Some years ago, when independent kitchen retailers sold a kitchen it was a reasonably straightforward affair. What customers saw on display was usually what they chose. A design was created and quotation prepared and, if everything went well, within a few weeks the job was probably wrapped up and the money in the till.
How different it is today. For many independent kitchen retailers it is now quite rare for a customer to simply just want to buy a new kitchen. With the current trend towards ‘improve not move’, a new kitchen extension is now one of the most common drivers of kitchen sales. In a recent survey, undertaken by a leading independent kitchen retailer, 89 per cent of kitchen sales over a year were due to a new extension or building work. What impact is this having on kitchen retailers, and why does it matter?
One result of this trend is the extended lead time from first customer contact through to job completion. This has now gone from typically a few weeks to often many, many months and in some cases more than a year. Kitchen designs are now being created based upon architects drawings, and retailers are having to work alongside architects and builders, agreeing the placement of utility services and the positioning of window and door openings in order to create a better kitchen space.
In short, the whole process has become much more complicated and time consuming for retailers. Typically all this expert advice, numerous site visits and design service is given free of charge and with no assurance that at the end of the process the retailer will get the kitchen order, or even if the customer will get planning permission. I know, speaking to many retailers, that this situation is putting terrific strain on their businesses and, due to extended lead times, is adversely effecting cash flow.
Serious consideration now needs to be given to whether retailers should charge for their kitchen design service. At least by doing so, the designer is getting a commitment from the customer. I have met some retailers who are now refusing to undertake any kitchen design work if planning permission has not first been granted, but even once it is in place, in my view it is not unreasonable to charge a customer around £500 for a kitchen design.
I would be interested to hear what other kitchen retailers think?
For more information about the KBBG, call Bill Miller, Managing Director on 07887 247 811 or email firstname.lastname@example.org or visit the website at www.kbbg.co.uk
Image: Bill Miller, Managing Director of KBBG
Note for editors:
The Kitchen Bathroom Buying Group UK is a new organisation set up to support the business of the independent kitchen specialist. Part of the renowned DER KREIS, Europe’s leading kitchen and bathroom buying group, the company has over thirty years’ experience and a turnover in excess of 2.2 billion Euros. Currently operating in nine countries with over 2,700 members, the group provides a range of exclusive tailored benefits and services to support and increase the success of each independent kitchen specialist in an effort to stay ahead of the competition and to promote the success of individual businesses.
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24th March 2016