Launch a Discount Cabinet Division to Increase Profits

Simply put, most kitchen/bath design firm owners never disciplined themselves to become astute, well-rounded businesspeople. And enabling industry institutions and manufacturers never demanded that of them and filled the void with the necessary educational programs.

A successful Discount Cabinet Division venture that will draw lots of leads for both operations will require someone with a strong business orientation and a “fanatical discipline” to lead the effort.

On one hand, owners who have a custom design orientation may treat such a division as a foster child and not give it the attention it needs. On the other hand, there is a risk of too much focus on the sale of low-priced cabinetry to the extent that the core business’ reputation is tarnished – and the combined operation fails.

Executed and promoted properly, however, there is the genuine opportunity to educate the low-priced shopper about the value of better quality cabinetry, the services of a certified kitchen designer and having the project designed, furnished and installed by a single reliable source.

Each business needs to stand alone with clear, separate identities that just share the same address. Each business needs separate product offerings in different display venues. Each business needs different staff – with different skill sets – offering a different menu of services.

Such marketing segmentation will not be easy for the typical kitchen/bath design firm owner. But for those with sharp business acumen and a “fanatical discipline” for detail, launching a Discount Cabinet Division just might create a future of never-ending leads and exploding growth that far exceeds competitor performances and industry averages.

Anyone interested in investigating this business expansion concept may contact me directly at kpeterson@sendesign.com. Just request a “Cabinet Express” marketing outline that details the suggested differences between these two operating divisions. Anyone interested in learning more about the differentiating behaviors of the business leaders featured in Great by Choice might want to follow my blog at www.sendesigngroup.com.

Ken Peterson, CKD, LPBC, is president of the Chapel Hill, NC-based SEN Design Group and an instructor for the “Competing & Thriving In The New Economy: Best Business Strategies For 2012” seminar that is co-produced by KBDN. Peterson can be reached at 1-800-991-1711 or kpeterson@sendesign.com.