Trade vs. Retail

Hi Nikki and Vita,
I am struggling with this topic as well, as I am Retail and I also service around 25 designers in the area. My problem with designers is, I make money on fabrication only with them – they buy their own fabric, hardware, shades, etc. Not only that, but somehow their problem becomes mine at the end, when something needs to be fixed that has nothing to do with us (like the fabric they sent has stretched after install,,or they picked a ripplefold fabrication with a plastic-y fabric that doesnt fold well and now client doesnt like it because it looks like a tutu). I don`t charge them retail for fabrication either. They do use my expertise for measuring, calculating yardages, even ask me for guidance on what to do. I charge a small fee to do that but it is a joke. My designers are a pain. Maybe because I allow them to be:)

On the other hand, i feel Retail is easier for me – we have a showroom in the front (the back is a workroom), clients come in and we can pick the fabric, hardware, everything they need and we sell it to them. My profit margin per project is way bigger. Hpwever, The problem with Retail is, sometimes projects are so small that they are not worth the time. I struggle of how to put a minimum and say it in a classy way.
So based on what we want : To Fire ourselves!, , I am not sure what model is less stress and more cut and dry for me.

Also, the newest problem I have is, a few designers have approached me to be to the Trade only. They know how busy and popular we are here, Instagram is part of the problem. I do a few very known designers, they never tag me on Instagram but they do everyone else involved with the project. Our work is showcased in magazines but they never mention our name. I install so much for them but I dont post their project either, I have never addressed that issue with them. Id like to hear more (I know it`s coming in next lessons) how you handle social media with designers…

Vita, wow! how do you get away with charging them retail, you are amazing. !

I guess I will know all alot more after I see how the Project Managemnt system works for estimating because there are so many things to consider!
Like:
*Retail vs Trade pricing, charging consult fee,
*if a client or designer brings a COM, fabrictaion cost should be higher.
*if fabric is difficult like velvet or needs to be handstitched, there has to an upcharge…
and so on

I will do anything you say :), if it makes my life easier!
Thank you Vita!!
x,
Vessie (Plush House)
….

I started as retail, added designers and then dumped the retail. Trade only is the only way for me. It works with my personality and skillset. I’m not interested in selling fabric and talking about design with homeowners. I generally don’t like other peoples taste and I’m not interested in pretending I like it. I do offer advice/ideas to designers but they generally have a good idea of what they want. There are many projects where I never even meet the homeowner. I love that!!!

I’ll never understand pricing retail vs. trade differently. It takes as much time to make a roman shade regardless of who the client is. I think labor pricing should be the same for anyone you work for. The extra “retail” pricing comes in when you have to provide design advice. Are you behaving like a designer? In that case the retail client should pay for that service. There should be a price for every service you provide…regardless of who the client is. Measuring, consulting, quoting, advising, fabric sourcing, design ideas, renderings. A good designer generally has all her ducks in a row. Doesn’t waste your time.

I think it comes down to “What kind of work do we want to do?” Do we want to design, fabricate or both? I don’t have the capacity or interest to do all of it.

Also…FWIW…many designers do not tag their workrooms. I suspect they don’t like to share their “secret weapon”. I have mixed feelings about it.

Lisa