MHK and independent retailer, The Tile Centre have joined forces to show how business and design decisions can go hand in hand to make a project more profitable.
“Retailers looking to increase their profit margins may find it challenging to balance this with their creative vision and wanting to give the customer the best experience possible. There are many common pitfalls early on in a business transaction that may seem like they will increase profitability but in fact could have the opposite impact long-term,” explains Paul Wheeler, Sales Director for MHK UK. “One of these is saying yes to everything.”
Two heads are always better than one and combining MHK’s business expertise with The Tile Centre’s design expertise has proved a winning formula. Here, Memuna Ismail, Showroom Manager and Senior Kitchen Designer for The Tile Centre in Blackburn shares her experience of how good design can boost profit.
Respond beyond the brief
Spending time getting to know your client is key here. Designers can exceed their clients' expectations by including design details that go beyond the scope of the original project. Offering additional elements or features that the client may not have considered can add value to the final product and make the project more profitable overall.
If they talk about a love of coffee, include the at home barista station of their dreams. Are their pets the centre of their world? Include an area dedicated to creating a cosy integrated dog bed. Oftentimes, customers will find the extra budget when it comes to that must have ‘wow’ moment that they didn’t ask for but end up falling in love with.
Ask for the whole floorplan – not just the kitchen
The simplest way to increase profit on a project is to increase the scope of the project by taking a holistic approach to each design. By asking the right questions and taking the time to understand the client's plans and goals for the entire space, designers can identify opportunities to add value and generate more revenue. For example, make sure to ask what lies behind each of the room’s doors, include a dining table and seating in the space and provide plans for innovative storage solutions.
Filling empty spaces, asking about other areas of the home, and making bold design choices can surprise and delight clients, leading to repeat business and referrals. Even if they don’t have the budget to take on another room initially, they will remember your design when the renovation bug sets in down the line. Even the great outdoors. The demand for outdoor kitchens is really growing and through membership of MHK we have access to a host of outdoor products which we are looking to include in phase two of our showroom expansion.
Work backwards to create a bespoke space
Understanding how the customer wants to use the space, what feeling they want to create and ultimately the way they want to live will give designers a good basis to work backwards and create a space that responds to these overarching desires.
Designers can leverage customers’ hobbies and passions to create unique design elements that can lead to more profitable opportunities. Incorporating features such as a breakfast bar, a pantry or cocktail cart into a project can create a wow factor and generate more business.
Another way to give clients an added extra to fall in love with is to incorporate features that have multiuse options, such as a breakfast station for everyday practicality, designed with hideaway pocket doors, which can either be closed away to open the space up or double up as a bar or grazing area when entertaining.
Maintain your value
Don’t be scared to be transparent about pricing and value your work appropriately. By asking for a budget upfront and being honest about the cost of the project, designers can avoid undervaluing their work and creating a tight profit margin that is easily affected by changes, unexpected delays and damaged goods down the line. It's important to stick to your pricing and not give in to pressure to lower your rates. In the end, delivering a high-quality product will speak for itself and the customers that value your work will be happy to pay what it’s worth.
Losing a sale is ultimately okay if the project would have cost you more in time and yielded only a marginal profit.
Don’t say yes to every job
It might seem counterintuitive to turn down a sale, but retailers must be selective in the projects they take on, especially as their services increase in demand.
Have a qualifying strategy in place. You can often tell when a potential customer is only focussed on getting the price as low as possible. They might come in with plans from another brand and ask for a competitive price. However, choosing to only take on projects that align with your design style and expertise can lead to more profitable and fulfilling work. Sometimes, it's important not to get caught up in the race to the bottom and take on low-paying projects that do not value your skills.
Visit MHK at KBB Birmingham 2024 on Stand P84 and learn how your business can become more profitable.
