In 2023 so far, two things have become evident in the world of kitchen sales:
Competing in the sub-£25k bracket has become more challenging.
In the £25k+ bracket, people are spending more money than ever on their kitchens
What you do about these trends will likely define your success for the rest of this year and beyond. So, if you take one thing from this note, it’s this:
It’s far easier to ‘market to money’.
With the alternative, business is getting more complex. Margins are getting squeezed as your market gets more competitive, with everyone hustling to make a deal.
By appealing to those buyers who aren’t price sensitive and can find the money for their dream kitchen, your business outlook could be very different.
You may know that, roughly, of every 100 kitchens sold in the UK each year, the big sheds sell 85 of them.
But in terms of revenue, it’s a 50/50 split between the chains and the independents.
As an independent retailer, you’re far better placed to appeal to the affluent end of the market than the chains. And if you’re not trying to get customers there, you’ll likely be missing out.
From everything we’re seeing at the sharp end, that customer is typically 50yrs+, might be retired, semi-retired or in a comfortable financial situation.
They’re not particularly flashy and not spending money like it’s going out of fashion. Still, if they’re in the market for a new kitchen, they’re not going to scrimp and save – they’re going to do it properly.
The good news? There are millions of these people around.
Your job is to get in front of them, get them familiar with what you do and educate them on why you’re the natural choice for them.
To be blunt: if they’re going through the process of getting a new kitchen, it’s your job to ensure they seriously consider your business.
The money is there and will likely keep being there – you’ve just got to put yourself in a position to take it.
And if you’d like to discuss how all this could work to improve the quantity of quality enquiries for your kitchen business, just email me at david.barker@inspirekbb.com and let’s arrange a chat.