Knowing how to get more jobs sold efficiently throughout the year means better service to your clients, more gross profit, and ultimately a bigger paycheck for yourself. The ways to earn more gross profit for your hard work are out there. They’re documented, viable, and geared for your kitchen and bath business.
SEN predicts you will be able to charge up to 40% more, and that alone is a great reason to attend the next SEN regional seminar — but we’re going to give you two additional reasons to register now.
#1—Discover the right price for each job
It is essential to have the correct price formula to increase profitability. Getting the right price for each job is the number one reason owners and salespeople should attend the next SEN regional seminar and it is well worth the investment.
We have seen that most owners don’t recognize the connection between their annual operating budget and the pricing of kitchen and bath projects. Indeed, research shows that 83% of dealers don’t prepare an annual budget.
SEN has noticed that owners who develop an annual budget don’t develop one comprehensive enough, which is detrimental to their business!
Most owners are pricing their jobs one of three ways:
- They use the same markup for a job they did when working for someone else
- They follow what their rep tells them other dealers charge for their product
- They set their prices at whatever the local market will bear
RICKI reported a few years ago, the average kitchen and bath business gross profit margin is a paltry 29%. The truth is the kitchen and bath industry can do better than that. SEN observed that most kitchen and bath companies are still under-pricing their jobs by as much as 15-20% in 2021… and owners are still underpaying themselves by 25-35%!
Making a solid profit and building up retained earnings are essential for consistent company growth and long-term employee well-being. SEN advocates a mathematical roadmap for making a solid gross profit — a key takeaway from our regional seminar. We have seen these changes significantly improve kitchen and bath operations. It’s time to make it work in yours. Carve out time to develop an annual budget to see larger gross profit in 2022.
#2—Develop a Disciplined Approach and Double Your Sales in Half the Time
Too many kitchen and bath companies operate with three or four different individual selling approaches — this lack of centralized organization can confuse the prospect — potentially throwing gross profit out the window.
It’s time to tighten up the ship! To scale up your business, you have to deliver a consistent experience for anyone doing business with your company, regardless of which sales designer your prospect engages.
Consider your target consumer:
- They’re college-educated at minimum
- They want to be informed, not sold, so that they can make the right decision for themselves
- They greatly value the productive use of their time
- They respect superior professionalism
- They are willing to pay more for service when there is verifiable proof of value
- They want excellent, quick service of high-quality products
- They understand lower prices are not better — they’re merely cheaper goods
Put the power of informed choice into the hands of your prospects, and they will reward you with bigger purchases — and be happy they did it!
Quicker answers, higher gross profit
Imagine getting retained for a job at the end of your first two-hour meeting. A Good-Better-Best approach to selling with innovative technology allows all sales team members to be successful, whether they are new hires to the industry or veteran designers — eliminating an imbalance among your employees while still being faster than your competitors.
When you shape your sales process around the needs of your prospects, you’ll get what you want in return — a fast, efficient sale. Think of the income you will earn when everyone on your sales team receives a definite “no,” or a fat retainer in just two hours! Embrace it. It’s the future — and it’s already started.
Going for the “no” is equally important as going for the “yes.”
If the prospect decides to walk — they walk away with the hard numbers in their hands. And because of this, they are likely to return to your company for the job when they’re ready. In the meantime, you move forward, wasting no further time, and receive retainers from prospects that are ready to move forward.
By delivering superior customer experience, prospects trust your professionalism and service — and are more than willing to pay more for an outstanding kitchen and bath redesign job.
As if one reason wasn’t enough to attend this high-powered regional seminar — now you have three reasons to attend! Join us at the next SEN One-Day Regional Seminar and grow your business. Contact Shannon Blair or Skyler Ille for more information.
—The SEN Leadership Team