INDESIGN
ASID GEORGIA CHAPTER MAGAZINE ISSUE NUMBER I SPRING 2019
AMERICAN SOCIETY OF INTERIOR DESIGNERS GEORGIA - 1 - SPRING 2019 | GEORGIA CHAPTER
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AMERICAN
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Marmi ASID Ad Kips Bay.pdf
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Nickolas Sargent Photography • Space Designed by David Phoenix
SPONSOR
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MELANIE TURNER: ASID 2018 DESIGN EXCELLENCE BRONZE WINNING PROJECT RESIDENCE OVER 7000 SQ FT.
ASID GEORGIA CHAPTER OFFICE CHAPTER ADMINISTRATOR: KEIGH HAMILTON 351 PEACHTREE HILLS AVE NE | SUITE 504A ATLANTA, GEORGIA 30305-4527 TELEPHONE 404.231.3938 ADMINISTRATOR@GA.ASID.ORG | GA.ASID.ORG ASID NATIONAL 1152 15TH STREET, NW, SUITE 910 WASHINGTON DC 20005 T 202.546.3480 T 800.610.ASID (2743) F 202.546.3240 ASID@ASID.ORG | WWW.ASID.ORG
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PRESIDENT’S MESSAGE
CALENDAR
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DESIGNING FOR PROFITS
NEW MEMBERS
EDITORIAL STAFF EDITOR AND COMMUNICATIONS DIRECTOR: CRISTI RAJEVAC, ASID MICAN ALLEN ANDREWS, ASID ART DIRECTOR: LAURA SHINE LEE
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IN THE BUSINESS OF COLOR
DESIGNER TOP TEN -------------------------
CHRIS SOCCI, ALLIED ASID
CONTRIBUTORS KRISTIN KONG, ASID TONY PURVIS, ASID CRISTI RAJEVAC, ASID JESSICA KREUNEN, ALLIED ASID MICAN ALLEN ANDREWS, ASID
OUR ADVERTISERS PUBLISHING STAFF SALES REP: JAMIE WILLIAMS jwilliams@dsapubs.com | 352.448.5873 INDesign Magazine is published quarterly for the ASID Georgia Chapter of the American Society of Interior Designers by DSA Publishing & Design, Inc. Editorial content and the INDesign magazine are controlled and owned by the Georgia Chapter ASID. Reproduction of this publication in whole, in part, or in any form is strictly prohibited without the written permission of the Georgia Chapter of ASID.
1 8 AmericasMart
3 European Kitchen & Bathworks
31 MicroSeal of Atlanta
30 Atlanta Homes & Lifestyles
1 7 Fabricut
31 Atlanta Teak Furniture
19 Fiber Protector of GA
31 S&S Rug Cleaners
13 California Closets
19 Greater Southern Home Recreation
31 The Romo Group
32 C.H. Briggs | Alyn
7 Mitchell Gold & Bob Williams
25 Dacor
19 Karpaty Cabinets
4
Traditions in Tile and Stone
12 Drape 98 Express
2 Marmi Natural Stone
29 White Glove Delivery
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GREETINGS ASID GEORGIA MEMBERS,
I don’t know about all of you, but I am looking forward to spring after a winter of feeling like we live in the Pacific Northwest! As I look at the sunshine and see trees beginning to bloom, I feel energized for all the exciting events we have in store in the coming months. I hope to celebrate with all of you at our Design Excellence Awards on May 7th at the Atlanta History Center and that you will bring yourselves and your clients to our annual Art Auction on June 20th at ADAC. This issue is focused on the business of design – specifically design with profit in mind. While I know most of us in this business are doing it for the joy of bringing wonderfully designed spaces to the masses (wink, wink), I am sure we could all use a little guidance and insight on the business aspect of our profession. To be successful in this industry I have always found that one must understand that even creativity has numbers associated with it. I hope it will enlighten you and maybe even help inform some of your business decisions. With the resurgence of bold colors in design, we explore why Benjamin Moore felt it important to choose a neutral - Metropolitan AF-690 as their 2019 color of the year. Even someone like me, who is known to use a lot of color, can see the attractiveness of this stylish gray with cool undertones as the perfect backdrop for a multitude of color palettes. Speaking of changing seasons, we have a wonderful article on our Past President and my dear friend, Chris Socci, as he transitions from his ASID Presidency back into his role as a residential design firm owner. We wish Chris all of the best and thank him for his continued support. In closing, I wanted to send a warm welcome to our newest ASID Georgia members and thank our existing membership for their support. The Board and I look forward to seeing you at all of our wonderful upcoming events. As a reminder, we are always looking for members!
