March 2012

Fair trading differentiates the amateurs from the professionals.

Vanessa Brady, SBID President, said: "Trade discount is for trade, not retail, and mixing the two is unfair to all parties. The SBID Fair Trading Policy does not support the common practice of designers passing trade discounts to their customers, i.e. the public, because it shrinks the development of interior design as a profession and ultimately costs each market sector profit and reputation. 

"SBID’s aim in implementing the Fair Trading Policy is specifically to further separate hobbyists from professionals and, in doing so, raise the standards of the entire profession."

With that in mind, SBID launched a campaign to create a charging standard for interior design services, lobbying government to support a proposal to abandon 'free design' by registered design professionals. Under the policy, a transparent billing system that sets out other services such as sourcing and supplying products will be a recommended part of any design contract.

The thinking behind it is simple. Retail prices need to be high to counterbalance the considerable cost of stock, showroom space, staffing, after-sales service and product training. Designers get trade discounts on products because manufacturers want to keep them as returning customers – unlike regular consumers who are primarily one-off purchasers. Finally, the fee a designer earns in a trade price reflects some of the services the designer performs, including specifying products, installing, taking delivery, organising returns etc.

Practitioners who share trade prices as leverage to obtain projects, providing a free design service and solely receiving income from supplying products, are the professionals who undermine this efficient business model. It is neither appropriate nor financially sustainable for design professionals to provide their key performance, their knowledge and advice, free of charge. It is by charging a fee for the trained services of a professional designer, that a designer generates income. 

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SBID launched a campaign to create a charging standard for interior design services, lobbying government to support a proposal to abandon 'Free Design' by registered design professionals.

SBID has been campaigning with respected government peers on methods that do not breach European Law yet support the design industry. The issue, debate and result of findings left SBID with an industry-wide problem to resolve. 

...designed for business.

Read the result and call to action announcement exclusively in the April issue of FX Magazine.