Saturday, 13 April 2013
Super discounts from the multiples & buying habits
Having spoken with several reps from suppliers of kitchens and their related accessories including solid worksurfaces / appliances, they are all saying pretty much the same thing that in general the independent kitchen studios are quite quiet at the moment and January, February and March have not been good months, however the sheds and multiples have seen an upturn in business due to their perceived massive discounts and even under the table discounting (non advertised discounts to get the sale). I have been told straight from the horses mouth from one particular company "To get the sale whatever it takes" and they have done so, yes with reduced margin but they got the sale, some may say this is fool hardy (MFI) did this and look what happened, I personally think that this is a game between the sheds and multiples to out do one and other and to gain market share from the others and they do not even consider the independents as a risk to them in becoming number 1.
The above tells me that the general public still believe that the "sale" discounts on offer are genuine and it seems they are being sold to on price rather than what is best for them or their circumstances.
Another big player who just seem to be getting bigger is Howdens, in my view they are successful because you can go and pick it up or have it delivered virtually straight away, and the local tradesman who convinces the unsuspecting client into believing that they are getting a massive discount because they have a trade account with them. Howdens are not the cheapest nor the best quality and how long will it be before they sell directly to retail customers and not just trade, if not doing so already.
One thing is for certain the general buying public perceive the sheds, multiples and Howdens to be offering a value for money product at the best price without the need to shop around, but the customers that do shop around are obviously not getting the right design that suits them, they will then go to an independent and get a better design / service but because the kitchen in the main has been designed correctly it can sometimes be more expensive as the independent is offering a better quality product across the board, this can then create tension in some cases as the customer is expecting the better design and product for the less expensive price they were quoted from the shed. What do you think?
Russell
Saturday, 9 March 2013
Time for KBB Designers to stand up for themselves
I am replying to a thread on the www.fkbd.eu Titled "Time for designers to stand up for themselves" in respect to charging for designs and the cost benefit this will have in relation to potential lost sales based on average sale conversion per design.
I can see where you are coming from but this charge I am introducing at this stage is for architects drawings only, this is because I seem to get more than my fair share of them and because this is a much longer process than say somebody coming in and wanting me to go out and measure with the intention of buying a kitchen from me or the other people they are getting out. With an architects blue prints and I am speaking from great experience here they are never ever correct with what actually happens with the final build so I end up changing and more changing and this is without the initial work involved of converting 1:50 and 1:100 to 1:20 scales and then its a relatively a blank canvas so you are thinking and designing more than you would with a straight forward dare I say it run of the mill kitchen where sales is more involved than the design aspect, coupled with this the transferring of the pencilled plans to CAD images will take much longer as the kitchens tend to be larger due to the extension and more technically difficult thus more time consuming, I then have to factor in that the design on paper and CAD are my ideas and the client will in most cases tweak things I then have to cost the whole project and that is where the stumbling block is, because I am and have found that people are getting these extensions so they can have a larger living/ kitchen space and want the kitchen to be the focal point with all the bells and whistles but they do not realise the cost involved in the purchase of a kitchen,and the overall build cost of the extension, they ALWAYS underestimate the build cost with a contingency fund and they then say they need to cut the cost of the kitchen ( http://stuarthenrykitchens.blogspot.co.uk/2011/02/no-money-left-for-kitchen.html ) (Here is a blog I did). This then means more work which I am not getting paid for.
I now seriously have to balance this with the conversion rate of these build projects and the realisation of the potential client. I am finding myself in a position where people are coming to our studio because they have been recommended to me for my advice, design skills and customer service but still want a cheap kitchen. I would like very much for people to come to me for the advice, design & service and tell me that they realise that good kitchens and service are not cheap, and that they want my service etc and also understand that this comes at a reasonable cost.
This does not mean that I will rip them off on a supply and demand basis, but an honest days pay for an honest days work.
