Marketing Smarts

Experts say marketing during a down economy is a necessity. Keeping your name out there helps your customers know you’re still in business, while so many of your peers are gone. It places you on an empty stage, so to speak. And time and time again, marketing has been proven to increase market share.

However, you have to wonder if the experts are subject to the same cash flow and budget constraints kitchen and bath professionals have experienced during the last 18 months. Intellectually, we may know they are correct, but when it comes down to paying rent for the showroom, health insurance premiums or marketing – guess what almost always gets cut first?

But, marketing no longer has to be the first line item on the chopping block. Today’s kitchen and bath professional has marketing opportunities that were unavailable during the last recession, or even two or three years ago. Online marketing, coupled with traditional advertising and the ability to reach your target market with laser precision, have provided cost-effective solutions that have helped some showrooms thrive over the last 18 months or so.

Molly McCabe, AKBD, CGP, owner of A Kitchen That Works in Bainbridge Island, WA, actually increased her marketing four-fold during the past year. “During the year I focused my marketing efforts on launching a new Web site, including an investment in Search Engine Optimization, along with publishing articles in our local home and garden magazine. Both of these are what I consider ‘pipeline’ media – they don’t bring people to my door like a product promotion, but they promote my business, add to my credibility and accounted for landing multiple 4th quarter [2009] contracts.”

Jim Deen, president of Kitchen Kraft in Columbus, OH continued to market throughout the down economy, but at a dramatically reduced rate. “Prior to the recession, we regularly spent about 6% of our gross sales on marketing, mostly on TV and radio. Last year we spent less money, refocused and turned to our client base and pushed referrals. We found that the staples – such as direct mail and ‘call to action’ newspaper advertising promoting manufacturers’ specials – were the most effective for us.”

Sawhill Custom Kitchens & Designs in Minneapolis, MN also focuses on referrals. According to president and co-owner Tim Aden, CMKBD, “Referrals are the main source of our client base, but we don’t just assume the referrals will appear at our door – we specifically market to them. Twice each year we send out full-color traditional [paper] newsletters to past clients, we blanket neighborhoods in which we want to prospect and anyone who has visited our showroom gets a copy. Each newsletter costs us about $5,000 from start to finish, and while I can’t tell you we have gotten a specific project as a result, each time we mail them, we have past clients calling about new projects. Let’s just say we are not willing to stop the process.”

Aden also points out that the firm markets through showroom events such as progressive wine and food pairing tours for consumers and designers. “Creating events that bring our clients as well as other allied professionals’ clients to our showroom is a win-win-win for everyone.”

In addition to the referral market, a large portion of the Sawhill marketing budget is spent on showroom seminars. Lead designer Sarah Michalowski, CKD is the point person for the seminars. “Many showrooms hold seminars strictly for the consumer; our approach is a “Lunch and Learn” program for interior designers and other allied professionals. These have generated new working relationships and jobs we would have never known about. So far, they have paid for themselves.”

McCabe conducts seminars, as well. “I taught a class on sustainable entertaining that was well attended. It gave me the opportunity to meet with potential clients, many of whom I maintain contact with throughout the year.”