Advice on moving into new products

[ls0709]

Hi guys,

I've been running my window blind company for 1 year now and things are going pretty well. I want to start moving into the shutter market too and I am interested in some thoughts and advice on how to get the most out of this.

We have the product range available through our supplier, have been on training and have the samples available for home appointments etc. As of yet, I haven't done much marketing for shutters through my existing company, I've ran a couple of facebook ads with no return but will be the first to say I haven't put a full plan together for the product.

Generally the feedback from enquiries we have had is that the product is too expensive. We know in terms of pricing we are coming in at a similar price to our competitors but general feedback is those that seem to come through the blind companies are surprised by the higher price point and go with other products instead.

I'm wondering whether to try and build the shutters into our current company or whether to include them as part of our business but then setup another website/brand that sells only shutters and can be seen as a specialist company, with customers that are specifically looking for shutters and then in turn will hopefully expect the higher price point and be more qualified leads.

My only concern about creating a second company is that whilst we could have a separate phone, website etc. We would be attending appointments in our main business vehicles and uniform. Essentially the new business would be 'a main business company' and I would make that clear online but I'm not sure how that would then be perceived. From a tax point of view, I'm not sure if we are crossing any barriers there too.

Any advice on how to integrate the product into our existing business (which I know should be possible) or how to split it up into different business.

Cheers!

 

[MikeCC]

If I was buying, I wouldn't be put off by 'Blinds & Shutters Ltd' over 'Blinds Ltd' and 'Shutters Ltd' as long as products were what I wanted. It's all 'window accessories'. As far as integrating the product, just start selling it the same way as you do blinds.
You can always have a special shutters microsite with your same company info. Maybe depends on what your company name is and whether it is neutral enough to have a wider range. But if you're Bognor Blinds, easy enough to add 'and Shutters' to the name. Doesn't have to be same as company name if you're limited co.

 

[The Byre]

Generally the feedback from enquiries we have had is that the product is too expensive. We know in terms of pricing we are coming in at a similar price to our competitors but general feedback is those that seem to come through the blind companies are surprised by the higher price point and go with other products instead.

This statement interested me and so I looked at your competition and for a small window of 120 x 150 cm tall, the simplest of internal shutters came in at £600 regular price and they are having a half-price sale, so £300.

£300 is still expensive but about right IMO, as the FOB price is usually about $100 per sq m. £600 is out of the ball-park!

There are literally hundreds of shutter makers in China, but these seem to be prepared to deal with smaller orders and the first has a whole sales kit (small briefcase with samples) for retailers -

Heze Huasheng Wooden Co., Ltd, Shandong, China

Suzhou Esse Wood Industry Co., Ltd Jiangsu, China

Hangzhou Aisen Furniture Co., Ltd. Zhejiang, China

 

[HFE Signs]

I would expect the market for shutters to be much smaller than blinds, do your market research carefully and work out your plan to target the right audience.

I wouldn't have any issues buying shutters from a blind company, nice images and a few testimonials and you should be all good.

 

[ls0709]

This statement interested me and so I looked at your competition and for a small window of 120 x 150 cm tall, the simplest of internal shutters came in at £600 regular price and they are having a half-price sale, so £300.

£300 is still expensive but about right IMO, as the FOB price is usually about $100 per sq m. £600 is out of the ball-park!

There are literally hundreds of shutter makers in China, but these seem to be prepared to deal with smaller orders and the first has a whole sales kit (small briefcase with samples) for retailers -

Heze Huasheng Wooden Co., Ltd, Shandong, China

Suzhou Esse Wood Industry Co., Ltd Jiangsu, China

Hangzhou Aisen Furniture Co., Ltd. Zhejiang, China

Thank you for your feedback and taking the time to check that out. I take it that these are online companies you have looked at for this pricing?

We're a local supply and install company so costs are slightly more expensive, though actually leaning towards the lower end of the prices you mention for the complete service at the sizes you looked at.

I think in all honesty, I may have been overthinking it despite not giving it a full push. We know our pricing is competitive and it is something we have been working on further recently after going against like for like quotations from local competitors. Our service sets us apart with 100+ online reviews in 1 year showing this and I don't see any reason why with a full plan in place we won't be able to start shifting more.

 

[UKSBD]

If you are predominantly installers it is better that your products are higher priced as it makes your installation service look cheaper (if that makes sense).