Increase sales, profits and save time!

BY PETER SCHOR

Showroom specialist

As you know, my June monthly column was the re-cap of “What’s new and hot in bath/plumbing products from k/bis 2008.” My May monthly column was called “Profound fundamentals of successful plumbing wholesaler showrooms.” I would highly advise going back to re-read the entire May monthly column before you continue on with this month’s article.

To refresh your memory, the three keys for wholesaler showroom success are:

• Qualifying clients
• Who sent the client to your showroom?
• Who is buying the product?

Remember from the May column:

• “The Greeting” -- the two-minute bonding process.
• Then qualifying/questioning
• Building rapport
• Listening.

You also remember that the “qualifying/questioning” process is for people who are doing a full bath or more and not for someone picking out a towel bar. Adding “building rapport” in the early stage of the process is imperative to showroom success. This is especially true when you are giving up valuable hours of your time with the client. It is much harder for a client to go buying elsewhere when you are connected.

This month’s column is about “controlling the process,” which is the fourth key to success in today’s showrooms. This subject will include the “process” and many time-saving tips and secrets. This process is based on some the most financially successful and acclaimed bath, plumbing and decorative hardware showrooms in the U.S. and Canada.

First, a major change must take place!

It is imperative that plumbing wholesaler showrooms “market” their services to consumers and their architects in the early stages before the builder or plumbing contractor are selected. When the consumer has a set of architectural plans, this is the time to select the bathroom and kitchen products. This puts your showroom and product lines in control of the specifications.  This does not mean that you are bypassing the plumbing contractor!

I very often see a consumer with a set of plans coming into a showroom for just a couple of bath/plumbing items. This is typically why plumbing wholesalers do not use the “long form” quote that I advocate as they are not selling complete bathrooms; they are selling a few items.  In a study I did a few years ago, I saw custom homes in many areas where the plumber/builder were controlling the specifications. Those homes had “cheap tract plumbing fixtures” while the countertops, flooring, lighting fixtures, door hardware were luxury high-end upscale products. I’ve seen in another area of the country with dominant specifying showrooms for luxury bath/plumbing products that luxury high-end plumbing products became the expected norm in that same range of homes.

Many plumbing wholesalers and DPH-type showrooms offer “value-added” in the selection and coordinating of bath/kitchen products. Much of these services are in the “perception” area. Many charge an hourly fee of $75 to $150 per hour, which is refundable against the purchase of the goods by whoever the “buyer” is (builder, plumber, etc.). Have you ever thought of creating an “Outcall Service” for resale/remodeling middle- to high-end homes that is refundable against the purchase of all the goods through your showroom? This is one of the hottest services for these tougher economic times. You must make your own self-evaluation and benchmark whether your showroom staff can warrant charging a fee. Then you must come up with a way to sell and market this “value-added” service.

The most successful showrooms that are staffed sufficiently find marketing their services to the consumers as a positive because more of them are equipped to refer business to their professional trades, who are in their “circle of influence.” This 100% includes the plumbing contractors. I know many professional trades who would go out of their way to buy from your showroom for their own projects -- although you may be higher priced -- for the sake of getting one or two project referral projects a year from you!

The process of speeding up the selection

The clients walk in with a set of architectural plans for a custom home. You allowed them to walk around to get acclimated to your showroom products and when time are ready, you go through the greeting (bonding); qualifying and questioning; building rapport; and listening process.

The clients then proceed to tell you that they are here today to pick out all of the bath/plumbing finished products for their new home. Regardless of how slow the showroom is at this time, you would proceed to tell the clients that you do this by appointment only because it takes time to put it all together the right way. This is also done to control the process. Most very successful showrooms will have a three- to four-day time lapse between the original meeting and the plan appointment. This allows you to do the following things that will ultimately save time and produce greater results:

• You will call the person who sent the client in and cover all of the unanswered questions such as budgets, stage of construction, and confirm who is buying the product. 
• You will ask for a set of plans before you meet. You will make a complete take-off of all the products drawn in the baths, kitchens, and other areas that you supply on what the successful showrooms call a “Pre-Printed Take-Off Product -- Long Form.” For example: Master Bath -- Lavatories, quantity left open and description and style left open for the meeting. You will plan the bath accessories such as towel bars, just like you would use the bath yourself. You will also make notes on many products you sell that are not drawn in the plans such as air massage/whirlpool tubs, steam shower, towel warmers, shower doors, towel bars, and much more. For more detailed information on using a “Long Form” to sell more product and bigger packages, log onto www.thewholesaler.com. Go to “Archives” and click on 2007. Go to my May 2007 Showroom Column and print-out a pdf of the article. It is all there! This article about developing the Long Form quote has a ton of benefits and solutions to challenges such as listing model numbers, vague descriptions, lumping baths and much more.

Another key ingredient in the success of selling complete packages is the art and skills of “win-win selling” before you commit to give up valuable time to clients. Some of the most successful showrooms in the U.S. that give in-depth services -- whether real or perceived -- charge an hourly fee of $75 to $150 that is refundable against the purchase of the goods by the “buyer” (builder, plumber, etc).

