Marketing Case Study: Design Services Firm

The Client and Scope of Work

EG Consults worked the owner of a design services firm to clearly articulate a business model and construct potential profit scenarios, allowing her to focus her launch and her approach to client pitches. The scope of work included development of a marketing proposal for potential clients and modeling a range of revenue, cost and profit scenarios.

The Value Proposition

The founder of JT Design Services, an experienced designer, recognized a disconnect between the design and procurement phases of traditional hospitality projects. Her business idea was a set of design services that would seamlessly integrate interior designers with suppliers by rethinking the procurement process.

Excerpts from Work Product

EG Consults work product included a clear view of the envisioned design project organization compared to the traditional approach and benefits of the new approach. These materials were developed through iterative discussion and review with the owner.

Benefits to Design Teams:

assume responsibility for writing the FF&E specs and sourcing documents. These activities are not strictly “design” but require familiarity with design terms and conventions

reduces documentation workload on Design team but keeps responsibility for specs with an experienced team focused on high quality standards

interface directly with suppliers, eliminating the procurement “middle man”

reduces likelihood of miscommunication and provides a dynamic feedback loop back to designers

leverage strong relationships with suppliers, who are often themselves craftsmen or designers

can realize cross-marketing and branding benefits between high end suppliers and design projects

More on the Project

A clear comparison of the traditional versus the new proposed approach emerged through iterative discussion with the owner, asking and answering a number of questions. What are the the phases of a hospitality design project? What are the activities in each phase and which of these will JT Services cover and to what extent? How exactly is this new approach a benefit to designers?

The range of scenarios included worst case, best case and expected scenarios for business development. How many jobs are projected initially, in a growth period and in a steady to state? How much will the owner, a sole proprietor be able to leverage her own design skills and with what resources? What are projected revenues? Will jobs be proposed at a total cost or at hourly rates? What resources will be involved? Will hourly rates be billed to the client vary or will there be an average rate? What will the costs be and how do they break down across the range of scenarios? What is the short and long term profit potential?