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Dealer Business Barometer - February 2008 Survey Results

Kitchen and bath dealers averaged 29 showroom visitors during the month of February and closed an average of ten kitchen sales and six bath sales, according to the most recent Dealer Business Barometer survey by the NKBA. The survey was sent to more than 2,500 kitchen and bath dealers in March.

Less than one in every five respondents said they had more showroom visitors in February 2008 than they had in February a year earlier, while 44 percent stated that they had fewer visitors.

Similarly, while nearly a quarter of respondents said that they had more kitchen sales close in February of this year than in the same month last year, almost twice as many said they had fewer sales. The average price of a kitchen sale closed in February 2008 was $32,967. A quarter of respondents said that their average kitchen sale for the month was higher than the average kitchen sale in February 2007, while about the same number said it was lower.

About one in every six dealers said they had more bathroom sales close in February 2008 than in February of last year, while nearly 30 percent said they had fewer sales. The average price of a bath sale closed during the month was $13,012, and more dealers saw a higher average bath price than a lower one in February. Almost 30 percent said their average bath sale for the month was higher than the average bath sale in February 2007, while less than a quarter of them said that sales prices were lower.

Almost half of respondents forecast a higher sales volume over the next six months, compared to the six-month period just past, while less than 30 percent foresee a lower volume.

Many respondents reported success. "I think our state and local economy, as well as the housing market, are fairing better than the national trends. When I hear all of this 'doom and gloom' in the national press, I think these people need to get off the coasts and see what's going on in the heartland," said one respondent.

Said another, "We're fortunate to be in a market where the affluent buyer seems to be unaffected by the uncertain economy. A majority of our business this year will be referral and designer-based rather than walk-in showroom traffic."

"New construction has definitely slowed down, but we're still getting a lot of remodeling business," explained another." We're also getting quite a few customers who just want to change their countertop material (e.g. laminate to granite), but not their cabinets."

"We've been closing higher priced kitchen and bath sales this year compared to last year," said another. "I see older couples purchasing higher end products, compared to the thirty to forty-year-old age group."

Still, not everyone is so upbeat. Said one respondent, "The market is much more competitive. In my specific market, custom cabinet companies that used to specialize in tract work are aggressively courting retail customers that they've ignored in the past." Added another, "The market is extremely stagnant. Remodels have been our saving grace, but I now see a decline in those, as well."

Another dealer said, "Scary! Gas prices are escalating. The stock market is a yo-yo. People are very dollar-conscious and are shopping more," while another dealer observed, "We're quoting several projects this quarter. It seems that the buying decision is taking a lot longer than in years past."

To take part in future surveys, please email Ed Pell at , the NKBA's Manager of Market Research, and write "Please add me" in the subject line.

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