Retail Observer

RETAILOBSERVER.COM MAY 2015 48 W here are the biggest profits in the cooking-appliance market? That's easy—in built-ins! We're talking built-in ovens, cooktops, and ventilation products. Even though 69 percent of the market is still the 30 inch freestanding single oven, one premium built-in oven can earn as much profit as 12 basic ranges! Granted, the built-in category targets the smaller high-end to premium market segment, but the higher margins more than offset the challenges. Best yet, the demand for built-ins remains strong. In a cooking market that's essentially flat, built-ins is a market segment growing year over year. Built-ins are ideally suited to the more personalized service offered by independent retailers, so it should come as no surprise that they are the ones selling almost 50 percent of them in Canada and the majority of these products at the premium end. Are built-ins better? Think about it. Have you ever had to bend in half or crouch down in front of a hot oven in a typical range to baste a Thanksgiving turkey? Just how easy is it to lift a 30-plus pound roasting pan from six inches off the floor, or perhaps from as low as two inches with some popular new double-oven ranges, at the risk of back injury? Consider how effortless and convenient it would be to clean up boiled over cranberry sauce on a flush-mount induction cooktop where there are no gaps for spills to fall into. If you love to cook, built-in cooking appliances are vastly superior to freestanding models. It's that simple. WHO IS YOUR TYPICAL BUILT-IN CUSTOMER? It has proven to be extremely difficult to convert customers from free-standing appliances to built-ins. So, who are your best prospects? • Replacement customers: Homeowners with built-ins who are remodelling their kitchen will normally opt for the convenience of built-ins again. • Renovators and house flippers: A new kitchen installation is the ideal time to make the case that a built-in kitchen offers a custom feel, a premium experience and a higher return on investment. • Kitchen designers: Establish relationships with local kitchen designers. They often dictate which appliances go into their customers' kitchens—and they should be your built-ins! • New-home builders and buyers: Both have the flexibility to choose the style of appliances they want in their kitchens. Almost one out of every seven "cooking" shoppers is looking for built-in appliances, and they are spending proportionately more on their kitchens than ever before. When buying built-ins, customers tend to purchase more than one appliance, usually bundling a combination of cooktop, ovens, ventilation and/or a microwave- hood–thus greatly increasing your profits. Sadly, many independent retailers are not tapping this profitable niche. Some are reluctant to get involved in the potential pitfalls of installation but this is an area where independent retailers can shine, by partnering with local professional installers, contractors, home builders, and kitchen designers. Certain vendors now offer guarantees or credits toward a no-fuss installation, which brings peace of mind to customers and can overcome the reluctance of retailers to sell these high-margin products. HOW TO SUCCEED IN THE BUILT-IN APPLIANCE MARKET Probably the most important action you can take is to get the word out. Include built-in photos in your ads, flyers and online. Buy Google AdWords. Inform customers and prospects with a social media campaign—on Facebook, Twitter, Pinterest, your blog, your subscriber e-mail list. You'll be surprised at the results. In-store, showcase built-ins with kitchen vignettes and/or floor displays. Most display units are compact and take up very little floor space. Vendors will provide the display units for free when you purchase their products. Focus on the best sellers, display stainless steel, and double-tag products with prices for additional color options. Customers who don't see a basic selection of built-in appliances in your store or on your website will shop elsewhere. When it comes to your showroom, built-ins have greater longevity, keeping your floor on trend longer. They tend to sustain less damage on the floor than freestanding appliances, and their model numbers change less often—requiring fewer clear-outs of discontinued models. So, don't leave money on the kitchen table. Join the ranks of the many successful independent retailers who are taking their built-in profits all the way to the bank. RO Corey McMullan Appliance Trends COOKING UP PROFITS WITH BUILT-INS Corey McMullan Director, Appliances — Cantrex Nationwide

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