From behind-the-scenes sourcing to exclusive trade rates, here's how procurement shapes your design budget—and what you need to know as a client.
What Is Procurement in Interior Design?
Procurement refers to the sourcing, ordering, and delivery of furnishings, materials, and decor selected by your interior designer. It involves everything from placing custom furniture orders to coordinating shipping and managing vendor relationships.
Why Designers Charge Procurement Fees
While some clients expect product pricing to be straightforward, the reality is that procurement takes considerable time and logistical effort. Designers often charge a procurement fee—typically a percentage of the item’s value—to cover:
- Time spent sourcing and communicating with vendors
- Handling of quotes, invoices, and purchase orders
- Quality checks and resolving damage claims
- Coordinating deliveries and installations
Think of it as project management for your furniture and finishes.
Understanding Trade Discounts
Interior designers often have access to exclusive trade discounts—wholesale or reduced pricing not available to the general public. These can range from 10% to 50% off retail, depending on the brand or supplier.
However, not all designers pass these savings directly to the client. Instead, they may incorporate part or all of the discount into their pricing model as a form of markup to compensate for procurement effort.
Procurement Models: How Designers Handle Pricing
Designers generally adopt one of three models when it comes to procurement billing:
- Cost Plus: Client pays the designer's cost (after trade discount) plus a procurement fee (typically 20–35%).
- Retail Model: Client pays the full retail price; the designer keeps the trade discount as their margin.
- Transparent Pass-Through: The designer passes the exact cost and discount to the client and charges a separate flat procurement fee.
Are Procurement Fees Fair?
Yes—when transparently explained. Procurement is more than ordering—it includes vendor relationships, issue resolution, shipping logistics, and ensuring a consistent design vision. A well-managed procurement process can save clients from costly delays or mismatched items.
Questions to Ask Your Designer
- Do you apply trade discounts, and how are they reflected in my invoice?
- Is there a procurement fee or markup on sourced items?
- Do you offer procurement as part of a turnkey package?
- What happens if an item arrives damaged or late?
The Bottom Line
Procurement and trade discounts are often misunderstood aspects of interior design pricing. When clearly outlined, they reflect the designer’s effort to source the best products, handle complex logistics, and deliver a cohesive, high-quality space. Transparency here builds trust—and helps avoid billing surprises.