In this episode of Profit Isn't an Accident, Michelle Lynne tackles one of the most accepted pricing "standards" in the interior design industry: cost plus 30%.

And here's the truth most designers never hear:
A 30% markup is not the same thing as a 30% profit margin.

Michelle breaks down the real math behind procurement, markup vs. margin, and why so many talented design firms are unintentionally underpricing themselves into burnout. If you've ever felt busy but not profitable, this episode explains why.

You'll learn how to evaluate your procurement costs, rethink your pricing structure, and start building a business model that actually supports your firm long term.

• Why "cost plus 30%" became the industry norm

• The difference between markup and profit margin

• Why a 30% markup only creates a 23% margin

• The hidden costs of procurement most designers ignore

• How time, freight, damages, storage, and admin eat into profit

• Why many design firms are unknowingly subsidizing procurement with design fees

• What "minimum viable markup" means

• Why Michelle recommends a minimum 75% markup

• How vendor relationships can improve your margins

• Why charging correctly improves the client experience

• The emotional side of raising prices

• How pricing acts as a filter for better-fit clients

• Why profitability creates freedom, flexibility, and sustainability

Every item you source requires labor, communication, coordination, tracking, problem-solving, and risk management. If your markup does not account for those operational costs, your firm absorbs them.

A 30% markup does not equal a 30% profit margin.

Example:

• Wholesale Cost: $1,000

• Selling Price at 30% Markup: $1,300

• Actual Margin: 23%

That difference matters more than most designers realize.

You are both:

1. A service business (design expertise)

2. A retail business (product procurement and sales)

If your product pricing is too low, your design fees end up subsidizing your retail operations.

Underpricing creates stress, overwhelm, and operational strain. Profitability allows you to:

• Hire support

• Improve systems

• Deliver a better client experience

• Protect your energy and creativity

Michelle recommends designers move away from cost plus 30% and instead consider:

• Higher product markups (often 75% minimum)

• Procurement management fees

• Passing receiver/storage/delivery costs to clients

• Stronger vendor relationships to improve buying power

• Private coaching through The Design Bakehouse

• The Profit Mixer procurement and pricing tool

• Interior Design Business Bakery coaching program

• The Design Bakehouse Website

• Instagram @thedesignbakehouse

If this episode helped shift the way you think about pricing and profitability, share it with another designer and leave a review wherever you listen to podcasts.

In this episode, Michelle sits down with Kate Vitale, founder of Vitale Interiors, to explore the intersection of interior design, wellness, and intuition. With a background in corporate fashion and trend forecasting, Kate brings a unique perspective to creating spaces that feel grounded, calming, and deeply personal.

They dive into what "interior wellness" actually looks like in practice, how designers can better listen to what clients aren't saying, and the realities of building a creative business—from confidence challenges to finding community.

This conversation is equal parts design philosophy, business growth, and personal evolution.

Kate Vitale is the founder of Vitale Interiors, a Long Island based interior design studio known for blending timeless style with a sense of calm and groundedness. Formerly a fashion executive, Kate brings an intuitive approach to design, carrying with her a refined instinct for what feels both current and enduring. Vitale Interiors is celebrated for its textural, nature-rooted approach to elevated living - layering natural materials, classic elements, and wellness-driven principles to create elevated spaces that feel like home. She helps clients tune into what they really want, beyond trends or expectations, and create spaces that reflect them on every level.

• What "interior wellness" really means (beyond buzzwords and trends)

• How textures, color, and layout subtly impact how we feel in a space

• Why clients often communicate their needs indirectly—and how to listen for it

• The truth about trends in interior design (and why they're not as fleeting as you think)

• How Kate transitioned from corporate fashion to running her own design studio

• The role intuition plays in both design decisions and client relationships

• The confidence shifts required when stepping into leadership as a business owner

• Why community and support are essential when growing a creative business

Design is more than visual—it's emotional.
The way a space is layered, textured, and arranged directly affects how people feel, even if they can't articulate why.

Clients don't always say what they need—but they show you.
Pay attention to the underlying meaning behind comments like "we never use this room" or "something feels off."

Trends aren't the enemy.
Unlike fast fashion, interior design trends evolve slowly—often lasting 15–20 years when applied thoughtfully.

