Budget from the bottom line up
Set fees based on what generates bottom line profit for your business instead of comparing your rates to other local designers. We recommend bottom-up budgeting. Start by setting a net profit goal. Then, add your salary or owner’s draw, overhead expenses (insurance, car, rent, utilities, advertising, bookkeeping, etc.), and cost of goods sold (furniture, fabrics, and other materials). This will tell you the total amount you have to sell. Here’s a simple example of how it works: