Money Money Money MONN-EY!

Let’s dive into the topic of money! Often, when I share my rates with realtors or investors, I encounter reactions suggesting they know cheaper alternatives or believe my prices should be different. This isn’t meant to persuade anyone; instead, it’s a chance to point out information that some realtors and investors might not realize. Staging fees need to cover business costs and generate profit.

Pricing depends on the local market, and every individual must decide where their services fit - like Walmart, Target, Saks Fifth Ave, or somewhere in between. Each has its own pricing tolerance. We set our rates based on what our target customers can accept, factoring in the necessary expenses to operate our businesses. Since businesses are structured and managed differently, here are several common factors most of us include in our cost calculations:

Legal team – it’s wise to have access to a lawyer who can review contracts and/or advise us when a situation could use legal representation

Liability insurance – Provides protection in the event anything happens

Gas & mileage – this goes without saying. We need to gas to be able to preview the home, shop, stage and de-stage the home

Warehouse / Storage – This is a monthly fee that varies by location and increases at least every year. Whether or not I have a home staging project, I continue to pay this fee

CPA – This is another one that goes without saying. Someone has to file our taxes appropriately

Furniture – This has to be purchased unless the client insists on renting from a local furniture rental company. I’m open to either option

Décor and Accessories – Extremely appealing and the cost adds up QUICKLY! Stagers in general tend to find it tempting to purchase accessories, only to find themselves out of $300 easily

Movers – If you have ever moved from one location to the next, you know decent, reliable movers will cost at least $500. The cost to stage someone’s home will include that expense if furniture has to be moved in and out

Furniture repair and assembly – This is a cost no one thinks about when looking at a “nice chair” from a major furniture retail company. Those shelves aren’t going to put themselves together. When a Home Stager purchases their inventory at wholesale, the delivery arrives in a cardboard box and isn't assembled by the delivery person. That stager has to assemble it or hire someone to assemble it and those expenses accumulate over time

Staff – As a staging company grows, what was once a “one man show” now has to hire at least 1 other person to assist with the projects and they must make a livable wage like everyone else

Software and other Platforms – As a staging company grows, the person leading the company may want to think more like a “big company”. Because of that, he/she may subscribe to automation software, project management platforms, calendar management services etc. to support them in operating the business

Furniture Rental – if the stager is placing their own inventory in the home, they may charge a monthly rental fee after a certain time period has passed

Other expenses – will include the head of the company’s salary and what they need to make in order to fulfill their financial responsibility to their family, along with the cost of their education and training

While this list may not be exhaustive, it aims to highlight key considerations involved in operating a home staging business. The purpose is to provide clients seeking staging services with an understanding of potential factors that may influence pricing. My objective is to increase the quality of our services and products and invest in automation systems that enhance operational efficiency.

It is important to recognize that each company strives to deliver quality serviceds based on the needs of their ideal clients. If a client or Realtor is primarily focused on price comparison, they may not align with my intended market. I respect their approach; however, I am committed to upholding professional standards and supporting industry partners. My emphasis remains on delivering value, achieving positive outcomes, and addressing challenges effectively.

Until next time.