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Reader
Survey: Tradition of Excellence
D&WC readers say shutters have returned to a prominence
not seen in recent years.
by Howard Shingle
The year 2001 was not a good one for
many people and businesses alike.
In November of that year, when we last sought to divine the size and shape
of the U.S. shutter market, Americans were still reeling from the events of
September 11. By April 2002, when we reported our findings, the tremors of
aftershock could be felt still.
Then, 81 percent of the respondents to our readers’ survey said consumer
interest in shutters was “Average” or “Low” (see “Too
Much to Expect,” D&WC, April 2002, page 46). The responses to our latest
reader survey show that trend has completely reversed itself, and this may help
to explain an interesting finding in this year’s survey: a higher percentage
of respondents this year said 80 to 100 percent of their total sales volume comes
from shutters (15.3 percent), nearly twice as many as in 2001 and three times
as many as in 1999 or 1992. As consumer interest in shutters rebounded, it seems
more retailers concentrated almost exclusively on selling shutters.
Another interesting figure that came out of this year’s survey is the frequency
that our respondents reported promoting published sales on shutters. In past
surveys no more than seven percent of our respondents said they “Frequently” promoted
shutter sales. This year that percentage jumped to more than 38 percent (Table
12). It makes one think that as shutter sales have returned to their traditional
level of prominence, competition among dealers has heated up leading to more
published sales.
In comparing figures from 2001 to this year, it is important to note that in
2001, half of our respondents described themselves as “Interior Designers.” This
year slightly more than half described themselves as “Specialty Store,” presumably
traditional window coverings retailers with in-store or in-home sales (see “Who
Answered Our Survey” on next page).
STRONG INTEREST
After taking a breath-taking dip in 2001, consumer interest in shutters has rebounded
nearly to 1999 levels. More than three out of four survey respondents this year
told us they would describe consumer interest in shutters as “High,” and
less than eight percent described it as “Low,” the lowest negative
response to date (Table 1). Likewise, roughly 54 percent of our respondents said
more than half of their customers express interest in shutters (Table 2).
As noted earlier, a much larger portion of our respondents say they are getting
a much larger portion of their total sales from shutters (Table 3). Nearly twice
as many respondents this year as in 2001 reported shutters generating 81 to 100
percent of their total sales. Still, the biggest percentage of respondents (61.4
percent) says shutters made up less than 40 percent of their total sales. Clearly
then, shutters most often are part of a larger mix of window treatment products.
The 38 percent of respondents who tell us they get more than 41 percent of their
total sales from shutters is the largest percentage since we started asking the
question in 1992.
The rise of vinyl shutters is clearly marked in this year’s survey. We
first began asking about vinyl shutters in 1999. Then, 30 percent of our respondents
said they sold vinyl shutters. In 2001, that figure rose to 34 percent. This
year, nearly 70 percent of respondents say they offer vinyl shutters (Table 4).
By far, homes with traditional decors were most often the place for which shutters
were specified—and by a much greater margin than seen in past surveys (Table
5). The top three home decors remained about the same, however, with Contemporary
decors coming in second followed by a tie between Country and Eclectic decors.
If anything, these responses show the versatility of shutters. Basically, they
are at home in any interior style.
On the commercial/contract end, physicians’ offices took top place for
the first time. What this may say about the current state of our nation’s
health care is anybody’s guess. Commercial offices and a tie between hotels
and restaurants round out the top three applications.
STRONG MARGINS
Based on the number of top-choice votes received, painted shutter panels remain
the most popular by more than two-to-one over stained panels (Table 7). This
is a wider margin than we saw in our last survey.
“Overall Aesthetics” also remains the top reason why consumers say
they purchase shutters (Table 8). What was interesting this year is that 30 percent
of the respondents said consumers are buying shutters as investments in their
homes. With the rapid drop in interest rates over the past year or so, it wouldn’t
be surprising if homeowners refinanced and used the savings to redo their interiors.
The good news is that consumers seem to understand the added value shutters can
mean to their homes.
