“Leadership is an ever-evolving position.”
Even as late as 2022, most kitchen and bath firm owners still need to adopt a centralized selling system for their business model. A centralized selling system will improve your customer service by saving your designers from presenting your prospects with different ways to buy from your firm. This time-saver will generate more yearly client commitments and boost gross profit margins.
The factors of successful selling – speed, reliability, and transparency – result from buyers’ expectations of excellent service. Owners can now deliver these key ingredients to the consumer and earn higher gross profit margins. In this post, discover five ways to save time and make a higher profit by giving kitchen and bath buyers what they want.
Win #1: Transparent budgeting saves time
Kitchen and bath sales have long passed the era of ball-parking costs for prospects and taking weeks to deliver a quote. Transparency is the vanguard of today’s first-rate businesses, and transparent selling is a game changer in the kitchen and bath industry. The bottom line is that adopting a centralized selling model will earn your firm higher gross profit margins and save you and your team a ton of time.
A centralized selling system means speed, reliability, and transparency to the prospect and gives them confidence that the firm they’re talking to is the right one for the job.
It’s no secret that consumers will pay more for outstanding products and services. This concept plays out in virtually every area of business today. Transparent budgeting puts your prospect in control. The sales designer is merely a guide leading buyers to what they want.
Consumers want product knowledge and a few choices for comparison, control, and guidance. Prospects who have positive shopping experiences upsell themselves. It’s common to see clients willing to spend $75,000 on a new kitchen paying $90,000 for their kitchen because they spare no expense getting what they want.
Your sales designers can deliver an accurate budget range in a two-hour meeting! Done correctly, it’s all that is needed to win a prospect’s commitment.
Win #2: Sell more in less time
Imagine the sales your firm could generate in a year if your designers discover within thirty minutes whether they have a qualified prospect or a miss. This is a significant advancement from having to wait two weeks or so to determine whether or not a prospect is a good fit for your firm.
Two huge benefits arise from saving time:
- Your sales designers will close double the number of projects in a year
- Your firm will project at least double annual sales orders
Think of how much more productive your team will be when you’re saving up to 75% of the time needed to earn client commitments.
Win #3: Quickly master the selling process
Imagine how easy it will be to get everybody on board and in the right seats when your team uses a centralized selling system.
Your firm will:
- Start new accounts quickly and log them so they can be seen by anyone else immediately
- Quickly identify wherever sales designers are missing the mark, and come up with a strategy to streamline their hangups
- Attract new talent to the showroom
- Increase your team’s productivity by significantly increasing closing percentages
We think a centralized selling system will level up your firm’s professionalism and raise the standard of service in the kitchen and bath industry.
Win #4: Scale your business faster
Imagine your sales team working in concert faster and more efficiently, generating more jobs each year and thus earning your firm a higher gross profit margin. A centralized sales system means more than just improving your firm’s bottom line.
When core business functions are centralized, firms see profound benefits.
- Scale your operations with satellite showrooms
- Through economies of scale, satellites could be earning 15%-18% pretax net profit
- Charge up to 40% more for your products and services
- Improve your owner’s returns by over 200%
As the owner of a firm with a centralized selling system, you’ll soar past your competition to scale your business in a few years rather than a couple of decades or longer. Owners will also leverage more buying power from vendors and increase their rebate earnings by surpassing $100,000 annually.
Win #5: Your business will strengthen your vendors’ businesses
On top of sales soaring past your competition, your vendors become direct beneficiaries of your success. Here’s how it typically pans out:
- From your firm’s increased sales, orders to your chosen vendors are raised
- Your account will grow faster than your vendor’s other customers
- Your firm will be a preferred buyer to vendors
- Your increased sales will support your firm and the vendors you buy from during recessions
- By influencing other firms to purchase from the same vendors you trust, all SEN member’s rebate percentages increase
With a centralized selling system, your firm is closer to being a kitchen and bath industry leader. Since your firm’s gross profit depends upon serving your client’s needs first, aren’t your clients’ needs worth the investment?
—SEN Leadership Team
Master strategic planning, selling more into each job, leveraging technology, Good-Better-Best selling, and other intelligent implementations at one of SEN University’s valued online business courses. Or contact us to attend our in-person schools.