by While many seek out designers for their projects, many are discerning in how they spend their money, including looking for the best financing options
HIGH POINT — As our latest Consumer Insights Now research — sponsored by Bread Financial — addresses higher-income consumers, it only makes sense that we focus on designers as part of our report.
Our previous research also addressed the designer segment of the business, but the difference this time around is that we polled consumers earning $150,000 or more, specifically addressing those with additional financial means to pay for these services.
Of course, additional financial means doesn’t mean these consumers aren’t careful about how they spend their money.
In fact, one of the key takeaways is that higher-income consumers are highly interested in designer-specific financing, including a 0%, 36-month line of credit of up to $100,000. Some 62% of those higher earners that plan to use a designer this year said they were interested in such financing, compared with 24% who said they might be interested and 14% that said they were not.
For middle-income and lower-income consumers, this figure rises to 78% for those who plan to use a designer, compared with 15% who said maybe and 7% who said no.
Some 50% and 40% of higher earners also said they would increase the size of their budget and design additional spaces if such financing was available, compared with 35% who said they would buy higher-end furniture and 31% who said they would do projects on a shorter timeline. Overall, high-income households said they would increase the design budget by 20% if financing was available from an average of $21,500 to $25,750.
Below is an overview of the rooms in the home where these consumers wish to work with a designer.
And the most popular types of financing among those surveyed — 24% and 25% respectively — said they preferred 12-month and 24-month 0% deferred interest options. About 16% of those surveyed said they preferred 36-month, 0% deferred interest plans.
The message is that not only do these consumers want to spend their money wisely — many also want to hold onto their cash for longer, spreading out the payments as long as possible.
All this also points to other key takeaways in the data.
+ While most (58%) felt excited, confident (52%) or empowered (38%) in working with a designer, they also want to be highly engaged in the process. Some 70% of those surveyed said they want to be involved in the design process compared with 23% who said they want to be a little involved.
+ About 91% of those surveyed also said they consider designers to be style experts, and 83% and 78% said they save time and are easy to work with, respectively. And while 67% said they are expensive, 73% said they are worth the money.
+ In addition, 82% said they believe designers are furniture experts, and 79% said they help them buy quality brands.
That said, consumers also want “to work with someone who understands my style and helps me stay in budget.” Another said, “I want her to find something that’s high quality, but affordable.”
Others pointed out why they won’t work with a designer.
+ “They cost too much,” and “I can’t afford one.”
+ “I like to choose my own style.”
+ “I have taste and know how and what to purchase for my home.”
+ “I don’t see the purpose of paying someone to tell me what I like.”
+ “It’s unnecessary when I can look at Instagram and design sites.”
+ “I get lots of ideas from social media, magazines and Ikea.”
So while many higher-income earners see the value in working with a designer, a key message here is that high-income households are highly discerning not only in how they finance their projects, but by being involved in the process as much as possible. That includes the final selection of products going into their home.
At the winter Las Vegas Market, a design exec with a lower-middle to promotionally priced furniture company noted how much designer business they were getting. This came as a surprise because this particular company isn’t respected nearly as much as companies at the upper-middle range such as Hooker Furnishings, Universal and Lexington, for example.
But we can guess that some of this highly promotional product designers are selling to their clients is priced at higher price points. That said, many of these consumers who feel they are being taken for a ride will shy away from designer services.
The message is that higher-income consumers know quality when they see it and won’t accept anything less. Thus, transparency is key in the process for those wanting to work with clients wanting the best for their homes.
Below is a schedule of our spring research
+ March 23 – High-Income Shoppers Overview
+ March 30 – Designers
+ April 6 – Furniture Stores
+ April 13 – Home Design
+ April 20 – Second Homes