Confidence is built through doing.
Learning to trust your vision (and not over-deliver unnecessary options) is a key shift in becoming a strong designer.

Building a business is personal growth work.
Entrepreneurship will surface new challenges—and new levels of self-awareness.

• Kate's perspective on balancing aesthetics with emotional impact

• The story behind her shift from fashion to interiors during COVID

• A candid conversation about confidence, client presentations, and over-delivering

• Michelle and Kate discussing how design decisions influence connection within a home

• The importance of intentionality—in both life and business

Kate Vitale is the founder of Vitale Interiors, a Long Island-based design studio known for creating timeless, grounded spaces rooted in nature and wellness. With a background in fashion and trend forecasting, she blends intuition with strategy to design homes that reflect her clients on a deeper level.

• The Book Thief by Markus Zusak

• Tiny Beautiful Things by Cheryl Strayed

• A Tree Grows in Brooklyn by Betty Smith

• Instagram (Personal): @katevitale_

• Instagram (Business): @vitaleinteriors

Email our team at hello@thedesignbakehouse.com to learn more about coaching opportunities like Kate experienced.

If this episode resonated with you, share it with a fellow designer and leave a review. It helps more creatives discover the show and grow their businesses with intention.

Most interior designers think they have a revenue problem… when they actually have a tracking problem.

In this kickoff episode of the Profit Isn't an Accident mini-series, Michelle Lynne pulls back the curtain on what's really happening inside your projects financially—and why "busy" doesn't always mean "profitable."

If you've ever wrapped a project and hoped you made money (instead of knowing), this episode will hit home. Michelle shares a behind-the-scenes story from her own business that reveals how small, overlooked gaps in procurement tracking can quietly drain thousands from your bottom line.

This isn't about working harder or booking more projects. It's about building systems that give you clarity, confidence, and control over your profit.

• Why revenue isn't the problem (and why more projects won't fix profitability)

• The critical difference between having your books done vs. actually knowing your numbers

• Where profit is really won or lost (hint: it's not at the project level)

• The biggest hidden profit leaks in interior design firms:

• • Reselects and revisions that never get rebilled

  • Freight and receiving costs that quietly get absorbed

  • Vendor payment timing mistakes

  • "Shadow items" that never make it into your financials

• Why spreadsheets eventually break down as your firm grows

• How fragmented systems create errors, double entry, and lost profit

• The power of real-time procurement tracking (vs. after-the-fact reconciliation)

• The mindset shift from "designer who runs a business" → "business owner who designs"

• Profit isn't something you feel—it's something you track.

• If your margins are leaking, more volume just creates a bigger leak.

• The real problem isn't mindset—it's systems and visibility.

• Item-level tracking is the only way to truly understand profitability.

• Clarity in your numbers creates confidence in your decisions—and more freedom in your creative work.

Michelle shares a pivotal moment from her "chaos era," when two team members gave conflicting answers about the same project's financials.

That disconnect revealed a deeper issue:
👉 Multiple systems
👉 No single source of truth
👉 Money slipping through the cracks

That moment led to a complete overhaul of her procurement and tracking systems—and ultimately changed how she runs her business.

If you do nothing else, do this:

1. Audit Your Last Project

• Can you clearly see your margin line by line?

• Not just total profit—but furniture, freight, custom, etc.

2. Map Your Current System

• Where does procurement live?

• Is it connected to billing?

• Are you entering data in multiple places?

3. Identify the Gap

• If you can't easily answer these questions, that's your opportunity.

"Clarity on the business side creates space on the creative side."

You don't need to become an accountant.
But you do need to be the person who insists on knowing what's happening financially in your business.

Michelle introduces The Profit Mixer—an all-in-one system designed specifically for interior designers to manage:

• Procurement

• Project management

• Proposals & purchase orders

• Financial tracking & reporting

Including her proprietary 16-step project process to protect profit at every stage.

Learn more: thedesignbakehouse.com/profit-mixer

Next episode:
The Markup Myth — Why "cost + 30%" isn't a real pricing strategy (and what to do instead)

Know a designer who's busy but not seeing the profit they expected?
Send this episode their way—it might be the shift they've been needing.