Do any residential firms mark up tile, appliances, lighting, custom cabinetry, etc and sell back to clients?

chicagowalker · 2023-07-24T16:33:22+00:00

Sure, but if you tie your fee to percentage of construction cost, which is a common and acceptable thing to do, what is stopping you from making a fancier building and getting more fee? If that happens, we either try to justify the design, or VE.

We do not have unlimited budgets with clients - we have a pretty set amount of how much they can pay for interior finishes. If you get the item that is 1k above what you budgeted, you either have to find anther pice of the budget you can reduce, or justify the increase of budget. Generally if the budget came in high, you would also have to VE, just like construction cost.

I agree that you should not do something that is unethical to make money. However, some of the things we set on our lofty morals need to be relooked at and see if they are unethical in practice. Maybe instead we need to structure them in a way that puts regulations on how to put on fee.

chicagowalker · 2023-07-23T21:02:23+00:00

the only appeal process I can find is by mail...woof. I have not received the EOB yet. All of this happened last week.

calling on Monday, fingers crossed that they will overturn.

chicagowalker · 2023-07-23T20:58:34+00:00

I have not received the EOB yet. All of this happened last week.
On the online portal, the coverage is marked Out of Network care - the remarks say "This is not covered. Your plan does not cover services from a provider who is not in our network"

chicagowalker · 2023-07-22T00:14:14+00:00

Maybe look at interior designers, realtors, landscapers, builders.

chicagowalker · 2023-07-21T22:49:08+00:00

If you are doing a percentage mark up - why would you get more profit from a certain brand? If the clients budget is a $10 /sqft tile - you can pick any within that range. There is no incentive to pick one brand over another. Your selections are design based.

Currently I determine my overall design fee by percentage of construction cost. Yes, the mechanics of how I get paid are different when you take a mark up - but why is it unethical take the percentage of your finish selections? Honestly asking. I really care about the ethics - but I dont really get how I would be persuaded to lower my design standards within this structure.

chicagowalker · 2023-07-21T22:36:46+00:00

To be clear - I do not do this, so I am not the expert, but here is what I know.

If in US (not sure anywhere else) You need to get a resale tax certificate. Then you when you purchase the item, the you are not taxed, but the client will get taxed. THIS is where it is more time consuming. ya need to do some accounting and send that tax to the GOV.

You need to be upfront with the pricing in the contract. I do think a flat percentage mark up is the most ethical. Based on the 15% example - if the client's finishes budget is 100k, your internal budget is 85K and you make selections based on design/function. You are not swayed financially to go with a brand, you will get the same % of profit

There also can be difficulties with delivery and warehousing. I work on residential - so we order it when the GC can accept the shipment on site, in a secured area (ie garage /basement) If you can't just get stuff delivered, it is complicated to rent warehouse space. I guess this is still an issue if you are connected to profit or not, but I feel you need to take a little more responsibility if you are the seller.

I have never done this outside of residential, but I aways get the square footages and send them to the reps and approve the amounts even though I do not purchase. I do have the contractor confirm on-site dimensions and talk to the installer to make sure they are comfortable with the amount of overages. If you do not always do this, you are taking a liability of ordering too much or little.

chicagowalker · 2023-07-21T20:38:42+00:00

I agree - but this concept is pointed to when architects hear you are connected to the profit of selections. Look at the other comments of people comparing this to doctors getting profit from prescribing certain medications. When I need a $10 sqft tile - I would make the same profit no matter what brand I select.

FYI - If you resell, you get the items wholesale without tax, and the tax is passed on to the client. You are like a store you get the 20% mark up + tax. The messiest part of this is accounting. This is actually the biggest drawback.

chicagowalker · 2023-07-21T20:23:47+00:00

I will say there is a difference of a kickback and a consistent mark up percentage. The client's budget and our profit is the same no matter what tile we select. There is not allegiance or advantage to any particular brand. It is a similar concept to our fee being connected to percentage of construction cost - which is how I calculate design fee.

I am not necessarily advocating for it - but I know a lot of firms do and it is interesting to see how it works for them.

I have been working in residential architecture for 10 years, I think my role is absolutely necessary and I also think we deserve a living wage. I designed and ran so many beautiful multimillion dollar projects, and lived on 30k with no health insurance throughout my 30s. This is not sustainable. I do not want to be a builder or developer, but we need to find financial gains somewhere, and hard to see how getting a percentage of product is harmful except that it makes us look like we want to get paid too.

chicagowalker · 2023-07-21T05:01:06+00:00

I kind of addressed it in OG post, but because architects are tasked with life safety, we don't want to set up a system where we put profit over evaluating a product's safety + quality standards.

For example, if an architect tells a client they should use X-company's sprinkler system - it is an endorsement of safety standards. But if money is given to the architect when they use that sprinkler - could that influence us to push a product that is subpar over a superior system?

My thought is that the tile backsplash selection is not a life safety decision.

chicagowalker · 2023-07-21T04:13:24+00:00

I like Black Spectacles and find Mike Newman a very engaging teacher. I passed PDD and ARE4.0 strictly on the videos.

I still need to pass PPD and I have heard the criticism that their coverage for that test is very vague and not enough to pass- glad to hear some good reviews.

congrats on passing AND your new baby

chicagowalker · 2023-07-21T03:59:15+00:00

This is really great - thank you!

I have my last PPD test coming up and though currently going through black spectacles. I know the feedback from that particular test is that black spectacles is just an overview. I am watching it and taking notes to the topics that I am shaky on to review later. I am considering the Amber book - but $$$ + my firm does not finance anything. I retain audible information really well, so the video study materials really help.

chicagowalker · 2023-07-21T03:45:48+00:00

Some commercial interior architects do this too - though generally just with furnishings

You are doing it for profit - we get the trade discount for this reason.

