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Editorial
The Right Market
Reports
of the imminent demise of the booming U.S. housing market are, much
like the premature reports once of the death of Mark Twain, “an
exaggeration.”
For the record, the National Association of Realtors reports sales
nationwide rose by almost one percent in March—a figure it
calls better than expected. Sure, it seems weak compared to the
soaring sales figures over the past five years, but the association
cites the increase as positive evidence of a “soft landing”
for the housing market. The news turns out to be even better in
the Midwest and especially in Illinois where 15,000 homes and condos
sold throughout the state setting a sales record for March at a
4.9 percent increase from a year earlier.
For many window treatment retailers the booming housing market has
meant booming sales. All those new homes and homeowners needed to
have window coverings immediately and, if they followed the general
pattern, they came back six months to a year or so later to finish
off the windows (with top treatments, drapery panels, decorative
hardware . . .) and to complete the look. Many retailers worked
with builders and developers on model homes so prospective buyers
could see popular treatments and styles and be enticed to want them
for their new homes. A good idea. So, too, was going door-to-door
introducing their services to new homebuyers or leaving materials—and
coupons—at each home. Even better, perhaps, was getting addresses
of new home sales and sending direct mail pieces.
These retailers today might be just a bit worried about the “soft
landing” expected for home sales. But their concerns probably
are exaggerated. What the housing sales figures ought to remind
us is that there is a strong market out there that is unaffected
by sales reports and, in fact, is growing. That market consists
of homeowners who haven’t bought a new home recently. They
have stayed put and now are ready to re-do, remodel, update, add-on,
refurnish, rearrange . . . Chances are they were customers already
once, and they are ready to be customers again!
In this month’s cover story (see page 34), Jim Bugg Jr., president
and CEO of Interiors by Decorating Den, mentions a very important
trend that he sees: Customers once were product focused, he says.
When the old sofa wore out they went to a furniture store to buy
a new one. Today, customers are “room solution oriented.”
When the sofa wears out they’re thinking it’s time to
re-do the whole room.
When the housing boom does burst, these customers—repeats
and referrals—still will be buying.
Howard Shingle
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