Why It Could Be Risky For Interior Designers to Source Retail
Updated September 2023
A majority of the interior designers we work with source primarily to-the-trade products for their full-service interior design projects. Sure, they'll pull in a retail item here and there when it comes to accessories or an item they’ll use for styling. But for the most part, if they're specifying it, they're ordering it through one of their vendor accounts.
This may be how you run your business, or maybe you'd like to start selling more to-the-trade items. Either way, I’ll bet you've heard questions similar to these from a prospect before:
"Where do you source?"
"Can I shop with you?"
"Can I do a sit test?"
"Can you source from [retailer]? I have a gift certificate."
I know some designers order retail for clients, and they make the 20% they saved using their trade account. Honestly, that's simply not enough to cover the expense, time, or liability if something goes wrong with a retail item.
For some interior design services (like a Design Day, Distance Design, or E-design), it makes sense to source retail, assuming your clients handle ordering, receiving, and installing.
But if you ever get pushback from your clients or prospects about why you don't source retail, here are a few reasons to keep in your back pocket for when you need to explain.
01 | You have no idea about the quality of retail products
Retailers source from various manufacturers, frequently the same ones designers do (but without the same level of customization designers have access to). If it's a manufacturer you aren't familiar with, how will you know if the product is high quality? How will you be able to tell a client whether it's comfortable to sit in or not? Ahhh, the dreaded "Can I sit in it?" question. And what happens when the item arrives and the client is unhappy because it's a junk piece of furniture and very uncomfortable?
If you sourced, ordered, and coordinated the delivery and installation of the item, guess what: you're on the hook! That means:
You're now handling claims for an item you made only 20% on.
Your client may question your selections in the future and request to "see items in person", which throws a myriad of other issues into the mix.
Your reputation as a high-end designer is at stake if your products fall apart after a month.
On the other hand, if you had sourced from one of your to-the-trade vendors, you would know the quality of each line. You would be able to confidently tell your client how comfortable a piece is (because you've sat in it at Market, at your local vendor showroom, in another client's home on install day, and because that client loves it!). You'd also have confidence in selecting something at a higher price point because you can attest to the quality, durability, and longevity of the item, making it worth every penny.
02 | You have no idea how damages or warranty claims are handled
You can look on a retailer's website and see warranty info in the product description, but that doesn't mean you know who the actual manufacturer is and if they're reputable. If there's a claim, you'll have to go through the retailer's 1-800 number and be subject to their customer service department. (Are you crying yet?)
Then the retailer's customer service rep will go through the manufacturer to find a resolution for you. Talk about a lengthy process, especially if there are hoops to jump through, like:
Do they immediately send a replacement?
Do they require a local repair and then reimbursement?
Do they make you package it up and ship it back even if it's broken?
Do they pay to have it picked up and disposed of?
Do YOU have to pay for return shipping?
On the other hand, if you had sourced from one of your to-the-trade vendors, you know the manufacturer, you have experience with their customer service and claims department, you know how they handle their claims, and you have a direct contact you can reach out to, not to mention a local rep who can assist as well.
You simply can't know this with a retailer because you likely won't know who the actual manufacturer is.
Imagine the headache when something arrives at your client's home damaged. Sure, you made your 20% markup on it, but that doesn't cover the time or headache of working with the retailer's customer service department or overseeing the delivery of the replacement item to ensure your client is happy.
If you had sourced trade, you would know that Vendor A has an incredible shipper and rarely has claims, and when they do, they handle them quickly. You would also know that Vendor B's products almost always arrive intact, but their accessories always come damaged, so you'll know to avoid ordering accessories for clients through Vendor B.
And, because it's a vendor you do business with all the time, you have a direct line to your customer service rep at the company as well as the support of your local rep. If you need to expedite a claim or aren't happy with the initially proposed resolution, you can call your local rep and have them work alongside you and your CS rep to find a solution quickly.
03 | Sourcing retail takes longer
Simply put: it takes longer to source retail than it does to source from your curated vendor list of high-quality to-the-trade vendors whose lines you know in and out (because you source from them for every project).
Not only do you have endless options to choose from, but you also have to spend time researching the product to determine if it's high quality and to understand what materials they use.
And, because retail items typically don't offer many customization options, you'll have to search far and wide to find a piece that will fit the space, style, and budget parameters perfectly.
All this results in more time and a higher design fee for your client.
