Location of a kitchen showroom

[mitch@volume]

I have a couple of options available to me for the expansion of my kitchen company.

Looking to open a showroom space and all the choices are affordable, but the more spent on location costs eats into marketing budgets and profits. Also increasing the break even point should times get tough (another recession etc)

Option 1
A highstreet retail space - there are a couple of options one in a mall the other on the highstreet. Pedestrian area. No parking, only the shopping centre car parks. 800sqft

Option 2
Main road on the edge of the twin centre. Through road with pay and display at the front and 3 allocated spaces at the rear. 950sqft

Option 3
An industrial unit on a popular estate outside of town. Converting the space into a showroom (there is president for this with a tile shop close by). Off the main run of the estate, through road with allocated parking for four. 1200sqft

Option 4
The granite worktop fabricator I use is based on a rural estate out of town and has a 900sqft showroom attached which they don't really use and would sub let for £6kpa and I can re fit with my Kitchens etc. Harder to find but only 5 mins from a main motorway junction.

The reason for me struggling with this is because I believe Kitchens are a 'destination shopping' purchase. People Google or go from recommendation to then come and find you. So is the extra expense of a town location necessary? Is parking really important (I'm thinking it is)

The deal with the worktop guys would be ideal if they were just a little easier to get to!

I just want an opinion either as a customer looking for a showroom or from a business owners point of view!

Help me out ladies and gents, where would you position yourself and where would you shop?!!?

 

[billmccallum1957]

Probably none of the above.

There is far too much information missing to give a reasonable response.

Where are your customers?
Where are your competitors?

Personally, I would use a map, draw a circle covering your target customers (5,10, 15, 20+ miles) and try to find a location that suits you. I would go for something near to your competitors to make it easier for customers to get to you to compare products.

 

[mitch@volume]

I have a town selected, in or around all of these properties are positioned.

The market is mid- range 15-40k Kitchens, both traditional and contemporary.

In this town I would be the only independent showroom. The others are the big chains, but are located on large out of town retail parks, which I couldn't afford the space, even if I did want to be there

Don't know if that's enough to help with a vote Bill?

 

[billmccallum1957]

Choosing a location that is far removed from others in the same sector would involve an increased level of marketing to get your name known to new customers.

Again depending on the geographic location, this could mean a couple of thousand or £100K in marketing effort. Here in the Tees Valley there is around 300,000 homes, some 76% are owner occupier (228,000), around 50% are in recognised affluent areas (target audience 150,000) so blanket coverage with a basic (high gloss A3 folded) brochure would cost less than £20K (printing less than £10K & delivery less than £10K). Which could be spread over 3 years.

So a low cost location could be partially mitigated by the marketing effort (bearing in mind the response rate for direct marketing would normally be less than 5%) and does not consider conversion rates from visitors to buyers, but would a budget location be appealing to your AB purchasers.

That's without taking into account any market research you might want to do with potential and former customers.

If your potential customers are high street shoppers, that's where you need to be.

Enough of my rambling. I vote for high street.

 

[mitch@volume]

Thanks Bill.
We cover Kent, and the edge of SE London. But will be based in one particular town and be target ing mainly that area.

Previous marketing activity has returned about 3% increase in enquiries and our conversion sits close to 70% currently.

I have looked into the housing market in the planned town. Sales value, house type, target housing areas/estates, number of 'movers' over 12 months etc
All above national average and slightly higher than other towns in the county.

 

[billmccallum1957]

3% is pretty good and 70% conversion is excellent, your margins should easily cover the extra cost of a high street location. Best of luck.

 

[The Byre]

Keep it cheap and concentrate on on-line and flyer advertising. The High Street is dying, so let it die without you having to die with it.

Kitchens are usually a family decision, so that means the whole family go to a showroom in the family car. Next to the tile shop or completely out of town.

 

[mitch@volume]

You think I'm better off with the money in the marketing than the location then.
I'm trying to weigh up the added promotional benefit of location vs money that could be spent flexibly on advertising

 

[billmccallum1957]

I would have to disagree with @The Byre .

