Phase #3 - Take Control of the entire process

Take Control of the entire process

Start a countertop business Phase #3

Fabrication - Additional employees are required - A facility to fabricate - equipment - Tools- Consumables - At this point you may be in a position to buy a business that is going out of business and secure much of what is needed for pennies on the dollar.
Lets keep you at the 80 jobs per month from phase #2 and show how we grow revenue from the current sales volume.
We will make some assumptions for this revenue model

  • The target sales price will be $40/SF all in
  • The average kitchen is 50 SF
  • Fabrication costs $8/sf
  • Employees Installation costs (Installers and reception)
  • Material costs start $8/sf

Hard costs are $16/SF leaving $24/SF for employees , profit and marketing

  • The average sales invoice is $2000
  • of this $800 went to pay for fab and material
  • leaving $1400 for employees, profit and marketing.

Example:  Your team has the potential to sell and manage 40 jobs per month.

  • Sales = $80,000
  • Subs & material = $31,000
  • Employees (tough to tie to /SF) = $24,500
  • Net revenue, employees & marketing = 24,500

Estimated marketing costs of 7% of sales ($5600) leaves you with a net profit of $24,500 per month. Not to shabby!

$960,000 in sales
Potential annual net: $294,800

-- from this you will have insurance, equipment, retail space, and additional potential costs based on how you plan your infrastructure.

Phase #2 - Build in customer control and customer satisfaction, Ensure Quality, Position for Scale.

Build in customer control and customer satisfaction, Ensure Quality, Position for Scale.

Start a countertop business Phase #2

Hire Installers - You need 2 people - 1 experienced and one not. The experienced person needs a second set of hands to move and place the countertop material. The reason hiring installers is the next step is that you want to be able to control the customer experience and manage customer satisfaction.
Hire a Receptionist/Office Manager - one Person- This person will deal with all planning and scheduling related issues. All call into the business will go through this person except direct sales calls will ring to you first and then forward to the office number if you are not reachable. Top reasons small businesses fail is poor organization and poor customer service.
Based on this infrastructure you can now scale to 40 installs per month. You are in control of the customer experience and are in control of your brand... Nice Place to be!
We will make some assumptions for this revenue model

  • The target sales price will be $40/SF all in
  • The average kitchen is 50 SF
  • Fabrication (out sourced) costs $12/sf
  • Employees Installation costs (Installers and reception)
  • Material costs start $8/sf

Hard costs are $20/SF leaving $20/SF for employees , profit and marketing

  • The average sales invoice is $2000
  • of this $1000 went to pay for subs and material
  • leaving $1000 for employees, profit and marketing.

Example:  Your team has the potential to sell and manage 40 jobs per month.

  • Sales = $80,000
  • Subs & material = $40,000
  • Employees (tough to tie to /SF) = $7,500
  • Net revenue, employees & marketing = 22,500

Estimated marketing costs of 7% of sales ($5600) leaves you with a net profit of $16,900 per month. Not to shabby!

$960,000 in sales
Potential annual net: $202,800

-- from this you will have insurance, equipment, retail space, and additional potential costs based on how you plan your infrastructure.

See Start a countertop business Phase #3

Start (Restart) a Countertop business Plan Phase 1- Countertop Business

We have the retail marketing strategy and infrastructure!
We have the Brand!
We bring the customers!
You Close the Business!

Start (or restart) a countertop business Phase #1

  1. You need proper licensing and insurance for your location based on the services that you provide.
  2. You need a phone and a car and the sales ability to sell custom countertops.
  3. You will need 2 outsourced  fabricator and installer(s) that you will contract to do the work.

This first model the margins are tight and you are reliant on the services of the fabricators and installers. We need to build up sales to begin to control this process with future phases.

We will make some assumptions for this revenue model

  • The target sales price will be $40/SF all in
  • The average kitchen is 50 SF
  • Fabrication (out sourced) costs $12/sf
  • Installation (out sourced) costs $8/sf
  • Material costs start $8/sf

Hard costs are $28/SF leaving $12/SF for profit and marketing

  • The average sales invoice is $2000
  • of this $1400 went to pay for subs and material
  • leaving $600 for profit and marketing.