Whereas if you had sourced from your vetted list of to-the-trade vendors, you'd easily be able to source from ones that fit your client's design style, budget, and durability needs. Rather than sorting through millions of options on google.com, you'd know exactly which two or three vendors to pull from that will be perfect for your client.
04 | You have less control over delivery
When you order from a retailer, the retailer will use their own freight carrier and local delivery company. You have no control over who either of those will be. You also can't control WHEN the item is delivered because the retailer will handle that. Their local delivery company will call you with date options that work for them. If you have an install day set for a client and want the retail items delivered that day, well, GOOD LUCK!
Whereas, if you had sourced from your to-the-trade vendors, you'd be familiar with their carrier and could track the item directly on the carrier's website or by emailing your CSR. You'd also have the option to choose your own carrier (more on that here).
Once the item arrives locally, you can have it delivered to your preferred receiving warehouse, where YOU will coordinate the delivery and choose a convenient date for you and your client.
So again, if your client wants retail products, THEY will have to invest their time in waiting at their home during the 2-4 hour delivery windows for each of their retail deliveries. The 20% markup on your retail items is NOT enough to cover you or your team being on site to receive retail items for your clients. And if you bill hourly, is it the best use of your client's money and your time to sit at a client's house awaiting deliveries from retailers? NOPE!
05 | Your clients will pay more for retail items
When you source retail, a part of the price your client is paying includes the retailer's overhead for that product. Sure, some retailers get better pricing than you do because of their high volume of sales with that vendor, BUT they have way more expenses than interior designers do (significant retail locations, customer service teams, expensive inventory, retail employees, marketing teams, advertising expenses, catalog expenses, etc.). This higher overhead means a retailer's pricing of the same sofa you can get from your to-the-trade vendor will likely be the same or higher than it would be through you.
When you source to-the-trade, you are ordering directly from the manufacturer, which means you're cutting out all that additional overhead. This often results in you being able to price more competitively than retail. And, if your client is dead set on Sofa A from Retailer B, you can show them how that same sofa through your trade vendor is the same price through you.
AND you have more options to customize.
AND you'll handle the order placement, claims, and delivery coordination.
06 | Retail limits your options and can result in cookie-cutter designs
For retailers to be profitable, they have to choose items they can mass produce and limit the available customizations. This means they'll select the most popular styles, fabrics, and finishes and offer only those on their site.
So not only will you be limited to popular items, you'll be limited in your ability to customize those options for your client.
Whereas, when designers source from to-the-trade vendors, they may have endless options and opportunities to customize each item to reflect the clients' style and functional needs.
When it comes to case goods, designers can choose the table size, shape, leg style, finish, banding, foot style, hardware, interior color, shelf color, etc.
When it comes to upholstery, designers have thousands of options for fabric (or they use COM for even more options). They can also often select the back style, arm style, leg style, cushion style, length, height, front fabric, seat fabric, back fabric, binding fabric, and more.
Often, those little details elevate a room and make it absolutely perfect for your clients.
07 | Retail items are often trendy and will date your clients’ homes
Consistent with my previous point, retailers have a high overhead and must select products they know will appeal to the mass market and sell easily. Because of that, retailers pick trending items based on what is popular and new from manufacturers.
When you source retail, you'll be limited to those trending items most people are buying, which means in a few years, those items will likely be outdated. EEK!
Once something hits the retail floor, it's likely already been sold and tested for popularity in the trade space and already out-of-style or on the way out by the time it hits retail stores.
If retail items you source for your client need to be replaced in two years because they look dated, talk about expensive!
On the other hand, working with a to-the-trade vendor means you'll be able to choose timeless fabrics and styles without compromising on quality, and you'll have access to infinitely more options than you would through retail. Your clients will never look at their item and think, "Gosh, do you remember when everyone was doing this chair in the 20s?". BLEH!
Again, there are some services and instances where it makes sense to purchase retail.
My recommendations when doing it would be to either:
A. Charge a retail management fee in addition to your 20% so it makes financial sense for you to take on that liability, OR
B. Have your client place all retail orders and manage receiving, claims, customer service, etc. so you are entirely out of it.
WANT TO SELL TO-THE-TRADE BUT NEED TO FIGURE OUT WHAT GOES INTO IT? YOU MIGHT ENJOY THESE POSTS:
Sales Tax Basics for Interior Designers
What is a Receiving Warehouse, and Why Your Interior Design Business Needs One
Sign up to receive The Weekly Install for more interior design business tips and industry best practices — delivered straight to your inbox every Friday morning.
Looking for more? Keep reading:
