Remember the term “spec home”. That’s when the bank would give the builder money to build a big house that did not have a buyer. We were all riding a wave that seemed unending. But it had to end; the signs were all around us. The get rich quick pre-construction condo flips were getting out of control, money was too easy to come by and housing prices were escalating at an unprecedented rate. Even if we saw the signs and wanted to pull back, it was difficult because business was beating down our door.
Let’s face it, we’ve been walking through an oven for nearly 30 months and it’s getting a little hot. There’s a new reality being sculpted in our country, problem is, we aren’t sure exactly what that will be.
In discussing the economy with a friend, he mentioned that we are not in a recession but in a reset. That hit home with me. We see it everywhere; from politics to business we are all resetting our values, our expectations and our way of doing things. And hopefully, we, as a society can learn some lessons and build a better tomorrow.
The new reality for the closet industry is clear. The days of “whole house” closet sales are not as abundant, the average ticket is dropping, our product is seen as a luxury item, everyone is working harder for less, prospects are getting more estimates (even repeat customers), customers find you-you don’t find the customer, and most importantly there are more non-traditional players in the game. Primarily the Kitchen and Bath dealers have seen closets as a natural extension of their product lines as their cabinet volume decreases, however all the other home sales industries have begun seeing closets as a viable addition to their product mix. From the window covering company to the flooring company, more and more owners are realizing that if there aren’t as many customers, we need to sell each customer more things if we want to grow.
I mention this because this is the new reality and it’s a reset in how homeowners look for closets and how we sell closets. Not all the questions have been answered yet, however we need to keep asking them. How do I compete with the new players? How do I position my product as a necessity and not necessarily a luxury? How do I add new products into my offering? How do I market in the new reality? How do I plan and forecast for budgeting? How do I distinguish my company from everyone elses?
Now is the time for companies that want to embrace the new reality to reset their expectations and focus on developing new ways to thrive in this economy. As a member of the Association of Closet and Storage Professional (ACSP) (www.closets.org) I am excited to see the members coming together to help identify and establish the new reality. There is work to be done and together we can make it happen.
Guest Blogger: Mike Carson, president, Closet Works and founding president and current board member for the ACSP.
