Interior Design Is A Luxury Business. Why Are Most Designers Struggling?

Interior design procurement is costing most designers money they don't know they're losing. Procurement specialist Timala Stewart, a former corporate furniture buyer with a decade of experience at companies including Ashley Furniture, audited a single finished project for one of her clients and found a $2,000 leak in freight and warehousing charges alone. That was one room. Eight rooms would have been $16,000. The designer was experienced. She simply didn't know what to account for.

This is the part of your business nobody taught you. Not design school. Not your first mentor. Not the software platforms you're paying for every month. Procurement, the sourcing, ordering, tracking, coordinating, and documenting that happens from the moment a design concept is approved to the day install is complete, is where the gap between what you think you're making and what you're actually keeping lives.

Timala spent ten years as a corporate furniture buyer before she started working directly with interior design firms. What she found when she got inside those businesses changed how she understood the industry. In this episode, she explains exactly what she saw, and what to do about it.

Interior Design Is A Luxury Business. Why Are Most Designers Struggling?
Douglas Robb
 

What is procurement in interior design?

Procurement in interior design covers everything that happens after a design concept is approved: sourcing products, placing orders, managing vendor communications, tracking shipments, coordinating with receivers and installers, handling damages, and closing out invoices. It is not the same as project management. Project management is on-site and visible — coordinating trades, managing timelines, attending walkthroughs. Procurement is behind the scenes. Every designer does it. Most have never been taught to treat it as a distinct, billable discipline.

Why do interior designers lose money on projects?

Most designers lose money on projects because the costs of procurement — freight, warehousing, receiving, install coordination, and the time spent managing all of it — are either untracked, unaccounted for on client invoices, or absorbed silently into the designer's own margin. These aren't large single failures. They're small, compounding ones. A five-minute vendor call billed in a 15-minute increment, multiplied by five calls in a day, multiplied by four days a week, becomes close to $1,000 in unbilled time before the month is out. Most designers never see it happening.

What is the difference between procurement and project management?

Procurement and project management are not the same role, and treating them as interchangeable is one of the most expensive operational mistakes a design firm can make. Project management is on the scene — on-site, visible, coordinating trades and deliveries in real time. Procurement is behind the scenes — confirming orders, tracking shipments, managing vendor communications, and ensuring the financial documentation for every product is accurate and complete. In a well-run firm, the procurement person confirms with the project manager that an item has arrived and is in the right location. They are parallel functions, not the same function.

How much does procurement actually cost interior designers?

The cost of unmanaged procurement compounds across three areas: unbilled time, unaccounted expenses, and unresolved damages. Timala audited a single finished room for one client and found a $2,000 gap — freight and warehousing charges that were paid out but never invoiced to the client. That same designer, across an eight-room home, would have been $16,000 in the red. The time component adds another layer: designers who don't track procurement tasks in 15-minute billing increments routinely give away thousands of dollars per project in unlogged minutes that feel too small to charge for but compound into significant losses.

What are the most expensive procurement mistakes interior designers make?

The five most expensive procurement mistakes, in order of frequency: not creating purchase orders (leaving you with no internal financial documentation when vendor disputes arise); not tracking time on small procurement tasks (five-minute tasks in 15-minute billing blocks add up faster than most designers realise); not accounting for freight, warehousing, and install as client invoice line items; over-committing to inventory and ending up with aged product that depreciates in storage; and not responding quickly to damage claims, which have vendor response windows — miss the window, absorb the cost.

Should interior designers hire a procurement specialist?

A procurement specialist makes sense when a designer reaches the point where the operational load of managing vendors, orders, and logistics is pulling time and attention away from the design work itself. Timala works with clients two ways: hourly support, where she completes procurement tasks on behalf of the designer's firm as an extension of the team; and consulting, where she audits existing processes, identifies profit leaks, updates SOPs, and trains the designer's staff. Solo designers who aren't ready to hire can start by taking advantage of free software demos, using AI to understand procurement basics, and building vendor rep relationships they're currently underusing.

How do vendor relationships affect interior design profitability?

Most designers are significantly underusing their vendor rep relationships. Vendor reps work for the designer — their job is to present new products, answer sourcing questions, and help designers get the best pricing and lead times for their projects. Designers who share their design boards with reps, track their sales volume across vendors, and consistently build rapport will find their reps become a proactive resource: presenting curated product suggestions, flagging stock availability, and advocating for the designer when expediting is needed. Better vendor relationships also directly affect margin — tracking purchasing volume and negotiating for better discount tiers is something most designers never do.

Key Takeaways

  • Procurement and project management are not the same thing. Project management is on the scene — on-site, visible, coordinating trades. Procurement is behind the scenes — sourcing, ordering, tracking, coordinating vendors and logistics. Conflating the two is one of the most common and costly operational mistakes designers make.

  • Five-minute tasks are not free. When you're billing in 15-minute increments, five five-minute tasks in a day is a full billable block. At $100/hour, that's $400 in a single day — unbilled. Multiply across a week, a month, a full project, and you're looking at thousands of dollars of time given away for free.

  • Freight, warehousing, and install must appear on client invoices. These are not absorbed costs — they are legitimate project expenses. If you're not accounting for them as line items, you're funding them out of your own margin. Confirm vendor freight programs before purchasing, not after.

  • Create purchase orders. In corporate buying, nothing moves without a PO. Designers who skip this step have no internal financial documentation — only vendor invoices and email threads. When something goes wrong with a vendor or a client, a paper trail built on POs is the only protection you have.

  • Your vendor reps work for you. Share your design boards, build the relationship, track your sales volume, and negotiate better discount tiers as your purchasing grows. A rep who knows your style and your business is another set of hands — and they're free.

  • Damages require immediate action. Most vendors have response windows. If you wait to report a damaged item, you may lose your claim entirely — and replace the item out of pocket, at whatever the current price happens to be.


Conclusions

The Strategic Case for Knowing Your Numbers

Procurement is the part of your business where the gap between what you think you're making and what you're actually keeping lives. The work itself isn't complicated — sourcing, ordering, tracking, coordinating. But the sheer number of moving parts, vendors, timelines, and third parties means that every untracked hour, every unaccounted freight charge, and every missing purchase order quietly drains the margin you worked to build. Designers who treat procurement as an operational afterthought aren't bad at business. They're running a business with a slow leak they can't see.

What You Can Do This Week

Start with one project — a finished project you can pull up now. List what you charged the client for freight, warehousing, and install. Then list what you actually paid out. If those numbers don't match, you've found the leak. From there: start creating purchase orders on your next project, confirm freight rate programs with your three most-used vendors before you place your next order, and set a timer the next time you do a "five-minute task" to see how many you do in a day. You don't need to overhaul everything at once. You need to see the problem clearly before you can fix it.

The Business You're Building

A design business that runs on accurate procurement isn't just more profitable — it's less exhausting. When your documentation is clean, your vendor relationships are intentional, and your invoices account for every cost, you stop subsidising your clients' projects with your own margin. The creative work — the part you came to this for — gets the space it deserves when the operational side stops bleeding.


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