Outlook
2006
Survival Kit for the Year Ahead
Things can be tough. You can be tougher.
Consolidation, increased
competition, pricing, higher interest rates, a housing slowdown
. . . these all could lead to a tougher year ahead. Savvy retailers,
however, can take advantage of other positive trends to grow their
businesses.
D&WC asked industry leaders what dealers can expect over the
next 12 months and how to overcome possible trouble. Their answers
have one thing in common: You don’t have to go it alone.
LOOK FOR A TRUE ALLY, NOT MERELY
ANOTHER VENDOR
Dave Grummer
Danmer Custom Shutters
Custom shutter fabrication is in the midst of explosive growth with
no end in site. At Danmer we’ve spent 30 years designing,
building and installing custom shutters. We’ve seen a dramatic
upward trend in shutter sales in the last five years. For other
window covering fabricators who want to take advantage of predicted
double-digit growth in this segment for 2006, there are tremendous
opportunities for profit, but also pitfalls to watch out for.
If you already operate a successful window coverings business, you
know how hard it can be to get your suppliers to help you market
their products so that you can maximize your overall revenues and
profits.
The real trick in building your fabrication business in 2006 and
beyond is in selecting a supplier who’s invested the time
and money developing products, tools and technologies you need to
grow your business operations. Otherwise, you end up with suppliers
who will be glad to merely sell you components, invoice you and
hope that you’ll continue buying from them with the least
amount of effort on their part.
Here’s what you should look for: A component supplier with
proven success in growing its own local fabrication and retail operations
first, so it can pass that experience on to you. That kind of supplier
can provide you the appropriate training in sales and marketing,
materials handling, fabrication, installation and then, finally,
shutter shop management techniques to help you grow your business.
Look for a fabricator partner, not merely another vendor.
Danmer’s BEST program is an innovative application of this
kind of support for window coverings fabricators. The Business Expansion
Support Team (BEST) is provided by the largest retailer of custom
shutters in the competitive California market, where we perform
over 500 installation appointments per month throughout the state.
We share this experience and true partnership with all of our Thermalite
Fabricators Association partners.
HELP IS AVAILABLE
John Fitzgerald
Executive Vice President
Comfortex Window Fashions
With the Federal Reserve increasing interest rates, housing starts
and existing home sales will slump. In addition to this slump in
housing sales, rising energy prices will immediately affect consumer
spending in the first quarter. Dealers will have to boost their
marketing and advertising to maintain sales at their current levels.
In order to stand out among their competitors, differentiation and
consumer education will be important.
Over the course of 2006, Comfortex dealers can expect to see new
performance sheers and advancements in the wood alloy product arena,
which are unique to our dealers. Since window treatments can be
a postpone-able purchase, a new consumer financing program will
help increase order size or upgrade their purchases while offering
flexible financing options to the homeowner. Programs like this
will help to offset the sales slump.
Window coverings are effective in lowering energy expenses and improving
the comfort of the home. Additional educational marketing materials
for dealers to use to illustrate the energy savings capabilities
of window coverings will become available. Comfortex BlindCrafters
will be able to look forward to a new marketing strategy that will
include BlindCrafter University Training programs.
MUTUAL TRUST
William Liu
Marketing Director
HT Window Fashion
We at HT Window Fashions support dealer’s businesses by following
key steps: We offer competitive pricing, good quality products,
short lead-time on delivery and broad product offering.
We provide training material to our dealers on production features
and benefits, installation and selling points. For special needs,
we will provide technical support to satisfy their needs. We treat
our dealers as partners instead of buyers and sellers. We aim at
long-term relationships built on a foundation of mutual trust.
VISUALIZING YOUR POTENTIAL
Eileen A. Meitzner
Co-president
Evan Marsh Designs, Inc.
Successful designers, fabricators and retailers will be those who
adopt a strategy of differentiation based on the application of
technology.
