The following is an excerpt from my forthcoming book "Interior Design Clients The Designer's Guide to Building and Keeping a Great Clientele".
"As
part of your business plan you have ascertained where you expect business to
come from and who will be bringing that business into your firm. Not every client need be Mr. and Mrs.
Warbucks. As a matter of fact, most
interior design firms in America
work with a clientele that earns under $ 200,000.00 a year. Does that surprise you? It shouldn’t.
Although a huge amount of press is garnered by the large firms with the
flashy names far more is spent with smaller firms on projects that will never
be presented by Architectural Digest.
That is not a bad thing. It
represents an opportunity for you to find steady work and a good living. The type of client with which you work and
the amount they spend will change as you gain experience and grow as a designer
and business person. Early in your
career it might make more sense to focus on what some refer to as the
“low-hanging fruit”. By that I mean
those clients who are more readily available to designers who don’t have the
prestigious credentials and experience needed to attract more affluent
customers. That’s not to say you
shouldn’t strive for larger jobs and more important clients; and they may come
as you mature in your career. That, too,
should be part of your business plan.
The type of client a more established designer will work with is usually
more demanding of the skills a professional employs and willing to use the
resources provided by an experienced business pro. This type of client is enticed by an
accomplished marketing campaign and the great word of mouth created over a
period of time by successful designers.
Where
Did All These People Come From?
Depending
on where in the country you live your client will, in most instances, work as a
senior executive; he or she will be a doctor, lawyer or real estate
tycoon. Some may own their own
business. You shouldn’t be surprised,
that’s where the money is. Entrepreneurs
and small business make up the bulk of business in the United States
and account for more employment than almost all the larger corporations in this
country. And, yes, you will be looking
for those clients who have the disposable income needed for most interior
design projects. These clients will also
probably be somewhere between thirty-five and sixty. Old enough for the kids to be in college or
just graduated. They will have been
homeowners for a decade or two and might even own a second home or time-share. Retirement income and IRA’s have been
established and usually there is enough cash for day to day living. A lot of the expenses of youth are long past
and the focus has now become more about style and substance. Hence, extra money for interior design.
Clients in their twenties and thirties are
far more internet savvy, have smaller budgets and will “shop” the interior
designer if given the chance. Young
homeowners, generally, are still focused on simply creating a home for
themselves and the kids and saving for future college tuition. Clothing, food and the essentials of living
are all part of younger couples challenges.
Once that hurdle is cleared they are ready for you. This market, however, shouldn’t be
ignored. As with all generalities there
will be exceptions. If you are more
comfortable working with people in this age and demographic group then by all
means nurture that relationship. These
clients will someday be those clients, if you know what I mean. If you, too, are in your twenties or thirties
and would like to have a clientele that grows with you, this is your
group. You might find it easier to
educate them in the ways of professional interior design and they will become
very comfortable working within your parameters. Most designers, however, look for a mix of
clientele for the variety and challenge each brings to the table.
Smaller
Percentages, Bigger Profits
These
clients will further divide into two groups.
Twenty percent of these clients will give you eighty percent of your
business. Known as Pareto's Law, or the
80:20 Rule, this axiom will remain true throughout your career. The 80:20 Rule applies in almost every
sphere. You noticed it in school. You
found it on your first job. In almost any
business, 20% of the resource, or production, will produce 80% of the
results. You should also understand the
reverse is true. A project, or work,
that takes up 80% of your time will produce only 20% of your profit. It’s only after completing a few jobs will
you be able to look at profits and see who, of your clientele, fall into the
positive side of the 80:20 Rule. It is
these clients you will find easiest to work with and manage and it is they who
will continue to come back for more work.
They will also be the ones who refer you to their friends and
colleagues. As you continue you will
take on many new clients; all of whom will fall into the 80:20 categories. The eighty percent are the ones to evaluate
on a regular basis. Some, if managed
properly, may move into the twenty percent group but, generally, they will stay
in the eighty percent group. At some point
you may decide to finish those jobs and move on. It will be up to you. It is, after all, your business."