Consultative Approach Increases Profitability

In the second in this two-part article, we’ll look at how dealers can utilize a consultative approach to increase profitability, and how the right presentation and a well appointed conference room showroom can help you achieve this goal.


Clients see all of this information and think, “This is obviously an extremely professional company. They offer so much information up front so I can comprehend the complexity of doing a kitchen project and what to expect at each stage. They seem to manage all of the details so well.”

They may think, “We weren’t educated nearly as well at the other places we visited. The $67,000 estimated price for that sample kitchen was a little more than the $50,000 that friends warned us to expect to pay for a decent kitchen remodel. But, clearly, this firm is flexible with the range of products they handle and their approach of developing two to three layouts.

“Furthermore, they hold themselves accountable for the estimate they produce. And, we like that they make it standard practice to offer cost options; they don’t care how much we spend as long as we understand fully what we are receiving. Right now, Signature is looking like they are head and shoulders over the competition. Let’s hope we can afford what they come up with.”

The Home Consultation

Having created a dynamic where you’ve set your firm apart from the competition and helped the client to understand the value of your knowledge and services, rather than just focusing on price, the next step is to set up the home consultation.

Here’s how we do it: We are with our client in front of the firm’s “Client Information Center.” It’s a wall rack of booklets with different titles: Buying A New Kitchen … Buying New Cabinetry … Relax During A Remodeling … The Importance Of Good Lighting … Buying New Appliances, etc. There are also copies of our magazine titled Signature Kitchens & Baths.

We’ll take a Signature Pocket Folder out from a cabinet drawer below the wall rack, insert our business card and begin to fill it with the magazine and several of the booklets. We also add literature on the client’s two cabinet preferences and hand them the packet. Again, the client is reminded of the value being offered: This is way more valuable reading material than what they received elsewhere.

Then we’ll say: “Thank you for visiting us today. I enjoyed learning about the exciting project you have under consideration. I hope you received good value for the hour or so you spent here. Do you feel comfortable enough with what you have seen in the way of product, and in us as your potential kitchen design firm, that you would like to schedule an appointment now for a home consultation?”

You already know the answer. It’s a definite yes.

 

Ken Peterson, CKD, LPBC, is president of the Chapel Hill, NC-based SEN Design Group and an instructor for the “Road to Recovery: Best Business Strategies for 2011” seminar, co-produced by KBDN. Peterson can be reached at 1-800-991-1711 or kpeterson@sendesign.com.