Control Mix of Key Products and Customers, NKBA Suggests
That's the word from the National Kitchen & Bath
Association, whose recently-
completed 2000 "Dealer Profit Report" revealed that, very often, "the choice of products offered and customers serviced is left almost to chance."
The "Dealer Profit Report," prepared on behalf of the NKBA by the Boulder, CO-based Profit Planning Group, was released recently to NKBA members as a service enabling them to benchmark their company's performance against others in theindustry .
"The two must complement each other, and that balance is not achieved without some measure of planning," noted the Hackettstown, NJ-based NKBA.
The NKBA report revealed that cabinets, far and away, represent the bulk of dealers' sales. The report also revealed, however, that high-profit dealers rely more on cabinetry as a percentage of total sales than "typical" dealers do.
"In developing an appropriate product mix, firms are torn between trying to build a reputation as a focused product specialist versus building an image of supporting one-stop availability," the NKBA observed.
"In either case, the firm needs to ensure that every product category supports the company's overall merchandising strategy and justifies the investment level in the category," NKBA concluded.