50+ Housing e-Source - 06/21/2006 (Plain Text Version)Norman Cohen
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E-mail Our Editor In this issue: Create the Ultimate Design StudioOperating a design studio can be an intimidating prospect. If it’s handled poorly, it won’t be profitable. But when it’s done well, it’s one of the smartest investments you can make, both financially and from a customer satisfaction standpoint.
My company is often hired to salvage design studios that aren’t making money. Through these experiences, we’ve seen dozens of ways to increase the profitability of your design studio. There are three main categories in which improvement can be made: WHAT to sell More is not always better. When was the last time you fully analyzed the options you offer? Your Available Personal Choices list should only reflect those options which: 1) buyers are actually buying
The options list should not reflect everything you’ve priced out in the last five years or every product your vendors have ever dropped off in the showroom. A reasonable array of strong choices will yield better results than an overwhelming list of every possible option. Add, delete, repackage, reinvent. Stay ahead of the trend curve. Analyze what buyers are buying and why. Promote your ability to be a leader in design and innovation by showcasing a Hot Choice of the Month/Quarter. Explain why this option is hot from a trend and performance standpoint. This is why your customers have hired you! Offer a special purchase opportunity. If you aren’t offering glazed cabinets, frieze and patterned carpets, warming drawers, iron and wood railings, oil-rubbed bronze or brushed nickel faucets, and hand-scraped wood floors, then you’ve been leaving a lot of money on the table. Offer controlled choice. Of course buyers want options. But most don’t want to spend three hours
custom-designing a kitchen cabinet layout from a choice of 75 cabinet styles and finishes, plus 25 a la carte cabinet accessory items and four boards filled with cabinet hardware. Put your energy into staying on top of the trends, analyzing your option sales data, and then offering the right styles and finishes that will satisfy the majority of your buyers. Pre-priced, themed packages (Chef’s Kitchen, Kitchen Convenience, Black Tie Kitchen, etc.) are a great idea. They should consist of cabinet accessories in pre-determined locations for every single floorplan you offer. (Right: Gourmet kitchen, drop zone built-in and laundry room, Touchstone Homes Design Studio, photo by Chris Voith.) To continue reading this article, click here. Jane Meagher is president of Success Strategies, which specializes in a unique menu of marketing and sales consulting services for residential homebuilders. Jane is a recognized local, regional and national speaker who has lectured on a variety of market research, marketing and merchandising topics. She holds both the CMP (Certified New Home Marketing Professional) and the MIRM (Member of the Institute of Residential Marketing) designations from the National Association of Home Builders, and has enjoyed teaching both courses. She can be reached at jane@opt4success.net.
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