Example:  You (one person) have the potential to sell & manage 20 jobs per month.

  • Sales = $40,000
  • Subs & material = $28,000
  • Net revenue & marketing = $12,000

Estimated marketing costs of 7% of sales ($2800) leaves you with a net profit of $9200 per month. Not to shabby!

$480,000 in Annual Sales
Potential annual net: $110,400

-- from this you may need to calculate operating and licensing expenses.
Things that are right offs etc to calculate actual net profit.

This does not scale as a one man show.. Maybe you can sell and manage 40 jobs per month with really good subs but you are putting your brand at risk by not managing the customer experience - lets move to phase #2 and scale this business!
commercial-strategyDon't get stung by the commercial strategy:
Commercials business is business and should not be ignored but you need to be careful. I have seen commercial deals put startup and long standing companies out of business. This happens because margins are reduced for larger more consistent work. The issue arises when you receive a deposit for the material and you are slow paid for work over the next 6-12 months if your lucky. This will attack your cash flow and make it difficult to make payroll or other aspects of your business. The multi million dollar company does not care that you can't pay your 2-10 employees because they can't write a check.  If you are going to take on a commercial project be sure that it is not more that 50% of your work load. If it is you could find your business closing up shop.
I have a partner that took on such a project cashed $225,000 to begin work on a commercial project. Feels good cashing a check that size. Like winning the lottery. Within 60 days material is purchased work has begun on the project and the bank account is looking pretty slim.  See the $225,000 is 50% of the job, this usually will cover some labor, consumables and materials.  In order to keep things moving we need more cash. The commercial contractors must have all the jobs finished and singed off on by many people before money can be released. In the meantime you either need to find a way to generate more work to cover payroll. Learn the commercial side by taking on smaller projects and building up. Your accounts receivables should never exceed a months sales is a good rule.

See Start a countertop business Phase #2

If you are ready to get to work call me 877 877 1916

 * this strategy is an example. These numbers represent general strategies are are not a commitment. The specifics of your business plan will be detailed by you.

New! Countertop Color Application - Lead Capture

New! Countertop Color Application - Lead Capture

One of the issues with customers looking for colors online is that the color of interest is typically a small swatch or is of a slab. In some cases they may find a photo of an application but that is rare.

Click here to Demo the Stone Color application

Display Stone colors and capture contacts!

options:
- add your logo
- define text and background colors
- change thumbnail sizes

Features: 
-You define the colors that are available
-initiates project and contact data collection
-shows swatch and full size application of colors
- user selects primary color of interest
-filter by name or color
- link from social media, website or blog and capture new customers


Setup Is Free - First 5 per month free -

Click here 5 Free Per month - Limited Time only


See various Application Full slab and thumbnails

Define Project parameters

Collect Contact Details

Lead Capture form to enable customer action on color choice.

Demo the Stone Color application here: http://www.granitemakeover.com/countertopcolors/

With the countertop color application you pick the colors that you want to market on your website. We then display the swatches and enable the customer to click through to see a slab, kitchen, bathroom, large scale, and close up.
We also allow them to see the color in the virtual kitchen designer.This application integrates easily into your current website, blog or social media with a simple link. The application will collect contact information when the customer has selected the color of interest. This application requires a spark user account for color presentation and customer data collection.

Please contact us if you are interested in having this application on your website.

877 877 1916

Click here 5 Free Per month - Limited Time only

 

Color app Plans


Free Plan - 5 lead captures per month.


$20/month more than 5 but less then 25 lead captures per month.


$50/month more than 25 but less then 50 lead captures per month.

Billed on the first of the month for the prior months activities.


$75/month more than 50 but less then 75 lead captures per month.


More than 75 lead captures $1/capture/month more than 75 lead captures per month.

terms

  • Billed on the first business day of the month for the prior months activities.
  • Payment due on the 5th of the month via Paypal.
    • if payment not received by the 6th the application will be disabled.
  • We will review the lead captures and remove tests, duplicates and "mickey mouse" captures.
  • the price point is designed so that we do not negotiate on the remaining contacts made in a given month.
  • We will set you up on a subscription or store a card on file for you for processing

Click here 5 Free Per month - Limited Time only

Countertop Marketing Budget & Direct sales projections

5 top Retail Countertop Sales and Marketing Strategies

We have the numbers to grow your business. We have applies a sales growth strategy to direct marketing budget to help you project sales required to hit target revenue.