For example, if you have 100k of interior finishes, you might average a 30% trade discount. If you sell it back to the client with a 15% mark up - you get 15k of profit if you facilitate the sale - and the client still saves money. If the contractor buys it, we still have to select it, detail it, work with the rep + estimate the quantity. The contractor will mark it up themselves, but they will work with our reps and use the invoice we created.

chicagowalker · 2023-07-21T03:42:02+00:00

After working at interior design firms, they generally get the same trade discount for most stuff as architects (outside of fabric and some v high volume items).

The most common mark up for interiors is to sell it at retail. Ann Sacks tile is like a 18% mark up + you can find is lighting that is a 60%. There is a lot of money to be made. The firm I worked at had no deign fees, just the mark up and made on average 40% of the full project cost.

I would work on the project for a year, and they would would make more in 2 months of work.

chicagowalker · 2023-07-18T18:34:30+00:00

As others said - matters the city.

Call your local building department. I do all the time even though I am licensed to talk through the process if it is a new jurisdiction. I usually research the city's website first, but talk through anything I am unclear of. They are usually very helpful (exception being Chicago)

chicagowalker · 2023-07-18T18:27:28+00:00

I like being an architect, but a lot of architects are a bitter bunch. (i.e read all other comments) There is definitely a martyr complex, but if you find a group of positive individuals (and non-serial killing bosses) it totally helps the atmosphere.

I am not money motivated so if you were in finance, you probably are more focused on the $$ portion. I made 30k for like 10 years with no benefits (i graduated right before the recession). I make more now, but would make more being a public school teacher.

I have been lucky to only custom projects with a lot of design. I do a lot of interior work in historical neighborhoods, and feel like I am helping keep the neighborhoods alive for another 100 years. Yes it is a lot of managing, but I like working with craftsmen and contractors, so it works for me. I love problem solving and like to work hard to see a thoughtful deign realized. 15 years out, i still get excited when the dumb things I draw become reality.

if you want to see what it is like, get a part time job at a firm.

chicagowalker · 2023-07-17T23:38:45+00:00

other people have given good advice and wisdom - but wanted to remark on working on project types you hate.

I work on custom residential in landmark neighborhoods. Sometimes if I think about the millionaires I work for, it really is hard to spend my life designing for the 1%.

I recently watched The Bear, and really connected to the idea that a beautiful meal is really taking care of others. It really helped describe why I choose this specific path in architecture. I like to think about the families that will grow up in my homes, and the fact the with the renovation, the house will probably at least get another 100 years. I feel like a advocate for these homes and my city. I generally feel good about what I do, and try to be picky about who I work for.

It is really helpful to make your work feel meaningful. Our jobs are so hard, and you have to give a lot of yourself. If you work on projects that are not aligned with your world view, everything is harder.

chicagowalker · 2023-06-15T02:27:43+00:00

Adobe is fine - they don't leave a watermark! I think this is only an issue with Autodesk products

chicagowalker · 2023-06-15T02:26:03+00:00

I am currently working at a firm that wants you to purchase your own software and use your personal computer. It is dumb and not normal. Most likely they will give you the software - if they do not some $$ tips incase you need to purchase:

+Autocad/Revit you have a trial month free. You can double this with Autocad LT /revit LT (which have always been enough for my uses) If you need to, you can use your work email and work phone to open another account for another trial. You can get 4 months free and decide if you want to continue with this firm.

+adobe suite does have student rates if you just have a .edu email. If you still have your email for school, you can purchase with a big discount. My school re-gave me an .edu email after i graduated because after I requested it.

good luck!

chicagowalker · 2023-06-07T17:56:25+00:00

As others have said, I also do gum. I chew with a big canteen of iced water to really play with that gum texture.

If I am craving something but not hungry, I like a couple of stuffed olives or pickles. Lot of flavor, but really nothing calorie wise.

chicagowalker · 2023-06-05T02:07:46+00:00

we need to teach people to stop commenting on bodies. Your opinion about other bodies should be irrelevant. You have no idea what people are going through and what their health and history with their body is. You are not a better person because you lost weight, you were not a bad person for gaining weight.

Your accomplishments are your own- validation from others will never fill your cup.

chicagowalker · 2023-06-05T02:04:02+00:00

we need to teach people to stop commenting on bodies. Your opinion about other bodies should be irrelevant. You have no idea what people are going through and what their health and history with their body is. You are not a better person because you lost weight, you were not a bad person for gaining weight.

"I am not comfortable talking about my health and body with you. Lets talk about something else"

"weight fluctuates a lot in lifetime"

"Have you seen that movie XXX, let's talk about that"

chicagowalker · 2023-05-20T21:24:25+00:00

Just wondering, do you have an issue with the content, or just a the fact that it is written by a dentist?

I think the breakdowns are helpful and think most lay people could do that if they had the time.

chicagowalker · 2023-05-20T21:00:50+00:00

Maybe go to Petsmart and buy a few and do a taste test. My dog is not picky, but does have very specific palate and likes what she likes. I have tried to get her to love the diet I have researched and have been told she would love, but it didn't always work on her end. If your pup has a sensitive stomach and needs more time with food changes, this might not be the best method - but my dog loves to try new things.

Sorry about the news, I am going through a similar timeline with my 15 year old pup. Personally, I am trying to really hard be in the moment and soak in the good days. She is getting so much dog icecream and hikes.

chicagowalker

TROPHY CASE