Opinion
kbb Birmingham 2018 Show Special
How to… make money out of old showroom displays
Helen Lord, founder of The Used Kitchen Exchange, explains how retailers can maximise profits by selling ex-display kitchens and how having an ethical strategy could enhance your service proposition and help grow your business
I
n an increasingly competitive sales environment
showroom displays can
be seen as both a blessing and a curse; an expensive commitment necessary to attract new buyers that can all too quickly become out-of-date or discontinued. Fresh, up-to-date displays are vital to bring timely engagement from customers in new products and are essential for brand agility, return on your marketing investment and showroom image – a must when striving to maintain a competitive edge
Top Tips
s
for both kitchen retailers and manufacturers alike. But could your current display portfolio be viewed as a business enabler?
Barriers to change are a genuine reality for showrooms, often resulting in the slow replacement of redundant displays or ‘fire sale’ prices. Lack of footfall, reluctance to publicise reduced price points and the cost of change are all reasons showrooms cite for indirectly hindering their own business success. In selling over 80 kitchens a month, we are in a unique position to be able to see common
Getting the most out of your showroom Helen’ displays when you decide to sell
Sell before they are discontinued: The timely sale of a display is essential. A discontinued kitchen presents a ‘red flag’ to a buyer as additional items cannot be sourced.
Advertise at least three months before you want to remove your display: You need time on your side to increase your buyer traffic. Domestic buyers are often happy to wait for the right kitchen and sometimes a delay in collection can be beneficial.
Do not remove your display until it is sold: This is another red flag to a buyer – in our experience over 70% of people will want to view a kitchen prior to purchase.
Include appliances and worktops: Retaining appliances may seem like a cost-effective option, however, buyers prefer a complete solution. If the appliances are to be reused, consider offering an
alternative appliance pack instead. Worktops are also a key feature of the display, so it is worth using professional removers.
If your display is damaged, sort it out: If a door is scratched – replace it. For a negligible cost and minimum effort your display will be much more likely to sell for the right price.
Include staging items in the sale: It can be a great selling differentiator to include desirable staging items such as stools and feature lighting – these can definitely add value for the buyer.
Offer professional removal: Removal of a kitchen is another red flag, but equally important is to ensure the safety of your premises.
Outsource to a specialist: Reduce workload, legislative risk and increase your chance of a higher sales price through their on-line footfall.
Above: An ex-display kitchen sold through UKE
issues that business owners and manufacturers face and interestingly there are some simple solutions that can turn these potential business limiters into business opportunities. An ex-display kitchen is a very attractive proposition for savvy domestic purchasers. With the current trend for discount buying, the display kitchen can become a sales and marketing tool in its own right. Most displays we sell gain around 40% to 50% of the original RRP, at a minimum making a new display cost-neutral and at best giving an unexpected profit. Our online advertising attracts more than 90,000 buyers a month looking for a deal yet they still want a beautiful kitchen, often craving a recognised brand. Choosing an ex- display for this group is an ideal way for them to achieve their desired look on a budget and rather than decreasing a brand’s value, I believe it confirms its desirability and market position.
Online marketplaces, such as specialist sites, eBay and social media have opened up a new sales platform, increasing visibly and attracting buyers from all over the UK – something a showroom wouldn’t be unable to do without a large advertising budget. So how can showrooms plan better for a profitable sale? There are two key thought processes to selling a display profitably. Selling at the right time and selling the right mix of products.
74 kbbreview kbb Birmingham Special Edition March 2018
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