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Selling Appliances for Kitchen and Bath Business Growth

“Growth and comfort do not coexist.”

—Ginni Rometty

Can your clients buy everything they need for your remodeling projects, or do they get their kitchen remodeled from your firm and pick up their appliances at a Home Depot?

Have you experienced a prospect buying their kitchen from you but picking up their appliances from another kitchen and bath showroom across town?

Have your designers lost a bathroom remodel client to a competitor because they provided all services in-house? What keeps your clients returning to your firm instead of going elsewhere for their next remodeling project?

It’s time to start thinking broader to grow your kitchen and bath firm’s business.

Diversifying in a buyer-specific market

Diversification is always a good policy for business. It can be a saving grace during economic downturns. Many kitchen and bath firm owners did not survive the Great Recession because they relied too heavily on the builder market.

History is on your side if you target your firm’s growth within the industry’s two major markets:

  1. 75-80% of business in remodeling projects.
  2. 20-25% of businesses select builders and remodeling contractors.

The 80-20% rule is a smart way to balance the scale. While the building market can be more lucrative than remodeling due to scale, it’s also more susceptible to sharp dips of inactivity.

Why appliances should be part of the complete package

The big box stores have cheapened the word ‘convenience.’ Many firm owners think that the idea of the consumer getting everything they need for a remodeling job in one place means that it’s done at the expense of expertise, customization, and gross profit margin.

We believe selling appliances improve kitchen and bath firm brands. Displaying and selling high-quality appliances demonstrate your prescient thinking to prospects and clientele.

It just so happens that most firm owners believe they shouldn’t sell appliances because they can’t earn more than 10-15% gross profit from them. But is that a good reason to avoid tapping into the auxiliary market? No, it’s not.

Research has shown that people frequently get their kitchens remodeled because one of their appliances stops working! That’s why during an economic downturn, consumers will still look into having their kitchen remodeled. Put yourself in your client’s shoes.

Clients have the image of their finished dream kitchen in mind before they visit your showroom. Everything from countertops to cabinetry to the refrigerator’s finish and crystal in the cupboards is in their mind. Sure, their vision will change as they review their options, but most prospects are very particular about the look they want for their new kitchen.

It’s time to start thinking of what you can make in every corner of the kitchen and bath remodeling business. How many prospects do you think you’ll lose if you don’t have state-of-the-art appliances on your showroom floor for consumers to inspect?

Ramp up the auxiliary market

Using SEN Business School’s recommended shock-proof presentation method, the 18-25% gross margin you’ll earn from selling appliances does more than lighten the balance of your overhead.

Clients value excellent service, experience, and knowledge much more than paying lower prices. Selling appliances shows the customer you’re placing their convenience at the forefront of your service.

  • Allowing your staff to integrate design concepts around the products your clients want
  • Fine-tuning your staff to be consultants with a masterful knowledge of the appliances you carry
  • Have your team informed about the products that will be on the market shortly
  • Including them in your displays encourages clients to spend more with your firm; well-chosen appliances sell themselves

While good selling involves upselling, our industry’s approach to upselling is outdated.

Think in terms of the profit margin of the entire remodeling job. When you’re selling appliances, you’re not making a mere 10-15% gross profit on ranges and refrigerators – you’re making a potential 45-50% gross profit on the entire job.

Being perceived as an incredible value isn’t just in the talent of your designers, the expertise of your installers, and beautiful high-quality cabinetry. It’s in the delivery of the entire package to the client.

  • Company reputation
  • A well-curated showroom with beautiful cabinetry and well-chosen appliances
  • Good-Better-Best educational selling system
  • The use of the latest technologies
  • A superior customer showroom experience

When all of these factors are in place, your firm can deliver everything your client needs.

Prospects have a vision; it’s up to you to provide the service. Give your clients everything they need and then some. They’ll come back to you – and they’ll bring their friends. If you are interested in learning about our educational services, reach out to Shannon Blair.

—SEN Leadership Team