I have only been to a kitchen showroom 3 or 4 times in my life, never have I seen a family shopping for a kitchen.

Assuming you are targeting AB demographics who are planning to spend up to £40K, where are they going to look, the out-of-town retail park or the High Street. First impressions count.

 

[mitch@volume]

Correct on AB demo.

I know first impressions are key, it helps in building the trust with the customer to feel confident in my company and part with large sums, a 'once in a lifetime' purchase and a project to manage.

Parking still bothers me with a high Street location. Two or three meetings to get the deal done, if parkings a pain in the ass then might they choose else where...

 

[billmccallum1957]

its just a case of finding the right property, such as http://www.rightmove.co.uk/commercial-property-to-let/property-55879559.html?premiumA=true

 

[vvaannmmaann]

I went for rural out of town.Easy parking, low rent and possible tie in with the granite bloke.
High too expensive and no easy/free parking.

 

[mitch@volume]

its just a case of finding the right property, such as http://www.rightmove.co.uk/commercial-property-to-let/property-55879559.html?premiumA=true

Funny you should link that Bill. It's not one of those mentioned in the short list above, but is considered, only I am looking to be a bit more Maidstone way.

 

[The Byre]

I have only been to a kitchen showroom 3 or 4 times in my life.

That says it all!

Wickes, B&Q and all the others disagree, as does every purveyor of big-ticket items, such as cars! They know that people take their time about these choices and kitchen showrooms just have to be there, where husband wife and kiddy-winkies can all go together and make an informed choice on the weekend.

Nobody expects a kitchen showroom to be on the High Street any more. They were there in 49BC when large companies like GUS were running Cavendish and New Day stores selling some of the cheapest tat imaginable, but that was back in the 60s and 70s. Today, you can be anywhere, especially if you are selling quality!

Today, some of the top retailers of luxury goods and other specialist businesses are so remote, it sometimes astounds people. The trick is to make them come to you - that way, they feel special about their purchase. You do that with a killer website that is on page one for the key words kitchen and your town and with flyers that really impress and made by a really good designer.

You don't do it by being in between the Oxfam shop and a greasy spoon emporium!

 

[AllUpHere]

I agree with The Byre. You don't need (or want) to be on the high street. A business like this is cheap and easy to market so you don't need the 'exposure' in the high street.

 

[mitch@volume]

. A business like this is cheap and easy to market...

I hope/wish it was cheap and easy.

Thats probably the next topic.

 

[MOIC]

The options are all good.

It's not a case of there being a "bad" option, from the 4 stated.

You could argue that a high street position could bring in extra trade for sundry items, as well as passing trade where the last 2 options would not have

Also, 1 or 2 sales may cover the additional costs of being on the high street.

How good is your website to draw in customers?

What other marketing methods do you have planned?

As a general comment, the bigger the space you have, the better to display your kitchens.

Would the set up and fit for each of the 4 options be the same?

If you are looking to get customers from passing trade, than option 2.

I would only consider options 3 or 4 if the sizes were bigger and allowed you to display more options.

Any saving in the rental can be negated by just a couple of additional sales per year.

 

[john1989]

People want a local shop for their milk and bread.

When it comes to buying a kitchen, people don't mind travelling and they want decent parking.

Taking kids shopping to buy a kitchen? Not a chance. That's what grandparents are for!

If I'm spending up to 40k in a kitchen, I want no screaming kids and a cup of coffee whilst I speak to someone who knows a thing or two about kitchens. Someone who can run through the options, the add-ons etc.

 

[MOIC]

I agree. Kids are not needed, nor would want to be involved in the purchase of a kitchen.

 

[billmccallum1957]

That says it all!

Wickes, B&Q and all the others disagree, as does every purveyor of big-ticket items, such as cars! They know that people take their time about these choices and kitchen showrooms just have to be there, where husband wife and kiddy-winkies can all go together and make an informed choice on the weekend.

Nobody expects a kitchen showroom to be on the High Street any more. They were there in 49BC when large companies like GUS were running Cavendish and New Day stores selling some of the cheapest tat imaginable, but that was back in the 60s and 70s. Today, you can be anywhere, especially if you are selling quality!

