Selling Appliances Seen as Boosting Dealer Margins, Experts Suggest

Selling Appliances Seen as Boosting Dealer Margins, Experts Suggest

Someone in the product supply chain is making money selling appliances, and that someone could be kitchen and bath dealers, according to Dave Norton of Ellis Kitchen and Bath Studio in Columbus, OH, and Dan Noenning of Appliance & Cabinet Center in Billings, MT.

Indeed, "If you send your customers to an appliance store for the purchase, you're leaving money on the table, regardless of the business you think is being sent your way in return by the appliance store," say Norton and Noenning, a pair of Bath & Kitchen Buying Group (BKBG) dealer-members. "There is money to be made selling appliances."

With that in mind, Norton addressed members of the Houston, TX-based BKBG at a recent educational conference sponsored by the member-owned co-op.

According to Norton and Noenning, profits from the sale of appliances can range from 15% to 30%, based on how they are packaged in a kitchen sale.

"Since we, as kitchen dealers, are usually involved with the specs of the appliances, we should be compensated for our time," they note. "There's no reason we should not be making money."

The duo offered some suggestions that could help dealers get started. Among the ideas were the following:

  • Start by packaging the appliances with the cabinet cost, and make them a part of a complete kitchen sale. If you need some pointers or help, try asking the appliance representative to come in and help sell the appliance as part of your kitchen.
  • Show appliances on the floor with a minimum selling price and an explanation of what you will do as part of the price.
  • When you price appliances, if it has a wood panel on it, for example, tell the customer that it is included in the cost of the appliance.
  • Make sure you have a spec book of all of the appliances that you offer with cut-out and all other pertinent information.
  • Use an appliance sign-off sheet to protect your profits.
  • Outsource the delivery or installation of appliances.