ASID GEORGIA CHAPTER PRESIDENT 2018-2019
PRESIDENT Kristin Kong, ASID, LEED AP K. Kong Designs president@ga.asid.org PRESIDENT-ELECT Joyce Fownes, Allied ASID, LEED AP BD+C Corgan president-elect@ga.asid.org FINANCIAL DIRECTOR Tony Purvis, ASID, MFA, LEED® G.A. Carson Guest finance@ga.asid.org COMMUNICATIONS DIRECTOR Tasha Norland, Industry Parter AmericasMart Atlanta Communications@ga.asid.org PROFESSIONAL DEVELOPMENT Laura Jenkins, ASID Laura W. Jenkins Interiors professionaldevelopment@ga.asid.org MEMBERSHIP DIRECTOR Nujhat Jahid-Alam, Allied ASID Perkins+Will membership@ga.asid.org
PROGRAMS DIRECTOR (Director-At-Large) Mican Allen Andrews, ASID IA| Interior Architects at-large@ga.asid.org
NEW PROFESSIONAL MEMBERS
NEW ALLIED MEMBERS
NEW INDUSTRY PARTNERS
Reshma Shah Johnson, ASID
Suzanne MacCrone Rogers, Allied ASID
Tonya Koerner, ASID
Julia Miltiades, Allied ASID
Nik Burdett, Atlanta Flooring Design Centers
Brenda L. Smith, ASID
Alaine Morgan, Allied ASID
Tracy Lenahan, Solution Associates
Kaila Nelson, Allied ASID
Mary Liebowitz, Gault Designs IP
Katherine Blair Wright, Allied ASID
Ahmad Navid, Antique Etc.
Leah Atkins, Allied ASID Lauren Davenport Imber, Allied ASID
BOARD OF DIRECTORS
EMERGING PROFESSIONAL AFFAIRS CO-CHAIR Rebecca Freitag, Allied ASID THW Design
- WELCOME NEW ASID MEMBERS -
Reed Clements, Allied ASID
GEORGIA
EMERGING PROFESSIONAL AFFAIRS CHAIR Danielle Alexander, ASID Gensler epac@ga.asid.org
Best, Kristin Kong, ASID
NEW ALLIED MEMBERS
AMERICAN SOCIETY OF INTERIOR DESIGNERS
NEW ASSOCIATE MEMBERS Courtney Moss, Associate ASID Tracy Unverzagt, Associate ASID
STUDENT REPRESENTATIVE CO- CHAIR Sarah Nagy, Student ASID Gwinnett Tech studentrep@ga.asid.org STUDENT REPRESENTATIVE CO-CHAIR Courtney Pratt, Student ASID Georgia State University studentrep@ga.asid.org CHAPTER ADMINISTRATOR Keigh Hamilton administrator@ga.asid.org
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IN THE B
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E BUSINESS OF COLOR By: Mican Allen Andrews, ASID
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in the BUSINESS of COLOR
| e d it oria l
continued
From our world of limitless color, a select few receive the
that references a contemplative state of mind and design.”
honor of being designated ‘Color of the Year.’ Annually, leading
O’Neill furthers, Metropolitan is “comforting, composed, and
paint brands, including Pantone, Sherwin-Williams, PPG,
effortlessly sophisticated. Always adaptable, it softens to matte
Behr, and Benjamin Moore, promote a singular hue to market
or shimmers with sheen. It’s neutral. It’s balanced. It just is.
to the design industry and do-it-yourselfers alike, setting
This is color, off-duty.”
trends and convincing the masses of what colors are ‘in.’ This year’s class of elected pigments feature some eye-catching
In contrast to Benjamin Moore’s 2018 Color of the Year,
pops of color, but one in particular takes a different turn and
Caliente (AF-290), a spicy scarlet full of energy and intensity,
celebrates a calm neutral. Benjamin Moore’s 2019 Color of
Metropolitan is a soft gray that pairs well with ethereal
the Year is Metropolitan (AF-690.)
neutrals, frothy pinks, and rich blues and greens. The company selected this year’s color, emphasizing the calming role gray
Metropolitan is a sophisticated gray with cool undertones.
plays in society. Their intent was to capture the coveted feeling
Ellen O’Neill, director of strategic design intelligence at
of restorative quietude in any setting.