Russell
Friday, 1 March 2013
Magnet & reality are Poles apart
I am sure the majority of the KBB world and the buying public watched Channels 4's Britain's Secret Shoppers last night (28/02/13), this covered various tips on how to haggle for a discount when buying goods on the high street, hosted by the charming and smiling Justin Preston @justinmeatmogul on Twitter.
Most of us agree as Justin informed us that we pay more for the same goods in this country than the citizens of the USA do, I do not know how much the running costs are for business premises are in the states but here in the UK they are certainly expensive. A lot of companies may well overprice goods to maximise their profits to pay for the extortionate rents & rates and other numerous overheads that we have to tend with and then there are companies that knowingly hyper inflate their retail prices knowing that they will give a perceived massive discount, up to 60/70% off and "must end this weekend", further still "Now extended for seven days only plus an extra 20% off", this seems to be the accepted norm for our retail sectors, it must be that us as a consumer expect to see these offers before we will buy anything. What happened to the notion that we pay for goods based on their true value and perceived value for money.
Last night's Channel 4 show of "Britain's Secret Shoppers" gave a scenario of a young couple doing up the whole house and had a wish list for a kitchen that even her partner was surprised at given their budget (which we did not know yet). When Justin & his camera crew arrived even he was a little surprised of the small budget and the larger size of the kitchen than he thought it was going to be, but hey ho lets see what we can do.
The really big surprise in this for me was not the £7300 discount that Magnet gave because as we all know in this industry as I said earlier multiples stack the prices to offer big discounts the big surprise was it was not a secret shopping trip, the couple went into a Magnet showroom with Justin and camera crew and he introduced himself ad then went and sat in the car with his ear piece, so this actually under a trade the Trade Description act would probably get slated because there was nothing secret about it.
The couple picked what looked like an expensive painted wood kitchen and solid wood worktops plus a large wish list to boot. I cant really comment on the plan of the kitchen because that was very brief in the scheme of things but for then to go off to Wren Kitchens to get a like for like quote on the Magnet kitchen bared all the signs of how stupid some people can be in the misleading stakes, because the Wren kitchen that they had the like for like quote on bared no resemblance to the Magnet product nor their remaining wish list.
That is not the fault of Wren kitchens, the salesperson told them what he had similar and then went on to price their like for like plan, but this just showed how the couples perception of what they really wanted and what they thought they wanted were poles apart, but saying that Wren were being used as a price comparison only because their dream kitchen was in Magnet. The question needs to be asked why Wren agreed to take part in the show, was it just to show that they are cheaper than Magnet in which case they succeeded.
Then back to Magnet, the "Designers" comments went something like I can see you are wanting to get a lower price for the kitchen, So far OK, he then said something like, (wait for the corny salesman line) "Well that kitchen has just come on a special offer and we can bring it down to £11.5k (I think he said). This time with Justin outside they were being coerced into asking for a lot more discount only this time in a blink of an eye the "Designer" said we can do it for £6600, after telling them it had come on offer for the £11.5k. If that was me my credibility would have gone straight out of the window & I would have been very embarrassed.
Still not happy they ended up getting the kitchen for £5500, only £500 pound more than their original budget with the promise of a bottle of wine thrown in (I normally get the wine as a thank you when we finish the stunning job).
So Magnet started off with £12,800, obviously very well overpriced, then to knock off approx £1300, which is in the realms of possibility if they did have a promotion start between the 1st visit and them going back, but to then get a further massive £6000 knocked off without any haggling (which is what the show is about) was absolutely astounding.