Countertop Marketing Budget &  Direct sales projections
This document is a sales projection and is based on averages and estimates.
Direct Direct Direct
/mon Marketing  Budget 500.00 1,000.00 1,500.00
Avg ad Cost Per job 180.00 165.00  150.00
Target jobs per month  2.78  6.06 10.00
Avg sf per job 45.00 45.00 45.00
Direct Marketing leads 27.78 60.61 100.00
production SF/Week  28.23 61.58 101.61
production SF/Month  125.00  272.73 450.00
AVG Gross per sf    35.00  40.00 40.00
Gross sales per month  4,375.00  10,909.09 18,000.00
Ad Costs 500.00 1,000.00 1,500.00
Gross Sales.
Less Advertising
3,875.00 9,909.09 16,500.00
/year Annual Gross Sales  46,500. 118,909.09  198,000.00
Operating costs 60% 27,900.00  71,345.45 118,800.00
Net Profit 40% 18,600.00 47,563.64 79,200.00
Avg Sale Price                                         1,732.50                                         1,980.00                                         1,980.00
Ad Cost to sale 10% 8% 7.6%

 
The major factors that control the success of a direct online marketing campaign

  1. Ad Budget.

    Define the ad budget by your sales goals. The larger the budget the more effective the program will be. This is due to saturation factor. The more consistent the exposure the greater the opportunity to capture the customers attention and convert to a lead.

  2. Perceive Value!

    Monitoring the competitive landscape and defining your competitive advantages over the competition will help to set your business apart from the competition. These values need to be embedded into the entire sales funnel to help direct the proper customers to your call to action

  3. Home much more business can your infrastructure actually do?

    This is important to predict because when you overload your infrastructure certain deficiencies may start to appear. Over worked staff, poor customer service, poor project management, lower conversion rates to sale, sloppy craftsman ship, costly mistakes. These all can be avoided with proper planning, organization and tracking

  4. Online marketing is price driven.

    Sorry if this is not what you want to hear but if you want to do any kind of volume of sales or operate in competitive markets you need to understand that the person that just visited your website "95% of the time" already have a quote in hand or has already visited another website that set a pricing expectation. Plan your strategy according to this as price point is the first factor and then follows quality, craftsmanship, service after the sale.

  5. #1 success factor : Answer your phone during normal business hours.

    Your customer is one click away from calling the next company, if you are not able to answer your phone because you are busy installing or fabricating assume that your ad dollars are going right out the window. Your chance of closing that customer just dropped 50%. This creates an instant concern for the customer that if they can't answer my call when I am trying to purchase from them how will they answer my call when their is a problem.

Contact Paul Gallagher
for a Free Consultation
877 877 1916

I Need More Countertops Sales. How can they sell for that?

Every year it gets more and more competitive. Everyone wants More Countertops Sales

As the housing market is slowly making the swing back I would have expected to see some of the tactics to gain position to lighten up a little but the inverse is true. Solid surfaces and quartz now under heat for safe labeling practices and the constant barrage of designers looking to sway consumers to more expensive solutions and fabricators scrambling to undercut each other. all I can say is ... Work Smarter Not Harder!
In some markets we have had to get pretty creative and we have a new solution that could just be the right angle for you. Because this is so top secret we can't tell you all the details about the solution here but let me leave you with some results.

More Countertops Sales, In the first 10 days of launch of this solution in a major metro that is very competitive we have seen a 33% increase in lead volume and a 100% increase in connection with the customer that is in market ready to buy!

WOW right!
Contact us if you would like to get in on this new positioning strategy in your market.

5 Tips Working the Online Granite Leads.. Leave no stone un-turned

Online Granite Leads - Working the internet leads.