Most respondents (92 percent) said half or more of the shutters they sold were
being installed on standard as opposed to odd-shaped windows. Despite the best
efforts of shutter manufacturers to showcase arch- or angle-top panels, it seems
shutters still are seen as basically rectangular treatments. Either that or homebuilders
are using fewer Palladian-style windows—nah!
Tables 10 and 11 make an attempt at discovering how much shutters are going for
these days. Table 10 shows the price of a typical three- by five-foot wood panel
evenly distributed over a $300 to $600 price range with a small percentage (7.6
percent) going for up to $700. Vinyl shutters, on the other hand, seem to be
dropping in price. Three out of four respondents who sell vinyl shutters report
the retail price of the same size panel at between $300 and $400. The rest of
the respondents chose not to answer this question, perhaps indicating the retail
price had dropped below $300.
Table 11 shows the price per square foot for a painted shutter remained at between
$21 and $26. The revelation here is for stained panels. In 2001 we didn’t
bother listing the retail price per square foot for stained shutters because
only two respondents indicated the price was within the range we provided. This
year, while a third of the respondents said stained shutters were running more
than $35 per square foot, a number reported retail prices more inline with painted
panels. This could indicate either pressure to lower prices at retail because
of demand and competition, or advancements in technology lowering the manufacture’s
cost of producing stained finishes.
The case for increased competition can be supported by the frequency our respondents
said they promote published sales on shutters (Table 12). Historically, very
few relied on frequent sales. This year, almost as many respondents reported
they “Frequently” promoted sales as those who “Rarely” do.
Finally, profit margins provided by shutters have remained strong (Table 13).
The bulk of our respondents (38.4 percent) reports 30 to 40 percent of retail
sales as profit. A similar percentage (38.3 percent) reports profits at between
41 and 60 percent.
| Table 1 |
How would you describe consumer interest levels for
interior
shutters? |
High
Average
Low |
1992
31%
27
42 |
1999
78.9%
5.3
15.8 |
2001
19%
44
37 |
2003
76.9%
15.3
7.6 |
| Table 2 |
| Approximately what percent of your customers express
interest in shutters? |
Up to 25%
26 to 50%
51 to 75%
76 to 100% |
1992
65%
26
2
7 |
1999
52.5%
21.1
5.3
21.1 |
2001
75%
44
2
8 |
2003
76.9%
38.4
30.7
23 |
| Table 3 |
| Approximately what percent of your total sales volume comes
from shutters? |
Up to 20%
21 to 40%
41 to 60%
61 to 80%
81 to 100% |
1992
85%
5
2.5
2.5
5 |
1999
55.6%
16.6
5.6
16.6
5.6 |
2001
82%
10
0
0
8 |
2003
23%
38.4
15.3
7.6
15.3 |
| Table 4 |
| What sort of shutters do you sell? |
Wood
Vinyl
Other |
100%
69.2
30.7 |
|
|
|
| Table 5 |
| For what types of decor do you most often specify shutters? |
1. Traditional
2. Contemporary
3. Country
1. Country
2. Contemporary
3. Traditional
1. Traditional
2. Contemporary
3. Country/Eclectic (tie) |
1999
24%
17.3
14.7
2001
19%
18
18
2003
92.3%
69.2
61.5 |
|
|
|
| Table 6 |
| For what commercial applications do you specify shutters? |
1. Commercial offices
2. Restaurants
3. Physician’s offices
1. Restaurants
2. Hotels
3. Physicians’ offices
1. Physicians’ offices
2. Commercial offices
3. Hotels/Restaurants (tie) |
1999
31%
20.7
17.2
2001
30%
24
16
2003
61.5
53.8
46.1 |
|
|
|
| Table 7 |
Please rank the following types of finish in order of popularity
(with 1 being most popular). |
| Finish |
% of all
first choices |
|
|
Painted
Vinyl
Stained
High gloss
Sandblasted
Crackled
Marbleized
Speckled |
2001
49%
18
15
7
8
3
0
0 |
2003
69.2%
*
23
7.6
*
*
*
* |
|
|
| * Either less than 1 percent, or this finish received no
first choice votes. |
| Table 8 |
| Please rank the reason consumers purchase shutters in order
of their importance
(with 1 being most important). |
| Reasons |
% of all
first choices
|
|
|
Overall aesthetics
Appeal of wood
Light control
Maintenance
Energy savings
Investment in home |
2001
52%
21
17
6
3
0 |
2003
53.8%
*
*
15.3
*
30.7 |
|
|
| * Either less than 1 percent, or this finish received no
first choice votes. |
| Table 9 |
| Approximately what percent of the shutters you sell are for
standard versus odd-shaped windows? |
Up to 25% standard
26 to 50% standard
51 to 75% standard
76 to 100% standard |
1999
11.7%
0
11.8
76.5 |
2001
66%
5
10
19 |
2003
7.6%
0
76.9
15.3 |
|
| Table 10 |
What is your average retail price for a custom shutter measuring
three by five
feet?
