Make your showroom a one-stop shopping outlet and boost profits.
Some 60,000 people will tour the exhibition hall in Orlando at K/BIS (Kitchen and Bath Industry Show), sit in on seminars and look for new products, new ideas and possibly new sources for old and new products. There will be more kitchen and bath people at the show than there will be plumbing wholesalers. Many of the wholesaler people that attend will be showroom personnel, not "principals." I think this is a missed opportunity on the part of the owners/ managers - because the showroom is a terrific opportunity for a wholesaler to grow its business. It's a chance to step outside the traditional wholesaler box and diversify your product and selling mix.
I have beaten this drum in the past, but I feel it warrants one more effort! Diversify your product mix and selling strategy. Take off your wholesaler hat and put on a retailer hat. Learn how to market your showroom direct to the consumer trade. Give them "one-stop shopping" on the products they buy. Your sales will grow, your margin on sell will almost double (from 20% to 40%), and your suppliers will be thrilled to sell more of their profitable high-end products. Also, in the long run you'll be helping your traditional core customer - the plumber - make more money. He can, and should be, able to charge more to install higher-end products. The plumber might have lost the buy/sell transaction, but he won't have the hassle of handling the product and the accounts receivable. Plumbers can make more as pure installers.