Opinion
kbb Birmingham 2018 Show Special
How to… find and retain good installers
With a widening skills gap putting pressure on supply and demand, it’s becoming increasingly difficult for retailers to find good installers. BiKBBI chief executive Damian Walters looks at how to attract good tradesmen and how to keep them on-side
K to them: 1. Competitive pricing;
2. Fair payment terms that offered protection to suppliers; 3. Installer-friendly product and materials quality; 4. On-time, in-full delivery;
5. Relationships with the retailer and on-site support. So who were they? The 3,000 participants were evenly split between kitchen and bathroom installers; a third were BiKBBI members currently working with our retail partners; a third were BiKBBI members not currently working with our retail partners; and a third were not BiKBBI members.
Loyalty
Of the 1,000 working with our partners, 94% were working, or had worked, with two or more retailers at the same time – with 47% working with more than three retailers. This suggested that retailers were, for a number of reasons, working with an installer population who were not dedicated to any single brand. When asked whether they saw themselves working with the retailer in five years’ time, 31% said they wouldn’t be – for whatever reason. This may correspond to the demographic of those surveyed, with 56% in the 45+ age bracket – indicating an ageing workforce. So what puts them off working with retailers?
bbreview’s 2018 retailer survey proved that finding good installers is one of the biggest challenges faced by independent KBB retailers.
To reiterate that point, our retail installation partners at
the British Institute of Kitchen, Bedroom and Bathroom Installation (BiKBBI) are anecdotally reporting a struggle to keep up with growing sales demand. To help understand the problem, the BiKBBI undertook a piece of research last year with close to 3,000 installers, on the subject of retail-led installation opportunities. Those surveyed were clear about what’s important
Those BiKBBI members not working with retailers said price was the main reason for their choice, although 90% of those who gave this as a reason had, in fact, not received details of pricing within the past two years. With a skills shortage driving supply-and-demand characteristics, it is evident that the retail sector has a challenge to compete with the lucrative lure of the private B2C (installer – consumer direct) contracts. Perhaps retailers should be seriously reviewing their pricing strategy in light of changing times? Only 4% of members not currently working with retailers had ever had a retail relationship, stating that a poor reputation of working with retailers was a key factor in their choice. Interestingly, only 9% said they would consider working with a retailer today, but an encouraging 84% of those said that they would consider it in the future, if
84%
THE PERCENTAGE OF INSTALLERS THAT SAID THEY’D WORK WITH RETAILERS IF COMPELLING REASONS WERE PRESENTED
compelling reasons were presented.
So what led to this shortage of installers who are willing to support retail-led installations? Figures from a 2016 YouGov poll confirm suspicions
that school leavers and graduates do not view trades as an attractive career choice. The poll found that two-thirds of Britons wouldn’t consider a career in construction. Another report highlighted the sector’s dysfunctional training model, its lack of innovation and collaboration, and its non-existent research and development culture. Brexit could make this situation even worse if it results in reduced migrant labour, especially as more people leave the industry each year than join it. Free movement of people between the EU and UK will end in March 2019, according to UK government
24 kbbreview kbb Birmingham Special Edition March 2018
Money talks. Retailers must be prepared to review pricing and indeed the overall proposition
ministers. From that date, EU workers moving to the UK will have to register, at least until a permanent post- Brexit immigration policy is put in place.
Money talks So there’s absolutely no doubt about it – money talks. As the skills gap bites, the existing workforce becomes more valuable. It’s the age-old supply-and- demand situation that’s been around for centuries. My view is that if retailers want to attract – and retain – great installers, and keep up with a very changing marketplace, they must be prepared to review pricing and indeed the overall proposition. The results of the BiKBBI’s research were clear about relationships. Installation should not be viewed as a bolt-on to the product. Instead, a truly integrated installation service should maximise a good balance between a great customer experience, risk management and the commercials for the retailer.
• Damian Walters will be speaking at the kbbreview Retail & Design Conference, see pages 8-9 for the full programme
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