Home staging is an extremely lucrative career if you know how to properly charge for your services.
It makes me cringe when I hear figures as low as $31.45 per hour being touted as ‘great income’ for a home stager.
That is an impossibly low rate for any independent professional to charge, but an expert home stager should actually be making at least double if not four or five times that amount.
Home sellers stand to profit anywhere from $10,000 to $50,000 after employing the services of a home stager, so they are willing to pay a premium for that expertise.
The cheapest stager in town will only attract clients who don’t really value what a home stager does. After all, if you save a few hundred dollars on staging advice but you don’t get the results you hoped for, what was the point?
The knowledge of an expert home stager is extremely valuable because of the effect it can have on how long a home takes to sell and its final selling price.
A two hour home staging consultation should cost anywhere from $250-$800. After the initial consultation, a home stager can make at least $1,000 if the client wants the stager to complete the home staging project for them. This figure can go as high as $5,000 to $10,000 depending on the needs for that property, the home stager’s expertise and where they live. Typically costs will be higher in major urban centers where house prices are also higher. If the home stager has to furnish and/or accessorize the home, that price can creep even higher.
Now back to why I object to anyone advertising $31.45 as a good income for a home stager. It completely devalues what we do and the difference our work makes to a client. Not only that, it misleads aspiring stagers into believing that this is a good income.
Let’s do the math!
Even bumping that pay from $31.45 up to $40 per hour, if you do three two-hour staging consultation each week, that works out to $240 per week or roughly $960 per month. If you also do three “full-blown” staging projects each month which each take you five hours, you can make an additional $600. That’s an unimpressive $1,560 per month or only $18,700 per year.
Depending on where you live, that amount would classify you as part of the “working poor,” and comes out to around what you’d make answering phones or asking “would you like fries with that?”
When you’re self employed, you have lots to do that you don’t get paid for. For example, talking to prospective customers, standing in line at the bank, doing your paperwork, etc. So when you are working on a client’s behalf, you need to make sure you are well paid for it.
If you charge a rate of $300 per two-hour home staging consultation which is still at the lower end of the industry standard, those same three staging consultations a week will give you $900 per week or $3,600 per month. Those three “full-blown” staging projects per month will give you another $2,250 per month. That’s a total of $5,850 per month or $70,200 per year.
That’s $70,200 per year versus the $18,700 you would make earning $40 per hour.
If you want to grow a profitable home staging business rather than dabble in home staging as a hobby, you have to charge a fair rate for your services and not be duped into thinking $31.45 is reasonable.
I can’t fathom a home stager charging anything close to $30 or even $40 per hour unless they are working full time for another company who will be reselling their services at the more appropriate rate. Advertising a home staging hourly rate of $31.45 does nothing but devalue the service. As a home stager, you’re operating a business. Can you possibly sustain (let alone grow) a successful business of any kind at such a low hourly rate?
When you’re operating a service-based business, time is your product and we are all only given so much of that each day!
I encourage home stagers to reply to this post so that we can all raise the standard of what’s acceptable and expected in this industry.
Debra Gould, The Staging Diva®
President, Six Elements Inc. Home Staging
Internationally recognized home staging expert Debra Gould, president of Six Elements and creator of The Staging Diva Home Staging Business Training Program, knows how to make money as a home stager. She has taught over 900 Graduates worldwide how to properly price their home staging services and grow a successful real estate staging business. Debra is the author of two home staging guides.
To learn more visit http://www.stagingdiva.com.
Technorati Tags: Debra Gould, Staging Diva, make money in home staging, make money in staging, price home staging, home staging job, .45 per hour, real estate staging, home staging, home stager, house stager, house staging, decorate to sell, home staging business
Related posts:
- Real estate agents make their financial situation worse
- Home Stagers Fall Into Free Estimate Trap
- This Old House Features Staging Diva
- Recession proofing your interior design or decorating business
- Part 2 of Recession Proofing your Interior Design Business
Home Staging Resources | |
|---|---|
More about Color Guide |
More about Sales Script |
{ 17 comments… read them below or add one }
Debra, Thank you so much for addressing this topic. I know when I first started 2 years ago , my biggest hurdle was what do I charge ? Am I charging too much – too little ? In time as our business starts growing , we begin to look back at all we do and the value of our product . The Staging Diva Courses ceratainly helped me determine how to charge and not give away the farm. Also, once you have gained that self worth it becomes easier and easier to quote your rates. We are worth every penny a homeowner invests and look at their return …….Aferall, we are the experts…..
