This month, we’ll look at some forms that we have developed and used over the years that we feel have contributed to our closing ratio and the profitability of our projects.

After you’ve had a successful interview, either you’ll be invited to the prospect’s home, or you’ll be informed that the prospect wants to think things over.

Let’s assume that the initial interview was strong enough that the prospect wants to take the next step. This is where many designers and salespeople get tripped up. Yet by using a design retainer, designers can help to move the process along by getting everyone to commit to the project on paper at the get go.

Design Retainers

While design retainers have been discussed for the past 30 years, there are still many firms that don’t use them. However, a design retainer can help your firm in a number of ways. First, it can be used to qualify your prospects to make sure you’re not wasting time on “tire kickers.” Second, it can help determine the amount of time you should spend with them while trying to give them your best and most useful help.

Many years ago, I sold my first design retainer to a couple. It was for a small kitchen that they wanted me to work on. After meeting with them in the showroom, I felt they were strong prospects, so I went to the home, measured the entire room, continued with my questions, and after doing what I call the “dog and pony show,” I sat down with them and explained what the next step was.

I showed them the short design retainer form I’d made up, which asked for $50 so I could begin work on the design. They wrote the check, and that night I began working on their kitchen.

I finished the first plan, and after I looked it over, I decided that I could do better. After all, they were paying me to do this, so I must do a good job. That was my first retainer and I still recall my obligation to them, and how it really made me become a better designer.

Today we do it a bit differently. I still have a design retainer form, and I believe it is a key part of the system that makes us more professional, and allows customers to decide if we are the type of company they want to work with. However, we now use a two-part system that’s a bit more complex. The first part is the actual design agreement (see Figure 1, above). The second part involves a breakdown sheet with pricing, which lists what will be included in the project (i.e. granite countertops, a solid surface undermount sink, lyptus cabinetry with roll-out storage accessories and undercabinet lighting, business permits, trash haul and dump fees, etc.).