge for your thinking and planning), any sourcing or project management (if you're handling ordering and installation), and potentially a markup on products if you're selling them.

Let's focus on the design fee because that's where your real value lives.

Your design fee should be based on: the scope of work, the complexity of the project, and the value you're creating. Not your hourly rate. Not what your competitor charges. Not what you hope the client will accept.

Here's the simple math:

First, estimate the time investment. This includes the discovery call, site visits, sketches, renderings, client presentations, revisions (build in contingency here - projects always have more revisions than you plan for), sourcing, and project management. Be honest about your time.

Second, decide your target annual income and how many projects you want to take on per year. If you want to earn $120,000 and you're taking on 10 projects per year, that's $12,000 per project on average before operating costs. You'll add to that with product sourcing, but your design fee is the baseline.

Third, adjust based on complexity and value. A simple refresh of a single room is simpler than a full home redesign. A project for a client who values your expertise and trusts your process is easier (fewer revisions, faster decisions) than one where you're constantly justifying choices. Price accordingly.

Communicating Your Fee With Confidence

Once you've decided on your fee, the way you present it matters enormously.

Don't lead with the number. Lead with the value. "Here's what we're going to do for you. We'll start with a comprehensive discovery process so I fully understand how you want to live in this space. Then I'll create detailed design plans, source everything, oversee installation, and be here to support you throughout the process. This investment covers all of that."

Then give the fee.

If a client pushes back, don't immediately drop the price. Instead, ask: "What concerns you about the investment?" Often it's not the number - it's that they don't see the value yet. Go back to step one. Explain again what's included and why it matters.

If they genuinely can't afford your full fee, you have options: reduce the scope (fewer rooms, less detailed sourcing, fewer revisions), extend the timeline (payment plan), or walk away. Walking away is often the right choice. A client who can't afford you will be a difficult project.

When to Raise Your Fees

Every year, review your fees. If you're booked solid, you're undercharging. If you're turning people away, your fees are too low for your market. If you have empty months, your fees might be too high, or your marketing isn't reaching the right clients.

You should also raise your fees whenever: you take on a new skill (rendering, project management), you develop a stronger reputation, your ideal client shifts to someone willing to invest more, or your living costs increase.

Don't apologize for raising your fees. Your value grows every year. Your prices should too.

The Real Talk

Undercharging feels safe. Lower fees seem easier to sell. But they undermine everything you're trying to build. They attract clients who don't value your expertise. They create projects that feel exhausting because you're not earning what you're worth. They signal (to clients and to yourself) that you're not confident in your work.

Confident fee-setting sends a different message: you know what you're worth, and you're not willing to compromise on that. Clients respect it. And honestly? They're more likely to say yes and less likely to endlessly negotiate.

Ready to Calculate Your Fee?

If you want to take the guesswork out of fee setting, I've built a fee calculator that walks you through this exact process. You plug in your numbers, and it shows you exactly what to charge based on your market, your time, and your desired income.

The bottom line: stop guessing at your fees. Build them on a foundation of real numbers and real value. That confidence will change how clients respond to you.