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Business Strategies

Advertising Remains a Must in a Tough Economy

Business Strategies

Thompson Price, CMKBD

By Thompson Price, CMKBD

June 2009

For the show, you don’t have to have the biggest display, the most products or the fanciest booth. What you need is something that represents you and is tastefully done. I’ve had everything from a small 10'x10' display with one kitchen and bath to a 40'x40' display with four kitchens, bath displays, appliance arrangements and a cooking demo.

Interestingly, you don’t always need cabinet displays to be successful. At this show, we had a nice decorative island about 60"x36" in a glazed painted finish with some features such as built-in wastebasket, roll-out shelves and touch latch doors with a 1-3/4" solid wood top. We also had a small island with a butcher block top and an open area below. We had a round table with four chairs and a wall system that showed our design system.

Instead of showing cabinets in a kitchen or bath setting, we decided to show people what it takes for a successful kitchen or bath. We presented our questionnaire, design retainer, floor plans and perspective drawings, as well as the cost breakdown and all things related to the project. We had pictures of projects so people could view the process from beginning to end.

The cost of doing a booth like this – a 10'x20' booth for four days – is around $2,500. Certainly, the larger the booth, the more expensive it is, but you should only take the size booth that you need to show your products or get your ideas across to customers.

DIFFERENTIATE YOURSELF

At home shows, many attendees ask: “What are your credentials? What do you do that the guy down the street doesn’t do? How is your firm better?”

To give the best responses to these questions, you need to separate yourself from the flock. What can you bring to the table that your closest competitor can’t? Are you really good at design, or do you have a product that is very popular and you are the only company that carries it?

To start differentiating your firm, here are some suggestions:

  • Offer full-service remodeling. Have your firm handle the purchase of the cabinets, countertops, appliances, flooring and maybe even provide the painting, as well. Put yourself in the shoes of your customer.

    I have heard kitchen and bath dealers tell me they don’t sell appliances because they cannot make enough margin of profit to make it worthwhile, while others don’t do floors because they think there’s too much work involved. What we need to do is decide if we are in the kitchen and bath remodeling business or are we just suppliers of product.

    If you’re in the full-service business, then be full service. Find a way to get the appliances for your customer. Don’t worry about the lower mark up; you can still make a worthwhile profit and, more importantly, keep control of the project, which in the long run can save money or make you more profit. If you don’t handle flooring or painting, find a flooring company or painting company that you can work with to complete the project for your clients. And remember to advertise that you do this for your clients.
  • Offer in-store seminars about how to purchase a new kitchen or bath. Help homeowners learn what the process is and how they should proceed. Offer to do talk shows on your local radio stations, or write a column for your hometown paper. Send them photographs of projects you have done. Put together a PowerPoint presentation to give at home shows that exploits your expertise. Take advantage of the many ways you can get your message out to consumers.
  • Advertising is a must. Call your ad reps and see what they are willing to do to help you succeed. You may be impressed with what is available in these slow times. Remember, the advertising you do today is generally not for today’s sale, but for the times ahead. Let the consumer know who you are. When they are ready to buy that new kitchen or bath, they will have you top of mind.

Thompson Price, CMKBD, CR, of Kitchens, Baths & Home LLC, has worked in the remodeling industry since 1971. He’s been an NKBA national board member and educator, and is the v.p./membership for the Houston, TX-based BKBG.

Members of the BKBG address business strategies for dealers in a regular bi-monthly column, appearing exclusively in KBDN.