Commissions on Purchases

When a designer charges a purchase fee as part of their pricing, it is usually separate and tied to the hourly design rate. Most designers get a trade discount on furniture so they pay less upfront and then charge you the retail price, keeping that percentage to cover the time it takes to coordinate your purchase. In some cases, businesses may charge a higher fee and increase items by 10% to 30% of the retail price. On the invoice, there appears to be one line for the project’s hourly rates, one for the furniture itself, and one for the acquisition cost. Every company does this a little differently, so it’s important to explain their methods and make sure everything is spelled out clearly in the contract.

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