FOCUS | Talking about budgets
TOP TEN TIPS FOR Talking budgets 1
Bring it up early. Don’t wait
for them to bring it up Phil Beechinor, MD, Alexander
times in their life and, therefore, don’t fully understand the costs. And Williams at Owen Williams adds: “We can get blazé talking about figures like £20k to £30k as if it’s peanuts – but these are huge sums of money and it is important to recognise that.”
The secret, of course, is to sell them on the service you offer – it is what sets independent studios apart. As Martina Landhed, design director at InStil Design in Oxfordshire, confirms: “It is important to explain that to the clients at a very early stage. Tell them that if they are looking for best design, advice and service, we are the right place to buy from, but not if they are shopping around for price.” Jarvis at Albion BKE agrees that selling quality of
service is a better place to kick off. “Selling the services your company offers if probably the most important thing to do before discussing any form of budget with a customer,” he explains. “It sets the scene as to why your services cost more than they would pay if ordering the goods from the internet or a shed.” Bacigalupo at Napier Bathrooms says people understand what a small business offers: “Everyone knows that service should be better from a small business. Small business is built on expertise, knowledge and passion. As the ‘middle’ market disappears, the premium local showroom and online traders grow further and further apart. Local small business is there for service-conscious clientele.” Ed Scott, a director at Hutton Kitchens in Essex, agrees: “Once the budget barrier is discussed, clients can understand what they get for their money and how much better value and long-term service they can achieve from an established independent.” When talking budgets, McNally at Kitchens By McNally gives a straightforward formula and suggests
2 3
Sell your company and the service you provide
first, then talk budget Dave Jarvis, MD, Albion BKE
Build a relationship and trust with the
customer quickly Victoria Anderson, showroom category manager, Elliotts Living Spaces
4 5
Never ask a leading question a client can say
no to. Take time to build up a rapport and make them feel confortable talking
about budget Simon Taylor, MD, Simon Taylor Furniture
Use car brands as a guide – do they want a
Kia or a Range Rover? Trevor Scott, CEO, RFK
spending between 3% and 8% of property value on a new kitchen. Rufus Wainwright, a designer at Ulmo Kitchens in Poulton le Fylde, usually suggests £15k to £20k for a £200,000 property and £40k to £100k for a £2 million home.
Having said that, there is, of course, always some wiggle room in any negotiation. John Pelosi, owner of Caldicot Kitchens and Bathrooms, distils it down to this one piece of advice: “Explain that you can’t give them champagne on a lemonade budget, but you might be able to treat them to an excellent Prosecco
6 7
9 8
Tell them how much some of your showroom displays would cost and
watch for the reaction Andrew Warnes, MD, COD
Share examples of the cost
of your previous projects Martina Landhed, design director, InStil Design
If you can’t get the info, do two quotes – one that pushes it to the maximum and
one using cheaper products Kristjan Lilley, director, H Lilley & Co
Make sure your client can not only afford a kitchen, but is actually willing
to spend the money Darren Taylor, MD, Searle and Taylor
10
Treat customers as you would wish to be
treated – be open and honest John Pelosi, owner,
Caldicot Kitchens and Bathrooms
that will taste every bit as fine.” So where does that leave us?
Most retailers agree that getting a good ball-park figure on the table at the earliest possible stage will help avoid wasting everybody’s time on a project that does not suit the client or the retailer.
The secret is being honest, direct and open about the quality of service your clients can expect from your business, and that there are ways to reduce a quote if required, which should help convince them to buy from you.
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· May 2021
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