We often receive quality tips from our sponsors that we like to share with you. This week’s tip, on cabinetry remodeling project opportunities, comes from Kevin O’Neill of Wellborn Cabinet, Inc.
Through numerous national surveys of remodelers, it has been well recognized that both Kitchen & Bath remodeling have continually held the number one and two spots for the top remodeling projects (albeit interchangeably).
What is not directly referenced in these surveys is a tremendous growth opportunity for remodelers that have been discovered by many professionals in the Kitchen and Bath business: the cabinetry remodeling project opportunities beyond the traditional kitchen and bath rooms. Although these projects are typically not as large and complex as their kitchen and bath counterparts, they provide a solid growth opportunity that can easily be leveraged across a remodeler’s existing sales and marketing initiatives with little or no overhead.
So let’s define what we mean by these “other room” project opportunities. First, consider the master closet suite when pursing a bath remodel project. Master closets can easily become very high-end and expensive projects with custom cabinet features and accents if desired by the client. However, with just a little design ingenuity along with the right products and accessories, remodelers can offer a wide range of very economical to mid-price solutions that can truly differentiate their business and their value from the competition. Even secondary room closets in most high-end homes are filled with either wire racks or low-quality, poorly fitted import products. Do you know that most of our remodelers and dealers are achieving 50 percent gross margin on our closet cabinetry and most jobs are installed and paid for on the same day?
Perhaps consider including a bundled or unsolicited closet proposal with every bath project bid. Think of it as setting your business apart from your competition while also expanding your sales in this new market opportunity. Even if clients prefer not to remodel their closet today, they just might consider doing so sometime in the future. They will have your design and proposal ready whenever they are, and this provides a great follow-up reason to stay in contact with your customers. But most importantly, consider launching a closet make-over marketing campaign to all your past clients as an opportunity to contact or visit them as well.
Closets are just one of the room possibilities. As you explore your existing clients or you are bidding on new projects, there are many products to choose from in other rooms that can be installed within a day or so. Consider garage storage systems, pantries, mud rooms, offices, laundry rooms, etc. Although these projects are generally far less complicated than kitchen and bath remodeling, the margins are excellent, they are quick to design, quote and install (low risk). This can truly distinguish your business from other kitchen & bath remodelers and/or dealers. Also, they provide an incremental growth market without additional overhead.
These additional rooms also provide a great opportunity to market to your existing client base as well as providing an additional and creative approach to extend your value and services to new prospective clients. I will leave you with two questions to think about regarding this market opportunity: How many residences have your sales teams visited over the years where there was not an obvious opportunity in one or more of these rooms mentioned above? Secondly, even if you only had 10% close rate on the unsolicited bids to new prospects or interested past clients, what growth impact could you have in your business next year?
If you would like to explore these opportunities further, please feel free to contact either myself or one of our Wellborn representatives to explore how these opportunities could help expand your business.