What to agree on markup and trade discounts upfront

When you hire an interior designer or sourcing specialist, they won't just hand you a price list for furniture and finishes — they'll be marking up what they source for you, and they may offer trade discounts they've negotiated with suppliers. These two things directly shape what you'll pay and how transparent the cost becomes. Understanding them upfront, and agreeing on them in writing, separates a clean engagement from one that festers into resentment.

Why markup and discounts matter to your final bill

Your designer's margin on sourced items — the markup — is how they cover their time hunting for the right pieces, liaising with suppliers, chasing samples, and co-ordinating delivery. It's legitimate. But a 20% markup versus a 50% markup on a R50,000 furniture order is a R15,000 difference. Trade discounts work the opposite way: suppliers often cut their retail price for designers who buy in volume or regularly. If your designer keeps that discount instead of passing it to you, you lose. The tension is real, and it's why clarity upfront matters.

What to pin down before you commit

Ask your designer directly: "What markup do you apply to sourced items?" Listen for a percentage or a range — common practice sits somewhere between 20% and 40%, though some specialists work lower or higher depending on their model. Then ask: "Do you pass trade discounts to me, or do you keep them?" The answer tells you whether they're acting more as a buyer-agent (passing discounts) or as a retailer (keeping margin). Neither is wrong, but you need to know which one you're hiring.

Get the specifics in an email or proposal. Don't rely on a verbal nod; write it down. State the markup percentage clearly, note whether trade discounts are absorbed into the final price or kept separate, and agree on what happens if a supplier offers a one-off discount mid-project. Some designers will lock in their margin upfront, others will adjust if the supplier's price moves. Knowing the rule ahead of time stops arguments later.

Also ask whether the markup applies to everything — furniture, fabrics, hardware, lighting — or whether certain categories are handled differently. Some designers markup furniture heavily but apply a smaller margin to soft furnishings or fix-tures. This clarity matters when you're budgeting.

When trade discounts tip into a red flag

If a designer brags about the "huge trade discounts" they get but refuses to tell you what they're pocketing, that's worth pausing on. Similarly, if they won't disclose their markup percentage, or they say "it depends on the item," without defining what that means, you're not on solid ground. You should also watch for a designer who sources very aggressively from one or two suppliers — that can mean they're prioritising the supplier relationship or the discount over your actual needs.

A straightforward designer will name their margin, show you the supplier's price and their final price, and let you see the gap. They might even offer flexibility: a lower markup on a higher-value order, or the option to buy certain items direct if you prefer. These moves signal they're thinking about your interests alongside their own.

Anchoring it all in writing

Once you've talked through markup and discounts, ask your designer to confirm the terms in writing before you sign off on the engagement or place orders. A simple email counts: "Based on our conversation, I'll be applying a 25% markup to all sourced items, and any trade discounts I receive will be passed to you in the final invoice." This isn't bureaucratic overkill; it's protection for both of you.

When you start sourcing on Strove, look for specialists who are transparent about how they're compensated on what they source. Verified providers often list their approach upfront. A designer who's willing to discuss markup and discount policy before the first quote is usually one who's confident their pricing is fair and their intentions are clear.