Today, some of the top retailers of luxury goods and other specialist businesses are so remote, it sometimes astounds people. The trick is to make them come to you - that way, they feel special about their purchase. You do that with a killer website that is on page one for the key words kitchen and your town and with flyers that really impress and made by a really good designer.

You don't do it by being in between the Oxfam shop and a greasy spoon emporium!

 

[Annoying Donkey]

Affluent people drive everywhere, so I'd say somewhere with loads of parking. Few drivers, even the affluent, appreciate having to pay for parking...

Even in this day and age, it's usually the wife who decides on a kitchen. Husband and kids are usually disinterested or more interested in the McDonalds or Dunkin Donuts .

I'd say High St is a waste. People are unlikely to walk by and say "oh I might just pop in and buy a new kitchen"...

Prestige tends to be defined by your market position rather than your physical position. Spend the money on making your service personal and worth telling others about.

I agree with The Byre, making them come to you makes the occasion something special and, to an extent, filters out the tyrekickers. Then you wow them so they tell all their neighbours... then location won't be all that important.

 

[S Goodman]

Where is your workshop? Can you create your showroom there? Some of the very best Kitchen/Furniture manufactures have their showroom on site. Forget the High Street, in the middle of no where is actually preferable for all the reasons others have stated.

 

[mitch@volume]

Kitchens are made in Germany for the modern stuff and Northern Ireland for the traditional.
I don't own the production facilities, we jsut design and then they build to our spec.

 

[MOIC]

The main reasons that companies look for "out of town" locations is that they can have much larger premises to show their products whilst keeping rents at a reasonable level.

The very best kitchen manufacturers for sure have a showroom where they manufacture the kitchens, but also have a high street presence.

The iconic luxury brands who manufacture in the UK, including Smallbone & Mark Wilkinson have their factories in the countryside, but also have high street presence as this reinforces their brand image and gain exposure until the time the customer is ready to buy the kitchen. It's a form of advertising and can be used to show different designs to the passing potential customers.

Generally the main reason companies choose out of town locations is that sizes they require are not available on the high street.

Kitchens can be shown within the sizes mentioned and option 2 has the added benefits of parking at the rear as well as passing trade.

Potential customers will not just buy a full kitchen, but also upgrade doors, sinks & taps, white goods, butchers trolleys, worktops, etc etc which can benefit a high street location.

I agree that the high street is not what it once was, but it still has passing trade which an out of town location/industrial site will have none.

The sizes of all 4 options will not have much impact on the volume of products that can be shown.

If it's a young and growing business, the more exposure you can have the better.

Once the business can rely on word of mouth business and has a solid marketing strategy that works efficiently, then a larger out of town location may be better as larger (and cheaper per sq ft)premises can be sought to show all the ranges on offer in a more comprehensive way.

Option 2 ticks more boxes and 3 car park spaces at the rear makes this a preferable choice.

A 2 or 3 year lease can be negotiated and then newer locations can then be assessed.

It may also be possible to get some help current suppliers of the kitchens, as this gives the manufacturer's more exposure. (Especially if their brands are being sold)

Given the difference in rental (10k), this will mean 1 kitchen order per year to cover this cost.

Ultimately, all 4 locations have something going for it and it's a case of what fits the business the best at this moment and for the next 2 to 3 years.

 

[S Goodman]

The very best kitchen manufacturers for sure have a showroom where they manufacture the kitchens, but also have a high street presence.

.

No they don't, sorry but you are wrong. The best independent kitchen showrooms do not have a high street presence, which maybe why you are not aware of them, but their target market are fully aware.

Saying that, the poster doesn't seem to have the high end specification you would expect at the £40k mark (he's reselling not manufacturing) so that shines a whole new light on his first post and the responses thus far.

 

[MOIC]

I bought a Mark Wilkinson kitchen 15 years ago.

I was prompted to buy from them as I passed their Holland Park showroom every day on the way to my office.

It's impossible to generalise as clearly, some manufacturers do have a Main Road / High Street presence, where this can be afforded.