Hello and welcome back to Success by Design. I'm your host, Katie Decker-Erikson and today we have a very special in-depth episode on packaging and pricing your design services for high-end seven-figure clients. Those who are ready to invest significantly in top quality results. But first, let's define what is a seven-figure client in our industry.

This typically refers to a client or project with a budget of a million dollars or more, whether that is a large scale home remodel, a new build, or a major commercial build out. If that sounds intimidating, don't worry, it's not. We're gonna unpack it. These are clients who aren't bargain hunting, they're value seeking, and most of all, they want their time back, which is why they're hiring you.

They want the best of the best. They're prepared to pay for the expertise that delivers that transformative high caliber outcome. So in this episode, we're gonna explore designing premium pricing packages that reflect the real value of your expertise. We're also gonna address strategies for raising your prices without scaring your clients away and the crucial importance of a thorough contract and I'll share why robust 12 page agreement created by an intellectual property attorney that we partnered with

can protect you from scope creep and other legal pitfalls. We're going to dig deep into these topics, so get comfortable, take some notes, fill your coffee cup, and let's jump right in. Why does packaging and pricing matter for designers? And let's start by taking a thoughtful look at how we package and price, because it is so important, especially if you're aiming to work with seven figure.

Katie (05:31.694)

And I have to say, I don't know any designers who I coach who only want to work with low six-figure clients. Let's be honest. So first of all, professional perception. This is interesting. According to the American Society of Interior Designers, 78%, so nearly 80 % of high net worth clients say they form preliminary judgments based on a designer's proposal clarity. That's right. If your scope of work and pricing is muddled,

Your presentation is confusing. You don't have a process clearly outlined. You're going to risk losing these high paying clients immediately. Here's an insider tip. They got to where they are because they understand the value process and clarity and now they're looking for it when they're looking to hire you. Second of all, growing budgets. This is a big factor when it comes to why packaging and pricing matters so much.

luxury remodels and new builds can easily skyrocket into the millions. In fact, the National Kitchen and Bath Association found that a top tier kitchen remodel alone can exceed $150,000. And if you're in New York or maybe in the high end areas of LA, you're like, that's not even gonna buy you half of a kitchen, right? So you're gonna need a system that seamlessly handles these larger scopes. Also, let's talk about value versus cost.

This is a big one. In fact, 62 % of homeowners according to house are willing to spend over $100,000 on renovations if they prioritize professional expertise over price. This is your green light to present the premium packages you've been holding back on and remove those discounts you've been applying to your services because here's the thing, all you have to do is explain the value or the why and that's a lot different than the cost.

If you can clearly outline the ROI and the transformation, these clients are ready to step into that space with you. Let's also talk about profit and sustainability. Underpricing can lead to burnout and profit erosion. Sit with yourself for just a minute. How did it feel the last time you discounted your prices? Probably not very good, right? And then do you bring that same enthusiasm and creativity to the project? Of course not, right?

Katie (07:54.346)

Overpricing without justification on the other hand can push away clients. So we have to be smart about this. But being smart means having an effective packaging and pricing strategy that helps you land the job, feel good about the profit, show the value of your services to your client, and really be happy to come back the next time they call you.

Finally, streamline workflow. With well-defined packages, you don't need to reinvent the wheel for every proposal. If you are doing that, you are wasting so much time, and as you've heard said a hundred times, time is money. You save time and keep projects organized all while presenting a polished, consistent image to potential clients. That is the goal. If you don't have workflows, this is one of my favorite things to coach too.

and we can create those workflows so that your business is working for you even when you're out of the office because those workflows are in place. Let's talk about designing premium pricing, no, taking a drink for a minute.

Katie (09:01.473)

Ahem.

Katie (09:05.292)

All right, now let's talk about designing premium pricing packages. And we're gonna dissect this on how to build packages that convey that premium value. Remember, we just talked about value versus cost. We're gonna hone in on value. First of all, lead with transformation. Focus on the outcome of your client's desire. That may be a fully redesigned luxury home, a jaw-dropping commercial space that boosts brand appeal, or a beautiful high-end vacation property that offers top support.

