Episode Description
Most interior designers assume they need more clients, more marketing, or higher design fees to increase their income.
But often the real issue is something much simpler.
Their process.
In this episode, Michelle Lynne breaks down where interior design firms quietly lose money through unstructured discovery, unlimited revisions, procurement administration, underpriced phases, and furniture margins that are far too small.
These "small" decisions can easily add up to $30,000–$50,000 or more in lost revenue each year.
The good news is that fixing these leaks doesn't require more clients or more work. It requires a better structured process.
Michelle walks through the most common revenue leaks she sees when reviewing design firms and explains how a few strategic adjustments can dramatically improve profitability.
If you've ever felt busy but underpaid, this episode will likely show you exactly why.
In This Episode
• Why most interior designers don't actually have a pricing problem • How unstructured discovery quietly costs designers hours of unpaid work • The real financial impact of unlimited revisions • Why procurement administration is one of the most misunderstood parts of design • The difference between furniture markup vs margin • Why a 42% furniture margin should be the minimum standard • How scope creep disguises itself as "good client service" • Why designers often underprice concept development and vendor coordination • The missing project management phase many designers forget to charge for • How small process adjustments can add $39,000+ in recovered revenue
Today's Episode Covers
The Hidden Revenue Inside Your Process
Many designers believe growth comes from adding more projects.
But often the fastest way to increase income is simply tightening the process around the work you are already doing.
Michelle explains how design firms frequently absorb work unintentionally through discovery calls, revisions, and project coordination.
The Furniture Margin Mistake Costing Designers Thousands
One of the largest revenue leaks Michelle sees is incorrect furniture pricing.
Many designers sell furnishings at cost plus 20–30%, which results in extremely small margins.
In this episode, Michelle explains why profitable design firms typically maintain a minimum 42% margin (about a 75% markup) and how that margin supports procurement labor, risk, and operational infrastructure.
Scope Creep Disguised as "Client Service"
Interior designers naturally want their clients to feel supported.
But when boundaries aren't clearly defined, designers often absorb additional work in the name of service.
Michelle explains why defining phases, deliverables, meetings, and revision limits protects both the client experience and the designer's income.
The Small Process Adjustments That Change Everything
Michelle walks through a simple example showing how three small adjustments can dramatically improve revenue:
• Paid strategic planning phase • Structured revision cycles • Procurement or project management fees
Together, those changes alone can add nearly $40,000 in revenue annually without adding more clients.
Links Mentioned in This Episode
Design Revenue Audit Find the $50K hiding inside your process: https://thedesignbakehouse.com/design-revenue-audit
Lead Lab https://thedesignbakehouse.com/lead-lab
Private Coaching https://thedesignbakehouse.com/private-coaching
Instagram https://www.instagram.com/thedesignbakehouse/
About the Host
Michelle Lynne is the founder of ML Interiors Group and The Design Bakehouse, where she helps interior designers build profitable, sustainable businesses.
Through her design firm and coaching programs, Michelle works with designers across the U.S. and internationally to refine pricing, process, and business structure.
Her work has been featured in Forbes, Martha Stewart, Southern Living, Apartment Therapy, The Spruce, Modern Luxury, Luxe Interiors + Design, Dallas Morning News, and This Old House.
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