It’s 6:30 a.m. on a summer Tuesday as I pull into my parking spot for an early meeting with the management team. Like many mornings, my commute included a call to the local hotline to report an illegal campsite outside our Portland showroom, located in what used to be the bustling Pearl District. That same morning, I overheard a customer tell her sales associate she no longer feels safe visiting the showroom and would rather make her future purchases remotely.
This issue isn’t unique to Portland. Cities across the world are facing challenges related to increasing crime and the presence of unhoused individuals, creating an environment where customers may feel hesitant to visit urban showrooms. While it’s easy to focus on the changing dynamics of our cities, the key takeaway here is how this affects customer behavior and our business model. This is just one of many reasons why customers are rethinking whether they need to step into a physical showroom at all.
I’m confident many dealers across the industry are noticing a similar trend. Our three Pacific Northwest showrooms have experienced a drop in foot traffic, yet business hasn’t slowed down. Our phones are ringing constantly, and our inboxes are overflowing with inquiries, but our showrooms themselves are often quiet. Sales teams are spending most of their time managing emails and phone calls, leaving fewer staff available to assist walk-in customers without an appointment. The reality is, even though business is steady, we can no longer rely on walk-ins to fill the showroom floor like we used to.
This shift has already impacted customer perceptions of service. During and shortly after the pandemic, our Google review rating dipped to an average of 3.5 stars, largely due to complaints like, “Nobody seemed to want to help me.” And while it may be easy to point to the challenges of staffing and the demands of digital communication, the real issue is more nuanced. Consumer behavior has changed, and showrooms have had to adjust accordingly.
The Showroom vs The Internet
We’re facing a dilemma: how do we keep customers engaged in a world where foot traffic is dwindling? Do we invest even more heavily in delivering superior service and quality in person, or do we lean into promotions and discounts to bring people through the door? This leads to the ongoing challenge we’ve all been battling for years – the internet.
Back when I entered the industry in 2003, online shopping wasn’t much of a threat to showrooms. Customers still relied heavily on in-person visits to make their buying decisions. Fast forward to today, and the internet is playing a dominant role, influencing how consumers research products, compare prices and ultimately make purchases. For over a decade, internet sales have been cutting into showroom profits, pushing dealers to closely examine their vendors’ pricing policies and online brand presence.
Some showrooms have resorted to extreme measures to protect their investments, such as requiring deposits before providing product specifications or withholding model numbers until after a purchase order is signed. These tactics can be necessary to prevent “showrooming,” where customers use the showroom to get all the information they need, only to purchase the product online for a lower price. However, if not handled properly, these measures can start the customer relationship off on the wrong foot, creating a sense of mistrust.
“Ultimately, this industry isn’t just about transactions – it’s about the relationships we build and the lasting value we provide beyond the sale.”
Showrooms today face another layer of complexity with vendors who have soft Minimum Advertised Price (MAP) policies. When manufacturers allow online retailers to undercut MAP pricing, it puts showrooms at a disadvantage, as customers often expect us to match or beat those prices. But matching those low online prices often means sacrificing significant margins, and sometimes it isn’t financially feasible. The challenge, then, is to communicate the added value we bring as a local business – warranty support, quality assurance and the personalized service that online retailers simply can’t offer.
At Chown, we’ve made it a priority to maintain customer loyalty by consistently emphasizing the value we bring, though it’s not always easy. Often, we have to find a middle ground on pricing, and in some cases, our professional trade customers also need to be open to compromise to reach a mutually beneficial solution. A recent example from our Bellevue showroom illustrates this well. A designer’s client received a quote from us for a system tub, and found a lower price online. While the manufacturer’s MAP policy allowed for a 30% discount, the online retailer tried to sweeten the deal with an additional discount in the shopping cart and personalized offers through email. Had we matched the price, our margin would have dropped below 25%, before waiving freight and delivery charges.
Rather than engage in a race to the bottom, we took a different approach. I advised our sales team to remind the client of the many benefits that come with purchasing locally. We pointed out that buying from us included warranty and installation support, our quality control process, and our white-glove delivery service, ensuring the product would arrive safely and be fully inspected before it reached the job site. We also highlighted the risks involved with buying online, such as the possibility of shipping damage and lack of local support if something went wrong.
Ultimately, the designer chose to make the purchase through us. And as luck would have it, when the tub arrived, there were minor defects in the surface. Because the client had purchased it through us, we were able to work quickly with the local rep to facilitate repairs and keep the project on schedule. The client was relieved and even mentioned that she would never make such a major purchase online again.
Experience vs Price
Of course, not every story has a happy ending. There are times when we lose these battles to customers who prioritize a lower price over value, regardless of the risks involved. This is a harsh reality we face in today’s market, and it’s a challenge that threatens the long-term sustainability of businesses like ours.
There’s a famous (possibly fictional) story about Pablo Picasso sketching in a park. A woman asked him to draw a portrait of herself, and after a few minutes, Picasso handed her the drawing. When she asked how much it would cost, Picasso replied, “5,000 francs.” Shocked, the woman said, “But it only took you five minutes!” Picasso responded, “No, madam, it took me my whole life.”
We might not be Picasso, but as the owner of a family business that’s lasted five generations, I can certainly relate. We aren’t selling everyday items like jeans or headphones. Our products are significant investments, and for most customers, they may only make these types of purchases a few times in their lives. It takes professional expertise and years of experience to navigate the complexities of a project and deliver the high level of service our customers expect. Just as Picasso spent a lifetime perfecting his craft, our business has evolved and honed its skills alongside the relationships we’ve built with vendors and independent reps.
For some, the internet is a tool for transparency, giving customers access to information and prices that hold showrooms accountable. For others, it’s a way to find the lowest price possible. In either case, showrooms need to stay vigilant, keeping a close eye on market trends, trade discounts and competitor pricing.
Manufacturers, too, need to recognize the new reality of the marketplace and make decisions about where they want to compete. As for me, I’m not one to make major purchases online – I’ve seen firsthand the risks involved. But one thing is clear: in this relationship between dealers, vendors and customers, we should either win together or lose together. That’s the foundation this industry was built on, and it’s one worth preserving.
“The internet is playing a dominant role, influencing how consumers research products, compare prices and ultimately make purchases.”
Ultimately, this industry isn’t just about transactions – it’s about the relationships we build and the lasting value we provide beyond the sale. Whether it’s navigating a shifting marketplace or competing with the convenience of internet deals, one thing remains constant: value isn’t always defined by the lowest price. It’s about trust, expertise and knowing that someone is there to support you when challenges arise. In today’s evolving retail landscape, showrooms, vendors, rep agencies and both professional and retail customers are all part of the same equation. After all, the true value we offer extends beyond the price tag – it’s about delivering what the internet cannot: genuine partnership.
Nathanael Chown is the fifth-generation owner and v.p. of Chown Hardware, a 145-year-old family business in the Pacific Northwest, which he co-owns with his cousins, Joel Chown and Kyle Chown. Together, they have led the company’s showrooms to earn national Showroom of the Year awards from both the NKBA and DPHA. His focus on creating beautiful, award-winning spaces, fostering a knowledgeable and welcoming staff, and shaping a positive industry culture ensures the business continues to thrive by blending tradition with innovation.