Interior Design Trade Discounts: Build Trust with Transparency

One of the huge financial benefits of hiring an interior designer is the discounts you can secure through your trade accounts.

The trade discount is a perk you receive from suppliers for purchases or long-term partnerships, and it's a way of suppliers seeking your loyalty and repeat custom.

But what happens when it comes to your clients? Do you silently pocket the discount and keep it to yourself, or do you pass the savings on?

It's one of those thorny issues that can be contentious within the industry. Some people feel that it's good business sense to keep the discount for yourself. After all, it is your trade account, which you have opened in your own time, and earned through your loyalty to the company. And for some designers, this is their way of being compensated for the time they spend on procurement.

On the other hand, some designers feel this is entirely unethical. If it's the client's money that is being spent, then the client should benefit from the discount! 

The truth is, there's no one-size-fits-all answer.

Some businesses might factor the discount into their pricing structure from the get-go, while others see it as a reward for their buying power. But the real challenge lies in how you handle this decision with your clients.

The Problem with Secrecy

Imagine this: you land a fantastic project with a great client. Everything goes smoothly, you deliver stellar work, and then – invoice time. Your client, expecting a specific price based on your initial quote, questions the final amount. They might have seen a similar product or service advertised for a lower price, leading them to believe you've inflated the costs. 

Or they may see your original invoice and realise that you have received a hefty discount but charged them the full price. 

Awkward, right?

This is the pitfall of secrecy surrounding trade discounts. It has the potential to breed mistrust and can sour a perfectly good client relationship.

Transparency is Your Best Friend

The key to avoiding this scenario is simple: transparency. Here's how to ensure open communication and clear expectations:

• Be Upfront from the Start: During the initial consultation, explain how you handle trade discounts. This doesn't have to be a complex discussion. Briefly mention that you negotiate pricing advantages and explain how you choose to utilise those savings.
• Contract Clarity: Don't leave things to chance. Include a clause in your contract that outlines your policy on trade discounts. This protects both you and your client by setting clear expectations from the outset.
• Open Communication is King: Throughout the project, maintain open communication with your client. If questions arise regarding pricing or discounts, address them promptly and honestly.

Building Trust Through Transparency

By prioritising transparency, you achieve several things. First, you build trust with your client. They understand your pricing structure and know you're not playing pricing games. Second, you avoid misunderstandings that can lead to conflict later in the project. Finally, you demonstrate your professionalism and commitment to a fair and ethical business relationship.

If you'd like to get some help with navigating situations like this, come and join our Hub Insiders membership, where we help interior designers like you to grow successful businesses. Why struggle alone, when you can have the Hub by your side?!