Do Interior Designers Mark Up Furniture? Trade Discounts, Procurement Fees and What to Ask

Yes, some interior designers make money on furniture through a markup or retained trade discount; others charge a separate procurement fee, pass discounts through, or use a combination. None of these models is automatically unfair. The problem is when the client cannot tell how the designer is being paid.

What is a trade discount?

Suppliers often offer trade pricing to design professionals. The designer may pass some or all of that saving to the client, retain it as part of their compensation, or buy at trade and resell at an agreed margin. Ask which model applies before the first order.

A recent Brisbane Reddit thread is a good example of why this question comes up so often: commenters described several different approaches to design fees and trade discounts. It is anecdotal discussion, not an industry rule.

What is a procurement fee paying for?

Procurement can include sourcing, quote comparison, order placement, supplier communication, lead-time tracking, freight, warehousing, delivery coordination, installation and defect resolution. A current LinkedIn post on design procurement describes the work as anticipating vendor and logistics problems before they reach site.

What should you ask before approving furniture?

• What is the retail price?
• What price am I paying?
• Is there a trade discount?
• Who keeps that discount?
• Is there an additional procurement percentage?
• Are freight, storage and installation separate?
• Who handles faults and replacements?
• What happens if I source the item myself?

Is a markup bad?

No. A transparent margin can be a legitimate way to pay for procurement and execution. The question is whether the total delivered value makes sense and whether you knew the commercial model before approving it.

Read DORSA's procurement fee explainer and interior design fee models for the broader context.

Bottom line

Ask how the designer makes money on products before you buy them. Trade discounts, markups and procurement fees are not the issue; undisclosed economics are.