Why is it that the kitchen/bath industry’s average gross profit margin idles at 29% (Kitchen & Bath Design News, June 2017) when Coach, the 81-year-old affordable luxury handbag retailer, can earn a 67% gross profit margin on the over-the-counter sale of a handbag? Imagine the simplicity of that sale. Versus what sales designers need to do in order to close a kitchen or bath sale and produce the project over the course of many months to have it fit like a glove. There is also industry proof that firms can earn 30-40% higher margins. Imagine what that could do for your bank account! These companies have evolved into truly exceptional marketers. To arrive at this lofty perch, they have come to stand for at least two pivotal tangibles that are especially meaningful to consumers: (1) a set of core values that resonate with their target clientele and (2) leveraging technology for the benefit of that clientele.
(Qualifies for 0.1 NKBA CEU, 1.00 NAHB CE hour, 1.0 NARI CEU)