Charging for custom design

[Dennis McFern]

Hi,

I was wondering if/how you guys charge clients for custom furniture design work. I usually consider design time as a cost of doing business during the bidding process. But sometimes I really rack up some time with many iterations that come from custom design. I don't always get the contract and find myself eating the time.

I also have some concerns about prospective clients taking my designs and using them to get bids from other guys. Not sure if this is even preventable.

Anyhow, I would appreciate your thoughts on the above.

thanks

[Todd Burch]

You need to charge for design time.

When I was doing this, I charged a flat rate for designs (I was building a lot of built-ins). If they decided to do the job with me, I rebated the design fee, and if they wanted to go to someone else, then I gave them the design they paid for.

However, going in to the close the sales call with a full drawing of interior and exterior features, drawn to scale to match their rooms, was lot of more impressive to them than the other bidders who would typically wave their arms and point, showing the prospect how their design would look.

I never lost a bid.

[Lee Schierer]

Your designs are your property unless you are compensated for the design work. Make sure any copies given to potential customers have a copyright notice on them and a border with your company name.

[Jamie Buxton]

If "design is a cost of business" means "it comes out of my pocket", that's not good. If it means that it is part of the overhead, like rent on your shop space, and it eventually gets paid by customers, that's okay.

Unlike Todd, I've found it a tough sell to tell a prospective customer "You have to pay me to get me to tell you what I'm going to build you." My usual approach is to undertake the design work at my risk. I design it with a customer, keep track of the design cost, and wrap it into the quote. And I tell the customer what I'm doing. If I don't get the job, I will eat the design cost. I very rarely don't get the job. I think that my demonstration of trust in the customer tends to establish trust in them that I'm a good guy. Most customers I deal with are more concerned with a trustworthy guy coming into their house than getting the absolutely lowest price.

[Patrick Laflamme]

Charging for design work is really bad form and a little shady as far as I'm concerned, not to mention a very hard sell I'd imagine. Unless I've been contracted for the express purpose of coming up with plans that will then be turned over for someone else to build, I don't charge just for design.

As has been mentioned, it's just overhead and it's something that comes with the territory. It's the same as if you took house plans to an electrician or a plumber or had a landscaper or a carpenter out for a landscaping overhaul or a deck. They take thier measureless and go back to the office to draw up whatever plans are necessary and price out the job. It takes time and effort but there is no guarantee that you're going to choose them.

Just think if you called a professional to come to your home for a quote on some job and you were told over the phone that it would cost you several ducats just to talk to them. What would that say to you about them and thier practices and how quickly would you hang up the phone?

You may lose out sometimes when you don't get a job, and you will likely never use plans you came up with for a custom cabinet arrangement or built in whatever; but the plans for furniture can be kept aside for quick use on another job calling for the same thing or something very similar. Even the plans for the stuff you'll never build again and the bids you didn't land can serve as a portfolio material.