The greatest challenge for window treatment professionals has always
been to enable customers to visualize what proposed treatments will
look like and to get them genuinely excited about a new look. Without
such visualization and excitement, the customer is often reluctant
to proceed for fear of making a large and expensive mistake.
Conversely, with effective visualization, the job will usually sell
itself.
How can one overcome this problem? Fortunately, computer-based designing,
as with the DreamDraper® system, has advanced dramatically during
the past few years. It is now possible to portray very realistic
renderings of any proposed treatment, complete with finished room
settings, accessories and the customer’s exact choices of
colors and fabric patterns. One can even design on a digital photo
of the customer’s window. With such visualizations, changes
are easily made and the fear factor is removed. As a result, the
customer is much more likely to proceed (with a check!).
While computer designing of window treatments was virtually unknown
several years ago, it is rapidly becoming the norm. The ability
of designers, fabricators and retailers to offer dramatic renderings
will greatly enhance their professionalism and differentiate them
in the marketplace—leading to higher-value treatments, more
sales, faster closings and greater financial rewards in the coming
year.
A BRIGHT OUTLOOK
Thomas Perkowitz
Director of Marketing
B&W Mfg.
To be successful in the next 12 months, specialty retailers and
interior fashion professionals should focus on their SWOTs: strengths,
weaknesses, opportunities and threats. Knowledge is the key not
only to staying competitive, but to thriving in this ever-changing
market.
Building strengths is key. Most independent interior fashion professionals
already have far more experience and expertise than a clerk at a
“big box” store. That’s a big advantage. Capitalize
on it! Paying attention to individual clients is also important.
These days people want that personalized service. Last, it is important
not to be limited and tied to one big supplier.
Minimizing your weaknesses is also critically important. Do you
have limited resources or limited time for marketing? What can you
do to work around that? Excellent retailers and interior fashion
professionals are creatives, salespeople and financial accountants
all rolled into one.
Maximizing opportunities is the third element of success, and networking
is key. Teaming with others with complementary skills can save time
and resources. Finding and using unique sources like B&W Mfg.
is especially important. It allows you to have the products nobody
else has.
Last, managing threats is necessary. With the consolidation of the
industry and everyone buying from “big box” stores,
putting all your eggs in one basket will only cause more price collapse.
Don’t underestimate the impact of world events, either—9/11,
the hurricanes and now potentially the avian flu have definitely
impacted our market.
To survive, you’ve got to offer more choices. Every product
has a life cycle. Vertical blinds were hot in the ’80s but
are now over saturated in the marketplace. Woven woods were all
but forgotten in the ’90s and now they are the hottest, fastest
growing product in the market. Keep your eyes and ears open, find
new and unique products to offer, and listen to your customers.
AUTOMATION DRIVES BUSINESS DEVELOPMENT
Jon Vrielink
President
BTX Window Automation, Inc.
Last year was a banner year for motorization at BTX, and all signs
and expectations are that 2006 will be even stronger. The trend
toward home automation continues to drive this development. Consumers
are waking up to the idea that automated window coverings enrich
their home environments and significantly increase the day-to-day
comfort level. Windows for media rooms, living rooms and master
bedrooms are the first candidates for automation. Usually these
windows are bigger and the need for privacy and light control is
the greatest. The convenience of automation of draperies, shades
and blinds at these wider and taller openings is a very convincing
argument.
At the same time consumers are becoming aware that automation of
window coverings does not necessarily require an extremely costly
full-house automation system, but that it can be done selectively
for those areas that need it most. BTX systems and controls are
ideally suited for both situations, a factor that contributes to
the growth and development of motorization in the residential markets.
The commercial markets continue to be strong, especially in rollers
shades. BTX had 25 percent growth in motorization with this product
line. This is a little bit lower than our growth in motorized drapery
systems. We will be introducing important new hardware and quiet
motors for roller shades as well as a new, more powerful drapery
system early in 2006. We expect motorization for both the drapery
as well as the roller shade segment to continue its strong expansion
in 2006 and beyond.
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