Benefit From Selling by Design (Selling by Design)

It sounds like soft stuff – “Sell inspiration; not doors.” But dealers who have shifted their approach to do just that are seeing a hard impact on the bottom line, and many are reporting gross profit increases of 150 percent to 250 percent, despite the fact that year-to-date volume has remained flat.

This article outlines how getting in touch with your inner designer could mean the difference between flourishing in a tough economy or simply surviving.

Why Focus on Design?

Homeowners, builders and architects are starting to give garage doors the same level of attention traditionally reserved for windows, entry doors and fixtures — and for good reason:

Garages keep getting bigger. Consumer demand for more storage space has made three-car garages an architectural standard, not to mention a major design focal point.

Front-entry garage designs are the most economical solution for builders trying to maximize usable living space on shrinking lot sizes. Design variety eliminates the tract-home feel in communities where the garage is consistently out in front. Some cities now require developers to install “designer doors” in the name of preserving community charm and value.

Homeowners have a growing desire for the “new, old house.” Homeowners want the best of both worlds: new homes with all the modern amenities built to replicate the look and feel of classic American housing.

Makeover madness has taken over the media. The proliferation of home-improvement magazines and makeover shows has been a powerful influence in demonstrating the impact that replacing a garage door has on curb appeal — and viewers are eating it up. Designer garage doors are among the 50 must-have features for today’s home buyers, according to a survey conducted by Professional Builder magazine.

Sell Design in This Economy?

No matter how much the real estate market fluctuates, two things remain constant for homeowners: the necessity of home repairs and the desire for improvement. Spending the extra time to delve into the customer’s needs can help you convert the need for a new door into the desire for a better door. The residual effects include improved customer satisfaction, increased referrals and a better bottom line.

You may be thinking that, in a weak economy, consumers spend on the essentials as opposed to the luxuries. This prevailing attitude among your competitors is precisely what creates the opportunity for you to gain a competitive advantage. Just as in the stock market, winners buy low and sell high.

For example, a customer has three potential solutions to resolve a garage door problem. He or she can repair it, replace it with a comparable model, or the customer can invest in a door that not only meets the immediate need for a reliable, working door, but also improves the home’s curb appeal, energy efficiency and even its list price.

How to Sell Design

Selling design doesn’t mean showing a customer more product brochures with more options. Your job is to show them the possibilities and help coach them in making a good design decision. Follow these steps to sell design:

1. Understand the customer’s unique problem. Customers who don’t have the time or budget to call in a professional designer may often turn to you, the door expert, for advice. Suddenly, you’re transformed from a garage door installer to an exterior design consultant. Instead of R-values, door sizes, steel gauges and springing systems, you are suddenly dealing with paint swatches, architectural design periods, porticos and whatever other terms homeowners have picked up from the latest home-makeover show.

As scary as that may sound, imagine the customers' perspective. They are investing in the single largest moving part on a home, which is going to affect its appearance for at least the next 15 years — and they don’t want to make the wrong decision.

2. Determine the value add for your customer. Is the homeowner looking to improve the curb appeal, energy efficiency or value of his or her home? Or is your customer a developer struggling to differentiate their planned community from other offerings at a similar price point?

3. Don’t sell doors; sell inspiration. Show customers the impact a garage door can have on a home’s appearance. Use manufacturers’ tools such as design software so people can play around to see how different door styles look on their houses. Encourage customers to design their doors on the Internet. “Before and after” images also have a major impact, so be sure to keep some of your greatest hits on file.

4. You’re the expert. Look at the style of the home and make a suggestion. When a professional designer isn’t involved, you’re the expert and your opinion counts. Stay on top of design trends by reading magazines and watching home-improvement shows.

5. Ask the homeowner if there are plans to enhance other exterior features of the home in the future. Replacement windows, a new entry door, a different paint scheme or decorative fixtures can be considered when choosing a garage door. Sometimes people don’t just want a new garage door, they want an exterior facelift and the door is just the beginning.

6. Upsell accessories such as decorative windows and hardware. Help your customers make their garage doors unique.

7. Keep it simple. Great design exists for every budget. When you are dealing with several options, budget is one way to narrow them down fast. Don’t show customers the $2,500 door if they are on a $650 budget. But do show them how to make that $650 door sing with decorative options.

8. Explain how a new garage door can improve a home’s value and, ultimately, the sale price. Curb appeal is what gets buyers through the door. Realtors say replacing the garage door prior to listing a home for sale can increase the asking price up to 4 percent.

9. Look the part and walk the walk. To be successful at selling design you must elevate the purchase experience. That means supporting the design message consistently through all aspects of the sale — from the initial ad or product literature that piques a customer’s interest to selecting a door in the showroom. Design-savvy customers want to be inspired in the same way they would be if they visited a kitchen or bath showroom. Rummaging through cutaway panel sections doesn’t give homeowners a sense of potential.

Show Me the Money

How do you generate 150-percent to 250-percent increases by selling design? Let’s do the math using two scenarios. (These are actual figures provided by a dealer who has successfully built design into his business model.)

New Construction Market Example

1,000 Doors Sold         Pan Door         Carriage House Door
Price Per Door               $500                    $1,000
Sale Revenue                  $500,000            $1,000,000
Gross Margin %             20%                     35%
Gross Profit                    $100,000            $350,000
Gross Profit Increase           --                    250%

Replacement Market Example

1,000 Doors Sold      Standard Raised Door      Carriage House Door
Price Per Door               $900                                 $2,500
Sale Revenue                  $900,000                          $2,500,000
Gross Margin %             45%                                  45%
Gross Profit                    $405,000                          $1,125,000
Gross Profit Increase         --                                    178%

Garage doors are getting more exposure than ever before and they have great impact in the overall appearance and value of homes. Tap into your inner designer to help customers transform the look of their homes and watch your profits soar.

Pat Lohse brings more than 20 years experience to her role as vice president of residential marketing for Clopay Building Products. The preceding is an excerpt from her presentation on the benefits of selling design given at the 2008 IDA Expo. Contact her at plohse@clopay.com. For more information on Clopay, visit www.clopay.com.