This just shows how stupid some consumers are in believing the huge pre sale discounts in the 1st place and how stupid Magnet are for making themselves look like mugs. Not so long ago MFI went bust not for the 1st time because in the end they sold kitchens at virtual cost just to get the sale, this was to keep the cash flow coming in but it did not cover any of the massive overheads a company like MFI and Magnet have, All's that will happen now is that anybody who watched the show who is in the market for a kitchen will just try and take Magnet to the cleaners, they will also try it at other KBB retailers too, because let's face it the other multiples do exactly the same I know this for an absolute fact. The people that will be hit are the "Designer salespeople and employees of the said companies" as they will get no or reduced commission but ultimately the company will put itself in such a difficult financial position that they will end up shrinking the company and its costs by way of job losses, true the idea of the show was to haggle prices down for the consumer and that what it did, but at what cost to the reputation of the KBB market by the way the UK Government endorsed Trustmark status is clearly displayed by Magnet, so can you Trust them and other KBB retailers not to rip you off, the answer is yes, at the hundreds if not thousands of independent KBB retailers out there who offer great products, great design, advice and service at a reasonable and value for money cost and who the majority of will not make you and them look like fools.
The owners of Magnet kitchen if they watched the show must have steam coming out of their ears, I cant wait for their next annual report on sales and profits.
Russell Buckley
Most of us agree as Justin informed us that we pay more for the same goods in this country than the citizens of the USA do, I do not know how much the running costs are for business premises are in the states but here in the UK they are certainly expensive. A lot of companies may well overprice goods to maximise their profits to pay for the extortionate rents & rates and other numerous overheads that we have to tend with and then there are companies that knowingly hyper inflate their retail prices knowing that they will give a perceived massive discount, up to 60/70% off and "must end this weekend", further still "Now extended for seven days only plus an extra 20% off", this seems to be the accepted norm for our retail sectors, it must be that us as a consumer expect to see these offers before we will buy anything. What happened to the notion that we pay for goods based on their true value and perceived value for money.
Last night's Channel 4 show of "Britain's Secret Shoppers" gave a scenario of a young couple doing up the whole house and had a wish list for a kitchen that even her partner was surprised at given their budget (which we did not know yet). When Justin & his camera crew arrived even he was a little surprised of the small budget and the larger size of the kitchen than he thought it was going to be, but hey ho lets see what we can do.
The really big surprise in this for me was not the £7300 discount that Magnet gave because as we all know in this industry as I said earlier multiples stack the prices to offer big discounts the big surprise was it was not a secret shopping trip, the couple went into a Magnet showroom with Justin and camera crew and he introduced himself ad then went and sat in the car with his ear piece, so this actually under a trade the Trade Description act would probably get slated because there was nothing secret about it.
The couple picked what looked like an expensive painted wood kitchen and solid wood worktops plus a large wish list to boot. I cant really comment on the plan of the kitchen because that was very brief in the scheme of things but for then to go off to Wren Kitchens to get a like for like quote on the Magnet kitchen bared all the signs of how stupid some people can be in the misleading stakes, because the Wren kitchen that they had the like for like quote on bared no resemblance to the Magnet product nor their remaining wish list.
That is not the fault of Wren kitchens, the salesperson told them what he had similar and then went on to price their like for like plan, but this just showed how the couples perception of what they really wanted and what they thought they wanted were poles apart, but saying that Wren were being used as a price comparison only because their dream kitchen was in Magnet. The question needs to be asked why Wren agreed to take part in the show, was it just to show that they are cheaper than Magnet in which case they succeeded.
Then back to Magnet, the "Designers" comments went something like I can see you are wanting to get a lower price for the kitchen, So far OK, he then said something like, (wait for the corny salesman line) "Well that kitchen has just come on a special offer and we can bring it down to £11.5k (I think he said). This time with Justin outside they were being coerced into asking for a lot more discount only this time in a blink of an eye the "Designer" said we can do it for £6600, after telling them it had come on offer for the £11.5k. If that was me my credibility would have gone straight out of the window & I would have been very embarrassed.
Still not happy they ended up getting the kitchen for £5500, only £500 pound more than their original budget with the promise of a bottle of wine thrown in (I normally get the wine as a thank you when we finish the stunning job).
So Magnet started off with £12,800, obviously very well overpriced, then to knock off approx £1300, which is in the realms of possibility if they did have a promotion start between the 1st visit and them going back, but to then get a further massive £6000 knocked off without any haggling (which is what the show is about) was absolutely astounding.
