The Industry Secret: The "Shell Game" of Commercial Interiors

Here is the blunt truth: If a furniture dealer offers you "free design services," you are paying for it. You just can't see where.

In Southern California’s competitive commercial market, many dealers present a "Bundled Proposal." They wrap design, procurement, installation, and the furniture itself into a single, digestible bottom-line number. It looks convenient. It feels efficiently "turnkey."

But in reality, it is a profit engine designed to obscure margin. The "free" hours spent designing your office are recovered by inflating the line-item cost of every desk, chair, and cubicle panel. Because the bid is bundled, you lose the ability to line-item audit the project. You aren't paying for value; you are paying for a lack of transparency.

How the Rip-Off Works

1. The "Preferred" Spec: A bundled dealer will only specify manufacturers they are incentivized to sell (often their own "private label" or primary line). You miss out on lower-cost, higher-quality alternatives because they aren't in the dealer's catalog.

2. The "Project Management" Padding: Installation and logistics are often quoted as ambiguous lump sums. When site conditions change (e.g., a Downtown LA building enforces a strict 6:00 PM elevator window), the dealer hits you with a Change Order because the original scope was intentionally vague.

3. The Markup Multiplier: Instead of charging you $150/hour for design, they add a 4% margin to a $500,000 furniture order. You pay $20,000 for "free" design without realizing it.

The Independent Advantage: Why Neutrality Wins

CPM One Source is not a furniture dealer. We are Vendor Neutral.

We do not sell furniture. We do not receive kickbacks from manufacturers. This simple distinction changes the entire financial structure of your project. When we manage a relocation or renovation, our only incentive is to execute the project on budget.

What Unbundling Delivers:

• Transparent Procurement: We solicit competitive bids from multiple manufacturers. You see the List Price, the Trade Discount, and the Net Cost. There is no hidden margin.

• Agnostic Design: We match products to your needs, not our inventory. If a specialized task chair from a niche brand fits your ergonomics better than the "Big 3" dealer option, we specify it.

• Competitive Labor: We bid out the furniture installation separately. You can choose the installer based on price and capability, not because they are attached to the furniture purchase.

Illustrative Case: The "Turnkey" Trap

The Scenario: A professional services firm leases a floor in Century City. A dealer offers a "Turnkey Package" for 120 workstations: Design, Furniture, and Install for one flat fee.

The Dealer Approach (Bundled):

• Spec: 100% "House Brand" furniture.

• Logistics: "Standard Delivery" included.

• Hidden Cost: When the building manager requires a "Sunday Only" load-in (common in Century City), the dealer issues a $12,000 Change Order because "Standard Delivery" implies weekday hours.

The CPM One Source Approach (Unbundled):

1. Design: Billed as a fixed fee. You own the plans.

2. Procurement: We issue RFQs to three different manufacturers. You select the best mix of price and aesthetics.

3. Logistics: We identify the Sunday restriction during the bid phase. We negotiate the commercial moving and installation labor with that specific overtime rate baked in.

4. Result: No change orders. No hidden markups. Total project savings of 12-15% vs. the bundled bid.

The Takeaway: Demand Line Items

If a vendor offers "free" services, assume those costs are hidden elsewhere. In a high-stakes market like Los Angeles, a single conflated number sacrifices competition.

The "CFO Checklist" for Your Next Bid:

• [ ] Separate the Fees: Ask for design, product, and labor to be priced as distinct line items.

• [ ] Demand List Prices: Ask to see the Manufacturer List Price and the specific Discount % applied to your project.

• [ ] Verify Installation: Is the labor bid fixed based on actual building access rules (elevator windows, parking), or is it an estimate subject to change?

At CPM One Source, we unbundle the chaos. We protect your budget by selling expertise, not inventory.