Two significant events in the past 17 years have defined and shaped how kitchen and bath dealers market their products and services. One was the 2007-2009 Great Recession, and the other was the COVID-19 pandemic. Both events forced dealers to adjust and modify their business and marketing strategies.
The financial crisis that triggered the Great Recession of 2007-2009 caused a housing crisis that significantly impacted the kitchen and bath industry. Overnight dealers had fewer customers and saw their sales numbers rapidly deteriorate. Having fewer customers meant selling more products to the remaining clients or adjusting budgets to reflect a decrease in revenue.
Savvy dealers embraced adding more products to their offerings to sell to a dwindling customer base. This initiative, however, required accelerating product knowledge and promptly adopting these new products into their offerings lest they witness further revenue decline. Suddenly, many add-on products appeared in showrooms nationwide; lighting, tile, stools, closets and plumbing products appeared alongside cabinetry and countertops. These additional offerings were a boon for consumers, elevating a one-stop shopping experience for homeowners.
COVID created another challenge: maintaining showroom traffic and revenue and overcoming the fear of consumers who wanted to limit in-person visits. Virtual meetings and video technology, once considered a fringe item, became an overnight necessity. Zoom communication went from an obscure technology to an industry darling; ditto for Microsoft Teams and similar platforms.
Both events served a purpose and created an opportunity for dealers to navigate through those uncharted waters – mainly to support the research that consumers love showrooms where they can select all of their kitchen/bath products under one roof.
The Allure of One-Stop Shopping
Establishing trust and confidence with a prospective client is foundational for the convenience of purchasing more materials under one roof. Continuity in design advice and material selections assures customers of a successful outcome, saves them time and avoids delays, confusion, potential errors and lost money. The sales designer becomes the communication link between what is designed, selected, ordered and installed. Placing those responsibilities with a trusted source also delivers a peace-of-mind experience in what most experts agree is the most complex and expensive remodeling project in a home.
The appeal of a one-stop shopping experience lies in its ability to streamline the selection process. In the showroom, customers can peruse various products – from cabinetry and countertop materials to faucets and lighting fixtures – all in different styles and configurations. Showrooms also serve as a hub of inspiration, allowing homeowners to visualize how various elements and design techniques can be arranged to create a cohesive and aesthetically pleasing space.
From a sales designer and dealer perspective, providing most of the products that go into a project also has enormous benefits. First, adding more products to a sale is much easier and less expensive than going out and finding another client. Second, the gross margins on lighting, tile, stools and window coverings can be as high or more than cabinetry. Third, the uniqueness of some products, such as built-in coffee makers, water filtration systems and drawer refrigerators hold consumer appeal and a marketing opportunity. Finally, the effort to sell these add-on products is minimal when the client’s trust is already won.
I recall a visit from a window-covering sales rep to our showroom. The rep presented photos from our website of completed projects and asked if anything needed to be added to complete the look. I was drawn to the project’s lack of window coverings, sheepishly admitting an item we could have provided to make the project more visually appealing.
Traditional showrooms continue to influence; however, showrooms are generally smaller in square footage than 17 years ago, making it difficult to showcase the breadth and depth of a dealer’s offering. The digital age has ushered in a new era of possibilities, both for the customer and the designer.
My daughter and son-in-law have an outfitting business and have successfully leveraged technology. They manage their operation through the devices they hold in their hands. They can be anywhere and check on orders, reservations, cash flow, profitability and even water conditions. They have a pulse on their business without being present in their physical location.
Can you imagine a scenario like that in our industry? Can a prospect inquire about a project from you and have their space designed and priced without the assistance of a sales designer, regardless of the time of day? Perhaps even at 3:00 a.m.?
It’s time to embrace technology and use the tools and resources to transform homeowners’ interactions with kitchen and bath products.
Bridging Two Worlds
Virtual showrooms, augmented reality (AR), virtual reality (VR) and immersive online experiences bridge the gap between the physical and digital worlds. Evidence supporting technological advances was displayed throughout the recently completed Kitchen & Bath Industry Show. These technologies allow homeowners to research, investigate and explore myriad options and visualize them within the comfort of their homes.
Virtual showrooms and 3D visualizers can build a floor plan in minutes, design a kitchen from inspirational pictures furnished by the customer, and provide budget analysis, all without leaving their homes. Accessibility is the key; no longer bound by physical constraints, homeowners can explore design concepts and products for their homes from anywhere in the world. This accessibility allows them to understand how each element fits into their personal spaces at an investment range that fits their budget.
Augmented reality offers another transformative experience for homeowners. Customers can visualize products within their homes when virtual products are superimposed onto their spaces. For example, a prospect can see how a specific faucet looks when overlaid onto their existing sink. Similarly, that same prospect can review different countertop options, tiles and even cabinet styling and finishes and how they complement the other rooms throughout their home.
Technology is rapidly evolving, and the possibilities for creating an exceptional showroom experience are boundless. The digital age is here to stay. Those dealers who embrace and leverage technology will experience a profound transformation by (a) redefining the boundaries of creativity, (b) taking the prospect off the market quickly, (c) differentiating themselves in the marketplace and (d) providing convenience and time savings for the customer. ▪
Dan Luck owns Bella Domicile in Madison, WI and has been an SEN member since 2002. He has led the SEN Leadership Team since 2018, conducting scores of the group’s educational programs. Visit http://sendesign
group/education for more information. Dan welcomes questions and comments at [email protected].