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A tough year ahead for the specialist retailer
Published:  21 September, 2011

We have experienced the most difficult market conditions in many generations over the past 3 years, and most economists are saying that this could still be the case for the next few years as well. There is growing support for the ‘Cut the VAT’ Campaign which is aimed at reducing the rate of VAT to 5% on all home improvement projects. This would obviously help kick-start the KBB sectors back to life, all of which have been dramatically hit in the downturn.

In previous recessions, the market has moved quickly into room upgrading projects, which in the main kept volumes up and companies survived, but in this particular recession, this has not yet begun. Anecdotally, there are some signs of this beginning, as more homeowners decide they are not moving for a few years – so they need to start upgrading property – making them more saleable when the upturn comes.

Consumer Protection

Consumer protection has been one of the biggest issues in recent months with many consumers being left high and dry without any recourse or redress and often losing  their deposit..

Clearly there is a need for the specialist retailer to communicate the benefits of dealing with a company that offers a protection scheme  and greater peace of mind in the case of a retailer ceasing to trade.

Quality of service should also be a key driver for retailers seeking to boost their brand and develop a clear advantage over the competition. 

The KBB sector still suffers from the bad press associated with ‘cowboy builders’ and the RMI markets.  Latest statistics from this market  report  over £200m worth of complaints annually from consumers unhappy with their projects, and this could be the tip of the iceberg, as these are based on recorded complaints. How many people just accept a bad job, and don’t/can’t be bothered/are too scared to complain?

16% of these complaints (in volume) related to kitchens, and 8% related to bathrooms – but these accounted for over £80m worth of complaints alone.

Whilst  most specialist retailers do have  a good track record  for quality in design and installation there is still a need for the KBB industry to work together to try and reduce these figures, and this is where training becomes crucial. These recorded complaints are not just about poor installation (which seems to be an automatic assumption within the market), but are often caused by inaccurate specification initially, then by incorrect ordering – well before an installer is involved.

Customer Care

The difficult market conditions and the level of complaints suggest that more focus on customer care could also reap rewards.  The stronger the relationship between retailer and client, the less likelihood there is that any complaint cannot be resolved without going ‘official’. Training by manufacturers with designers/specifiers must continue (many are already very good at training, but we need more to do so).

Membership of a recognised trade association also sends out a positive signal to potential consumers.

Independent retailers have proved that they have greater skill in offering the best in design, installation and complete project management – and these ‘gold standard’ services should be used when competing against multiples to ensure they win ‘hands down’!

So ingredients for a retailer’s successful voyage through the choppy waters ahead should include strong cost control of course, better specification, more customer care, continuous training, and last, but not least, consumer protection.

So, let’s set sail and good luck!

For further information, please go to the KBSA website at www.kbsa.org.uk







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