This just shows how stupid some consumers are in believing the huge pre sale discounts in the 1st place and how stupid Magnet are for making themselves look like mugs. Not so long ago MFI went bust not for the 1st time because in the end they sold kitchens at virtual cost just to get the sale, this was to keep the cash flow coming in but it did not cover any of the massive overheads a company like MFI and Magnet have, All's that will happen now is that anybody who watched the show who is in the market for a kitchen will just try and take Magnet to the cleaners, they will also try it at other KBB retailers too, because let's face it the other multiples do exactly the same I know this for an absolute fact. The people that will be hit are the "Designer salespeople and employees of the said companies" as they will get no or reduced commission but ultimately the company will put itself in such a difficult financial position that they will end up shrinking the company and its costs by way of job losses, true the idea of the show was to haggle prices down for the consumer and that what it did, but at what cost to the reputation of the KBB market by the way the UK Government endorsed Trustmark status is clearly displayed by Magnet, so can you Trust them and other KBB retailers not to rip you off, the answer is yes, at the hundreds if not thousands of independent KBB retailers out there who offer great products, great design, advice and service at a reasonable and value for money cost and who the majority of will not make you and them look like fools.
The owners of Magnet kitchen if they watched the show must have steam coming out of their ears, I cant wait for their next annual report on sales and profits.
Russell Buckley
Tuesday, 19 February 2013
My Kitchen Compare Prices.
I have just done a comparison price based on the Galley Kitchen 8 unit model as per the Kitchen Compare website for the B&Q Cooke & Lewis, High Gloss Cream kitchen, Homebase Milano, John Lewis City Gloss Ivory, Magnet Purely Range Studio Cream and Wickes New Jersey. The prices comparison below is the closest specification to the companies above.
I would say that the specification of the 3 kitchens I used are of a higher specification than my competitors ranges.
I priced 3 companies:
1: K Kitchens Krystal Gloss with gloss effect end panels, PVC gloss plinth and PVC gloss bullnose / cornice pelmet rail, 4.1mtr Egger laminate worktop.
£1717.65
2: Lakes Kitchens Euro Cream Gloss with gloss effect end panels, gloss effect plinth and PVC gloss cornice / pelmet rail, 4.1mtr Egger laminate worktop.
£2051.75
3: Chippendale Technica Gloss Stone with gloss effect end panels, gloss effect plinth and PVC gloss cornice / pelmet rail, 4.1mtr Egger laminate worktop
£1788.80.
The prices above are current until April / May 2013.
People need to be aware that using a comparison site that only gives a snapshot of what is available is short sighted and is not a true reflection of what is actually available from a kitchen independent with 28yrs experience and customer service and advice second to none.
There are also other independents in this country that will also offer a better quality product and price than that of the comparison against the companies listed above.
Russell
Stuart Henry Kitchens Ltd
I would say that the specification of the 3 kitchens I used are of a higher specification than my competitors ranges.
I priced 3 companies:
1: K Kitchens Krystal Gloss with gloss effect end panels, PVC gloss plinth and PVC gloss bullnose / cornice pelmet rail, 4.1mtr Egger laminate worktop.
£1717.65
2: Lakes Kitchens Euro Cream Gloss with gloss effect end panels, gloss effect plinth and PVC gloss cornice / pelmet rail, 4.1mtr Egger laminate worktop.
£2051.75
3: Chippendale Technica Gloss Stone with gloss effect end panels, gloss effect plinth and PVC gloss cornice / pelmet rail, 4.1mtr Egger laminate worktop
£1788.80.
The prices above are current until April / May 2013.
People need to be aware that using a comparison site that only gives a snapshot of what is available is short sighted and is not a true reflection of what is actually available from a kitchen independent with 28yrs experience and customer service and advice second to none.
There are also other independents in this country that will also offer a better quality product and price than that of the comparison against the companies listed above.
