Avoiding The Commodity Market

February 6, 2007

There are as many opinions as there are different stones out there. For some, it’s “competing” by lowering your own prices. Others say you should market your shop as the best. And, others like the idea of the one-stop shop.
I posted this question – Where is this business going? – online, and, as you can imagine, I received numerous responses. Some came from the ultra-high-end shops, with others from the lower margin-shops. The one thing I deduced is that everybody has their own market – or is a slave of the surrounding market – in their respective locations.
Here are some ideas to help improve the bottom line, and allow you to get more money for the job.
• Raise awareness among your regular customers that quality is first in your shop. Quality workmanship deserves a higher price.
Don’t just say it; live it. Market your shop as the best in the area, and charge accordingly. If the local competition has a smeared reputation, this is rather easy.
• Bring samples of edgework with you on sales calls to show the customer what you are selling. Fabricators can also set themselves apart by contacting local cabinetmakers and designers, and giving them display tops for their showrooms. This helps to promote repeat business, as well as show the quality of your work.
• Sell more exotic stones, less staples. What I mean is … quit trying to sell Uba Tuba. Everybody has it, and everybody sells it cheap. Get some really new, nice stones on the yard – ones with movement and character are much better looking, and can earn you a much-better bottom line.
That average shop down the road has Uba Tuba and the like; you have beautiful exotic granites on the yard. Use this to your advantage and up-sell the client to a priceless kitchen that none of their neighbors have. By doing this, you take the “commodity” part out of the sale.
• Pattern, or vein matching with your counters is also important. If you sell the exotics, make the job exotic as well. Add some details, such as curves, flowing radius edges, etc.
As you do more custom, high-end homes, you’ll gain the reputation as the one shop that does the best quality work.
You’ll get customers who want you to fabricate for them, no matter the cost. It’s this type of client who’ll ask for stacked edges and custom inlayed full backsplashes. It;s this customer who’ll help set you apart from the rest of the pack.
It’s also a big help to offer edges the other guys won’t sell – for example, a Roman Ogee or the Triple Pencil (waterfall). And, of course, there’s the laminated stack edgework.
• Service is also a key part of selling yourself as the company to buy from. Provide excellent customer service to every client. Treat them all as if they were spending a million dollars with you.
Remember that you don’t like waiting for the cable guy when they say “sometime between 10 and 3?” Always call your customers when en-route, and especially if you’re running behind. A little phone call can go a long way in total customer satisfaction.
• The “one-stop shop.” Many shops have already taken this path to greatness. If you can sell other items your clients need, they won’t have to shop elsewhere.
Being able to sell the customer the correct sink and faucet for the job not only helps with customer satisfaction; it’s a boost to the bottom line. The average markup on sinks and faucets is about 100 percent to 150 percent. We can’t make that much profit on stone! You can also offer tile and deco trims as well. It helps to have an area in your showroom with a tile backsplash to aid your clients in visualizing a complete job. Which brings me to the next point ….
• Set up a nicely arranged showroom. You wouldn’t buy a car without first seeing it, would you? People love to see and feel the work you do. Get some cabinets installed and place different stones around the showroom.
It doesn’t hurt to get a designer’s input for this. They can help you with layout and colors that are hot in the market. Hearing a client say “I want that in my kitchen’ is a real boost in morale and a great starting point to selling them the custom kitchen of their dreams, complete with sinks, faucets, and a nice tile backsplash.
• Stock your yard or warehouse with a lot of choices. Customers don’t want to drive around for hours looking for the right stone for their project. Mr. and Mrs. Smith can stroll through the yard and look at all the stones you have to offer. The true one-stop shopping experience will impress many prospective clients enough to close the deal on the spot.
• Competing with the hacks … many of my friends are in tough markets where they have to try to compete with local stone slobs on a daily basis. If you are in one these markets, you can either rise above them as described above, or compete on their level.
Trying the direct-competition route will be difficult. You’ll need to invest a lot of money in equipment and automate the entire operation in an effort to decrease cost. Basically, your shop will become a production line with little focus on custom jobs.
My advice is to better the industry by rising above the mainstream and keeping stonework an art form – rather than a commodity.
Till next time … Donny Taylor.
Donny Taylor is a proud member of the Stone Fabricators Alliance. To ask him a question on this or any other subject, or find more info, visit www.stoneadvice.com.