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| Your Gameplan for Success! |
October 7, 2008 |
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| Statement About the Economy !
It is hard not to get down when all over the news is nothing but negative. Kitchen Sales Coach believes that even though we are in downturn it is not useful to blame any one politician.(They are all at fault)
It is not useful or productive to blame anyone.
Cash is king, and Cool Heads will prevail. Richelieu's sales were up 12%, mostly because we are grabbing market share from less efficient competitors.
Expansion during this time is not only possible, but smart companies are making it happen. It is easier with cash, but expansion could be simply improvement in systems. You create your reality in any economy. This is my belief!
Create Growth!
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Greetings!
When I walk the dog at night I enjoy looking through the brightly lit windows of my neighborhood. There is a 6 bedroom house a block from the beach that is symbolic of what I want to speak about in this issue. The house is huge, with a giant TV and some black leather sofas. Yet it is blank white inside and out. The walls have little or no art, decorations, the furniture is sparse and there is almost no landscaping. It looks incongruent.
Here is a multi-million dollar house on the beach that is, as they say in Texas, "all hat and no cattle". Is your business like this? Does your showroom have beautiful displays, great signage and marketing materials, yet your business systems are a struggle? The kitchen business is first and foremost a people business. Your business needs systems to handle the people who work for you and the people you serve so that you, the business owner, can free yourself to grow your business.
A great showroom is only half the package the same way a great house with no decor is only half the package. Great systems make for great service, great sales and great referrals.Believe me, prospects are walking into your showroom everyday with CASH and they are paying attention to the little details that they see and hear.
In this issue I am going to talk about training, systems and how to shore up your business by hanging some beautiful "Art" on the walls of your beautiful showroom!
Thank you and Enjoy the Issue!
Please share this newsletter by forwarding it to a colleague or associate that you know. Thank you.
Have a profitable month!
Robert Foltz, CKD
954 683-2565
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Are you working "In" the business, or are you working "On" your business?
How are your Sales? Is it the economy? Is it something else? Have a beautiful showroom with no one coming in the door? When they do, do they want to write you a check? Frustrated, confused and worried?
Take a real look at your business. Print out your sales numbers for the last 12 months and compare them with the previous 12. Look at your margins. Are they up or down? Are you cutting prices just to stay in business or are you making up for lower volume with increased profit percentages and more marginal sales? Nationwide, Richelieu sales were up 12% in September. Keeping hardware, plumbing and lighting sales in house are one of the easiest ways to keep more of your customers' money going to your bottom line instead of someone elses'.
Next, look at how you are spending your time. Are you working more than 50 hours a week? Are you working nights and weekends? Are you measuring every job, meeting every customer, designing every kitchen, supervising every install, solving every problem? If you are the COG in your business, then you are the CLOG in your business!
An effective business system will enable you to take more time off, spend time with your family, maybe even play a little golf. Great business systems will let you do all of the above and make lots more money than you are making now. Great business systems make it easy for you to manage multiple showrooms and to sell your business when you are ready to retire.
Systems, for the sake of this short article, are the tools and procedures that allow the same quality of service and pricing for each customer no matter how individual the project is. Whether the prospect comes in with $10,000 or $250,000, your staff handles it the exact same way. If you have one showroom or 10 showrooms systems are what ensures that every customer has the same experience no matter when or where he or she encounters your business. Everything from preliminary estimation, design to proposal and contract are completed the exact same way.
Every dealership should have a system for quickly Estimating a good preliminary investment parameter (budget, for those new to Kitchen Sales Coach) for any prospect. Drawing & Design Presentation Drawings should be systemized so anyone in your organization is able to read and present them to the contractors, and your customer is served with well organized, attractive and descriptive project parameters. Contracts, Change Order, Collection & Job Management procedures should be so consistent that any member of the team can pick up the job file and know exactly what needs to be completed next or answer a question for the client if the project manager is away from the office. Good systems will ensure that you have only the employees you need and that every one of them is giving you value for their time. Systems should be in place for handling referrals, paying commissions, handling overtime, communication among employees and contractors and placement of new product lines.
Wouldn't you like your business to have such systems? It is easier than you think and does not take very long. I recently changed the commission system for one dealership. The owner wrote to me this week saying he has increased his margins by 50% and everyone who works for him is making more money, too. The owner paid for my services over 100 times. (Hmmm,perhaps my fee was to low)
Seriously, whomever you use to help you through this process, pick someone who is dispassionate about your business and can look at it critically. SEN Members have access to a school and coach that provides them this information. NKBA, SEN and independent consultants, coach's and trainers like me should be an asset to your business so that you can create the systems that will help you retire prosperous!
Thank you and Have a Profitable Day!
Robert Foltz, CKD
Kitchen Sales Coach
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Look Outside for Profits!
Another "Outside the Box" Strategy from the Coach.
Kitchen Sales Coach is focused on bringing value and fresh ideas for the Kitchen & Bath retailer. Well, I did it again! ...Outdoor Kitchens are my newest tool for improving your profits and increasing customer loyalty. You say, "Outdoor Kitchens! Are you kidding me, Robert? I am having trouble selling INDOOR Kitchens!"
All I ask is that you open your mind, stop whining and take 3 to 4 hours of your time. It will be profitable time,not be wasted time!
- In your market area, go to any Patio or Outdoor Grill business to learn the category by acting like a consumer. Find out what is selling in your area and how much they are charging. Ask about the challenges, features and benefits of cabinetry, stucco walls, etc. This should take about one to two hours of your time including the review of the notes you have written.
- Next, take your average home that your business works on and develop three "canned" designs; a three cabinet area, a 5 cabinet area with a refrigerator and/or a sink area, and a larger 7-9 cabinet area. Obviously, use your market area and typical house to determine the layouts. Have your interns or junior designers do the legwork for this project.
- Since your expertise is cabinetry, price out the Stainless Steel cabinets (Danver is a one of the best), Plastic Cabinetry ( In & Out Cabinetry is the highest quality) and then have a stucco guy price out an island.
Congratulations, you now you have all the information you need to market your new Outdoor Kitchen expertise to your EXISTING CUSTOMERS.
Now is the time to find additional sources of revenue and be more value added to your clients. The Patio and Grill specialists you spoke with may become your new allies. Stop sending them your customers and use them as a resource for your business. Like the closet strategy I wrote about, this is an extra source of revenue easily marketed to your customer base.
I now represent In & Out Cabinetry in Florida and we are developing a nationwide presence in the marketplace. Look for more information and a special outdoor focus newsletter very soon.
Thank you and keep your mind focused on forward thinking ways to serve and add value to your clients!
Robert Foltz, CKD
Kitchen Sales Coach |
Accountability is the key to your Success!
Coaching is about accountability,change & determination!
Allow me to show how accountability to yourself and your goals can change your business and personal life! Email me today for your custom coaching/consulting program for as little as $ 100.00 per month!
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