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What does Cost Plus mean?

July 3, 2024
Cost Plus

Understanding Our Billing Structure: The Importance of Cost-Plus in Custom Design**


At *Staging is the Secret*, we take pride in delivering customized, one-of-a-kind projects for our clients, and our billing structure reflects the complexities and nuances of our work. Unlike retail businesses with fixed costs and predictable inventory, the world of design, staging, and construction is ever-changing. This is why we use a "cost-plus" billing model—because every job is unique, and the costs associated with these projects require flexibility and transparency.


Why Cost-Plus?


The cost-plus model ensures that, in addition to covering the direct expenses associated with your project—such as materials and labor—you also compensate us for the additional efforts required to bring your vision to life. It’s not just about buying materials; it’s about the expertise and labor involved in sourcing and using them effectively.


It’s important to note that these costs—whether it’s for sourcing materials, replacing tools, or managing logistics—have nothing to do with actually paying the company for its work. These are simply the expenses incurred to complete the project. The pay for our expertise, craftsmanship, and time is reflected in the line items proposed or invoiced, which is where we earn our income and why you hired us in the first place.


The Difference from Retail


In retail, businesses often deal with fixed costs and predictable expenses. They purchase inventory in bulk, reuse the same displays, and have a clear expectation of when and how much they will sell. For us, each job is a blank slate, and our expenses vary with every project.


We don’t simply reuse materials over and over. Custom installations and detailed finishes require higher upfront costs for both materials and labor. In many cases, there are no shortcuts.

For instance:

Custom finishes: These must be executed with precision. Unlike standard methods that can be touched up with a coat of paint, custom finishes like stained woods or bespoke textures must be constructed with care from the outset. If shoddy work is done, there’s no hiding it with a quick fix.

Labor: Specialized work requires skilled tradespeople who understand how to execute these custom elements to perfection. This level of care and attention can’t be rushed or cheaply done.


Tools and Craftsmanship


It’s easy to overlook the fact that many of the tools we use to bring your project to life have a limited lifespan. Precision tools, like saws with sharpened blades, need frequent replacement to ensure that every cut is clean and every finish is flawless. Maintaining this high standard comes with costs that are built into the cost-plus model.


Moreover, when we need to source custom materials—whether it’s a particular type of wood or a specific finish that’s hard to find—there are logistical challenges involved, from securing the right product to managing delivery schedules. These efforts require time and expertise, which are factored into the “plus” side of cost-plus.


The Value of Expertise


It’s important to remember that you’re not just paying for materials—you’re paying for the expertise, time, and craftsmanship that go into making your project unique. Every decision, from the type of wood we choose to the tools we use, is carefully considered to ensure the final result is perfect. This level of care is what sets us apart, and it’s why cost-plus billing ensures that every part of the process is accounted for.


At Staging is the Secret, we believe in being transparent about the costs involved in creating something truly special. We’re committed to delivering quality work, and that means investing in the right tools, materials, and expertise for each project. If you have any questions about how we bill or how we can bring your next vision to life, don’t hesitate to reach out.


— Greg