Trade Tales: How Eliminating a Markup Has Fueled Bella Mancini’s Creativity

Episode Release Date: May 21, 2025

Host: Kaitlin Petersen, Editor-in-Chief of Business of Home

In this insightful episode of Trade Tales, Kaitlin Petersen sits down with renowned interior designer Bella Mancini to explore how a pivotal shift in her business model—eliminating traditional markups—has not only stabilized her firm's financial footing but also unlocked new levels of creativity. Below is a detailed summary of their engaging conversation, complete with notable quotes and timestamps.

1. Bella Mancini’s Journey into Interior Design

Bella Mancini shares her unconventional path to becoming an interior designer, highlighting the challenges and serendipitous moments that led her to the profession.

• Transition from Fashion to Design:

  [02:43] Bella Mancini: "Most designers are thinking about design like 90% of their day, so I really hated the fact that I felt like we were losing time."
  [03:16] Caitlin Peterson: "I had a boss who was, like, not awesome. And one day, I just had enough. I walked out of the office one day, and I was like, I quit."

• Taking the Leap:

  [03:44] Bella Mancini: "Make your favorite hobby a career. Like, if you can do that, you've, like, struck gold."

2. Early Business Growth and Recognition

Bella discusses the formative years of her design firm, the initial success, and the role of early press in establishing her reputation.

• Building the Firm:

  [05:22] Bella Mancini: "We got our first interior design client with a $5,000 budget."

• First Media Feature:

  [05:33] Caitlin Peterson: "She wrote the first piece of press about us in New York magazine that year."

• Establishing Clientele:

  [07:08] Bella Mancini: "I started getting really serious about the kinds of staff members I was looking for. I got pretty clear about what kind of clients that we wanted."

3. The Impact of the Pandemic

The conversation delves into how the COVID-19 pandemic severely affected Bella's business, forcing her to make difficult decisions and rethink her strategies.

• Pandemic Challenges:

  [19:21] Bella Mancini: "The pandemic, wow, that was fun."
  [19:57] Bella Mancini: "As embarrassing as it is to admit, I did not have good cash reserves."

• Personal Struggles:

  [20:03] Caitlin Peterson: "I... had to lay off pretty much everybody but her."

4. Overhauling the Business Model: Eliminating Markup

Bella explains the critical decision to eliminate traditional markups and adopt a flat fee plus production fee model, guided by business coach Sean Lowe.

• Consulting with Sean Lowe:

  [24:16] Bella Mancini: "Sean helped me completely rework the way we build, the way I thought about my business, about knowing my value."

• Transitioning Billing Practices:

  [24:35] Caitlin Peterson: "He helped me, like, completely rework the way we build, the way I thought about my business."

5. Benefits of the New Billing Model

The new flat fee plus production fee structure has transformed Bella’s approach to client interactions and project management, fostering transparency and trust.

• Freedom and Clarity:

  [27:27] Bella Mancini: "I felt like we were losing time... but I also felt like I hated the fact that I was being nickel and dimey with people."
  [27:55] Caitlin Peterson: "We also charge what we call a production fee, and that is instead of a markup fee."

• Client Relationships:

  [30:32] Bella Mancini: "What it's going to cost... I can put together a really strong budget for them right at the get-go."

6. Team Structure and Roles

Bella highlights the importance of a dedicated and cohesive team, detailing the roles of key members and how they contribute to the firm's success.

• Key Team Members:

  [34:20] Bella Mancini: "Kat is our phenomenal production person."
  [35:03] Caitlin Peterson: "She really runs the projects in terms of the timelines."

• Collaborative Environment:

  [37:41] Caitlin Peterson: "We are able to make sure that everybody's doing what's in their zone of genius."

7. Employee Growth and Development

Bella emphasizes fostering a supportive and inspiring work environment to ensure team satisfaction and professional growth.

• Encouraging Inspiration:

  [40:07] Caitlin Peterson: "I encourage them to get out often. We've been to Milan together and sent team members to design events."

• Creating a Positive Workplace:

  [41:17] Bella Mancini: "We all like each other a lot. We're genuinely friends in our office."

8. Reflections and Advice

In wrapping up, Bella offers valuable advice to fellow designers on financial management, billing models, and maintaining authentic client relationships.

• Financial Prudence:

  [45:25] Bella Mancini: "I wish I had started a 401k earlier."
  [46:08] Caitlin Peterson: "I wish that I had socked away the six months of emergency fund that everybody should have."

• Authentic Relationships:

  [47:02] Bella Mancini: "I have zero aspirations to have my name on a product... I just want to do great work and make people super happy with the homes we designed."

Conclusion

Through strategic financial restructuring and a focus on authentic client relationships, Bella Mancini has successfully navigated her interior design firm through turbulent times, emerging stronger and more creative. Her story offers invaluable lessons on resilience, adaptability, and the importance of aligning business practices with personal values.

Notable Quotes:

• "[27:34] Bella Mancini: I just didn't want to do that. And working on a flat fee, it frees me up to just think about it whenever I want, however I want."
• "[30:32] Bella Mancini: I can tell them right away what it's going to cost. I know exactly what it's going to take, how many months it's going to take, what it's going to cost, and I'm able to put together a really strong budget for them right at the get-go."
• "[49:16] Bella Mancini: I just want to keep making beautiful homes for really nice people. I have really super, super lovely clients. And that feels pretty darn successful, I have to say."

For more inspiring stories and industry insights, tune into Trade Tales each week on Business of Home and follow Kaitlin Petersen for the latest in interior design trends and business strategies.