Superior
products with a greater emphasis on style and substance, supported by modern
installation techniques, will spell increased profit in the commercial flooring
sector, even during challenging economic times. Why? Because top-notch products
mean greater value for the client. They effectively reduce use-cost and
generally mean fewer operational headaches. Making the sale can be a snap if
you focus your presentation strategy on the product’s long term benefits.
Starting a New Year means making
plans for where your immediate business will come from and investing time,
personnel and thought into expanding. If your retail residential business is
less than you had hoped for, perhaps you will finally take the plunge into
commercial work. Here are the best targets for you to consider under the
current economic conditions:
In Part I last month we looked at
some of the fundamentals involved in bidding on a major commercial job. The
example we’re looking at involves flooring for a local hospital. We laid out a
scenario where a retailer or contractor was invited to bid based on the
successful completion of a previous (though smaller) job at the hospital. It
looks like a great opportunity, but how do you determine the amount of your bid?
Go too high, and you won’t get the job. Go too low, and you may get it but wish
you hadn’t. The challenge is to calculate your actual costs in manpower,
materials and, let’s not forget, opportunities you have to pass up to pursue
this particular job.
As a successful retailer, you’ve
made the decision to expand and diversify your business model to include
commercial business. You’ve had some experience in Main Street commercial and
have made a nice profit on a condo project, a quick-turn tenant build-out, and
an executive office suite at the local hospital. Even better, you’ve been
mentioned as a qualified bidder for a large hospital addition. Life is grand and
you’re on your way, right? Well, there are still a few issues to iron out, like
what happens to the rest of your business while you work on the hospital?
No matter how well-known you are
as a retailer, no matter how successful your operation, the commercial sector
is a whole new ball game. Even those retailers who are pursuing a modest agenda
of Main Street commercial work have to re-establish themselves and build a
reputation. Word-of-mouth is the key to your success, so if you are now
expanding your efforts into commercial flooring remember that the first steps
are crucial. Here are a few things to keep in mind.
From
adversity comes opportunity, but that’s only if you are prepared to expand your
horizons. Unfortunately for many
retailers these days, adversity has arrived in the form of lighter store
traffic, fewer leads, and customers who are suddenly hunting for bargains or
choosing lower profit items. Yes, the residential market has cooled, but keep
in mind there are other options available.