The Ins and Outs of Invoicing for Your Flat Fee Interior Design Projects
Invoicing clients for your interior design projects doesn't have to be a headache. But it is an integral part of running a successful design business and is a topic I get the most questions about.
In this article, I’m sharing the ins and outs of invoicing for your flat fee interior design projects so you can make the process more organized, efficient, and professional. Whether you're collecting fees for consultations, design services, furniture purchases, or out-of-scope requests, these specific tips will ensure you can spend your time designing, NOT chasing down past-due payments like a debt collector.
And, this goes without saying, but just in case:
All of these policies should be outlined in your contract
You should use a contract
Your contract should be specific to your services
You should have your contract reviewed by a licensed attorney in your state
You should prepare a scope of work specific to each project
PS: I’m not an attorney, and none of this is legal advice. And, these tips are specific to flat fee billing.
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Paid Consultation
If you offer a paid consultation as part of your inquiry process, be sure to collect the consultation fee in full before scheduling the date.
Avoid any awkwardness associated with discussing payments in person, waiting for the client to write you a check as you stand there waiting, or leaving the consultation hoping they’ll send payment like they said they would.
There’s nothing “elevated” about writing a check while someone is watching you, or asking a client to pay you on the spot. Make it easy and send the invoice to your client to pay for the consultation and book the meeting ahead of time.
Here’s everything you need to know about structuring an interior design consultation.
Design Fees for Full Service Flat Fee Projects
When it comes to design fees for full service flat fee projects, make it easy. Two or three installments (none of this: part now, part when we start, part after we present, part one month out, and the 10% balance after the project wraps).
Every time you ask your client for money, you’re creating an opportunity for friction. Let’s NOT do that. Make it easy.
Request a 50% deposit to secure a spot on your design calendar, even if the project start date is several months away. The remaining balance should be paid before the first design presentation, or a certain number of days/weeks after the official project start date.
This approach minimizes the risk of clients withholding payment if a) they change their mind during the design process, b) they’re unhappy about something outside of your control but are using the fees they still owe you as leverage, or c) they don't think the project is “done” yet (even though it truly is; they are just impossible to satisfy).
Minimize the number of times you ask your clients to reach into their pocketbooks to write you a check. Stop “transacting” and place the focus on the design process, not the money.
Now, keep in mind, if you have a good screening process in place, hopefully, you’re not running into clients who do any of those things (read more about declining bad fit clients here). Because to be honest, if it’s a good fit client who values your expertise, they'll pay you however and whenever you want. So if you’re finding you’re constantly running into issues with clients who withhold design fee payments or ghost you when fees are due, it MIGHT be smart to see if the “constant” is actually bad fit clients, not your invoicing process.
Invoicing for Furniture and Products
Collect 100% of the furniture invoices upfront before placing orders on behalf of your client. When presenting invoices for furniture, lighting, accessories, etc. it is crucial to provide pricing details alongside the design so clients can make informed decisions and offer feedback or revisions accordingly. This transparent approach fosters trust and ensures that clients are aware of the costs associated with the presented design.
Not selling wholesale furnishings yet and making product sales, check out my Beyond Retail course for interior designers.
If you collect a furniture retainer upfront, then you’d apply the retainer to the full amount due for all items your client approved at presentation. Your client would replenish the furniture retainer when it dips below a certain amount, whatever you have spelled out in your contract. Check out our Scope & Service Agreement for interior designers here.
Invoicing for Out-of-Scope Requests - Additional Revisions
When faced with revision requests that fall outside the timeline allotted or are beyond the allowable amount, consider offering options such as:
Creating a new scope for the revisions with an associated flat fee and timeline
Transitioning to an hourly rate to complete the additional revisions
Or, charging a flat fee per item for additional revisions
Definitely read about how to create a design process with fewer revisions.
Invoicing for Out-of-Scope Requests - Additional Services
Same as above. Or, simply say no, and let the client know you’ll begin a new scope when the first project is completed. Why? Because YOU ARE THE EXPERT. You know best.
Will having multiple projects going at multiple phases be a good experience for the client?
Will they be able to manage the budget when projects are going on simultaneously in their home?
Have they said yes to their other designs? SHOULD you add more scope, or do you recommend finishing one room at a time so the client can enjoy a completed space?
These approaches help manage expectations and address additional services without straining the original project agreement.
Invoicing for Install Day and Styling
There are a few options here and it really depends on the services you offer and the size and scope of your projects. Including installation day within your flat design fee ensures a comprehensive service that results in a win for both you and your client: A COMPLETED SPACE!!
Additionally, styling with designer-selected accessories can be treated as a separate fee or an optional add-on once the home is ready for soft furnishings.
This approach safeguards against unforeseen budget constraints that clients may have at the end of their projects. For example, when a client simply cannot spend another dime because construction and furnishings were more than they anticipated, investing in accessories just won’t make sense by the time you do their installation with styling. But, if you have it in your contract (that you will include styling), then you will have to put in the time and effort of buying, placing, then returning said accessories that the client no longer has the budget for. No thanks.
^^^Of course, there are ways to avoid this to ensure you DO get to style and accessorize. We’ll get into that in an upcoming post.
Grab our Install Day Playbook here.
Invoicing for Productized Services
For productized services such as Design Days, E-design, Mini Sessions, Architectural Reviews, Styling Sessions, etc., it is best practice to collect the design fees in full before scheduling the service date.
This upfront payment ensures a commitment from clients and helps the process stay efficient and profitable. And, because the scope isn’t customized (hence: productized service), the fee is the fee is the fee. Clients can simply put it in the cart and book the service.
Other Points to Remember When Billing Flat Fee
There are a few additional factors interior designers should consider when choosing to bill flat fee for their design projects:
Detailed Scope of Work. It's essential to clearly define the scope of work and deliverables included in the flat fee. This helps manage client expectations and avoids misunderstandings regarding what is covered versus what may incur additional charges.
Change Order/Revisions Process. Establish a process for handling revision requests or change orders beyond the initial scope. Clearly communicate how any additional work or modifications will be handled and how they will impact the fee and timeline.
Client Approvals. Obtain written client approvals for significant milestones, deliverables, and design decisions. This documentation serves as a reference point for both parties and can help prevent disputes or confusion later on. Plus, when using retainers for products, having written approvals is KEY to protect yourself.
Expenses and Reimbursements. If the project involves expenses that will be passed on to the client (e.g., travel costs, freight, receiving fees, storage fees, etc.), clearly outline the process for handling those expenses or invoicing for reimbursement. If travel is included in your flat fee, be sure to specify WHAT specifically is included related to traveling for their project.
Late Payment Policies. Set clear expectations regarding payment due dates and consequences for late payments. Include information about any applicable late fees, interest charges, or suspension of services until payment is received.
Project Length. Establishing a project timeline sets clear expectations for both parties. It ensures that clients understand the project duration and when they can expect to see progress or completion. It also encourages clients to make decisions within the agreed-upon timeframe so you can keep your projects moving forward.
Setting a project timeline helps designers plan their workload and allocate their time, resources, and team members appropriately. Setting a maximum project length can help prevent scope creep, where the project expands beyond the initial agreement without additional compensation, and create clarity around when the client will be charged for additional services.
Incorporating these policies into your interior design invoicing process will undoubtedly elevate your client experience and enhance the efficiency of your business operations. By adopting a standardized payment practice and maintaining clear communication with clients, you’ll be able to navigate invoicing with confidence and professionalism while also protecting your time and bottom line.