This is another key point. You've got to point to metrics or past results if available. For example, citing how well-designed properties can sell for up to 10 to 20 % more, according to the National Association of Realtors, gives a clear ROI perspective and a reason, right? In fact, I was coaching a client this week and she said, gosh, Katie, I don't have a portfolio yet. How am I supposed to be able to sell and show them what I'm capable of?

And so I turn her on to AI. We got onto chat, GPT, and created some models, some ideas that really embodied her style and showed what she was capable of, and she's taking them for a test drive. The reason why I know this works is because I have used it in my own firm. When I'm speaking to a specific market niche that maybe we haven't done as many projects in, or the client is asking for something very specific and unique,

I can go in there and I can create those visuals and let them know that I am capturing the idea of what they want. And full disclosure, feel free to tell them, I created this with AI based on everything that you have told me. And I just wanna let you know how I would manifest this if I was chosen for the job. Also, highlight your signature method. Ooh, that's right, signature method. Walk prospects through your distinct process. You should have that initial concept, material sourcing,

vendor coordination, custom designs, installation, right down to that final styling. In fact, I'm gonna put a link in the show notes for the episode that I did with Renee Beery talking about if you're not project managing your own jobs, not only do you not have stylistic and aesthetic control, but you are also leaving profit on the table.

Katie (11:25.526)

And make it a branded framework when you create this signature method. People pay more for a carefully honed proven system that has a name and a reputation. Whether you tweak one or two things from what is a standard process that makes it your own, whatever you need to do to make it yours, do it. Because that is a market differentiator when they are looking at you as compared to another potential designer they might want to hire. Also, deliverables.

have to justify your price. So premium clients, these seven figure clients we're talking about are looking for perks. They're looking for 3D renderings. They're looking for VR walkthroughs, virtual reality, that's right. Or they're looking for high-end material sourcing that you just can't get somewhere else. In fact, I was just talking to a client this week who is working in an assisted living facility, owner of it.

And she came to us for design assistance. And she said, one of the things I want is I just want it to feel really different. And I'm really concerned about the scent. And so we started going down the road of talking about scents and spaces. And I said, well, there's this incredible company out of France that will create the scent that you are looking for to go in a specific space. And that was such a game changer for her to understand that all of a sudden we could bring value to the table by integrating a company

across the pond, so to speak, who does something very unique that isn't readily available in the States. Include these advanced elements in your presentation because that is gonna underscore why your premium price is justified. Also, think about strategic bonuses. Consider offering post-completion checkups, style audits, exclusive access to luxury showrooms. Again, we're thinking market differentiators that set us apart

from other designers who may be used to working with six-figure clients. Not only include those bonuses, or I like to call them value adds as well, they genuinely support the main transformation because too many unnecessary extras can dilute that perceived quality that they're looking for and also that clearly defined process they're looking for that is getting them their time back. Remember, that's why they're hiring you.

Katie (13:43.01)

Finally, tangible return on investment, or as we call this in the business world, ROI. They are looking for that. Residential clients specifically, they wanna know that their property value is increasing, even if they plan to stay in the home for 20 years, even if they use the term forever home, which is a term I have used repeatedly, even though we end up moving. The reality is none of us want to think about that, right? We want a place where we're stay.

at home at for a while, but we also know that if we do have to sell, we wanna know that we have value built in to what we have invested in. For your commercial clients, and I love our commercial listeners, highlight how great design can elevate brand image. It can also improve foot traffic, show the value of increasing sales. In fact, according to various hospitality and retail design studies, there's a direct correlation between a professionally designed space

and how much money people are willing to spend in it. All right, strategies for raising prices without losing clients. Because I hear you out there thinking, this all sounds great, Katie, but are you sure my clients are really gonna go for this? Here's the thing. If you've undercharged before, you're pivoting to that premium market, let's talk about how do you raise your prices without scaring them away. Because it can be done as intimidating as it may currently feel.