Russell
Stuart Henry Kitchens Ltd
Thursday, 7 February 2013
"Who is Homebase Targeting"?
In this months KBB Review Derek Miller asks Who is Homebase targeting?
Here are my thoughts.
Here are my thoughts.
Tim Wallace
KBB Review
editor
7/2/13
In reply to
Derek Miller page 12 KBB review February 2013
“Who is
Homebase Targeting”
I can say
with absolute assurance that they “sheds” I.E Hombase, B&Q etc will never
on a mass scale have the big name brands on their shelves or their offering. This
is for a couple of reasons:
1. The
sheds will devalue the major brands product and they will not want to be
associated with a “shed” in such a large scale, they may offer the “shed” a
smaller part of their product but not the main designer led product.
2. If the
“sheds” sell the major brands product then the shed in the end will dictate the
price and the quantity it wants, what also will happen is the shed will change
its course and the suppliers eggs are in one basket and they pull that brand,
this happened to Next Dimension in Scunthorpe with its better quality kitchens,
B&Q pulled and next Dimension went under, this has happened to other
companies that have dealt with them and it has happened to other larger
retailers & their suppliers.
In 2000 Wickes
had an idea it wanted to “Go Fluffy” and to be able to attract the female buyer
rather than the Tradesman which is what they are known for, it did not really
work for them other than it promoted their kitchen, bathroom offering, and now
Wickes has gone back to its core trade customer.
Homebase
has always been seen as the middle class DIY store especially when it was owned
by Sainsbury’s as some people would not be seen dead in another DIY store even
if they did sell the same product cheaper and for several years even when
Homebase was sold to the ARG group people still thought it was owned by
Sainsbury’s. Generally a certain type of person will shop at Homebase, the type
of person who sees them as a bit more homely (but they are a bit more expensive
as a result of that).
They have
upped their game on kitchens and bedrooms by offering Schreiber and Odina
kitchens but we all know it is still a DIY store with a bit of “Fluffy” going
on.
If they
want to be really serious about their strategy going forward then they need to
employ professional kitchen/bedroom/bathroom designers not salespeople or train
they salespeople they have to a very high standard, they also need to look at
their delivery side of things for high ticket items but mostly they need to
look at their so called installation service, having a Trustmark is definitely
no guarantee that the customer gets a top quality fit, I know this from
experience of clients who have bought from me. The top guy in Homebase should
type into a search engine “Problems with Homebase kitchens 2012” and see what
comes up.
Russell
Buckley, Managing Director. Stuart Henry Kitchens Ltd.
Tuesday, 5 February 2013
Marion John, @Majjie, Advanced Kitchen Design
On Friday the 1st February 2013 our friend Marion John passed away after a short illness.
Marion was a great advocate of the kitchen industry a fine kitchen designer and Blogger through her website www.advancedkd.co.uk, to others some would say she was a great adversary in her no nonsense views on 'Kitchen Design'. Marion was in the throws of writing a book about kitchen design and layouts of kitchens giving people an insight into the kitchen world a demystifying myths and at the same time giving advice and pricing for sample kitchen layouts in various quality kitchens and their materials.
Marion visited industry trade shows to keep her finger on the pulse, whilst doing so she would gather information to write articles on what was interesting and new.
Having spent time with Marion in and out of work we got to see both sides of her passionate and caring nature and out of respect for her great work and memory we will still be tagging her in on blogs on twitter.
I am sure you will all agree that she will be very sadly missed by all.
Russell & Diane Buckley
Stuart Henry Kitchens Ltd.
Marion was a great advocate of the kitchen industry a fine kitchen designer and Blogger through her website www.advancedkd.co.uk, to others some would say she was a great adversary in her no nonsense views on 'Kitchen Design'. Marion was in the throws of writing a book about kitchen design and layouts of kitchens giving people an insight into the kitchen world a demystifying myths and at the same time giving advice and pricing for sample kitchen layouts in various quality kitchens and their materials.
