How to open a Mid to High End Bathroom Showroom

[Aadi]

Hi, I hope I get some valuable information out of this question and my apologise if the question seems very basic or you may get a feel that no research had been done prior to posting this. In fact, I have done a lot of googling around from past few weeks and could not find an answer to what I am looking for.

I have never started a business before and thus not really sure where to begin from. I have been in Sales and over 10 years of experience of dealing with customers and now really looking to get into opening a Bathroom Showroom (not looking for advice on marketing, competitors etc.). I have read some responses on other threads by owners of kitchen/bathroom showroom on this site who have been successful so I hope they will be kind enough to advise me on this.

1. I have £20,000. Would that be enough for initial investment for start up?

2. Minimum of how many bathroom display do I require? The population in my town is 70,000.

I have previously emailed a bathroom manufacturer to purchase the bathroom displays from. They simply replied in an email that I should contact their distributor. When I went to their distributor's website, it just seemed like another supplier selling taps and other products with price list on them and thus my third question is:

3. Where do I purchase the bathroom displays from? Who do I contact?

4. Is there a bathroom manufacturer that can provide either free or heavily discounted bathroom displays to display their bathroom in our showroom? I have no issue with having exclusively only their bathroom displays to show our customers and all the orders only going to them as its a win-win for both of us as it reduces my investment.

5. Would it be wise to use Alibaba to order bathroom vanities or bathtubs? I was recently looking into it but the cost seemed twice as much due to high shipping delivery and then import duties, vat at the port etc. which begged the question if the UK bathroom manufacturing companies manufacturing in the UK because as far as I know the designs are sent to Vietnamese. Chinese etc manufacturers and they get made in those countries with cheap labour and brought over to the UK?

Very interested and looking forward to hear all the replies and get valuable information from everyone.

 

[WaveJumper]

Firstly, welcome to the UKFB, reference your post so many questions so just to pick a couple of points up.

1, Why bathrooms
2, Where are you going to have your showroom on a high street in a good location I would guess, in which case have you looked at the costs in rents, business rates etc in your local area .20k could get swallowed up on this alone.
3, Jumping ahead and assuming that you have your showroom all set up have you thought about who’s going to install, do you have leads to some experienced contractors as I am sure that’s where the real money is

 

[GraemeL]

Think about why any bathroom supplier should want to sell through your business? Put yourselves in their shoes.

 

[The Byre]

I opened a music shop in 1979. In 1979, the whole price of guitars and synths was a tiny fraction of what they are today. And guitars and synths are really cheap when compared with mid-to-high-end bathrooms. Also they do not need any installation. You just put them on a shelf and people plug them in and listen and then buy them. I had more than £20k to start. And in today's purchasing power, more like £50k.

So the answer to Q1 is no. Not by a long chalk! Wild guess - maybe about £100k, though that's probably not enough.

As for Q2, as many as it takes to persuade people that you are the go-to guy for bathrooms. Look at the competition and add some more.

Q3 is for you to answer. Only someone who has been working in the industry will succeed. I had been in the music biz already for some time and knew precisely where and what to buy. If you are not from the bathroom industry, stop right now!

Q4 - probably. The problem is that the products that sell well are usually not the ones that go out on sale-or-return. You stand an extremely high chance of ending up with a shop full of unsaleable lemons!

Q5 - I source stuff occasionally from Made-In-China. By the time shipping and duties get added, it's about double the wholesale sticker price.

 

[MBE2017]

Used to sell designed bathrooms for over a decade, but a while ago now, but my best guess answers are below.

1- £20k, enough? No. For a high end showroom expect 5/10 more, do not forget salaries, rent, rates, insurance, lighting etc.

2 - I only ever sold the bathroom I wanted the client to have. I had twenty eight designs, in over a decade I never sold anything other than the white bathroom I decided they were having. So I cannot help on this one.

3 - Unable to help.

4 - Plenty, the fact you do not know them is worrying.

5 - No.

I would ask a simple question, why do you want to have a showroom at all? Selling direct via website, brochures etc means no showroom, no stock, no staff required for the showroom. £20k could be enough to market yourself as a supplier and installer of bathrooms, the high streets are dying, why risk your money on a showroom?

 

[Mr D]

Have purchased a bathroom and a kitchen in the past from a showroom.
The displays were put together from distributors - you would be selling your vision of what a bathroom would be. If it is what the customer wants then great. If not they go elsewhere.
And can be dozens of showrooms visited to find the suitable one.

To be honest if you do not have extensive experience selling bathrooms then would question whether you know what customers want for the bathrooms you envisage.
Basically you design based on your vision and the supply of goods from distributors.
Someone buys - you arrange fitting.

But ask yourself - what if they do not buy? You can have a showroom, can have people visiting. But without sales and at a sufficient level to pay the bills your business goes under.

