Control Mix of Key Products and Customers, NKBA Suggests

by WOHe

Control Mix of Key Products and Customers, NKBA

Most kitchen and bath dealerships “fail to take control” over their
mix of products and customers a costly mistake when it comes to
maximizing profits.

That’s the word from the National Kitchen & Bath
Association, whose recently-
completed 2000 “Dealer Profit Report” revealed that, very often,
“the choice of products offered and customers serviced is left
almost to chance.”

The “Dealer Profit Report,” prepared on behalf of the NKBA by
the Boulder, CO-based Profit Planning Group, was released recently
to NKBA members as a service enabling them to benchmark their
company’s performance against others in theindustry . 

“The two must complement each other, and that balance is not
achieved without some measure of planning,” noted the Hackettstown,
NJ-based NKBA.

The NKBA report revealed that cabinets, far and away, represent
the bulk of dealers’ sales. The report also revealed, however, that
high-profit dealers rely more on cabinetry as a percentage of total
sales than “typical” dealers do.

“In developing an appropriate product mix, firms are torn
between trying to build a reputation as a focused product
specialist versus building an image of supporting one-stop
availability,” the NKBA observed. 

“In either case, the firm needs to ensure that every product
category supports the company’s overall merchandising strategy and
justifies the investment level in the category,” NKBA

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