The market for sales and renovation of kitchens and bathrooms in the USA, a very interesting market !!!
This is one of the few areas where the margin is hidden enough and it is almost impossible for the client to calculate the true value. Of course, a simple comparison with other options and the calculation of a running meter does not allow setting a double markup, but high, from the point of view of the American understanding, marginality - kitchens are easy.
The process of making money itself is divided into several stages:
- We need to find potential customers somewhere
- Get a meeting with them
- Understand what they need and make a calculation (preliminary estimate)
- Sell them one of the options
- Sign a contract
- Get your first check
- Decide on payment: a loan or is it ready to pay from the account
- Make sure they have not canceled the contract after it has been concluded
- Get a second check
- Order a kitchen in production or assemble from ready-made solutions from a warehouse / supplier
- Obtain permits: permits
- Dismantle the old kitchen
- Relocate communications, if necessary
- Logistics - supply all materials for work
- Carry out preparatory work for the installation of a new kitchen
- Get the third check
- Install a new kitchen
- Hand over a new kitchen to a client
- Receive the final receipt after acceptance of the work and correcting all defects
- Carry out warranty and post-warranty service
, 10–15 % , . , ,
Orders
The average cost of attracting an order in the market if you buy from aggregators is from $ 60–150. My own advertising company: Google Adwords, Facebook Adv, Yelp pumping, Google Maps and so on described in my first text, give approximately a price of $ 15 -25 $ for an interested client. On average, for a year of upgrading your accounts, you can get about 12-20 first contacts per day in your CRM. Of which about 60 percent will come from Yelp accounts and 40% from advertising companies. You can work by creating mirrors of the site and your own satellite network, but as a result, the most converting clients come from recommendation networks like Yelp and others. It is important to take the first places in the search results there and invest in positions.
At one time, Google worked well, which in the results made an analogue of Yelp's list of recommendations.
When working in a local city, the struggle is not to meet the budget, but to be able to spend more. When you know the conversion to a sale, you try to do more ads. And here it leaves an imprint of the city's limitations. Well, the city cannot deliver on average more than 15-30 applications per day. And that's it.
It is necessary to understand that most often these are not direct requests from the search, this is retargeting overtaking over time (1-3 months), when the constant presence in front of the client's eyes gives him the illusion of your exclusivity and finally he decides and sends an application.
Processing applications
I highly recommend amocrm + twilio bundle. Each application needs to be constantly heated. Letters. Warming infa. Digital pipeline. Advertising solutions. Customized advertising for customers who have already applied. Lookalike audience. You must not miss the time and agreed dates of calling with clients. You have to be punctual and stand out from others.
The main task of the stage is to assign the apppoint.
Bomb stage - sale
This moment allows you to grow 4+ times in sales and turnover of the company.
So the standard US sale looks like this. A salesperson comes to the client's house. He brings with him several suitcases containing samples. The states have regulations, according to which such a salesperson works. For him, the important points is the fact that both spouses of the decision-makers are at home. To avoid the moment - one dissuaded the other.
He will sell 2-3-4 hours as needed. Remove objections. Promise. To crush. His main task is to leave the client's home with a signed agreement. When selling, the choice takes place according to the catalog and you can touch the samples (these are small pieces of countertops, doors, stone, etc.)
In order for you to have such sellers in your company, you need to go through AD.
- — ! (~$100K+ c )
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1. Appointed not for the arrival of the seller, but froze! This gives an advantage in the speed of appointing appoints - it is easier to explain and less burdensome for the client. You don't have to be all at home. And you can start right away, after the first contact. The task is to enter the house faster than the others - to whom, of course, they called and are expecting a “tender” between various companies.
2. A cleanly dressed worker arrives for measurement, with professional measuring instruments (3d scanner, laser level, tablet) and a gift (wine, candy, some kind of trinket) with shoe covers. If there is an understanding that the owner, for example, has animals, then bones or an inexpensive toy for the cat are taken with him.
The task of the stage is: a pleasant impression, a quick stop, a charming smile and a selling phrase:
- According to your measurements, we will make several free design options. It will take several days. I am sure that you understand that you cannot buy such an expensive purchase as a new kitchen by looking at samples from a suitcase, so when the designs are made, we will invite you to us, where there are full-fledged kitchens in size, you can touch, feel yourself in the interior. Thank you and see you soon.