Your post raises a good point Debra, but I’d like to share a story.
When I first started out I quoted the rates you’re talking about, and it didn’t go too well. I’ve had a pretty extensive background in marketing, so I know how to sell myself, but it just wasn’t enough. I was hung up on, laughed at, and left with no work. One prospective client was a doctor, and when I quoted him a $500.00 consult he said and I quote… “I don’t even charge $500.00 for a consultation and I’m an Oncologist!” He was comparing one field of work with my field of work and thought I was out of my mind. Of, course this comparison is not apples to apples, but his point stuck with me.
How can I charge the same premium rates as those with formal education and degrees to back them up? I do believe in the value of my work, but don’t I have to consider what my market will bear? I feel the need to be realistic, but if I’m perceived as the “bargain bin” of home staging, maybe I’m not cut out for this gig after all.
I live in a very economincally depressed area in Michigan. I, personally, believe my consultation charge is way too low, but I also want to work. In my previous life as a designer in down state Michigan, $300/hour would have been accepted without blinking an eye. However, I do believe you have to be realistic about your neighborhood economy. Unfortunately, mine is low income. Eventually, once I am more established and well known, I hope to raise my consultation fees as well as my contract costs. My goal at this point in time is to get myself “out there” until my name automatically rolls off the tongues of every real estate agent and seller when listing or selling a home. Currently, I think I am acheiving that goal – slowly.
Thanks everyone for your comments and yes of course you need to take into consideration what the market will bear where you are.
The main points were not to feel that you need to be the cheapest, even if you’re starting out AND to realize that it’s not only what you make per hour when you’re in your own business, because of all the unpaid hours you will have to put in to keep your business running.
To Leah’s point – as for the oncologist who says he makes less for a consultation, that’s a red herring. First of all, if you get a consult from an oncologist, you can’t take his advice and fix your cancer yourself!
When you do a complete home staging consultation (which may last anywhere from 2 to 4 or even 5 hours), you are giving the client all the advice they need to do the work themselves (if they choose to).
To Jill’s point – I didn’t say $300 per hour, I gave the example of $300 for a two hour consultation.
There are many more intricacies to pricing strategy which I do discuss in detail in course of the Staging Diva Training Program.
I understand where Leah and Jill are coming from, but I have to disagree. When I charge a doctor $500 for a 2 hrs staging consultation I am actually putting $10 000 to …. into his pocket. It is a one time rescue thing that he needs. And it is my job to explain this to him. Remember that your services have huge monetary value. Of course it depends what kind of services you provide. If you don’t have talent, passion, and experitse, then you can charge $40. When I hear “to much”, I simpy know this is not my client and move on. Yes, it takes longer to find a good client, but I would rather have one $500 client than 10 cheap ones. Besides, have you ever hired a cleaning lady? In our area they charge $20-30 / hr. I also know that aviation mechanics who install satelite systems on our airplanes make about the same money. Go figure!
Debra, pricing is a self-worth issue with me. I have learned through personal experience that what I pay – sometimes dearly – for becomes much more valuable to me at the moment, as well as over time. When I start doubting that my fees are too hefty, I remind myself that, by charging less, I am relegating myself to the ranks of the “starving artists” of the world. It actually takes will power to get the fee out of my mouth sometimes, but I always feel that I’ve inched up the self-esteem ladder every time I do. I have had reactions to my fees that range from shock to admiration. It is interesting that the shock usually comes from others involved in some aspect of interior design or staging. The admiration (translated: respect) comes from those who really stand to benefit.
Thank you Ranee! I admire your comment. This is so true.
This site is so inspiring. I agree with everyones comments. I find women have a particularly difficult time charging what they are worth too. I find that living in a small community tends to be disheartening at times, as it takes longer for new things to get here, such as staging.. and when people hear my fees (which are not high) they are dumbfounded. I have to stick to my guns, and actually after reading all of this, I am going to be brave and raise my fees to what I feel I AM WORTH.
I was also so frustrated with all the negative response from all of the realtors in my area, so instead of complaining and wasting energy trying to convert them to my way of thinking (I had already given them 500.00 worth of gift certificates ea) I am now studying for my license too. Can’t beat em…join em. I’ll show my little community what Staging is! I want it here just as much as I do it in the city and I am not giving up on my community.
