In the budget

Paul Bishop.
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Budgets are shrinking but client expectations are most definitely not. Selina Denman sat down with members of the Index Steering Committee to explore how this is impacting the interior design industry as a whole

If there’s one obvious casualty of the current economic climate, it’s the ever-shrinking budget. But deflated budgets do not always mean deflated client expectations. Clients continue to expect top-tier design solutions, regardless off their own cost-cutting demands. This, in turn, is putting undue pressure on interior designers, according to members of the Index 2009 Steering Committee.

Clients are shying away from any ‘unnecessary’ costs – and the expense of an established design firm is often perceived as such. “There is a general misunderstanding. People think that if they go to a good interior designer, the project will end up costing a lot more. That’s very wrong because if you are a good designer, you are able to design to budget,” said Ellen Bishop, owner, Bishop Design Associates (BDA).

Clients do not always recognise that the better the designer, the further they will be able to stretch any given budget. They also may not realise that the long-term relationships that designers have cultivated with suppliers can translate into tangible cost-savings.

“Whatever the design fee – clients get that back get a hundred times over, because of the discounts that we can get them. But because so many interior design companies are adding a commission or some other extra charge, there is very little trust there.

“For example, Fairmont was able to renovate its rooms extremely cost-effectively because we introduced them to the right suppliers,” Bishop continued.

“Clients are under pressure too,” she added. “I can see it from their perspective. They are having a much harder time pushing budgets through upper management and they are having a much harder time getting approvals.”

At present, one issue is that budgets are extremely fluid. “It tends to be that the budget is moving around at the moment. I think people are still unsure as to where their budgets are. Your budgets last quarter could be different to next quarter. You have to be able to move with the client,” Steven Charlton, business development manager, Hamilton International, pointed out.

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This, Charlton maintained, is a common issue and one that can only lead to misunderstanding. “If they give us the price, the perception is that we can do what we want with it and we’ll try and make some money. That’s not how we operate but obviously that’s the perception from some clients. That’s quite difficult to deal with.

“My job is to really try and extract the budget from the client in the best way I can, at the earliest stage, so we don’t waste time later on,” he explained.

From there, it is a question of managing clients’ expectation and making them understand that a shrinking budget invariably calls for compromise. “You can still create a very dynamic space, even with a very limited budget, but the client has to respect that they are not necessarily going to get exactly what they had in mind,” commented Paul Bishop, owner, BDA.

“You could have concrete, rather than marble; that could look absolutely stunning and it’s obviously going to be cheaper. But it’s about the client embracing change. Can they accept this as a five-star material?”

For small-scale savings, a contractor can look at joinery, Charlton suggested. Alternatively, you can use more locally-sourced materials, ensuring that you cut down on transportation costs, said Paul Bishop. But when it comes to larger-scale reductions, you need to look at the project in its entirety.

“If someone is looking to save 30% then you have to look across the whole job, really, and make your savings that way. Either you change your design or you change your specification. Those are your options,” said Charlton.