There are some very successful showrooms that will explain to consumers building custom homes or large remodels that they would be glad to work with them by quoting the retail price only and having the builder’s wholesale price on file. The consumers are told when a builder calls for bidding their home, your showroom will give them the retail price and their wholesale package price. You assure the consumer that the builder is fair. The builder will be told about any of the unusual plumbing specialties that were selected such as steam unit and air massage tub, as well as products that may be in the non-plumbing budget, like towel bars, shower doors, etc.

The key is that the written quote does not leave the showroom to the consumer or the builder bidding does not get a breakdown copy. The consumer is told of this “win-win” process before your begin. When a builder gets the job and calls for the wholesale quote, this is the time you would ask which plumbers will be bidding the job. As you know there is more to this equation, but I feel that you get the picture. Remember, you did not charge a fee for your services, the consumer got value, and you are entitled to get the order. In complete openness, there are many other tools, tips and secrets in the above paragraph that would go into several articles on this subject. A good example is a “Win-Win Philosophy” -- I will give you what you want if you give me what I want!

Practical tips

Here are some good time-saving showrooms tips and secrets to save time and speed up the selection process:

• 10-80-10 Showroom Rule -- You know the 80/20 rule; 20% of your clients make 80% of your volume, or 20% of your inventory moves 80% of the time. The 10-80-10 showroom rule says key on your 80% target market client. 10% on either side of the 80% are clients that may be D-I-Y’ers and should be sent to a home center; others want retail services and wholesale prices; some clients are never satisfied and can be trouble. Good qualifying skills are the key.
• Qualifying Clients -- Unless you are closing 75% of the sales, you must take a good look at how deep you are using the qualifying process. I have spoken to numerous showroom people who have told me about the one that was a “sure order” that turned sour after the clients got hours service and expertise. Remember, The American Dream for most people is “Retail Services and Wholesale Prices.”
• Charting Traffic Hours -- Take two weeks of showroom hours with no holidays, before or after, and keep track of the exact time people come to your showroom. Then add up each time the quality of people that come in and divide by two weeks (working days). You will find out what time to do quotes and when to expect to have heavy traffic. Yes, I know there is always the exception to the rule when 10 people walk in at 4:00 p.m.
• Scheduling Appointments --  Schedule the times to have product selection meetings with your client at your slowest traffic times. Remember, you must stay in control of your time.
• Showroom Flyer -- How Does Your Showroom Work? Every showroom should have a marketing sheet available to explain the details about your showroom. For example, include days, hours, plans by appointment and why, years in business, and so forth. This sheet should be given out when clients are impatiently waiting for service and should be available at the entrance of your showroom.

I was visiting one of my high-end  luxury showroom clients where we had put in a greeting/waiting room with a couch and fireplace. The area had much information (awards, certifications, trainings) on the company to raise the clients’ expectations before the selection meeting. The receptionist came out and greeted the couple and offered them a soft drink. Then she turned on a four- minute professional video explaining the showroom’s professional service in putting together multiple baths and complete homes.

• Educate Professional Trades on How Your Showroom Works and The Selection Process --  If you are charging a fee refundable against the placement of the order; then make sure to market it.
• Silent Sales Aids -- Many successful showrooms know that shortening the selection process can be done by having a small library of bath books and magazines that will help clients identify what they want without taking your valuable time. I have also experienced several successful showrooms that have pre-made literature packages for bath and kitchen remodeling and complete homes. These packages are exceptional for clients who are overwhelmed by the choices or who may not have their partner present. Many of these successful showrooms have a $25 cost that is run off of a  client’s credit card but not called in. The credit card slip is held in the showroom associate’s locked desk. This way it assures you that the clients will return the literature and must talk to you again. For those who do not return in 30 days, the credit card charge is put through to offset the cost of literature. 
• Plan Table -- I see too many showrooms without a place for four people to sit down with a set of architectural plans after they have walked the showroom to make preliminary selections. The location of a good plan table should be in the center of the hub of the showroom.
• Display at Least One Complete Matching Faucet and Accessories Series --  Every showroom should have at least one complete matching bathroom hardware series on display in one grouping.  We are talking about widespread, centerset, single hole faucet, Roman tub set, wall mount tub set, shower set, towel bars and all the other accessories, cabinet and door hardware, and more. When the clients pick out a lavatory set and finish for a specific bath, you would say, “I will match up all of the components you will require from your plans including accessories just as the matching series (you point to) on the wall.”

While a book could be written with many of the tips and secrets of successful bath showrooms, I will cover many of them in my August column. The keys to increasing your sales dramatically is to sell bigger packages, taking control of the process of selling the package; and to be the initiator of the products consumers really want before they are told differently. The consumers are ultimately paying the bill. Why shouldn’t they have their dreams met! I look forward to serving you next month.

Peter Schor, president of Dynamic Results, Inc., is an educator, motivational speaker, consultant, coach and writer in our industry and many diverse others. For the past 17 years, he has conducted 100 educational programs annually, including 34 industry conventions. Schor has great expertise in the field of showrooms and has won many industry awards. He also works with manufacturers in the field of sales, marketing and public relations. Schor can be reached at 1491 Ivy Arbor, Lincoln, CA 95648, phone 916/408-5346, fax 916/408-5899, e-mail pschor@dynamicresultsinc.com or through his website at www.dynamicresultsonline.com.