As the year draws to a close, David Morris, Sales Director for MHK UK, tells us about the smart business strategies independent retailers should take into the new year.
The festive season is a critical period for independent kitchen retailers. It brings an influx of customers who are eager to update their homes, with kitchens often at the top of the renovation list. However, it also presents a logistical challenge for businesses that must balance increased demand with operational efficiency. To thrive during this time, kitchen retailers must adopt smart business strategies. If you’ve found yourself walking a tightrope ahead of Christmas 2024, read on.
Strategic business planning: set goals and know your margins
It is essential to have a clear business plan that details your goals and objectives. A well-structured plan will include both short-term targets, such as seasonal sales objectives, and long-term growth plans. Understanding your costs and margins is crucial. At a basic level, this involves knowing how much it costs to keep your showroom open and what sales you need to break even.
Crucially, if your operational costs increase during the Christmas season—due to extended hours or seasonal staff—your business plan should account for these expenses. By keeping a detailed forecast of projected sales and fixed costs, you can better manage your pricing and avoid undercutting your margins during this busy time. If you’re new to the industry, have made recent changes to your business model or simply want to streamline your approach, this is where partnering with MHK can make all the difference. With decades of experience and tailored business support, MHK’s advisors can help you navigate challenges, pinpoint the weak spots in your strategy, and simply offer new perspectives.
Cash flow is king: manage payments and maximise credit
One of the most common challenges faced by independent retailers is managing cash flow, especially during a high-demand period like Christmas. Growth requires investment, and the return is often delayed. Smart kitchen entrepreneurs utilise trade credit rather than their own money, helping them maintain cash flow while scaling their options.
MHK offers a unique advantage to its partners by providing open-ended credit terms with 30 days to pay. This means that kitchen retailers can purchase products and pay for them after they have been sold to the customer, which is particularly helpful when dealing with large, high-ticket projects. Reducing the pressure to make large upfront payments allows you to close deals more easily and take on more significant projects without straining your resources.
Supplier Partnerships: Collaborate to success
When dealing with increased holiday period demand, having a strong relationship with your suppliers can make all the difference. Your suppliers are just as invested in your success as you are. A collaborative approach benefits both parties and ensures that product deliveries and installations run smoothly.
By choosing the right suppliers, you can negotiate better discounts and benefits. Focusing your buying power on a small number of key brands can yield loyalty bonuses and other rewards, improving your bottom line without raising prices. This approach is fundamental when the marketplace is competitive, and customers are looking for the best value during their holiday purchases.
Optimising product selection: focus on high-margin products
In the lead-up to Christmas, it is essential to select products that not only sell well but also offer strong profit margins. At MHK we emphasise to our retailers the importance of understanding that your margin is made when you buy, not when you sell. This means choosing products that provide an above-average margin, especially when you are restricted by competitive market pricing.
Successful kitchen entrepreneurs use tools like MHK’s "Index Kuche" comparison platform to analyse products and select those that offer the best value for their business. This ensures that even during the Christmas rush when competition is fierce, you can maintain profitability by selling items that maximise your margin.
Marketing and customer engagement: your website is an extension of your showroom
Increasingly, your website is becoming your primary shopfront, especially during peak times like the Christmas season when customers are less inclined to make long journeys without prior research. Ensuring that your website is user-friendly, informative, and optimised for lead generation is crucial.
Successful retailers use price conditioning tools on their websites to manage customer expectations and reduce sticker shock. This prepares potential buyers for the investment required for a new kitchen and ensures that leads coming through your digital channels are more likely to convert into sales. During the busier periods, your website can also act as a "silent salesperson," handling inquiries and generating qualified leads while you focus on managing in-store demand.
Installation as part of the sales process: delivering on the final promise
Beyond the sale, the final interaction customers have with your business —the installation—leaves a lasting impression, making it essential to integrate this step into your sales process from the outset. A flawless installation not only ensures customer satisfaction but also drives positive word-of-mouth referrals, a powerful form of marketing that no holiday campaign can replicate.
To learn more about becoming an MHK member in 2025, contact David Morris, Sales Director: d.morris@mhkgroup.co.uk +44 7500 595744
