Designers are talents, whether you relate to a particular style of work or not. Talent is valuable. Look at actors, athletes, artists, many of whom receive shockingly high pay.
Once the project is done, interior design produces an atmosphere. The atmosphere should reflect an environment in which the client associates great aesthetic pleasure and as a result, the client wants to spend time in it. Items or materials that go into a space obviously have a value but it is the way in which those items are placed with respect to function, scale, balance, color, texture and form that becomes difficult to put a price on. We have all entered spaces filled with valuable items that fall short of a pleasing atmosphere. Good design does not necessarly require expensive items to offer cohesive, functional and aesthetic appeal.
The hourly fee is commonly used for consultation purposes and for research time. This is a fixed way to budget a project. Once the concept for the space has been determined and agreed upon, those fees end or decline. A concept fee is the value the designer places on the the final outcome of the atmosphere and is quantified by a percentage of the project cost. Furnishings that go into the design are usually brought in on a cost-plus basis so the client receives a discount off of retail pricing. It is also important to note, designers don't always get great deals on all furnishings. It depends on their relationship with the particular vendor. What it comes down to is that to get the best result from using an interior designer, the client must develop a trust relationship. A foundation of trust produces a wonderful outcome and a very appealing space.
