The #1 Pricing Mistake Designers Make—And How to Fix It
Words by Gabrielle SavoieWith our Office Hour series, we invite you into behind-the-scenes conversations with interior design's most trusted names. These digital sessions are designed to give you unfiltered insight, expert guidance, and practical takeaways from the industry's top talents and advisors. Sign up for our Trade Perks program to receive exclusive invitations to future events.
Photography by Adrian Gaut; Design by Studio Mellone
It turns out, being a great designer isn’t enough to run a successful business.
That was the candid through-line of our most recent Office Hour, which brought together AD100 designer Andre Mellone and his longtime advisor, Seth Kaplowitz, founder of the Kaplowitz Group. Seth represents some of the industry’s top design firms—from Ashe Leandro to Heidi Caillier—and has earned a reputation for turning “creative chaos” into operational clarity.
Together, they delivered a masterclass on the business of interior design—from pricing structures and contracts to staffing and client psychology. Below, we’re sharing the most powerful, no-nonsense insights from the hour.
Bill Hourly (Or at Least Track Like You Do)
“Everybody should track all their time and bill hourly for their projects.”
—Seth Kaplowitz
If there’s one thing Seth wants every designer to do immediately, it’s to stop guessing and start tracking. Based on data from over 250 client case studies, hourly billing consistently outperforms flat fees—as long as you invoice monthly and track time diligently.
Why? Flat fees create a win/lose dynamic and lead to scope creep. Hourly billing, when presented transparently, builds trust and aligns cost with actual workload. And if you're not ready to switch models overnight? Start tracking now. “You’ll be shocked,” says Andre. “Clients are getting an amazing deal.”
Ditch Your Franken-Contract
“The first glimpse clients get into your back office is your contract.”
—Seth Kaplowitz
Most designers start with a contract stitched together from peers, mentors, and Google searches. Seth calls these “Franken-contracts”—and says they’re a liability. Not only do they undermine professionalism, but they’re also full of redundancies, legalese, and clauses that make clients wary.
Seth’s fix? One evolving, battle-tested contract written in plain English—of which, he is an Expert. Every client of his firm operates on the same tried and true contract, which has passed through the hands of hundreds of designers and homeowners. “We want our clients' clients to read it, understand it, sign it, and pay the deposit—without needing to call their lawyer.”
Photography by Adrian Gaut; Design by Studio Mellone
Raise Your Rates. Seriously.
“If you’re converting every lead, you’re priced too low.”
—Seth Kaplowitz
According to Seth, “98% of designers are underpricing.” The main culprit? Impostor syndrome. Even successful studios struggle to charge what their work is worth—especially if they’re benchmarking off peers with unknown financial circumstances.
His advice: use data from your own projects to offer prospective clients square-foot ranges for design fees and FF&E. And remember: saying no to the wrong client can be more valuable than saying yes to the wrong price.
Growth Isn’t Always About Headcount
“The most expensive thing in any design studio is turnover.”
—Seth Kaplowitz
Bigger isn’t always better. Andre’s Studio Mellone operates with a lean team of eight—and juggles up to 15 active projects globally. Seth recommends studios avoid reactive hiring, which often leads to bloated orgs and junior team churn.
Instead, track utilization. When your team hits 85% capacity (not 105%), then it’s time to hire. The sweet spot for most high-performing interiors-only studios? Six to fifteen employees.
Photography by Billal Taright; Design by Studio Mellone
Train Your Clients Early—and Set Boundaries
“Little adjustments put the level of respect into the business.”
—Andre Mellone
Design is a deeply personal service—and Andre admits that early in his career, he answered client texts at 2 a.m. But building long-term client satisfaction starts with setting expectations and professional boundaries upfront.
Use educational materials to explain the true nature of the work: it’s not just “shopping and moving furniture around,” it’s math, logistics, and coordination. And when you explain your process clearly and kindly, clients don’t just respect it—they trust it.
Strategy Is Therapy
“We’re not interested in competitive pricing. The work speaks for itself.”
—Seth Kaplowitz
Andre likens his first meeting with Seth to a “therapy session.” By bringing in a strategic partner with deep industry expertise, he was able to elevate not just his processes—but the maturity of his business overall.
The right advisor doesn’t just help with operations—they shift your mindset. “It’s not a luxury,” Andre says of getting support. “It’s a critical process.”
Photography by Billal Taright; Design by Studio Mellone
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