20k may seem like a lot to start. It can go in a matter of months.... Then what?

 

[MOIC]

Having a showroom means tying yourself up in a lease (probably 3 years) without knowing the outcome. That's a noose around your neck.

20k will get you as far as renovating the premises to get it up to scratch, purchasing and installing 4 - 6 bathroom layouts. (If there's room in the premises you can afford).

That leaves nothing for marketing, as well as covering your overheads for the first 6 months, which you'll need to get trust by locals to purchase from you.

The difficult part is working with professional installers. A high end bathroom needs to be installed by 'high end' plumbers, otherwise you'll run in to trouble.

Think again at this point.

 

[Mark T Jones]

Hopefully the above has got some useful thought processes going.

I always suggest that a good place to start is with a cashflow projection - the first figures you put in will be nonsense, but the thought process will be useful.

With regards to opening a showroom; before you pick up the keys you will need to shell out for legal/professional fees, rent deposits and, hopefully, market research. That will take a fair bite out of £20K

If you are going high end, then everything you do needs to scream high end, that goes from location, facade, reception, marketing materiel etc - all of which cost money.

Then of course you have stock, transport, staff, marketing etc.

You will need to convince suppliers or distributors that you have the right client base and are the right person to represent your brand, they will then provide you with display items at minimal cost.

A good friend of mine runs a high end kitchen business. He started with little cash, but did have strong connections into the top end of the property market,. He also has a great eye for design & obsessive attention to detail. Initially the business didn't have a showroom, just storage facilities sales were done on site with the aid of a great CAD package.

 

[Ian J]

I would ask a simple question, why do you want to have a showroom at all? Selling direct via website, brochures etc means no showroom, no stock, no staff required for the showroom. £20k could be enough to market yourself as a supplier and installer of bathrooms, the high streets are dying, why risk your money on a showroom?

I had my bathroom gutted and rebuilt just a month ago and bought everything via the internet without visiting a showroom at all. I used a local installer who preferred not to buy the hardware himself but I asked his opinion on everything I intended to buy first of all

 

[Aadi]

Firstly, welcome to the UKFB, reference your post so many questions so just to pick a couple of points up.

1, Why bathrooms
2, Where are you going to have your showroom on a high street in a good location I would guess, in which case have you looked at the costs in rents, business rates etc in your local area .20k could get swallowed up on this alone.
3, Jumping ahead and assuming that you have your showroom all set up have you thought about who’s going to install, do you have leads to some experienced contractors as I am sure that’s where the real money is

Thank you for your input. I have cousins who own plumbing company and their team is multi-skilled. They do mid to high end bathroom renovation and require partnering with someone that can bring in more high end jobs for them and thus the idea for showroom. Although my personal investment is 20k, rest will be coming from them. Right now it is just an idea for which I’m trying to gather as much detail as possible to start writing up plan. They were telling me that through showroom, they will also be able to get bigger discounts on parts and materials required for each projects. Somebody suggested having an online showroom instead as an alternative which I will start looking into. The problem is that due to lack of personal experience in this sector, it is making difficult for me as to where to start so I’m quite glad that after posting this question, it has started to make me think where to start from.

 

[Aadi]

Think about why any bathroom supplier should want to sell through your business? Put yourselves in their shoes.

Thank you for your question. I can definitely further their business as I want more business for myself. Furthering my business furthers their business. When it comes to fitting the bathroom, I will be partnering with a great plumbing company in this local area that does a top quality finish and thus the reputation of the manufacturers are also maintained.

 

[The Byre]

Right now it is just an idea for which I’m trying to gather as much detail as possible to start writing up plan.

For your own sake, please answer five questions in your plan -

1. What could we earn?
2. What could we lose?
3. What is our USP compared to our competition?
4. If the customers stay way in droves, what is our Plan-B?
5. What proof of concept do we have?

 

[Aadi]

I opened a music shop in 1979. In 1979, the whole price of guitars and synths was a tiny fraction of what they are today. And guitars and synths are really cheap when compared with mid-to-high-end bathrooms. Also they do not need any installation. You just put them on a shelf and people plug them in and listen and then buy them. I had more than £20k to start. And in today's purchasing power, more like £50k.

So the answer to Q1 is no. Not by a long chalk! Wild guess - maybe about £100k, though that's probably not enough.

As for Q2, as many as it takes to persuade people that you are the go-to guy for bathrooms. Look at the competition and add some more.

Q3 is for you to answer. Only someone who has been working in the industry will succeed. I had been in the music biz already for some time and knew precisely where and what to buy. If you are not from the bathroom industry, stop right now!

Q4 - probably. The problem is that the products that sell well are usually not the ones that go out on sale-or-return. You stand an extremely high chance of ending up with a shop full of unsaleable lemons!

