Ep 221: Why You're Not Making Money on Furnishings (Even When You Think You Are)

Furnishings should be one of the most profitable parts of your interior design business—but for many designers, it feels like the exact opposite. In this episode, Michelle pulls back the curtain on what's really happening behind the scenes with furniture and procurement. From underpriced markups to disorganized systems and hidden time drains, she breaks down why your margins might look fine on paper… but still leave you feeling overwhelmed and underpaid. If procurement feels like it's running you instead of supporting your business, this conversation will help you rethink your pricing, your process, and your role as a designer.   What You'll Learn Why furnishings are not a transaction—but a full process The biggest mistake designers make when pricing furniture What's actually included in procurement (hint: it's a LOT more than you think) Why a 30% markup is outdated—and what to consider instead How underpricing happens gradually (even when you think you're doing it right) The hidden cost of disorganized systems and double entry Why raising your markup alone won't fix profitability How to shift from "order taker" to trusted expert The power of presenting a complete design vs. individual pieces Two common patterns designers fall into (and how to break them)   Key Takeaways 1. Procurement is a Process, Not a Line Item Sourcing, quoting, ordering, tracking, receiving, managing damages, and client communication—procurement includes far more than just buying furniture. 2. Your Markup Must Reflect Reality If you're still using cost-plus 30%, you're likely undercharging. Your pricing should account for your time, expertise, and responsibility—not just the product. 3. Disorganization is Expensive Spreadsheets, inbox tracking, and disconnected systems create inefficiencies, errors, and unnecessary labor costs. 4. You're Not a Personal Shopper Presenting one item at a time positions you as a vendor. Presenting a full design positions you as the expert. 5. Profit Comes from Structure + Pricing You can't fix a broken process with higher prices. Real profitability happens when your systems and pricing work together.   Signs Your Procurement Process Needs Work You feel constantly "on" managing orders and updates You're tracking items in your inbox, head, or spreadsheets Projects feel chaotic behind the scenes Your profit doesn't match the effort you're putting in You avoid furnishings altogether to reduce stress   Michelle's Perspective There's no single "right" pricing model—but there is a wrong one: Any structure that doesn't properly compensate you for your time, energy, and responsibility Minimum suggested markup on wholesale furnishings: 75%+ Procurement, when structured correctly, becomes a scalable and repeatable profit center   Tools & Resources Mentioned Profit Mixer – A project management and financial system designed specifically for interior designers Combines procurement tracking + financial data Eliminates double entry between systems Provides real-time visibility into project profitability 16-Step Project Management Framework Michelle's complete process from client inquiry to project completion Coaching Options VIP Intensives 90-Day Advisory Learn more at: thedesignbakehouse.com/coaching Coming Next Week Michelle shares a special panel conversation from High Point Market on: Hiring for Profit (Not Just Growth) You'll learn: What it actually costs to hire How to know if a hire supports revenue Lessons learned (the hard way) from experienced design firm owners