The key is gradual increases. I like to call this the lobster in the pot. So implement 10 to 15 % price hikes every few projects or six to 12 months. When things go gradually, we all feel better about them, right? The reality is your clients are absolutely no different. If you come to them after two years and you're like, we're bumping prices 25%, all of a sudden you're gonna see really big eyes, right? But if you're saying we've had inflation,

We've had tariffs. We've had whatever it may be. And once again, give them the why. They will appreciate that because you're not the only vendor they're buying from in their life, right? If you can explain the why, then all of a sudden they're going to go, fair enough. We see that you're in business and this isn't a charity production. It also helps them see that you are prized and up to speed on what is happening in the marketplace and that you're interested in creating value.

Katie (16:04.088)

And that's the key to, you have to add that value for them in that price increase. And that's again, back to the why. Each price increase should coincide with enhancements in your service. Maybe you are implementing a new design software, such as the virtual reality component, right? Or you're doing better mood boards thanks to AI. Deeper supplier networks is another great one. Maybe instead of working with a handful of companies, you're now adding a.

Additional ones or you have a catalog not that you have to share that with them But you can say we've really expanded our supplier network to get you the best design results It may also involve additional site visits if you don't want to do that Maybe it's going out a few more times or saying we've just found that when we go out every week or every X number of days The result is better the clients are happier and we just feel like we owe that to you and that's a reason to hire us

The reality is clients are more accepting when they see those tangible improvements. And like we said before, those price increases are gradual. The biggest thing is communicate with confidence. Clients can smell fear. They really can. And so when you go in there though, and you have your processes, and you have your why, then you don't have a reason to be afraid anymore, right? Whatever you do, I'm repeating this again, whatever you do.

Don't apologize for your rates. I hate to see designers do this because it's already putting fear in the mind of their client. Instead, emphasize the added benefits, like we now include 3D mockups, which significantly reduce surprises and speed up decision making. Or we're offering a virtual reality component because we just found that clients feel better when they can actually feel immersed in the space. Big difference there.

And then finally optimize that client experience. A great house study showed that over 90 % of clients are more likely to sign on if they see evidence of a smooth, well-managed process. I know I sound like a broken record, but a process, process, process, process proves your worth. Offer proactive updates, streamline communication, and a clear project timeline. Each of those is so important, and I'm gonna say them again.

Katie (18:24.94)

So you wanna have proactive updates. I usually like to tell my coaching clients, send them out on Fridays. So if they need to talk to their spouse or partner over the weekend, they have the opportunity to do so. Streamline communication. Have you taught them in your welcome packet and in your contract, how best to communicate with you and the expectation of when you're gonna get back to them? And then do you have a clear project timeline? I love a good Gantt chart, but just something to show them, what segment of the project are we in?

How much more do we have to go? And what amount of time is that going to take? It may shift. You may have a subcontractor that isn't available when you thought they'd be available. But the reality is you're managing their expectations before they have a chance to get grumpy because nothing is worse than a grumpy client and nothing is better than a relaxed client, right? Finally, step by step, let's talk about crafting high ticket packages and break it down.

Identify your tiers. Number one, offer two to three levels. You may have essential, premium, elite. You can name it whatever you want. We have our baseline is called affordable elegance, but each tier should escalate into scope, deliverables, and price. Number two, define your deliverables clearly. Outline exactly what's included in bullet point form. Clarity sets expectations. It also prevents scope creep later.

which is really important. And as I always like to say, nobody likes surprises after their 12 year old birthday, right? This is why making sure that your deliverables are very clear is very important out of the gate and back to getting that relaxed, comfortable client. And then select a pricing model that works for you. So that may be a number of different models. This is in fact one of my favorite things to coach too. Flat project fee works really well for defined scopes.

It can work really well for residential. There's a defined number of decision makers. The scope is usually limited. The budget is much more tight, typically. But I have found flat project fee can work really well. A retainer model fits ongoing or multi-phase projects really well, which is really common in commercial or large-scale residential work. We do this a lot.