Q5 - I source stuff occasionally from Made-In-China. By the time shipping and duties get added, it's about double the wholesale sticker price.

Thank you for sharing your experience and the knowledge you have gained all these years.
I am intrigued by the answer you have given for question 5. Can I please ask what is the reason for going with the product that end up costing you twice? Is it more to do with quality and promoting it as your own brand? Or any other specific reason. Thank you.

 

[Aadi]

Thank you for your answers. They have given me a lot of great ideas. I have no problem with selling directly via website. The problem is I have zero experience in this area. Is there a website you have come across that sell it directly? If you can please provide me with a link or two then that would make it easier for me to study and understand the idea and how to proceed thereafter.

One more question please, why would it not be wise to order from Alibaba?
Thank you.

 

[Aadi]

Used to sell designed bathrooms for over a decade, but a while ago now, but my best guess answers are below.

1- £20k, enough? No. For a high end showroom expect 5/10 more, do not forget salaries, rent, rates, insurance, lighting etc.

2 - I only ever sold the bathroom I wanted the client to have. I had twenty eight designs, in over a decade I never sold anything other than the white bathroom I decided they were having. So I cannot help on this one.

3 - Unable to help.

4 - Plenty, the fact you do not know them is worrying.

5 - No.

I would ask a simple question, why do you want to have a showroom at all? Selling direct via website, brochures etc means no showroom, no stock, no staff required for the showroom. £20k could be enough to market yourself as a supplier and installer of bathrooms, the high streets are dying, why risk your money on a showroom?

Thank you for your answers. They have given me a lot of great ideas. I have no problem with selling directly via website. The problem is I have zero experience in this area. Is there a website you have come across that sell it directly? If you can please provide me with a link or two then that would make it easier for me to study and understand the idea and how to proceed thereafter.

One more question please, why would it not be wise to order from Alibaba?
Thank you.

 

[The Byre]

Thank you for sharing your experience and the knowledge you have gained all these years.
I am intrigued by the answer you have given for question 5. Can I please ask what is the reason for going with the product that end up costing you twice? Is it more to do with quality and promoting it as your own brand? Or any other specific reason. Thank you.

Price and availability.

Whatever you want, someone in China is making it! And the various trade bodies go out of their way to make sure you find what you are looking for. We ain't talking sweat-shop and hammer sheds either! These are modern and very well kitted out factories that make the average UK factory look like a barn.

 

[Aadi]

Have purchased a bathroom and a kitchen in the past from a showroom.
The displays were put together from distributors - you would be selling your vision of what a bathroom would be. If it is what the customer wants then great. If not they go elsewhere.
And can be dozens of showrooms visited to find the suitable one.

To be honest if you do not have extensive experience selling bathrooms then would question whether you know what customers want for the bathrooms you envisage.
Basically you design based on your vision and the supply of goods from distributors.
Someone buys - you arrange fitting.

But ask yourself - what if they do not buy? You can have a showroom, can have people visiting. But without sales and at a sufficient level to pay the bills your business goes under.

20k may seem like a lot to start. It can go in a matter of months.... Then what?

Thank you for your input. I do not have experience in bathroom renovation industry yet. However I have cousins that do with whom I will be

Have purchased a bathroom and a kitchen in the past from a showroom.
The displays were put together from distributors - you would be selling your vision of what a bathroom would be. If it is what the customer wants then great. If not they go elsewhere.
And can be dozens of showrooms visited to find the suitable one.

To be honest if you do not have extensive experience selling bathrooms then would question whether you know what customers want for the bathrooms you envisage.
Basically you design based on your vision and the supply of goods from distributors.
Someone buys - you arrange fitting.

But ask yourself - what if they do not buy? You can have a showroom, can have people visiting. But without sales and at a sufficient level to pay the bills your business goes under.

20k may seem like a lot to start. It can go in a matter of months.... Then what?

Thank you for your input. Some of the questions you have put are something for me to think about. Thanks again.

 

[Aadi]

Having a showroom means tying yourself up in a lease (probably 3 years) without knowing the outcome. That's a noose around your neck.

20k will get you as far as renovating the premises to get it up to scratch, purchasing and installing 4 - 6 bathroom layouts. (If there's room in the premises you can afford).

That leaves nothing for marketing, as well as covering your overheads for the first 6 months, which you'll need to get trust by locals to purchase from you.

The difficult part is working with professional installers. A high end bathroom needs to be installed by 'high end' plumbers, otherwise you'll run in to trouble.

Think again at this point.

Thank you for your input. I will be partnering with a local plumbing company that does mid-high end renovation. 20k is my own personal investment. They will be looking after the showroom display installation and some of the other main things. Sorry I should’ve made this clear in my initial post.

 

[Aadi]

Hopefully the above has got some useful thought processes going.

