How to Calculate Interior Design Fees in Bangladesh

Determining fees for interior design is one of the most challenging tasks these days. If you are new to the interior design business, calculating payments will be more difficult. 

Since you have just started a new business, you want to be transparent with your clients and make a profit for your company. But balancing these two things together can be a bit challenging.

Once you understand how to calculate interior design fees, you’ll be able to stay loyal to your client, work on more significant projects in the future and make a profit from your business.

Some Best Ways to Calculate Interior Design Fees

When calculating interior design fees, there are several things to keep in mind, such as overheads, material costs, labor costs, etc. Let’s check out the details.

Flat or Fixed Design Fee

In this model, you can only include the price of how much work you have done and how much time you have spent on a project. Cost of other expenses such as travel fare, purchase of furniture, telephone bill, etc., will not be added to the total invoice.

These fees depend on budget, experience, estimated time, and square footage. 

The biggest downside of using a fixed fee is that it’s unpredictable. Sometimes, the client may change his mind before the end of the project. For any unavoidable reasons, the client may increase the time of his project, which may decrease your profit margin.

Flat or Fixed Design Fee

Suppose your interior design business is a few years old, then you should understand how to set a fixed fee. In that case, you can add a 10-20% additional charge for unwanted incidents.

If your client cannot make a full payment at once, you can encourage him to pay in installments.

Square Footage Fee

Square Footage Fee

As the name implies, such fees are determined depending on the space. The Square Footage Fee method does not work well for residential buildings but works best for commercial projects. Such a procedure is effective for use in the main bedroom, kitchen, living room, etc.

If you charge your clients following the square footage fee method, you need to focus on the design of the space you work in. 

Hourly Fee

According to the hourly fee method, you will charge your client according to the number of hours you will work for a particular project. The hourly fee method depends on your experience, talent, and the county you live in. Each second counts.

Such a strategy is not recommended for those new to the interior design industry. However, if your business is a few years old and you have enough experience, you can surely be benefited from this method. 

Whether you want to charge your client by following the hourly fee method, specify your job description in the contract and mention how much you will charge per hour for the entire job.

Hourly Fee

Percent of Project Cost

An estimate is the base of this method. Send an estimate to your client, including all costs like finishes, installation, furnishings, fixtures, contractors, etc.

When you send your client an estimate of how much it will cost to complete his project, find a small percentage from that estimate and select it as your fee.

This method is almost the same as the flat fee method. When you contract with your client to work on a project, share an estimated cost list of how much it will cost to complete the project with your client. Before finishing the project, tell your client about it if you see that the cost will be higher than your estimated cost to complete the project. If he cannot pay in full at once, ask him to pay the remaining amount in installments.

Percent of Project Cost
Cost-Plus Fee

Cost-Plus Fee 

In the process, designers charge a small mark-up on the entire project’s cost for their fees. The percentage of this mark-up may be different in the case of expensive items.

For example: suppose you buy some furniture to design the interior of your project and get a 45% discount on all the products, which decreases the total cost. But when you submit the bill to your client, you will mention in the statement that you have got a 30% discount on all the products. And this slight mark-up is your fee.

Final words

In the end, many factors go into how to calculate interior design fees. There are also many different ways you can figure them too. As always, there’s no “one size fits all” metric or model to follow with interior design—your pricing will be unique to your business model and clientele. Find out more on Interior Ace regarding interior design. 

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