Marion visited industry trade shows to keep her finger on the pulse, whilst doing so she would gather information to write articles on what was interesting and new.
Having spent time with Marion in and out of work we got to see both sides of her passionate and caring nature and out of respect for her great work and memory we will still be tagging her in on blogs on twitter.
I am sure you will all agree that she will be very sadly missed by all.
Russell & Diane Buckley
Stuart Henry Kitchens Ltd.
Tuesday, 22 January 2013
Kitchen Compare.com
I found a posting on @DIYweeknews regarding the current discussions about the kitchen compare website, so I posted a reply:
I own & run an independent kitchen studio on the Wirral designing & offering products from Chippendale, Sheraton, lakes, K Kitchens & Colonial plus lots of different appliance, worktop and sink manufacturers, I have provided people with £64k kitchens and we are doing one this week for £3k. We offer an unrivalled advice/design service for our market area, and the quality of our products are far far higher than the ones from the likes of B&Q, Magnet, Homebase, Wickes and Ikea, we are definitely less expensive in most cases and do not hike our prices to stupid figures only to reduce them by ridiculous amounts to tempt people in. When I give a fitting price it lists everything that is included and tells you what is not included, we won Merseyside Local Trader of the year in 2010 as voted by customers and received a design award in 2011, we are members of the FKBD Federation of Kitchen & Bathroom Designers and are FSB members (federation of small businesses). Unfortunately we are not on the Kitchen compare website because we design to suite what our clients want. We currently have an offer with 12 very good quality cabinets (better than the Sheds and Magnet)with laminate worktops, sink, taps, cornice, pelmet, plinth and Baumatic oven, hob, hood,fridge freezer, dishwasher for £3500 supplied. So in reply to Andy Steuart you do not have to spend £20k + and in reply to Steve Collinge. Yes you have to start somewhere but it would be nice if his website would point out the companies on his site are only a small representation of the kitchen industry and there are independents who can offer a service and products for similar or less than the companies quoted on the site. Being a Trustmark member or any other acronym member DOES NOT guarantee the client that they are getting the job that they think they are, people need to do their homework before jumping in feet first with thousands of pounds only to find the back up service stinks. People just need to type into their search engine "Problems with" such and such a company and see what comes up. If we make a mistake we correct it and that is the way it should be.
Russell
I own & run an independent kitchen studio on the Wirral designing & offering products from Chippendale, Sheraton, lakes, K Kitchens & Colonial plus lots of different appliance, worktop and sink manufacturers, I have provided people with £64k kitchens and we are doing one this week for £3k. We offer an unrivalled advice/design service for our market area, and the quality of our products are far far higher than the ones from the likes of B&Q, Magnet, Homebase, Wickes and Ikea, we are definitely less expensive in most cases and do not hike our prices to stupid figures only to reduce them by ridiculous amounts to tempt people in. When I give a fitting price it lists everything that is included and tells you what is not included, we won Merseyside Local Trader of the year in 2010 as voted by customers and received a design award in 2011, we are members of the FKBD Federation of Kitchen & Bathroom Designers and are FSB members (federation of small businesses). Unfortunately we are not on the Kitchen compare website because we design to suite what our clients want. We currently have an offer with 12 very good quality cabinets (better than the Sheds and Magnet)with laminate worktops, sink, taps, cornice, pelmet, plinth and Baumatic oven, hob, hood,fridge freezer, dishwasher for £3500 supplied. So in reply to Andy Steuart you do not have to spend £20k + and in reply to Steve Collinge. Yes you have to start somewhere but it would be nice if his website would point out the companies on his site are only a small representation of the kitchen industry and there are independents who can offer a service and products for similar or less than the companies quoted on the site. Being a Trustmark member or any other acronym member DOES NOT guarantee the client that they are getting the job that they think they are, people need to do their homework before jumping in feet first with thousands of pounds only to find the back up service stinks. People just need to type into their search engine "Problems with" such and such a company and see what comes up. If we make a mistake we correct it and that is the way it should be.
Russell
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