Friday, December 5, 2008

Helping Us Make Interior Design Affordable - Part 1








Some readers are asking why I'm updating this blog more regularly nowadays. The reason is…there are not that many interesting activities to distract me lately. What I mean is, reading is my topmost hobby but my current reading lists are unusually dull and dry - in the car is the book Businomics, for bedroom reading is Project Management and the only bright spot is the colourful Practical Feng Shui in the living hall. So blogging is a nice alternative to fill my spare time!

Today, I would like to share my vision and passion.


This was what happened and is still happening in the renovation industry :

1) In our parents generation, renovation work was done by the traditional contractors. Contractors are skilled but they were unable to give much consultation. Interior design was exclusively for the very rich.

2) In the present day, there are still many contractors operating in the traditional manner. They normally sell cheaper in order to compete with their many competitors that engage foreign labour. There's nothing wrong with this. In fact, competition brings better value to the consumer in terms of cost savings while helping the company to be more efficient and reduce wastage. Again, these groups have not progressed beyond providing the basic construction skills which is labour based.

3) IDs are still very much exclusively available to those who are willing to pay the big bucks for it. Exclusive ID studios will ask to collect a designer fee before starting any work.

4) Many IDs are also based in kitchen studios where they are fully concentrating on kitchen design. If people are wondering why many people like to do the kitchen business, it's because they come in modular sizes and are easier to manufacture and easy to train workers to install or sell a kitchen set. Besides, the market for kitchens is huge.


My vision and passion is :


" Making interior design affordable "


… at least, to more people. Notice that I don't say for everyone because there are some people who are looking for something of the best quality but of the cheapest price. In reality, whether such a product or service is in existence remains to be proven.

The costs of every product and service roughly come from these items :

1) Design -
Ideas and creativity are not cheap. That's why traditional contractors are fighting based solely on price alone.

2) Skills of craftsmen -
Ever wonder why in your own office, some people are paid higher and some are paid less? Point made.

3) Materials -
Contrary what most people think, materials are not the main contributor to product/service costing. Just pay RM20,000 to 2 contractors for a home renovation. Contractor A may come up something but Contractor B will come up with something very different even though both are paid equal price. Why? Because, there's something called intrinsic value! 2 jobs may require the same cost but it take the soft skills of creativity and a craftman's skill to produce something that Contractor A cannot see nor realise.

4) Overheads -
While materials and labour are variable costs that fluctuate with production activity, there are many other costs that are factored into the product pricing. Fixed overheads include salaries for non-production workers, advertisements, rent and rates, etc.


…and how am I going to do it?


I'll share more of what I'm doing in the next posting.







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