Katie (20:44.696)

but it's also based on an hourly model with an estimation whereby we procure a retainer. Because there's more decision makers than commercial, right? You may have the bank who's funding it. They want to see what's going on. You may have the actual moment.

The bank is technically the owner, but you may have the owner of the asset who initiated the purchase of it, right? And they are going to want to have a say in what's going on. The GC may have ideas. And finally, if you have an architect, which you almost always do in a commercial environment, they're going to have additional thoughts that they need considered in your asset. Finally, value-based pricing. This ties your fee partly to measurable results like resale value or sales growth. You've heard this pitched out there. I do not like it.

and I'll tell you the reason why. It's relying on a market that you can't control. If you are hearing about value based pricing, I would strongly encourage you to turn the other way. It is a model that's out there. It doesn't work well for our industry. And then finally, establish milestones. Break the project into phases. This is once again, back to proving you have a process. So you may have concept, development, installation,

and final install, right, or styling. Each one of those can be tied to a payment and this protects your cash flow and keeps the clients informed of progress. It's also very clear if you don't like asking for money, we finished out this stage of the process. Now we're moving on to this stage. We need your deposit for this stage. All right, let's get into pricing psychology for those seven figure clients. And this is a huge one. Mindset is everything when it comes to pricing.

So first of all, anchor your highest price. Present your most luxurious package first. That's gonna set that psychological bar. The next years may seem more approachable once we start coming down from what we perceive to be the greatest value. And then showcase your ROI. That's right, remember that concept, return on investment. Use numbers, first of all, like.

Katie (22:52.482)

Well-designed resale spaces could see up to 30 % of sales lift or luxury home remodels can recoup 60 to 70 % of costs upon sale. Real stats make your fee feel like an investment, not an expense. When you can position yourself there, you're then positioned for success. Also, exclusivity and limited access are really important. Mention if you only take on a certain number of projects a year.

The reality is scarcity can nudge clients to commit sooner, or I only have two more spots left for this year or two new clients I'm taking on. That's gonna move them right along. And then the value of a great contract cannot be underestimated because this is the behind the scenes process that makes all the difference in how your firm actually runs. This is why we created a 12 page contract

both for residential and for commercial properties. You can find them on our website, but we are covering everything from scope to intellectual property rights. We don't want any confusion about who owns the final design. And that's why all of that is addressed in those two contracts that we'll put the links for in the show notes. Why does this matter? Why not just go to LegalZoom or some other website and use a template contract? First of all,

you want to prevent scope creep. Clear definitions are imperative. So additional requests incur extra fees. Is scope creep itself bad? No, but you got to get paid for it. If the client changes the scope, you need to change the billables. Also, that contract should be addressing your payment terms, whether you're doing it incrementally like we just talked about, or you're doing it hourly, or you're doing it on retainer, whatever it is.

We want very clear payment terms and we want penalties for late fees, right? Everybody else charges them, including my cell phone provider. You are no different. You are a business and that is not only okay, it is really important. And professionalism is really important and that's what this contract shows. You want those high end clients to see that you're organized and you're operating at a top level. You're matching their expectations for that seven.

Katie (25:19.118)

So I'm not going to lie, legal frameworks might not sound glamorous, but that robust contract can be the linchpin to a smooth, profitable project. And the end consequence is a satisfied client who values your professionalism.

All right, let's talk about communicating these packages. Like I said, you wanna be a competent communicator. And once your packages are polished and your contract in place, here's how to present them effectively. First of all, I love one page summaries. They, for people who are exceptionally busy, which these seven figure clients are, they create an express route through everything that you're gonna talk to them about. Keep the PDF simple, create landing pages, use

bookmarks, make it crisp and clean, and don't take up their time. Testimonials can be a huge add as well as case studies in here. Show off the relevant, relevant being the keyword, not just any project, but ones that are similar to theirs if you have them, before and after photos, and completed high budget projects. Even video testimonials, if you can get those from prior clients, are extremely valuable. In fact, according to a house survey,

Visual proof can boost client confidence by up to 92%. Talk about closing the deal, right? And then discovery calls. During those initial calls, paint a vivid picture of the final transformation. Highlight the ROI and the process first, then share the price when you meet with them. By the time you reveal the costs, they should already understand you have a process. You are value-driven.

