Frank Blau
Contributing Writer
ShuBee®

We continue on the subject begun two weeks ago, the operation of a deluxe showroom intended to spur merchandise sales and bath and kitchen remodeling work. We discussed factors to consider in setting up the showroom and staffing it, and offered a sample chart of accounts for keeping track of its financial performance.

So the showroom is now set up, and the staff is waiting for consumers to walk in. This means you must make sure your facility is not the best kept secret in town. You must get the word out that you are there, and you have a lot to offer. This requires advertising. Actually, your advertising strategy should have been planned and designed so that you are ready to buy broadcast time and print space the moment you open for business.

My showroom management team uses virtually every media available – print, radio, TV, direct mail, and Yellow Pages. You must realize that early on, you get practically no word-of-mouth referrals, although eventually they will result in increased business and possible reductions in advertising expense.

The preferred media for showroom promotion are TV, newspaper and radio. TV in particular allows you to convey the proper image of professionalism. A TV commercial combines visual image with a verbal message to create a tone that controls how you are perceived by viewers.

Be sure to get professional help in this area if you need it – and most people do. TV advertising is expensive, and you can’t afford to get less than your money’s worth with a poorly crafted commercial. What might work for a used car dealer won’t necessarily work for a bath and kitchen showroom. You want to associate your facility with luxury, elegance, comfort, and class. A TV spot that looks cheap or silly simple won’t do that. So you want to hire someone who knows how to design and produce effective messages.

We use the print media for announcements of special events such as anniversary sales, grand openings, Super Value Days or whatever we can dream up. The Yellow Pages, sometimes referred to as the “necessary evil,” shouldn’t be overlooked either. The successful bath/kitchen remodeler must advertise under both bathroom and kitchen headings.

With this plan of attack, advertising expenditures must be substantial. I feel that a first-year budget should be in the range of 7{938cd9e8dae860e800efc538277d4f7684e6f6981618ba70d1c34357a53c2e1f} to 10{938cd9e8dae860e800efc538277d4f7684e6f6981618ba70d1c34357a53c2e1f} of projected sales. The Blau Bath & Kitchen Showroom presently budgets 5 ½ {938cd9e8dae860e800efc538277d4f7684e6f6981618ba70d1c34357a53c2e1f}, because we have been around for awhile and word-of-mouth referrals are now in high gear.

The Selling Process: I refer to the selling “process” because these are not simple transactions where the buyer makes quick decisions or knows exactly what he/she is looking for. Often they have no immediate intention to do any remodeling. They are merely “browsing” and wistfully thinking of some future time when they would like to convert a humdrum bath or kitchen into something better.

Taking them from dreams to action requires sophisticated selling skills. Showroom employees must know how to open the sale, probe and qualify, handle objections, transform features into benefits, and close the sale. I’m not one who believes in “born” salespeople. They must be taught the science of salesmanship, so be prepared to invest dollars training them in programs such as the “Dynamics of Selling for the PHC Contractor.”

My showroom is staffed by well-trained sales people and designers. The process begins when one greets a customer in the showroom and gently introduces her (most showroom visitors are female) to the displays, explaining features and benefits. The showroom salesperson also does one more important thing – qualifying the customer by “probing” that is, asking questions to gain as much information as possible. Later this information is recorded on our sales lead form (see attached) and placed into a tickler file for quick follow-up.

If the customer is a “live one,” he/she is referred to one of our designers. We charge a $50 design fee for the first consultation.

Initially, we did not charge for this and you probably shouldn’t either when first starting out. However, we feel the design fee separates the serious buyer from the person looking for free professional advice – and who may end up taking our designer’s work and shopping it around to the lowest bidder.

During the initial design consultation, an appointment is made to visit the customer’s home. Additional design time is charged from this point at the rate of $50 an hour. The designer advises the customer of the amount of design time needed and gets approval before continuing. At this time both the customer and designer know what kind of budget the buyer has in mind.

With the design and plans completed, the job is then carefully estimated from demolition to completion. See Figure 2 on page 34 for a look at the first page of our seven-page estimating form.

Closing time is not at hand, and our closing skills are put to the test. Since we are accomplished salespeople who have convinced the customer that she wants what we have to offer, the sale is made. Hooray!

Scheduling: Hold the hoorays to just one for now. That’s because we still must complete the job as promised to have a satisfied customer. If we can do that, we’ll get a payback in further business from referrals that will help us to defray a portion of our advertising expense.

We schedule everything as precisely as possible to avoid foul-ups, costly delays and disgruntled customers. For instance, we take delivery of materials before work begins.

This is because we don’t want any surprises in this day and age of screw-ups on the part of manufacturers. If, for example, there is defective material, we want to know before the carton is opened on the jobsite when it is ready to be installed. You all know what a hassle it is when the installer is on the job then has to inform the customer she will have to wait several weeks more for the job to be completed – or even resumed.

Make sure of your lead times. For example, one of our cabinet lines requires six to eight weeks for delivery. It makes no sense to gut an existing kitchen until the new cabinetry has arrived or is certain to arrive within days.

Design a schedule or expediting form and make sure copies are in the hands of customers and subs so that everyone knows what is expected of them. Instill in your subs your insistence that they must perform. Then it’s up to your people to be sure they are fully informed – what work is required, where to be and when to be there.

Also, insist on strict safety and housekeeping standards. Put it in writing so everyone understands.

A remodeling project is inherently messy, and as happy as the homeowners will be when it’s completed, they are likely to be in a foul mood while it is underway and their bath or kitchen is in shambles. Don’t make it any worse. Be sure to set up drop cloth barriers to prevent dust and debris from spreading into the other rooms that the family uses as a livable sanctuary. Instruct the workers to contain all tools and materials in the vicinity of where the work is taking place, and not to leave tools and materials laying around haphazardly. That creates a safety hazard both for them and the occupants. Tell them to dispose of soft drink cans and lunch wrappers, and especially not to let garbage or debris accumulate outside of the room being remodeled. And do everything possible to finish the job on time so the household disruption doesn’t last any longer than the homeowner expected.

Final Pieces: Finding and keeping good subs often is a headache, but it need not be if you follow two simple rules. Don’t chisel them on price, and be religious at paying them on time. We maintain a good relationship with our subs. When we do have problems, it’s usually because someone did not follow established procedures.

Finally, the job is done. Hooray! Hooray!

Whoops. We forgot to get paid.

Actually, we haven’t because the customer has already paid one-third down at acceptance of contract, one-third at the start of the job, and the final third at completion. When required, we assist in financing, and we accept major credit cards.

By the way, I rent space in the strip center where my showroom is located (and which I own) to a finance company. We refer many customers to them when they are in need of financing. You may want to consider establishing some sort of working relationship with a lending firm in order to provide a “one-stop shopping” service for showroom customers.

Now it’s time to let it all hang out – three cheers and hip, hip hooray! If you’re inspired by this success story, don’t procrastinate. Get to work and begin to enjoy the rewards of the bath and kitchen remodeling business. – PM

Part II The Bath & Kitchen Business