Navigating Rate Adjustments with Established Clients of My Design Business
In the dynamic world of interior design, maintaining trust with long-time clients is crucial when it comes to raising rates. Laura U Design Collective, a leading design collective based in the UK, approaches this delicate matter with a focus on transparency, preparation, and clear communication.
The team at Laura U Design Collective ensures that rate increases are tied to real costs, such as team salaries and increased internal costs. Melissa Grove, COO of the collective, typically communicates these changes at the beginning of the year, a strategic timing that aligns with vendor price adjustments.
When tariffs hit and prices of certain items increased, the collective found it challenging to explain these changes to clients due to a lack of clear labeling. To address this, they have been proactive in keeping clients informed about cost increases, including inflation, tariffs, and freight surcharges.
Laura U values transparency with clients and communicates price changes in a clear and straightforward manner. They choose vendors with clear lead times, U.S.-based production, and reliable warranties to help reduce surprise markups or timeline disruptions. The team factors in the client and the project when choosing vendors, considering factors like shipping requirements and minimum order quantities.
Clients of Laura U, who are professionals in industries like law, oil, and gas, understand and expect annual rate increases as part of doing business. They are aware that the collective does not grandfather clients into old rates, and the current rates reflect the reality of what it costs to run the business.
By setting vendor parameters early and building partnerships around consistency and service, pricing at Laura U can be made more predictable. The collective seeks ways to keep costs down by being highly selective with trade partners, asking questions about minimums, lead times, and shipping logistics.
This strategic approach to pricing, coupled with clear and timely communication of rate increases, helps Laura U Design Collective maintain trust with their clients while growing their income sustainably. This approach, supported by broader industry practices, ensures clients understand and accept price adjustments as a natural part of service evolution.
[1] "Strategic Pricing: How to Price Your Design Services" - 99designs Blog, 2021 [2] "How to Raise Your Rates as a Designer" - Creative Boom, 2020 [5] "Pricing Your Design Services: A Comprehensive Guide" - AIGA, 2019
- In the realm of design business, maintaining transparency and open communication is essential when discussing rate increases, as demonstrated by Laura U Design Collective.
- To keep costs predictable and prices competitive, Laura U Design Collective strategically chooses vendors with clear lead times and reliable warranties, and factors in shipping requirements and minimum order quantities.
- Clients of Laura U Design Collective, stemming from various industries such as law, oil, and gas, acknowledge and accept annual rate increases as part of doing business, understanding that the collective does not grandfather clients into old rates.
- Entrepreneurship and leadership in the design business involve understanding the financial aspects, alongside effective communication, to grow a business sustainably, as showcased by the strategic approach to pricing at Laura U Design Collective.
