Box 2.2 Worksheet: Paint

play. Life cycle costing is a way of looking at a product’s price over its life span. A product’s life cycle cost is determined by adding all costs, including maintenance, and dividing by the estimated life of that product. Most durable products generally have a higher up-front cost; however, when spread over their life span, such products are much less expensive than those that initially have lower up-front costs but are cheaply made, wear out, and must be replaced more often. This allows the interior designer, when dealing with conflicting information such as quality and price, to determine where it is essential to budget for quality products. If a piece of furniture is never or seldom used, it is possible to select a less expensive piece of furniture, allowing more money to go to a well-constructed, more expensive piece that is heavily used. The same is true of flooring. If there are rooms that are used infrequently, a less expensive carpet can be used in these areas, allowing more money to go to areas like entries, halls, and kitchens that need more durable flooring, such as bamboo, hardwood, or tile. This allows the client to make more informed decisions on selections in a timely manner before the budget is blown.

If the client is ready to progress after this initial estimation, more time is taken to develop a quote for the work to be done. Before anything is ordered a quote is given, a signature is obtained, and the appropriate deposit is collected. So, estimation also helps to determine the final “hard figures” quoted to the client. The ability to estimate quickly and correctly improves over time with practice.

CALCULATING COSTS AND CLIENT PRICING

Once a price is quoted, the interior designer stands behind that price for better or worse. All foreseeable costs of the specific product need to be calculated before any price is quoted to the client. If the designer does not know the overall cost, the designer might quote the client a price that is too low. In the following chapters the various components of specific products are explained so that the designer can include them in the calculations to find the overall cost. Various worksheets are included to help calculate the amount of material needed. This can then be added into the costs. These worksheets allow for waste. While all pricing calculations will be based on the amount calculated from these worksheets, it is an acceptable industry practice to add additional quantity to the material needed to allow for breakage, waste, and miscalculations. This amount varies based upon the product and the firm’s policies.

Most firms have determined the type of markup or profit margin that is needed to cover overhead and to stay profitable. This amount is added to the overall cost in order to determine the selling price to the client. Pricing calculations must begin with measurements and account for regional considerations.

Measuring and Take-Offs

Any interior designer responsible for specifications and pricing must obtain dimensions in order to do his or her job. Most nonresidential design work relies on contractors’ or installers’ dimensions and material amounts; however, there are still times when interior designers need to get their own measurements. A field measure where the actual space can be measured is ideal. A clipboard, pencil, graph paper, and a tape measure that is a minimum 25 feet long with a 1-inch-wide blade are the standard tools used for measuring. This type of tape measure can extend over a large area, and the width of the tape makes it substantial enough to feed out over distances. Laser tape measures are useful for longer distances but currently are not helpful when trying to measure more detailed areas, such as around windows, doors, and fireplaces.

At times costs must be estimated before the actual space is built, in which case a take-off must be done. A take-off is a calculation of the dimensions to be used in estimating using a scaled drawing of the space along with an architect’s scale. AutoCAD and Revit are helpful in calculating base numbers for some materials, but not all. While materials can be estimated this way, it is important to get actual field measurements once the space is built and to closely watch the project in case there are changes to the structure and space that will influence the quantity of materials ordered and overall costs.

Throughout this book are exercises calculating the materials and costs of various products common in the interior design field. The costs of a product include the price of the material, all material components, shipping of the material and components, fabrication, and installation. Be aware that no matter how carefully the math is calculated or the contract is written, there are

CHAPTER 1 THE BUSINESS OF INTERIOR DESIGN 5