Fees - how to set them and how to get them - are as big a headache for Canadian design professionals as they are for their U.S. counterparts.

Business by Design this month spotlights a problem that has no boundaries: pricing design services.

THIS MONTH:
+ Pricing Perplexities
+ Tips on Getting Your Fee
+ Find Out What Really Hurts

PRICING PERPLEXITIES
Design professionals in Canada are as flipped out over fees as their colleagues in the states.

That's my impression, after interviewing several Ontario designers in preparation for my "Set and Get Higher Residential Fees" presentation this week at the IIDEX / NeoCon Canada conference in Toronto.

How - and how much - to charge for their services is a point of controversy and concern among designers in Ontario.

"It has to do with our own fear and willingness to devalue our costs and hourly fees to land the job," says Joe Pettipas, the president of the Association of Registered Interior Designers of Ontario. (ARIDO).

Adds veteran Toronto designer Bryon Patton: "Fees are all over the map here. It's hard to get your fees up. There's always someone nipping at your heels."

Others stress the importance for design pros to educate the public as to their value.

"There always will be those who say you take too long and you charge too much," observes Alex Chapman, an internationally-recognized, award-winning Ontario designer.

Pettipas estimates that hourly fees for Ontario designers average between $100 and $150 Canadian dollars. (At press time, 1 Canadian dollar equalled $.728 U.S.)

A recent salary study of design firms indicated that principals for those firms earn an average of $85,000 Canadian and senior designers earn $45,000-$50,000 Canadian.


TIPS ON GETTING YOUR FEE
We shared these ideas in an earlier issue, but they bear repeating.

Price negotiations are no time for original thought.

That's why you should memorize and share, at a moment's notice, a list of reasons why you're worth your design or consultation fee, margin, mark up, etc.

Fee "justifiers" can include things like your…

+ Experience
+ Design specialties and expertise
+ Awards and other recognition
+ Clients: who you've served, and how
+ Educational background

You can also justify your fee by pointing out how you save your clients time, money and headaches, how you manage the project from concept to creation, etc.

Another way to avoid price hassles: present your prospects with personal marketing materials that educate them as to your value. Examples: bio sheets, testimonial letters and a complete list of your products and services.

FIND OUT WHAT REALLY HURTS
Prospects aren't looking for the best price. They're looking for the best solution to their design problems.

That's why your priority should be to ask about their priorities -- other than price. You may hear concerns about having the work done on time, or losing control over the project, or disruptive subcontractors. Maybe they'll express worries about your delivery, contract language, guarantee policy, or follow up.

The discussion will remind your prospect about all the issues at stake other than the cost of your services.

Respond by saying something like: "If I could guarantee that I'll do my best to assure the project is done on time, that you'll retain control over it, that the subcontractors will quit before you return home each day..., might it be worth it to invest a little more in the project?"

Often, the answer is: "Yes."

Too many designers, sales reps and showroom staffers make the mistake of discussing price too soon. Announcing your price at the outset is a sure way to kill the conversation before you even get to the other priorities. Prospects will stop listening.

Of course, there's no sense in having a conversation with individuals who are unable to afford your services. That's why it's important to qualify them up front, and to gain assurances that they have the need, budget and commitment to buy the kind of design products and services that you sell.

Warm Regards,

Fred