What's your business model?


How does Laurel & Wolf make money?

The company charges a flat fee per room, takes a 25% percent cut from each project

Innovation series by Steven Loeb
September 24, 2016 | Comments
Short URL: http://vator.tv/n/475e

Editor's Note: Our 6th Annual Vator Splash LA conference is coming up on October 13 at the Loews Hotel in Santa Monica. Speakers include Mark Cuban (one of the hosts of Shark Tank and owner of the Dallas Mavericks); Leura Fine (Founder & CEO, Laurel & Wolf ); Nick Green (Co-Founder and Co-CEO, Thrive Market); Tri Tran (CEO & Co-founder, Munchery); Andre Haddad (CEO, Turo); and many more. Join us! REGISTER HERE.

I've lived in my apartment for almost five years, and I've never decorated it or hung anything up. I have stuff I could put on the walls, like my autographed Yogi Berra picture, but if I move I'll just have to take it all down again, so what's the point?

The truth is I also don't really have an eye for it, so I'd need to hire someone to help me out.

Luckily, there's Laurel & Wolf, a provider of online interior design and decorating services to help users design their homes.

Users begin by taking a quiz so that the company can learn more about their unique design style. They then fill out a design brief which the company describes as "your opportunity to tell our designers what you love about your space and where you want to go. Answer a few questions, upload photos, and sketch out your floor plan to get our designers started."

Questions include about the space, how they'll live in it, and their needs and their budget for each room they want designed.

Once all of that is done, and Laurel & Wolf knows what the customer wants, then they get down to picking a price plan.

The company offers three design packages, in which users pay a one-time flat fee that includes the entire design process from start to finish. Laurel & Wolf takes a 25 percent cut of the fee, while the rest goes to the designer. 

  • Classic Package, which matches the customer one designer, and comes with unlimited revisions during design time and concierge shopping service. Once the project launches, the designer will reach out to connect on project details and submit an initial concept.  It costs $199 a room.
  • Signature Package, where customes rceive design concepts from three designers who submit concepts fir review. The customer gets to select theur favorite from those that submitted. It costs $299 a room. 
  • Premium Package, which gives customers access to "premium designers," which include Ellie McIntosh, Kimberly Valente, Brittney Jeffers, Lauren Messina, Niki Landry and Emma Deroche. 
  • Three different Premium designers will submit concepts for review and the customer gets to select their favorite. It costs $499 a room.

Customers can also set a furniture and accessories budget that the designers will work within, and Every Laurel & Wolf customer gets free use of its personal shopping assistants.  The only fees are a 6 percent charge to cover average retailer shipping charges and a 9 percent charge to cover applicable sales taxes, as well as credit card processing fees.

Laurel & Wolf also offers designers for business spaces with its Commercial Package. There are no flat fees for the Commercial Package; users have to request a quote. 

Projects normally take around 10 day to complete. 

Founded in 2014, Laurel & Wolf has raised $25.5 million in venture funding from Arena Ventures, Benchmark, CRV, Draper Associates, Karlin Ventures, Paige Craig, Structure Capital, Upside Partnership and Wavemaker Partners, among others.

(Image source: laurelandwolf.com)

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