S H OW M E T H E M O N E Y LuAnn Nigara
How to Sell Your Value and Charge What You’re Worth BY LUANN NIGARA
“How can I compete with internet pricing?”
Just think, if I lined up 10 different designers, gave them each the identical sofa and said, “Design a living room with this piece,” each designer would come up with a completely different design. Even if I gave the designers the exact same pieces for the room, the rooms wouldn’t look identical. Your genius is the design, not the furniture in the design.
It’s a question I hear often— from podcast listeners, coaching clients and designers in my network. When you’re executing huge projects and charging large amounts for a project, it’s easy to anticipate client pushback. But if you’re experiencing—or worse, anticipating—client pushback, you’re likely approaching the sales process the wrong way. The question of how to navigate navigating pushback isn’t the question we should be asking. A better question is: “Why am I viewing my service as a commodity?” If I go into TGI Fridays and order a steak, I know what I’m getting: a fairly decent steak in a family-friendly restaurant. I expect to pay $15 to $20 for it. But if I go and order a steak at Wolfgang Puck, I know I’m getting something entirely different. Yes, I’m getting a higher quality steak. But it isn’t just the product I’m buying. I’m also paying for the fine-dining experience and incredible service that comes along with my steak and I know that what I’m paying for is all wrapped up in the experience. Imagine Wolfgang Puck asking himself, “How can we explain the markup on steak to our clients? How can we convince them to buy ours for $60, when they can go to TGI Fridays and get a steak for $15?” It just wouldn’t happen. Puck knows that he can set his price based on his worth. He doesn’t have to
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Your client can go and find the sofa for less money. Who cares, because they cannot replicate what you do for them.
Be The Choice
justify his prices. And if someone were to push back, they would likely be escorted out of the restaurant. Even if we were in an alternate universe and the cut of steak at both restaurants was identical, we would still expect to pay more at the restaurant with a Michelin star. It’s not just because of the chef’s name or the restaurant’s reputation, but it’s because of the value of the experience Puck’s restaurant offers. Interior designers aren’t offering the $15 steak. And, more importantly, your clients aren’t looking for the $15 steak. They aren’t looking for the biggest discount or cheapest price, they’re looking for getting the best services to create their desired project. When you ask yourself, “How can I explain my markup on this sofa or this table when my client can go on the internet for cheaper?” you’re thinking about your service entirely wrong. You offer a luxury service, not a shoppable commodity. You aren’t just selling the sofa or the table; you’re selling your expertise, artistic eye, creativity and ability to see the room cohesively. And, ultimately, you’re selling your talents to realize your client’s vision. Not sure about this?
If you want to work with clients who go to Wolfgang Puck rather than TGI Fridays, then you can’t think of your work as an interior designer as a commodity. Design is a luxury—a luxury that clients are willing to pay for. There’s a reason why they are coming to you and not doing the selections and shopping on their own. They want your vision. They want your experience. They want the luxury of service. But this doesn’t mean that clients who want the luxury service aren’t concerned about budgets and costs. When Sarah Magness was on my podcast, “A WellDesigned Business,” she emphasized that budget is always a concern for clients, regardless the scale of the project. But, there’s a key difference: Clients who understand the value of your services aren’t concerned about the price tag; they are asking about the investment. They are asking you to show the value that their investment in you and your designs brings to their project. Understanding this important concept opens the door for you to have a new way of thinking, proposing and selling your work. If a client asks you about your price, do not backpedal, hem and haw or justify the cost of a line item. The way to answer is to clearly communicate the value that you offer and bring to the project.
