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Managing For Money
Commodity Versus
Concept Selling
How and when to move up from low-margin blinds to fashion window
products.
by Steven C. Bursten
Editor’s Note: Whether you are the sole manager of a window
treatment business who aspires to higher sales, or you manage 50 window
fashion decorators in a multi-million dollar business, this series
of articles is intended to help you manage sales better and increase
your profitability. The series is based on Steven C. Bursten’s
actual experience studying sales and financial information with hundreds
of window fashions businesses.
As blinds, shades
and “alternative” window coverings steal the stage from
draperies, a new way to sell window products is now an industry
standard. Custom drapery sales have always been about design, decoration,
ornamentation, beauty, personalization, creativity and the “feeling”
in a room set by window fashions. Functional considerations are
important in custom draperies, but are secondary to design and color.
The new way to sell window coverings started with the functional
benefits of blinds and shades. Design, personalization and ornamentation
were—and are—secondary. This is not criticism, just
observation. In fact, drapery retailers can learn a lot about the
value of simplifying their businesses. Blinds and shades retailers
reach high sales levels more quickly than has ever been achieved
through selling draperies. There are multiple reasons for that;
a lot of it has to do with mass-market appeal and other factors.
But that is a different story.
HIGH SALES—NEW CHALLENGE
The issue today is to recognize that thousands of window coverings
specialists have no knowledge of draperies and a limited knowledge
of decorating. Their selling features are functional values of durability,
performance, light control, privacy and thermal benefits. This functional
sales approach is new to our industry. And it works!
The benefit to homeowners of branded alternative window coverings
is indisputable. The rapid growth in the number of new window coverings
dealers is obvious to anyone who looks in the yellow pages. The
ability of these dealers to achieve high sales quickly leaves drapery
dealers in awe. With continued innovation in branded window products,
this segment will outpace drapery sales growth for years to come.
That’s the good news. Now the challenge: Functional features
lead to commodity pricing.
Branded products that serve functional needs become commodities
in the marketplace. Window products are becoming similar to appliances
such as washers, dryers and refrigerators. Consumers compare brands
and model numbers and buy from the dealer with the best price. The
result is eroding profit margins and a new challenge for leaders
to lift themselves out of the rat race of price competition. The
good news is, there is a solution. From years of marketing custom
draperies there is a wealth of experience to call on.
TWO SALES CULTURES
In our industry there are actually two selling cultures: One is
function and price; the other is beauty, pride in home and long-term
relationships. Let’s call these cultures “Commodity
Selling” and “Concept Selling.”
This second culture is one in which we sell ideas and feelings above
products and price. There is no equivalent in flooring sales, in
appliances, or other manufactured products. Only when customization
exists will a “Concept Culture” emerge.
Concept selling evolved from decorating and design. The exciting
discovery is that you don’t have to be a decorator to apply
this culture! You can apply the same principles to selling blinds,
fashion shadings and shutters, even if you don’t sell draperies
and you are not a decorator. If you do sell draperies, Concept Selling
is even more powerful.
Commodity Selling—promoting function and price—is standard
technique for moderate-income homeowners. But the power is to discover
that upscale and moderate income homeowners respond even more to
Concept Selling—ideas, beauty, pride and personal attention
for long-term relationships.
Any retailer who serves upscale clients in better homes will earn
bigger sales and higher margins by selling beauty and personal service.
COMMODITY VS. CONCEPT SELLING
The new task is to transition to Concept Selling and to use it with
every customer, upscale or moderate. Concept Selling begins by learning
about the customer’s goals and dreams for her home. If she
is buying new window coverings, chances are other things are in
the works—new flooring, furniture, wall coverings and more.
The more you are aware, the more you can personalize a window covering
solution to fit her needs.
Next is to realize that beauty and pride in home are important to
every homeowner. Your ideas are powerful. When you sell the homeowner
on the concept of a beautiful room her friends will love, then functional
features—and pricing—are less important.
Homeowners will always pay more for ideas than for products. This
does not mean you must be a decorator. It does mean you should be
more than a product specialist. You want to become a consultant
with an understanding of home decorating projects, even products
you don’t sell. Then your knowledge becomes part of the value
the customer buys.
THE CHALLENGE AND OPPORTUNITY
The challenge is to know when to change and how to go about it.
The time to start is after you have gained confidence from two years
in business and, ideally, less than five years at which point you
may become entrenched.
Whether you sell only hard products or a combination of hard and
soft treatments, you can accelerate growth and add five to 10 percent
in gross margins. The result will be more satisfied customers and
thousands of dollars more income every year.
How to go about it is the next task. If you would like to learn
more, request my “Ten Tips to Stop Selling Commodities and
Start Selling Concepts.” Just send an email to concept.selling@custEmers.com.
Be sure to include your name and city.
PROFESSIONALS AND SPECIALISTS
If you want to be different, learn to sell concepts and ideas. For
example, selling wood blinds might involve selling the ideas of
nature, authenticity, a warm look in the room and a sense of finely
crafted wood furniture. When the customer buys these ideas, wood
blinds become a perfect solution. Only after the ideas win the customer
should you discuss functional benefits as a clincher. When you sell
concepts first, the product just tags along. You can do it! Start
today.
 Steven
C. Bursten is the retired founder of Decorating Den Interiors and
author of a how-to book on new business start up, Bootstrap Entrepreneur.
He is president of custEmers.com,
specializing in affordable Internet marketing tools along with tried
and true techniques. Bursten welcomes your questions about marketing,
sales and customer relationships. Request his new report for businesses
that sell $1 million a year—or want to: “Solutions for
Million Dollar Managers” via e-mail: million.dwc@custEmers.com.
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