Markups: every designer’s favorite word. Each industry pro has a different strategy for how they handle this hot-button topic, so this week, we asked six designers—Christina Cruz, Chris Goddard, Meredith Heron, Shaolin Low, Alexis Pew and Sara Swabb—how they go about marking up product.
Across the Board
“Our approach is rooted in transparency and value. We apply a consistent markup to all purchases—that accounts for the behind-the-scenes coordination, from sourcing and ordering to delivery, installation and issue resolution. The goal isn’t just profitability, but sustainability, ensuring that every part of the process is handled with care and that clients understand they’re paying for a professional service, not just a product. Over the years, I’ve learned that clarity builds trust. When clients see that our markups cover time, expertise and risk management, it reframes the conversation from ‘Why?’ to ‘Thank you.’” —Sara Swabb, Storie Collective, Washington, D.C., and Nantucket, Massachusetts
Create Your Own Narrative
“If your business model depends on getting a small discount off retail, you’re not running a design business—you’re running a shopping service. Cost-plus and hourly billing might feel comfortable, but they’re not designed to scale. They might pay your bills, but they won’t build wealth. For many, the appeal lies in simplicity—buying retail, getting a designer discount, maybe splitting it with clients. But let’s be honest: That’s not design; that’s professional shopping. You’re trading your time for a fraction of what your expertise is worth. When clients see you as a shopper rather than a creator, they stop valuing your design vision. And when you hand over your trade discount, you’re teaching them that access is more important than expertise. It devalues not only your work, but the entire profession. Design isn’t about shopping; it’s about creation. When you control the design, you control the margin. If you’re still fighting for 20 percent off retail, it’s time to rethink the model. True luxury isn’t built on discounts—it’s built on creative control and ownership of your vision. And that’s where sustainability, and real success, in this business truly begin.” —Meredith Heron, Meredith Heron Design, Toronto
Be Upfront
“Our strategy is less about profit and more about ensuring that our clients understand the time and effort it takes to specify and coordinate each aspect of a project. We use a cost-plus structure, and we’re very transparent about it, with the added percentage being referred to as our ‘procurement management fee,’ rather than a ‘markup.’ This percentage ensures that our employee overhead and shipping costs are covered, and anything left beyond that is profit. These fees are built into each product cost, and typically the price structure ends up still being 10 to 40 percent less than retail pricing, which keeps everyone happy. We try to avoid retail purchases unless it’s something the client is really set on, in which case we’re very clear that any trade pricing goes to our firm—no discounts—but they will not be charged more than retail price for these items. We use the same strategy with any specialty fabrication, such as upholsterers and millwork, again, to cover time for coordination, shop-drawing reviews and scheduling.” —Alexis Pew, Kaminski + Pew, Philadelphia
Hit Your Number
“My markup strategy is primarily value-based, reflecting the bespoke nature of our designs and the quality of materials and craftsmanship we employ, so it often varies. We aim to be competitive while ensuring the profitability that allows us to invest in our team, resources and continuous improvement. We aim to have at least a 30 percent profit margin on our projects, and if it is a custom item, we will evaluate the costs, which usually fall in the 20 percent range.” —Christina Cruz, Christina Cruz Interiors, Austin
Prioritize Trade-Only
“We try our best to source from trade-only vendors, so that we can charge the client MSRP and use our discount as our profit. However, in circumstances where we have to purchase from a retailer, we give the client the option to purchase or procure it themselves, or we charge 30 percent on top of MSRP to handle it for them.” —Shaolin Low, Studio Shaolin, Honolulu
Keep It Below MSRP
“The biggest issue we have in the design community is a lack of a standard fee structure for clients. Every designer charges differently, and this adds to the confusion for the client and billing issues, as the internet offers our clients endless options on pricing of products. We go the extra mile to research every product we are sourcing to make sure it matches or is below the lowest MSRP reflected online. Our job as designers is to give the best product and service for our clientele at the best value.” —Chris Goddard, Goddard Design Group, Springdale, Arkansas