(Not including installation) |
| |
1999
|
2001 |
2003 |
$301 to $400
$401 to $500
$501 to $600
$601 to $700
$701 to $800
$801 to $900
More than $900 |
Wood
18.8%
56.3
12.5
0
6.2
6.2
0 |
Vinyl
55.5%
22.2
11.1
11.2
0
0
0 |
Wood
34%
37
29
1
1
3
3 |
Vinyl
54%
26
5
15
0
0
0 |
Wood
30.7%
30.7
30.7
7.6
0
0
0 |
Vinyl
76.9%
0
0
0
0
0
0 |
| Table 11 |
| What is your average retail price per square foot for painted
vs. stained shutter
(not including installation)? |
Under $15
$15 to $17
$18 to $20
$21 to $23
$24 to $ 26
$27 to $ 30
$31 to $ 35
More than $35 |
2001
Painted
13%
3
12
22
21
18
5
6 |
2003
Painted
7.6%
0
0
15.3
38.4
0
23
7.6 |
Stained
0%
0
0
7.6
23
23
7.6
30.7 |
|
| Table 12 |
| How often do you promote published sales on shutters? |
Frequently
Sometimes
Rarely |
1999
6.7%
46.7
46.6 |
2001
7%
11
82 |
2003
38.4%
15.3
46.1 |
|
| Table 13 |
| Approximately what percent of your custom retail
sales price is profit? |
11 to 20 percent
21 to 30 percent
31 to 40 percent
41 to 50 percent
51 to 60 percent |
1999
11.7%
11.8
41.2
23.5
11.8 |
2001
24%
24
26
27
6 |
2003
7.6%
15.3
38.4
15.3
23 |
|
| WHO ANSWERED OUR SURVEY |
We asked respondents to tell us a little about themselves.
Their responses follow:
Which category best describes your business? |
Specialty store
Decorating center
Interior designer
Workroom
Department store |
1999
58.9%
11.8
17.6
5.9
0 |
2001
20%
19
50
11
0 |
2003
53.8%
7.6
38.4
0
0 |
| How many years have you been in the window coverings business? |
One to five years
Six to 10 years
More than 10 years |
1999
10.5%
5.3
84.2 |
2001
17%
33
51 |
2003
0%
0
100 |
| What is your annual sales volume of window coverings? |
To $100,000
$100,000 to $250,000
$250,000 to $500,000
$500,000 to $1 million
$1 million to $3 million |
1999
31.6%
15.8 22 15.3
21 28 15.3
15.8 8 23
15.8 2 38.4 |
2001
40%
22
28
8
2 |
2003
7.6%
15.3
15.3
23
38.4 |
| For how long have you sold shutters? |
Less than one year
One to five years
Six to 10 years
More than 10 years |
1999
5.3%
26.3
26.3
42.1 |
2001
19%
37
29
15 |
2003
0
7.6
0
92.3 |
SMART
MARKETING: BEING THE SHUTTER PRICE LEADER >> |
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