How to Handle Sticker Shock

If you’ve never experienced a major remodel or renovation, you’ll probably experience sticker shock at some point in the design process. Take a deep breath—it’s completely normal. I’m going to tell you why I think clients get sticker shock, what we do with our clients when they experience it and how to still make your project a reality.

Why I Think Clients Experience Sticker Shock in the First Place

In general, homeowners have no idea how much construction actually costs. For example, most homeowners have a general idea of how much kitchen appliances cost because it’s very straightforward—the sticker price is right there. However, most people don’t know how much it’s going to cost to knock out the wall between the dining room and kitchen and install cabinetry, install a backsplash, refinish the wood floors etc. Therefore, if there’s a panic around cost, it often happens when clients get the contractor quote.

Part of this is because most homeowners simply can’t do the construction work themselves, so when the contractor quote comes in over budget there’s a sense of helplessness that sets in. The other, more obvious reason is that it’s usually a big number that isn’t itemized in the same way our interiors product pricing spreadsheets are. And even when an estimate is broken down by room, most of the numbers are still pretty big. 

When we present our pricing for anything within our scope of work—tile selections, plumbing fixtures, light fixtures, furniture, accessories and so forth, our clients usually don’t freak out because we have an itemized spreadsheet. If a space is over budget, it’s very easy to see where to cut and where to invest. 

What to Do When You Experience Sticker Shock

First, if you see a much bigger number than you expected in an estimate, DON’T PANIC. 

If the sticker shock is really bad, we usually get a panicked email or call and once in a while, the client starts considering tabling the project altogether. Experienced interior designers don’t panic, because we know that when an estimate comes in over budget, we already have back-up plans in place. 

The first thing you need to do is make sure that the estimate includes the scope of work discussed and that there isn’t any confusion. The install of a luxury vinyl plank compared to a marble tile makes a huge difference–make sure the outlined deliverables are accurate.

Second, you should be comparing to other quotes. We recommend our clients get 2-3 estimates unless they already have a contractor that they love working with. If one quote is WAY higher than the others and nothing is amiss in the scope of work listed, the client has every right to take that estimate out of the pile of prospective contractors. However, if all the quotes or at least two of them are pretty close, it’s probably safe to say that those estimates are fair. 

If you’ve done all of these things and the budget is still too high, you have several options:

Figure out ways to change the design to save
A reason why interior designers don’t panic is because we know we can change the design to save you money. This could mean many things, like reducing the size of that sunroom addition, having carpet installed instead of hardwood flooring in the bedrooms or selecting a more cost-effective fixture for a shower. 

Most of the time, even if the client can’t get exactly what they want, we already have ideas about how we can design to tackle their top priorities—it’s give and take, y’all. Much of the time you can get the look and feel of a space without blowing out your budget. It’s always your decision as to where you want to save and where you want to invest, unless it’s a decision related to safety.

Strategically phase out the project, so that it’s completed in parts
We’ll often work with a client to design several spaces at one time so that they get a holistic picture of how cohesive the design is and how much it will cost. However, nobody is making you execute the project all at once. You could easily renovate a bathroom one year and then the kitchen 2 years later. Construction can happen anytime because you already have a design plan in place.

Increase the budget
If your contractor quotes are all pretty close and you don’t want to sacrifice any part of the design, they your only option is to increase the budget.

Abandon the project
I have seen this happen, even in high-end residential design. I find that it happens when a client’s budget has changed drastically due to some outside factor, the client is super indecisive or if the professional didn’t reel the client in as they went overboard with their wishlist. 

If you experience sticker shock at some point during the contractor bid process, it doesn’t mean that’s the end of your project. It just means that adjustments and compromises need to be made. It’s a common part of the remodel or renovation process and a good designer and contractor will be prepared to offer some solutions so that your project can still become a reality.