And most importantly, you have listened, not just heard, but you have listened to what they are wanting and needing out of their remodel or new build. Maintain simplicity and protect your energy because high budget, high pressure projects can be exciting, but I'm not gonna lie, they can be really draining. Some of the projects we've worked on that are upwards of $25 million can be long.

Katie (27:32.448)

and hard and I've sent kids to kindergarten faster than they get done. Truthfully, you don't want to get drained. So how do you stay balanced in this? First of all, stay in your zone of genius. Do not be afraid to delegate tasks outside of your realm, whatever those may be. Should you have a bookkeeper if you take on a project of this size? Absolutely. The last thing you need to be doing is balancing your books and if your pricing is right, you don't need to.

This will allow you to keep your energy focused on creative direction, client communication, and that project strategy. When I'm coaching my clients, or not my firm clients, but my coaching clients, I will say to them, what is the thing you least like doing in your business? Nine times out of 10, it's usually bookkeeping, right? And the first thing I say to them is, let's work toward outsourcing that. Because nothing is worse than doing something you don't love and having it just suck the energy out of you.

Also limit your add-ons. You don't have to overload your packages with minor features that don't contribute to that main transformation. Make sure you are focusing on the core high impact deliverables. This is so important, again, to respecting those seven figure clients' time. And review the pricing and packages regularly. Aim to do that pricing and package audit every six to 12 months because your skills, your market demand, and your overall operating costs can shift, right?

So make sure that you are staying current and staying profitable. The time to realize you should have raised your rates is not three years after you should have done it, even though I see that a lot when I am coaching clients. So here's your actionable items, because we can talk about all of these things, but what can you actually do to get implementing them into your business? Here's your path to success. Audit your current offers. Are they clear? Are they concise? Do they appeal to seven figure?

budget clients. Then define two to three tiers. Differentiate each tier with added deliverables, depth, or exclusivity. Also, strategically raise prices. Communicate additional value whenever you increase fees, though don't just do it arbitrarily. Make sure and give the why. Have a thorough contract, a robust multi-page contract

Katie (29:56.024)

protects you from scope creep, like we said, intellectual property issues and payment disputes. I cannot say that enough. It is so incredibly valuable. It can be the first process of what becomes a money for growing your business. And finally, show up with confidence. Remember clients smell fear, but once you have put in place these processes and you can support your pricing with results, visuals and strong communication, you are in a position to succeed and close.

that client. All of these pieces work together to position you as a premium service provider worthy of that high level, that seven figure design project. Okay, that was a mouthful, but it wraps up our 30 minute masterclass on packaging and pricing your services for those seven figure design clients. And I really hope you're feeling empowered to refine your offers, establish clear deliverables and protect your business with a robust

bust contract. And if you're ready to take these strategies further and truly embrace the value of your expertise, I invite you to join me for individual coaching. We dig deep into your business model. We clarify those premium packages. I love helping you set up processes that not only attract but close and delight those big budget clients. Because ultimately your business should be working for you, not you working for it. And together,

We will transform your design practice into a profitable, streamlined venture that supports your lifestyle and your creativity. If you're interested, head on over to our website, successbydesign.coach, and book your coaching session now. If you still have questions, just hop on a call with me. I'd love to give you a 15-minute complimentary call and see if we're a good fit.

Thank you so much for joining me and get ready for next week. We have an outstanding guest who exclusively works with seven figure clients and you're gonna get a chance to hear from John. I can't wait for you to meet him if you don't know him already. And until then, remember, you'll always hear me say it. Make sure your business is working for you, not you working for it. Take care.