We “killed” all the salespeople who came before us and will come after us. With the intention here and now to conclude a contract on the knee based on the samples provided from the bag.
We did a pleasant thing, instead of 4 hours spending only 10 minutes of the family. And we left only a positive impression about ourselves. And we don't need a SUPER SELLER for a lot of money for this.
Sale
A few days later, we call the client and say that his designs are ready and he can come to the shop (showroom) with his family to look and we are ready to schedule free time. Time is limited. Strictly select multiple dates. We offer free options. After all, the services that are in demand cannot always be free :)
When a family goes to the shop, they go to “buy”, they tune in to this process. They set off to choose their future cuisine. They have no barriers or pronounced resistance, except those that we ourselves can provide them through our stupidity.
The place where the presentation is held is the partner's showroom or your own. Important!!! so that there are no prices for the presented kitchens. And the opportunity to make a "route" is important.
Selling route. Remember IKEA. We lead the client ourselves. From large to small. Obtaining agreement and clarification at every stage.
We treat the client with tea or coffee. We tell you that we really liked it at his house. And that it will be very cozy there with the new kitchen. We tell what options we see and find out his inclinations. We show him ready-made kitchens and sell items that are more expensive.
We do not tell him the full amount, we try to name the amount in the loan or minimize its size:
- , . . , $19 . — , ?
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Of course, this is the perfect selling option. Routine makes its own adjustments. But the essence remains the essence. With this option, we increase the number of sales 4 or more times. And we increase the average check. We remove sellers / sales department !!! We only need one SHOWMAN in the showroom and equipment for measurements. We remove costs and raise margins from 10% to 25% -35%.
And SUPER sellers can continue to "star" in other companies.
The bonus is that the contract signed in the showroom cannot be terminated within 3 days, as it can be if you sign it at home with a client. And this eliminates the risk of failure.
Cabinets (kitchens)
If you run a showroom in a city, you will most likely buy kitchens from them. Negotiate significant discounts on his products. 15-20% If you use your showroom. It would be foolish to do that. What you can buy from a local seller can be bought from a supplier with a 50% discount +
For example, a local kitchen can cost $ 9000 from a local supplier, the same set will cost $ 3500- $ 4000 directly from the warehouse (you need to understand that logistics, replacement and contracts in this case on you). However, the benefit is worth it!
Be sure to look for smart custom production. Often the kitchen can be assembled in units, but a unique island must be ordered and this will become a real problem for you. There are very few good custom manufacturers. In fact, they are not there or they are loaded for months in advance. I am familiar with only one that really does not fail.
Workers (Installers)
1099 (mercenaries) at first, but high costs. And already illegal in most states. W2 (employee in state) for salary. This will save you 5% order margin. And the worker on W2 is more manageable.
Again, an important point, sensible installers in the afternoon with fire. Therefore, it is worth motivating those who will work with you constantly. And look for new ones continuously. The best motivation is the flow of orders for a couple of months in advance. So that he is always busy and a small bonus on top of his salary for high-quality work would not stretch your pocket.
So it was, it was
There WAS an average check of $ 25,000
Conversion from lead to seller's arrival - 5%
Conversion to sales 10%
4-5 contracts per month
Monthly turnover ~ $ 100K- $ 150K
For each kitchen
$ 1500 - marketing
$ 2500 - seller Salary + bonus
$ 8000 - kitchen from a local seller
$ 6000 - installers
$ 3000 - additional materials and expenses
$ 1500 - office, licenses, insurance, etc.
TOTAL: $ 25000- $ 23500 = $ 2500 before taxes or 10% HAS become an
average check $ 35000 +
Conversion from lead to arrival of a measurer - 20%
Conversion to sale 20%
10 -20 contracts per month
Monthly turnover ~ $ 350K- $ 700K
For each kitchen
$ 500 - marketing
$ 0 - seller
$ 500 - showman (seller in the showroom)
$ 4500 - kitchen with logistics from the supplier
$ 4500 - installers (under W2)
$ 3000 - additional materials
$ 3000 - own showroom / office
$ 3000 - taxes, insurance, back office
$ 1000 - logistics, replacements, fines from the client and breaks cash desks
TOTAL: $ 35,000- $ 20,000 = $ 15,000 or 35-45% margin
Something like this. Something like this.