Benjamin Moore, notes “it’s a color in the neutral spectrum co n t i n u ed o n page 14
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METROPOLITAN AF-690
H A L E N AV Y HC-154
BLACK PEPPER 2130-40
HEAD OVER HEELS AF-250
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18 Taste of the Nation Modern Luxury modernluxury.com
24 - 26 Design ADAC adacatlanta.com
7 ASID 2019 Georgia Chapter Design Excellence Awards Celebration ga.asid.org/events
5/9 - 6/2 Southeastern Designer Showhouse & Gardens southeasternshowhouse.com
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9 IIDA 2019 Silver Gala iida.org/content.cfm/iida-gala
20 ASID 2019 Art Auction ga.asid.org/events
9 - 15 International Gift & Home Furnishings Market AmericasMart americasmart.com/markets/
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BALBOA MIST OC-27
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SOFT FERN 2144-40
This is in sharp contrast to the sister Colors of the Year, Pantone’s Living Coral, SherwinWilliams’ Cavern Clay, PPG’s Night Watch, and Behr’s Blueprint, a golden-orange, terracotta, deep green, and a mid-tone blue, respectively. The desire to highlight a soft gray provides calm to the design palette and functions as an updated neutral in lieu of an all-white scheme. Playing off of the current trend of utilizing gray as an everyday neutral, Metropolitan is not arresting or aggressive. It is understated and creates a soothing, impactful common ground. By selecting a subdued tone of gray for their Color of theYear, Benjamin Moore emphasizes current design trends and acknowledges color interests of the mainstream consumer. Metropolitan is a color that the public is already comfortable with, and will likely use as an updated refresh of a favorite soft gray. In addition to the Color of the Year, Benjamin Moore has released their Color Trends 2019, which is a collection of 15 harmonious hues to complement the featured color. These coordinates were selected to create a layered neutral palette; one which is designed to create a sense of calm. In such a fast-paced world of ours, Benjamin Moore has taken a bold stance to provide balance and solitude.
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~ A d d i t i o n al i nfo r m ati o n prov i ded by E m i ly S c hl ei der, C o m m uni cati o ns S p ec i a l i s t , B enj am i n Mo o re & C o.
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Founded in 1883, Benjamin Moore is a leading manufacturer of premium quality residential and commercial coatings. Benjamin Moore maintains a relentless commitment to innovation and sustainable manufacturing practices. The portfolio spans the brand’s flagship paint lines including Aura®, Regal® Select, CENTURY®, Ultra Spec®, Natura®, and ben®. Benjamin Moore is renowned for its expansive color portfolio, offering consumers and designers more than 3,500 colors. Benjamin Moore paints are available exclusively from its more than 5,000 locally owned and operated paint and decorating retailers.
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P R IC ING ST R A T E G Y I N AN AGE OF D ISR UP T I O N EDITORIAL BY JULIA MOLLOY
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• EDITED BY TONY PURVIS
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Disruption happens in every industry at some point.
Just as the lightbulb displaced the oil lamp industry and the automobile forced the carriage industry to adapt or die, disruption can be a harsh reality. It also represents the most fertile environment for creating massive wealth. When the environment shifts, the ones who adapt quickest and employ the best specific strategies, can win big.
SO, HOW DO YOU APPROACH ADAPTING YOUR OWN BUSINESS MODEL?
The key has to do with billing. I work with designers in every corner of the country and abroad, and I have analyzed financials for hundreds of firms over the last decade. The profit center for most firms has indeed shifted over the last 7 years. Accordingly, I propose the framework for how you figure out pricing for your projects needs to shift. The evergreen question about billing that everyone seems to ask, must change. The question usually goes something like this, “How much should I mark-up? How much should I charge per hour? What about flat fee? What is the best model?” This was the right conversation to have up until about 10 years ago. Before the recession, the billing model was fairly stable. Time billing with a 35% mark-up is what I usually saw, but now, this is not the best way to think about billing. The conversation needs to shift from billing model to profit margin. This is the fundamental shift that we must make in order to adapt and win in this unstable landscape. First, the billing model shifts depending on which part of the country you’re in, the type of project and the echelon of clientele. Now, throw in the consumer - even high end clients - now shopping online, and you’ve got a mess.This is why it’s been so confusing for you. What works for your peer, may not work for you.
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DESIGNING for PROFIT
| e d it oria l
continued
If b i l l i n g mo del i sn ’t yo u r n o r th s ta r, h ow th e h eck are yo u s u p p o s e d to f i gu re o u t h ow to n av i gate yo u r pr i ci n g str u c tu re ?
THE ANSWER IS SIMPLE; GROSS PROFIT MARGIN.
