Alright – so today we’ve got the honor of introducing you to Brett Carlton. We think you’ll enjoy our conversation, we’ve shared it below.

Alright, Brett thanks for taking the time to share your stories and insights with us today. Let’s jump right into the heart of things. Outsiders often think businesses or industries have much larger profit margins than they actually do – the reason is that outsiders are often unaware of the biggest challenges to profitability in various industries – what’s the biggest challenge to profitability in your industry?

One of the significant challenges we encounter in the architecture and design industry regarding profitability revolves around three main factors: competition, time, and scale. As a service-based industry, we are surrounded by many talented creatives offering similar services. While this diversity is a strength, it also means that, unless a firm is among the most sought-after, many will compete for projects that prioritize budget over unique design approaches. This competition can lead to a decrease in the value of contracts for all but the top firms.

In addition to competition, the relationship between time and scale further complicates our profitability. Our services are fundamentally tied to the time we invest—essentially, we are selling our time and creative output. If we are not actively engaged in producing work, there is little to sell for profit. While some firms may enhance efficiency by hiring less experienced staff, this approach still relies heavily on the model of selling time.

This reliance creates a significant challenge regarding scale. As firms stratify their workforce based on experience and profitability, they become increasingly dependent on hiring more personnel and pursuing additional contracts to sustain operations. This can result in accepting less profitable projects simply to keep the lights on. Given the finite nature of time and the constraints of our current business model, the industry struggles to achieve meaningful profit growth beyond hiring more time and gaining bigger contracts.

To address these challenges, it is essential for our industry to reevaluate how we perceive the product of design. Architects and designers, who are trained in the nuances of design, often find themselves sidelined in a market where developers, home furnishing brands, and real estate teams have successfully adopted a product-based business model. While we share some responsibility for this dynamic, a shift towards marketing design as a product could unlock new avenues for profitability and growth.

Brett, before we move on to more of these sorts of questions, can you take some time to bring our readers up to speed on you and what you do?

For those who may not be familiar with me, I began my journey as a traditional architecture student. Growing up, I was always creative, but I also excelled in math and sciences, which sparked my interest in how things are built. I found joy in exploring houses and buildings from various time periods, and this blend of creativity and curiosity naturally led me to pursue a career in architecture.

After a decade in the industry, I found that while it has been a fulfilling professional path, it often lacks the financial rewards that match the level of creativity and effort required. This realization, combined with my desire to innovate, led my wife—who is an interior designer—and me to team up and create Marlo and Kroft.

As a young company, we initially adopted a traditional design firm approach, focusing on both architecture and interior design. However, we have since expanded our team to include a creative director, and together we have developed a unique design philosophy we call “character design.” This approach allows us to treat each project as its own distinct character focused on the personality of that project, requiring a tailored stylistic approach. While we tend to favor a modern aesthetic, we genuinely enjoy the challenge of working with clients who inspire us to explore different design directions.

What we hope will truly set us apart is our commitment to offering design as a product, rather than just a service. We aim to reach a broader audience and reduce the time spent in the office, all while enhancing people’s lives through well-designed spaces. We believe that thoughtful design can significantly improve quality of life, yet the traditional model often limits our impact to individual client contracts.

We still cherish the relationships we build with clients and the rewarding experiences that come from tackling everyday challenges together. However, our primary goal is to leverage our creativity to develop finished products that people can enjoy. While our vision for reaching a wider audience is still evolving, we have exciting projects in the pipeline that we hope will allow more people to experience thoughtfully curated spaces in their daily lives.

Let’s talk about resilience next – do you have a story you can share with us?

You know, our journey really began through a connection with a colleague who had a strong desire to serve a client but didn’t have the capacity for both some of the professional nuances and the time required to serve the client’s projects. We stepped in, eager to help, but over time, we found ourselves in a situation where we were giving more than we were getting back. It felt like we were being taken advantage of, and that was tough to swallow.

After some time had passed since we ended that partnership, we took a step back and realized just how much effort we had poured into those design contracts. We were working hard for very little in return, and it became clear that we weren’t gaining the recognition or opportunities we deserved. In fact, we even had to take the difficult step of suing to collect some outstanding fees. It was a challenging experience, especially knowing that our designs were still being used by that colleague and the client without us seeing any of the benefits.

Looking back, it’s hard to say we wouldn’t do it all over again. Sometimes, you have to go through tough situations to learn valuable lessons. What we really want to emphasize is the importance of recognizing the true value of what you offer. It’s essential to believe in your worth and ensure that it’s acknowledged. Resilience is all about learning and growing from those experiences, and we’re grateful for the lessons we’ve learned along the way!

What’s worked well for you in terms of a source for new clients?

One of the best ways we’ve been able to attract new clients is through the strong relationships we’ve built over time. Our team’s hard work and dedication in past projects have really made an impression on our colleagues. As they’ve moved forward in their own careers, they’ve remembered the positive results we achieved together and have kindly recommended us for new opportunities. It’s truly rewarding to see how those connections have opened doors for us in the design world!

Contact Info:

• Website: https://www.marloandkroft.com
• Instagram: https://www.instagram.com/marloandkroft/
• Facebook: https://www.facebook.com/marloandkroft/

Image Credits

Brett Carlton