Food for thought -I just read 2 great books recommended to me-SECRETS OF THE MILLIONAIRE MIND (T.Harve Eker) about changing your way of thinking to believe in yourself and attract what you want! EXCELLENT BOOK & fantastic marketing book- THE PSYCHOLOGY OF PERSUASION (Robert B. Cialdini) These are really great for business, maybe they will help someone else too!
It is very interesting to read all the comments and Im glad I came upon this website ! I try to watch every TV Show on the subject and until recently, I did not know that there was a formal course available. When I did find out, I got sold on the $31.45 per hour guarantee so I could get work experience before heading out into the world on my own !! And now I am an aspiring Home Stager and loving every moment of it ! Having said that, I just could not understand how one would survive as a Professional Home Stager at that rate considering the amount of effort, talent and cost of doing business to take a home from standard to spectacular. All the same, I was willing to give this a shot as it is something I truly enjoy. Thanks Debra for discussing this topic and thanks to each one for sharing your experiences. It definitely gives me an idea of what to expect out there.
This free gift of Twelve Tips on starting Home Staging has given me a lot of information that would help me with my business I am starting up, after I move. We are waiting for a loan to go through. I would be able to have my own office in the house I would be moving. I just got my business cards printed.
I have studied Interior Decorating but have not heard much about Home staging in our area. My City is small and the cost of living isn’t high but I think 300 0r 400.00 a consultation might work here in Corry, Pa. My name of my company is Distinctive Touches ….Interior Decorater Home staging & Decor. How much did some of you new people start off earning??
Joan Jewell
Corry, Pa.
I think your pricing strategy is in line with the times. However, my big concern in the United States is the economic situation. Buyers cannot get loans, which impacts our business in a big way. We can stage all the homes we want for the Sellers and Realtors…but if the buyers cannot get loans, then they are not going to be looking at homes. As a former Realtor, I know the importance of Staging…it makes a huge difference. What I’m trying now is to focus my marketing efforts in new ways. All those “buyers” who can’t buy homes are going to need a place to live…apartments. Turning our services towards helping clients settle in to their new apartment digs is a way for us Stagers to take control of the market slump.
We do not have that situation here in Corry. In two weeks they have had at least 9 houses get contracts. We of course have a small population of 11,000 I think that is right. The more expensive homes are still there. They run from 179,000 and 358,000 and higher. I know in larger populated areas they are having cold sales and foreclosures, as my daughter lives in Phoenix and her husband is a realtor.
I think that was a good idea that you could stage rentals at this time of economic crisis!
Thank you for taking the time to educate us on home staging..Great article!
However, I have been in the interior design field for more then 20 years and I believe that Realtors should stick to selling house and the design firms/staging company’s do the staging…
Lisa, I totally agree that realtors should stick to selling real estate rather than staging their listings. I only recommend real estate agents take my program to learn how to run profitable staging businesses if they are tired of the 24/7 demands of selling real estate and would prefer to earn their income from staging.
In course 4 of the Staging Diva Training Program I spend a lot of time explaining what messages a stager should use with real estate agents to help them understand the value of what we do and why they shouldn’t be doing the staging themselves.
I too live in a depressed area, we have the highest unemployment rate in the country. In fact due to the company I worked for closing I have decided to realize my dream of enjoying decorating and homes ( I’m the person who goes to open houses out of curiosity and often offers a suggestion to the realtor about a smell or something negative in the home)
Just getting started I have enjoyed several great jobs, but I had to give the realtors coupons for free $150 home evaluations just to get in the door but then the work involved is unbelieveable. I don’t think I would have gotten these jobs if I hadn’t included cleaning out garages and basements along with the entire house, painting and then decorating and staging the home.
But without all this preliminary work the home wouldn’t have made since to stage.
It seems realtors in my area think a home is a candidate for staging if it’s a real disaster and almost a lost cause…
I’d appreciate any suggestions, and I’d like to know how you all are doing since these posts were last updated in April. Mave Hiegill how is the apartments rental’s going, I thought that was a great idea.
I just want to say that I really appreciate reading all your feed back , this is an excellent area to get information about the pros and cons of staging.
I am just starting into the market and really need all the adivce I can absorb.
thanks again
Thanks Judy! So glad I could help you. Please feel free to spread the word about Home Staging Business Report to others in any discussion groups you are on with home stagers or aspiring home stagers!
{ 1 trackback }