Melissa Lee – New South Home |608 | Profit, Process & Purpose in Modern Interior Design and the Business Behind It

We’re heading South today to hear from Melissa Lee of New South Home.  This Charlotte-based interior designer and former retail buyer pulls back the curtain on the real inner workings of running a design firm—from pricing strategy and client education to vendor relationships and market trends. Drawing from her experience in corporate buying, she has developed a clear understanding of profit margins, vendor management, and operational efficiency, which she now applies to her design business through practices like maintaining a vendor matrix and detailed time tracking. I don’t want you to think this is a business of design episode, it’s not. Sometimes these conversations go deeper into the business to further explain the work, this is one of those times.  Designer Resources Pacific Sales Kitchen and Home. Where excellence meets expertise. Design Hardware – A stunning and vast collection of jewelry for the home!  – Where service meets excellence TimberTech – Real wood beauty without the upkeep LOME-AI.com, simple, inexpensive, text to video harnessing the power of AI to grow your firm, beautifully. Melissa discusses the challenges of pricing interior design work in a landscape full of conflicting advice—flat fee versus hourly models, for example—and how she has evolved her own “conceptually fixed with scope management” approach. Clients receive an upfront estimate based on hours, but additional fees apply when scope or decisions shift beyond agreed terms. This hybrid method offers flexibility while protecting the business from runaway labor costs. Events like High Point Market and KBIS (Kitchen & Bath Industry Show) play a strategic role in how she sources vendors, stays inspired, and builds key relationships. She balances structured vendor meetings with looser time for discovery, realizing that over-scheduling stifles creativity. Her buying background taught her the value of planning, but in design, adaptability creates more opportunity. The conversation digs into vendor relations in a shifting economic landscape, with concerns about rising tariffs, erratic pricing, and questionable fee increases. Thanks to long-standing relationships and proactive reps, her team has been buffered from the worst of it. Still, she builds flexibility into her contracts and transparently preps clients for potential 5% swings in final invoices due to supply chain or pricing changes—an approach appreciated in a world where nothing feels stable. Managing client expectations is a recurring theme—from educating them on the unseen hours behind emails, revisions, and project coordination, to setting boundaries when projects creep beyond the original scope. Weekly check-ins, detailed proposals, and scope clarity help prevent misunderstandings and maintain trust. Looking ahead, she sees potential challenges driven by economic uncertainty—rising tariffs, high interest rates, and general cost-of-living increases may stall some clients’ investment in their homes. But Charlotte’s rapid growth continues to fuel demand, giving her firm an edge in an evolving national market. Melissa also hints at expanding service areas, including outdoor living design, and continues to explore how design firms can evolve—perhaps aided by AI or new business tools—to reduce burnout and reclaim creativity. At its heart, the conversation underscores the complexity of modern design businesses, where creativity, logistics, and business acumen must coexist. And you’re going to hear all about it, right after this. Thank you, Melissa, loved our chat. Thank you for listening. If you liked this episode, share it with a friend who loves design, subscribe to Convo By Design wherever you get your podcasts. And continue the conversation on Instagram @convo x design with an “x”. Keep those emails coming with guest suggestions, show ideas and locations where you’d like to see the show. Thank you to my partner sponsors, TimberTech, The AZEK Company, Pacific Sales, Best Buy, LOME-AI and Design Hardware. These companies support the shelter industry so give them an opportunity on your next project. Thanks again for listening. Until next time, be well, stay focused and rise about the chaos. -CXD