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18 | Kitchen & Bath Design News | October 2015 A s I write this column, the market seems healthy across the nation. Main streets are improving with walkable downtown investments. Various remodeling projects are popping up in surpris- ing locations. And new construction sounds are being heard. The Bureau of Labor Statistics reported solid job growth for the pre- vious month. The U.S. unemployment rate notched another bit downward. This is all good news! No, the economy hasn't hit full speed yet – but we're well past the worst of the Great Reces- sion. In fact, the bad has left and the good of rebuilding is clearly felt. Consumers are once again think- ing about home and spending on their home – although, from my view, con- sumers' interests and priorities have changed. They are thinking and act- ing in very diferent ways than we saw before the Great Recession. Consum- ers of all generations are working to set up their households for the coming years ahead as life stages are making an important shift with consumers' actions, creating opportunities for our industry and the home. Now, the big questions for kitchen and bath frms are: How will you, as an individual business within this changed world, respond to these im- proving market conditions? Where will you invest and take the business over the next year and fve more? Do you now feel freer to think long term again? Ideally, you can say yes. How will you shape your future as part of this industry? And where are you with plans for your showroom? More than likely, you are contemplating a showroom improvement plan. It's as if we were frozen, waiting to see what to do. Or, perhaps something was your trigger to move you into action and you have recently made a change to your showroom. I am convinced, if you have not made changes yet or set a plan for your path, you must, as our shopping consumers are thinking diferently and infuenced completely diferently. Our industry will need to marry to the In- ternet pre-shopping. From what I have been seeing, today our industry looks much the same as it did in the '90s and through the early 2000s. Is your show- room a refection of the new beginning, or a reminder of the past? As I see it, kitchen and bath frm owners can choose from three main directions: 1 You can stay the course. That is: business as usual. No big changes in your offerings or major new moves in your market; the same, more or less, as before. 2 You can sell or close your business. Or just retire. These are always op- tions, of course. If you've made it this far and through the worst of times, perhaps you take these hard knocks learnings and reinvent your business for the next generation's continuation? Have anyone in mind to ft your future plans? 3 You can re-invest. In short: Catch the wave to sustain your busi- ness in relationship to all of the change that has occurred with the consumer mindset in the past fve years, including access to informa- tion and completely diferent style preferences. Standing still may seem tempt- ing. If what you offer worked well before the collapse, it should work just as well now, right? Well, not so fast. You've probably heard the old business axiom: "If you're not grow- ing, you're dying." A kitchen and bath design business that does little or nothing to adapt and improve will struggle to keep up. Instead of riding the wave, your business will more likely be engulfed by it. Selling or retiring may feel right, depending on where you are in life and what you can see coming up. Even if you know what you'll need to do to take advantage of new and better mar- ket conditions, you may fnd you're ready for a bigger change. Perhaps you're ready to build the path to hand of to a family member or the busi - ness mind you fnd locally ready for a change in their life. These are not easy decisions and often take time and a great deal of discussion. Most exciting is the opportunity for the kitchen and bath frm owner who opts to re-invest at this key point in our industry. Homeowners are now re-investing too – in their homes, that is – and many more proftable proj- ects will soon be there for the taking by the designers best positioned to earn this new consumer and the business ahead. I have been in the industry long enough that the change I am seeing is actually familiar from when I started in the kitchen and bath industry. There is a large consumer group entering the work force, estab- lishing homes, wanting to do things their way versus how their parents did things. This is true today as Gen Y is becoming more and more our buyer and employee. And if you say Gen Y is not your customer – think again. They are likely infuencing the buyer you have today. GET BACK TO GROWING During my travels, I met with many kitchen and bath frm owners across North America who are ready to in- vest and put plans in action to lead their business through changes to ensure a next wave of success. Busi- ness owners' choices seem to center around three main decisions. I share this with you as inspiration for fnd- ing your path to catch the next wave. » » Refocus. Identifying opportuni- ties and needs to an overall plan. Shifting their focus to a new way of thinking and engaging their customer and, in some cases, a new customer entirely. I am see- ing businesses that used to be tucked away to avoid walk-in con- nectivity with consumers actually change their strategy to be more diversifed and accessible. Next, taking the showroom interior and setting it up for new selling processes. Here, Internet comple- mentary consumer engagement is key. So, the consumers and their designers can "collaborate on the design" as partners versus de- signing without their involvement early on. With all of the visual ac- cess to style and arrangements on the Web and in stores, consumers are far more prepared when they come into a showroom today. That means today and tomorrow, your showroom needs to meet this awakening and run with it, versus disrupt the knowledge fow. More than ever, homeowners want to be directly engaged in the kitchen or bath design. They expect to work with their designer in a collabora- tion experience and be treated with respect. Approach this change as an opportunity, not as a threat, and take this new focus and rebuild for more increased sales. » » Relocate. There's another common saying: "Location, location, location." It's as true for our industry as it is for residential and commercial real estate. Is your current location the right location for you – now and for the next fve years? More and more kitchen and bath frms are setting up their new store fronts (yes the showroom is still important – in fact more important with the Internet) in highly traveled, highly visible places – not in industrial parks and of the main road, as they've tended to in the past. What's more, I am seeing that businesses aren't wor- rying much about being too close to their competitors, large or small. Many, in fact, prefer to be within clear sight of other showrooms. The idea is: "Customers who visit that showroom or similar products will also more likely visit a showroom nearby, verses driving further out to fnd the location. Selling skills of our designers have really tak- en a higher priority for business owners. As each staf member is added, each must ensure produc- tivity to the business sustainability. Being lean is still what I see with business today. Ride the Improving Economy to New Growth As economic growth continues to take hold, kitchen and bath dealers need to rethink their showrooms to ensure they meet consumers' changing interests and priorities. Inside Today's Showroom { Sarah Reep, ASID, IIDA, CMKBD, CAPS, CMG } Continued on page 20