The Kitchen Sales Coach Issue #5 - If Your Business is Down, Your Opportunity is Up
By Robert Foltz, CKD
I keep walking into dealerships in my territory and see the morale very low. I keep seeing sad faces, with dealers saying, "Business is really down." The funny thing is that the same dealerships that are sitting around saying business is down keep doing exactly what they have always done, and yet expect different results. I respectfully submit, that now is the perfect time to create opportunities for your business model.
Yes, the number of clients walking in is down-no doubt; however, the quality of the clients is better than ever. These are the smart clients that have been waiting to start the project because they know they get more attention and they presume they can receive better pricing. The secret is to reach these prospects.
I'm not suggesting that you now start cold calling or canvassing with direct mail. You should have been doing that already. If you're not doing it, start, but don't expect that alone to provide the business you're looking for. What I'm talking about is that now is the time to create the customer service and marketing systems that you've always wanted to, but never had the time. Take a critical look at the way you've been doing things and put systems in place to provide enhanced service. Don't tell me "I don't have any money because my sales are down." These don't have to cost money-some do, some don't.
Look at your marketing efforts and ask yourself, "How is that working for me?" Then look at your sales figures and you'll have the answer. Change the system, try it out, and do it when you have the time, which is now. An example is this newsletter. I looked at the rep business and did it the traditional way for a year, then I thought of my website and said, now this is a way I can not only introduce myself, but provide value to my dealers. This took time, but relatively little money.
I brought a new lighting system into a dealership. All they could talk about was how little business there was, and how their clients wouldn't appreciate or pay for this LED lighting system. I walked away, shook my head and said, "You're right." With that attitude, they certainly won't. The sad part is that, if they had an attitude to learn and figure out a way to present it to their client base, they'll provide more value and word will spread. It's their business, I simply walked down the street and gave it to a more open-minded dealership in the area. My point is to have an open mind to new ideas. While you have the time to experiment, try new ideas.
Now is the time to critically look at your marketing, products, design, project management, contracts, and collection systems. Get ideas from trade magazines, network at NKBA chapter events, or call me; however you can obtain the information, do it. Ask and you shall receive. The best part is you can try them out when your business is less hectic.
Stop whining that business is slow and start attracting more business by providing value and service to your prospects. Its Quality, not Quantity. By the way, I speak as a former Whiner!
Is Everyone Going Chinese?
Every dealership should thank their stars that they're here. If you thing business is down, go to Starbucks, get a latte, and sit in the parking lots of a couple of Chinese cabinet dealerships. Then learn to compete. It's easy!
About once a quarter in my travels, I'll do exactly this, and what I learn is very interesting. All I can think about is the upcoming boom of all these low-cost kitchens that will need replacing in a couple of years. This is going to be the biggest boom in our industry for the next decade. In fact, one of my dealers reports that they're already replacing kitchens installed just a couple of years ago.
The Chinese cabinetry can provide price, limited selection, and delivery time. That's it. We know our business is service oriented. If your sales model is based on price, then yes, you're in trouble. This is no different than when Home Depot started selling cabinets in the 80s.
The uninformed consumer is the one that's the most affected, so inform them. Have a Chinese line that you buy from distribution and keep a base 12 in the back room. If you sell it to a client, collect 100 percent of your money up front, and offer no warranty, you'll be on par with the competition. Instead, do some finish tests with simple household liquids, like Windex, furniture polish, and Coke. Show the consumer the results of your testing and make them aware that most of the 'better' Chinese products are only $300 less than the Designer's Choice level of cabinetry.
Price-driven consumers account for only about 10 percent of the total market. They've already purchased their Chinese kitchens and will soon be coming to you to replace it. Remember, you're not in the cabinet business, your in the service business, providing kitchens.
About Robert Foltz, CKD
Robert Foltz, CKD is experienced in all areas of the retail kitchen and bath business. As a manufacturers' representative, his experience and expertise can help improve your business. He also works as a sales trainer, consultant, and personal coach.
With 23 years of experience in every area of the kitchen business, he has personally experienced the most common mistakes all business owners and sales people make. He has used that experience to develop a formula that will help you avoid those common mistakes and to dramatically accelerate your success.
Robert can be reached at and his work can be seen on www.KitchenSalesCoach.com.