The quickly evolving variables of mark-up, no markup, flat fee, hybrid, and time billing, make it virtually impossible to establish an advantageous profit strategy industry wide. We cannot build the future of the industry upon the mindset of the past. So, how do we do this and what is our target?
on non-custom soft goods likely goes down for most of you, you’ll know how to adjust your pricing for time or flat fee to compensate for lower product profits. Whether you decide to use the Pricing Calculator tool I have developed (my website is at the end of this article), or create one on your own, or simply have your accountant figure out your GPM, the profit margin, not billing model framework, is how you are going to win at this game over the next 5 years. Once you have your numbers, you can now use them to navigate. If you see that profits are decreasing in one area, likely soft good sales, increase your flat fee or time billing so that you are at least 40% GPM
According to industry accountant Marc Molinski of Designer Advantage, our target is 40% gross profit margin on average for your projects. This is extremely helpful! This means that if we can easily calculate the gross profit margin for our projects, we can know if our billing model is serving us well or not. This method elevates our thinking to a more factual framework based on our profit, which is what really matters in the first place! This allows ANY billing model to work and that’s important because as profits
GROSS PROFIT MARGIN =
the Billing Model Landscape
de sign fe e
hybr id
time billing
ALL INCLUSIVE EXTREME LUXURY
LOW TO HIGH END
LOCATION
LOCATION
SMALL PROJECT PACKAGE
A LA CART SMALL TO MEDIUM
GROSS PROFIT REVENUE
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pe
This same approach is to be taken when pricing a prospective project. Estimate number of hours, profit on time along with total sales on goods and average margin on goods. Next, do the math to figure out the estimated GPM. Finally, nudge your numbers up or down as needed to get to at least 40% GPM Once you have a number, based on real estimates and data, you can plug it into your billing model and propose it to the client with a lot more confidence. A solid contract helps too. Keep in mind, once you know how much money you need to make on the project based on how much time it will take and estimates on purchasing, you are then flexible. If they say that they want a flat fee, you can now calculate what that fee needs to be. You are no longer shooting in the dark. I have found that the client usually tells you how they want to be charged. If you are focused on profit, not billing model, you are able to plug in the right numbers into ANY model and get it to work in your favor. Simply figure out the number you need to make and plug it into whatever model is most amenable to your prospective client. The billing model doesn’t dictate how much money you make. You figure out how much money you need to make and then plug it into the most appropriate billing model.
UM
It’s very liberating. It will also give you the profit structure and framework that will enable you to be nimble and responsive to changes in your profit numbers. If you discover that when you calculate the 40% GPM on a prospective project, the numbers seem higher than what you are able to charge with your current clients or company positioning, this indicates there are a few other elements in your business that you’ll need to adjust as well. Often times this is efficiency, another key to getting profits up and elevating your firm as you move forward.
Julia Molloy is a leading operations specialist for the interior design industry. She has over 2 decades of operations experience, 12 of them in the design field and has a wealth of knowledge from the interior design, graphic design, operations and technology sectors. She is a sought-after speaker, a Business of Design faculty member, on the Better Practices Network board of advisors, has been a continued education instructor to the faculty at New York School of Interior Design and a member of ASID. Molloy has also chaired the ASID Student Affairs Committee and the board of advisors for the Art Institute – Interior Design program. If you would like to get more information on the Billing Calculator tool, feel free to reach out via phone or fill out the contact form on my website www.juliamolloy.com
M u s t D o ’ s 1. Track ALL Time Every Time 2. Run as efficiently a s p o s s i b l e 3 . I f u s i n g t i m e b i l l i n g m o d e l h a v e d i f f e r e n t r a t e s p e r r o l e – T r a c k b y q u a r t e r h o u r 4 . T r a c k p r o j e c t c o o r d i n a t i o n t i m e
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Efficiency
Top 5 sources of ineffciency and a weak bottom line:
I n th i s ser vi c e bu si n ess, e f f i ci en c y i s mo n ey. In fact, efficiency or lack thereof, is the number one silent killer of profit. The first rule of efficiency is: do more with what you’ve got! First, identify areas you need to tighten up efficiency. In which of the following areas are you losing money?
Inadequate structure
Without the proper systems and processes, workflow is disjointed and efforts are not optimized. Every team member needs to know what needs to get done and who is responsible for it. The average poorly structured, 3 person firm spends about $18,000 in extra payroll and over $20,000 in opportunity costs each year due to inappropriate tools, roles and task assignments. Disorganization
K e y s t o Efficiency 1.
