Know 'True' Display Costs: NKBA

Know 'True' Display Costs: NKBA

Hackettstown, NJ Kitchen and bath specialists need to possess a keen understanding of exactly what it costs to put a particular product on display in a showroom in order to calculate the "true" return on their investment in the display.

So says the National Kitchen & Bath Association, which advises kitchen dealers to look beyond the mere cost of the product in determining the actual investment that's being made by the dealer.

In the case of a built-in refrigerator, for example, dealers should factor in their costs for delivery, plus costs of the front and side panels as well as costs of the actual product and the display space required in calculating their true investment.

For instance, while a built-in refrigerator may cost a dealer $2,200, the annual cost for the 6 sq. ft. of display space required to show the product may be, say, an additional $576, while the cost of the front and side panels may be another $580 resulting in a total investment of $3,356.

In general, dealers need to decide if they can sell enough of a particular product at enough of a profit margin to justify putting that product on display once the "true" costs are calculated, the NKBA advises.