Don’t leave money on the table

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“Kitchen and bathroom design professionals should never fail to recognize that they are bringing something very special to the table. And they should never fail to charge for it.”

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Eliot Sefrin | May 10, 2021

Kitchen and bathroom designers, as well as other home improvement professionals, could well compromise themselves – and seriously jeopardize their bottom line – by undervaluing the special services they provide, while failing to charge in. consequence of their reputation, expertise and skills.

That’s the conclusion of an insightful new report that offers groundbreaking information on how and why today’s consumers spend on home services. The landmark report, released last month by HomeAdvisor, the Denver-based digital marketplace, takes an in-depth look at the key factors impacting the cost of a wide range of homes
renovation projects, including kitchens and baths.

According to HomeAdvisor Actual cost report, the pricing of home services is essentially a function of four key factors: the quantity of materials, the quality of the materials, the quantity of labor and the quality of the labor. But while the first three are relatively straightforward to quantify, HomeAdvisor claims, the most crucial factor – and the most difficult to assess and bill – is labor. quality.

And this is where many remodeling professionals tend to miss.

Indeed, according to the Actual cost report, COVID-19 and its resulting higher demand have raised the prices of most major home improvement projects, a trend that is expected to continue into 2021. But as project costs have risen, pricing models suggest that increases result almost exclusively from rising product costs, often resulting from scarcity of raw materials, plant closures, foreign tariffs, supply chain disruptions and rising labor costs. of work. In other words, the steadily rising prices for kitchens, bathrooms, and other major renovations haven’t necessarily put more money in the pockets of the home improvement professionals themselves.

There are reasons for this – as well as ways to change the math.

Specifically, according to HomeAdvisor, homeowners often lack a thorough understanding of what goes into the price of a home improvement project.
– and just as often have trouble determining whether the price of a project matches the value it receives. In addition, the Actual cost report suggests, it’s all too common for homeowners to easily forget what they don’t easily see – especially the hidden value that a team of high-quality design professionals inherently brings to a project.

In other words, the more informed consumers are about the unique value proposition they receive from a knowledgeable and well-trained design / remodel professional, the more open-minded these consumers are when it comes to spending more. money, especially in the case of “lifestyle value” renovation projects such as kitchens and baths.

Certainly, it is difficult in many cases to assign a specific price to attributes such as the reputation, reliability, product expertise, transparency, integrity and advisory skills of a design professional. It’s just as hard to give a value
on error-free estimation, rapid planning,
installation service and the ability to instill confidence in consumers who spend money on expensive projects intimately related to their lifestyle, family composition, functional needs, personal status and sense of style. But kitchen and bathroom design professionals should never fail to recognize that they bring something extra special to the table.

And they should never fail to charge it.

While today’s remodeling market is competitive and it’s easy to be underestimated by low-cost competitors, high-quality kitchen and bath professionals shouldn’t hesitate to charge and to promote the intangible value they provide in the projects they design and sell. and install. The quality of the work, as much as any other cost factor, is worth dollars and cents.

It is essential for kitchen and bathroom design professionals, as well as their clients, to fully understand the myriad of factors that drive project costs. These same customers should be reminded of the one pricing truism that remains forever constant: investing in quality is always good business. â–ª



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