Proper organizational structu re: roles and r esponsibilities, even if it’ s ju st you and a part timer or two
2 . Centr aliz ed i nfor mation th at streamlines processes, such as stu diow ebwar e. c om 3 . Strong delegation skills and a w eekly team sync meeting 4 . Appropriate tech nolog y c hoic es for you r fir m 5 . Simple to use, easy to maintain systems, tools and meth ods 6 . Well-structu red and docu mented wor kflow s
Without a place to centralize information it is difficult to coordinate and quickly find important information when and where you need it. The average 3 person interior design firm wastes over $4,500 a year in extra payroll costs just looking for things! Poor delegation
Leverage your time; dedicate it to activities that truly require YOUR attention. Spend your billable hours on billable tasks or other revenue generating activity. Having better systems will facilitate you being able to delegate and get quality and timely results from your team members or contractors. Developing your ability to perform well through other people will increase capacity and productivity which translates to a stronger bottom line. Interruptions
Strive for prolonged periods of high concentration.This is the most productive state. Every time you and your team get interrupted you lose a few minutes of productive time. The start and stop mentality is an epidemic in this industry and it costs the average inefficient 3 person firm over $10,000 in extra payroll every year! Firefighting
Time is wasted fixing things, repeating efforts or redoing something. These disruptions redirect time and resources and indicate that you do not have adequate control of your processes. Proactive 3 person interior design firms save an average of $30,000 a year in actual payroll costs over firms that are in reactive mode.
7 . Eliminate red undanc i es and du plic ated effo rt s
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N E X T G E N E R AT I O N C R E AT I V E TO O L S
DISCOVER THE DACOR BY DESIGN INCENTIVE PROGRAM TO LEARN MORE, VISIT DACOR.COM/PROFESSIONALS/DACOR-BY-DESIGN
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CHRIS SOCCI by JESSICA KREUNEN, ALLIED ASID
Q 1.
In this world inundated in social media and online shopping, how do you control the
Q 3.
What is something NON-design related that inspires you?
endless online imagery vs. reality to your clients?
A
A Travel is very inspirational in many aspects. The food,
It is up to you as the designer to filter their online
architecture, colors, and people all have a story to tell.
selections into reality. Just because your client finds
I am always looking forward to my next destination.
the “perfect� barstool on Pinterest does not mean it is perfect for their scenario. Educating the client on
Q
scale, durability, etc. is up to you and that is why you are a value.
Q 2.
As many readers know, you are our most recent ASID GA President. How did the experience on the Board of Directors, and most specifically the Presidency, affect your design business?
A
4.
Do you have a favorite room in the home to design and why?
A My favorite room to design in a home is especially a powder room. Making the space a jewel box and setting it up as a star from the rest of the home is the most fun and unexpected.
Being a part of the board for many years, I had to learn time management. I had to treat my time on the board as I would a client. The board was very demanding and deserving of my attention for the past seven years.
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Q 5.
Your designs have been featured most recently in the Atlanta Homes and Lifestyles Showhouse
Q 8.
with a stunning master bath and closet!
To the readers who want to own their own design firm as well, what is the most important advice you would give?
How does participating in showhouses – local and
A
otherwise - grow your design business?
A
You must first put in your time with a seasoned professional. Nothing is worth more than on-the-job
Being that this was my first showhouse experience, the
training and experience.
exposure and publicity have been second to none.
Q 6.
Q 9.
What is your favorite accent color,
A
textile, or pattern right now?
A
I would want to live in Monte Carlo because of the lively atmosphere, food, and colors. Everything comes down to what inspires you most!
Currently my favorite colors are black and white. It applies to every style and application.
Q 7.
If you could live in another city outside the US, what would it be?
What residential design trend has surfaced lately that you believe is here to stay?
A The trend of wallpaper may have slowed down, although it never completely went away, and is back
Q 10.
When the project is finally completed, what do you do to celebrate? Do you have any post-install traditions?
A Many clients want to celebrate together, which I love. Usually it is a dinner including my wife to celebrate a successful ending to a sometimes long transformation.
with full force. From the application in a small powder bath for a bold statement to a subtle hint of texture in a dining room, you cannot replicate the effect wallpaper can have.
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/
AUSTIN/DALLAS
ATLANTA - 29 - SPRING 2019 | GEORGIA CHAPTER
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Photographed by Jeff Herr
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www.microsealworld.com
- 31 - SPRING 2019 | GEORGIA CHAPTER
ALYN is a customizable vertical surfacing solution designed for today’s specifier by offering timeless textures, modern solutions, and architecturally curated colors to suit your project perfectly. Request a presentation at connect@alynsurfaces.com.
Exclusively offered through C.H. Briggs connect@alynsurfaces.com | 1.800.355.1000 | www.alynsurfaces.com ALYN is a registered trademark of C.H. Briggs. | All rights reserved.
- 32 - SPRING 2019 | GEORGIA CHAPTER
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