I always suggest that a good place to start is with a cashflow projection - the first figures you put in will be nonsense, but the thought process will be useful.

With regards to opening a showroom; before you pick up the keys you will need to shell out for legal/professional fees, rent deposits and, hopefully, market research. That will take a fair bite out of £20K

If you are going high end, then everything you do needs to scream high end, that goes from location, facade, reception, marketing materiel etc - all of which cost money.

Then of course you have stock, transport, staff, marketing etc.

You will need to convince suppliers or distributors that you have the right client base and are the right person to represent your brand, they will then provide you with display items at minimal cost.

A good friend of mine runs a high end kitchen business. He started with little cash, but did have strong connections into the top end of the property market,. He also has a great eye for design & obsessive attention to detail. Initially the business didn't have a showroom, just storage facilities sales were done on site with the aid of a great CAD package.

Mark, thank you for your input. There are some great, valuable information there to learn from and I will surely, definitely do the cashflow projection as per your suggestion.

Another contributor here also suggested to sell directly through a website which I believe is similar to how your good friend may have started it also. I am really considering to start through website too but just need an idea what the website should look like for me to get an idea how to proceed next. Is there any similar website you have come across that you would kindly please share it with me?

Thank you.

 

[Aadi]

I had my bathroom gutted and rebuilt just a month ago and bought everything via the internet without visiting a showroom at all. I used a local installer who preferred not to buy the hardware himself but I asked his opinion on everything I intended to buy first of all

Thank you for your input and sharing your valuable experience Ian. This is something I am really interested to study about and it would be a great help if you can please kindly share the website you came across on the internet so I can study their internet bathroom showroom business model to understand how I can also do the same. Your help in this is greatly appreciated. Thank you.

 

[Ian J]

Thank you for your input and sharing your valuable experience Ian. This is something I am really interested to study about and it would be a great help if you can please kindly share the website you came across on the internet so I can study their internet bathroom showroom business model to understand how I can also do the same.

https://www.lowcostplumbingsupplies.co.uk/contact is the site that I used based partly on price and partly because they were the internet division of a large company.

I Googled bathroom supplies Tamworth and looked at quite a few and whilst some had amazing websites it was fairly obviously a bloke in his bedroom acting as middleman

 

[Mark T Jones]

Mark, thank you for your input. There are some great, valuable information there to learn from and I will surely, definitely do the cashflow projection as per your suggestion.

Another contributor here also suggested to sell directly through a website which I believe is similar to how your good friend may have started it also. I am really considering to start through website too but just need an idea what the website should look like for me to get an idea how to proceed next. Is there any similar website you have come across that you would kindly please share it with me?

Thank you.

My friend went direct to the customer. His connections are estate agents and architects dealing with top end properties, they introduce and recommend him.

Your challenge online is how to differentiate yourself and to establish premium credentials, otherwise you are immediately in a price war

 

[MBE2017]

You need to decide on your business model.

When I used to sell bathrooms, the company covered various marketing mediums, Sunday supplements, showrooms, direct mailers etc. They all had one common theme, the company would arrange everything start to finish, all materials, skips, planning permission if required, all tradespeople, all top quality professionals.

This is how we differentiated ourselves at the time, we were the only national brand doing this to my knowledge, it is probably commonplace these days.

As for research, use google, type in various search keywords, and decide what you think works and what does not. One tip, your clients are not going to be worried about the cost, so more than ever you need to sell the sizzle, luxury, top quality finishes etc. Get it wrong and you will lose a lot of money.

 

[Washington]

Aadi, firstly it is refreshing to see you setting off on a new adventure and I wish you every success in what you do.

I am a bit concerned with your lack of knowledge going into this specific sector and whilst having an amount to invest, you could easily burn through £20k in setting up your business so you need to consider the timelines from when you expect to get first orders to when you get paid.

Maybe as an alternative you should consider approaching and trying to buy into an existing higher end bathroom retailer, even if this means just working there initially. Your cousins could add value to this proposition as getting trades people is difficult through these Covid times, so you could help stabilise a business and learn your trade in a proven stable environment 'on the job' plus you would have a mentor to help you become your own boss in a more seamless way

Home improvement is a busy sector presently so there may not be an immediate appetite to sell, however there could be some established businesses out there looking to exit at some point in the future and buying in with 20k with a view to take over something existing (for a pre-arranged price) could be tempting to an owner of a certain age

 

[Stedurham]

Thank you for your answers. They have given me a lot of great ideas. I have no problem with selling directly via website. The problem is I have zero experience in this area. Is there a website you have come across that sell it directly? If you can please provide me with a link or two then that would make it easier for me to study and understand the idea and how to proceed thereafter.

One more question please, why would it not be wise to order from Alibaba?
Thank you.

Order from Alibaba and if something goes wrong what happens? How long would you wait for replacement parts?