Dear Dakota: I know I’m undercharging for my services. How do I figure out what other interior designers charge to see where I land?
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Dear Dakota,
I know I’m undercharging for my services. How do I figure out what other interior designers charge to see where I land?
Here’s the thing about pricing: it’s tempting to look around to try to figure out what other designers in your area are charging so you can base your rates on theirs. But that approach will only get you so far.
Even in the same city, pricing can vary wildly, and for good reason.
One designer might be charging $15K for a room because she has an elevated brand, a solid process, in depth expertise, and a reputation that keeps her booked out six months in advance.
Another might be charging $5K because they don't have a strong portfolio yet, but they’re insanely talented and are actually UNDERCHARGING.
And someone else might be charging $3K because they work with smaller-scope projects, offer a leaner version of full service, and offset their design fee with a higher product markup.
Same market. Same zip code. Totally different business models.
So no. Looking at what others charge, even locally, doesn’t tell you what you should be charging.
Your pricing should reflect your process, your positioning, the value you bring, and the type of clients you want.
Because even if another designer’s brand, reputation, skills, process, client base, team, expenses, and visibility were identical to yours (they’re not), their pricing would STILL be irrelevant to your business.
The better approach?
The data you already have.
The answers are ALWAYS in the numbers.
Your cost of doing business
Your close rates
The types of projects you're attracting
What your clients are actually investing in with you and in their furnishings
Then, once you know those numbers, you can raise your prices. Slowly, intentionally, and one project at a time.
Each time you quote a project, bump your rate just a bit and pay close attention to your conversion rate (how many people say yes).
If everyone says yes quickly and easily, you’re likely undercharging.
If no one says yes, you might have adjusted up too high for how you’re currently showing up.
Your goal is to convert around 30–50% of your qualified leads.
That sweet spot tells you you're priced well for your market and you have room to grow without burning out.
👏
The Truth About Interior Design Pricing
Here’s what I want you to hear loud and clear:
Yes—you probably are undercharging.
Most of the interior designers we've worked with—whether 1:1 or in our group program, The Designed to Scale® Method—were undercharging.
So no, you DO NOT want to compare your prices to theirs.
Most designers are undercharging.
And not just by a little. Some former clients were charging just 20% of what their process, expertise, market, and results truly warranted.
20%!!!
Let me do that math for you:
20% of $250/hour = $50/hour
This means they could (and eventually did) charge $250/hour, but before we started working together, their flat fee broke out to being only $50/hour.
😱
So if you had looked at this designer’s website before we worked with her (or submitted a fake inquiry to get pricing … shakes head sadly …), it would have been a HORRIBLE reference point
You likely would’ve walked away thinking, Oh dang, I’m actually overcharging …
Which would have been completely wrong.
See why you can’t compare your pricing to others?
But, and this is key:
Even if you are undercharging, that doesn’t mean you should raise your prices tomorrow.
A price increase has to be warranted and aligned with the quality of your work and the experience you deliver.
If your process feels like pulling teeth, your skills are still being developed, or your client experience feels chaotic … start there.
Clean that up.
Build the foundation.
Then raise your rates.
Because pricing isn’t just about the end result—it’s about how you show up from the first inquiry to the final installation.
And once you’ve hit your current ceiling for pricing?
That doesn’t mean it’s your forever ceiling. Nope.
If you’ve done the work (see above), analyzed your data, and slowly increased your project pricing to see where conversion rates land, and you still feel like the number isn’t quite high enough—good news:
You can raise your market’s tolerance for higher pricing.
How?
Invest in professional photography
Improve your branding (this alone can justify thousands more project)
Upgrade your copy and positioning
Get published
Improve your process and client experience
Collaborate with bigger, more established partners
Share more social proof
Curate your portfolio to highlight your best work
Improve your marketing
All of these things build trust. And trust is what supports higher pricing.
Here’s What I Can Tell You About Where Your Pricing Lands
Chances are, I’ve worked with a designer in your market sometime over the last 8 years.
Heck I’ve probably worked with the one who is now a business coach offering to teach you what I did for their business.
So I probably know what they charge. What their minimums are. What their markup looks like. And the kind of profit they’re actually taking home.
If you want that insider perspective—plus my advice on how to establish your prices, set minimums, raise your rates, and price with clarity and confidence—check out my Pricing & Proposals Workshop.
I’ll walk you through exactly how to price your services profitably, write proposals that convert, and set minimums that allow you to book bigger and better projects.
Because you can charge more (and probably should).