  1. Answer the phone during normal business hours
    The most important thing that you can do is answer the phone. Be sure that all inbound customer are meet with a pleasant voice and someone that can either table the call for a sales person well or can answer questions with confidence.
  2. If you missed the call .. Call them back ASAP
    The internet customer is one quick search away from the next local service provider. If you can't answer the call when it comes in be sure that you call them back at the next available moment. DONT WAIT TILL THE END OF THE DAY! If you do not call these people back they will find another company that will answer the phone in a timely manner.
  3. Send email responses - Don't assume the deal is sold
    When you receive a webform, RFQ or an estimate send an email and call. Don't assume that they are already a customer. Treat them like a warm prospect and position yourself as a resource to the to enhance the product and process. Be sure that they are aware of the benefit(s) of working with you but don't over sell on the first call or on voicemail.
  4. Follow up with all leads until they are closed.
    You have heard it in the movie rounders, on every call a sale is made, either you sell them or they sell you. Keep every lead alive until either the lead has gone with someone else for the service (find out who and why!!!) or if the project is off the table for the customer find out when you should call them back.
  5. Record detail to review later
    Keep track of each call with the customer, save details that would increase the quality of the next call.. "Johnny has baseball trip next month so we need to delay until September" note this so when you call back you can ask .. how was johnny's baseball trip? This helps make the connection with the customer.. shows that you [pay attention to details and are interested in the customer. This increases the perception of your company in the eyes of the customers and increases your chances to land the project.

The Spark Lead management system provides you with the interface and the tools to manage these details and share them across your entire sales team. The better the customer Relationship Management the better your conversion rate will be and the more sales you will make.

 

Marketing a Granite Countertops Business

Logo Online Marketing Specialists

How to market a Granite Countertops Business in today's economy

We have found a couple common scenarios of the current state of granite countertop businesses.

  1. Does not currently work with the public - Wholesale situation where no front end to the business exists and all sales are handles by GC or kitchen stores.
  2. Small showroom connected to fabrication with little direct sales and attached to a couple builders.
  3. Direct to consumer established business more evolved into a kitchen remodeling company - usually find a cabinet, flooring and tile solution.

As with any business its important to track your sales funnel. Once you can measure where your business is coming from then you will be able to market countertop your business and stop relying on the secretary to reporting on your advertising.
Know who you are or who you want to be as a company (What are your values). Take that and look online at your competition, see what they are doing, what message and perceived value they have. See how you stack up. If you were on the first page would you be positioned to bring that customers to your store? If the answers is Yes go to the next paragraph .. if no then you need to figure out how you are going to compete.. define your values.
Start testing your message online first. Its the fastest way to reach the largest portion of the markets. Create a simple landing page or small website and pay to put your audience on it. Quickly figure out what is going to make your market respond. Once you know what message is working to bring you the right customers you can then expand into other traditional means of advertising your business.

Example:

Spent $2000 received 150 calls and 50 RFQ - Closed 5 jobs avg sale ($2000) gross $10000. YUCK! CPi = 20%

The GOOD:

Your Advertising is working to drive people to the website- Your website is effective at extending the message and creating leads for your sales. Your CPL = $20

The BAD:

Looking at these numbers alone you can tell the issue is post website interaction. Either the promotion too bait and switch or your sales person has no idea what you are doing online, You have a weak process for managing the customer and moving them through the sale, or the most common reason for low conversion - You are not answering the phone and calling people back when its convenient for you.

The silver lining here is that you can now point at the problem, fix it and try again.

 
Visit fireUps.com for more insight into marketing your granite countertops business - specializing in granite countertop marketing since 2008

Countertop Manufacturing in the US: Market Research Report

I find this report to be somewhat short sighted but interesting details based on "so called" industry experts evaluating the countertop market space.
 

Solid foundation: A rise in construction and spending on home improvements will drive growth (THIS SI WHERE THE THE DIRECT TO CONSUMER MARKETING CHANNEL WILL ADD PROFIT TO YOU BUSINESS, BACK THAT WITH NO MORE THAN 50% COMMERCIAL WORK AND YOU WILL BUILD STRENGTH IN YOU SHOPS POSITION )

Report Snapshot

Industry Statistics & Market Size
Revenue
$5bn

Annual Growth 09-14

5.7%

Annual Growth 14-19

Purchase to read more

Profit

Purchase to read more

Employment

39,360 (THIS IS LOW TOO)

Businesses

3,448 (THIS IS LOW!!! its more like 10,000)
I am not sure that these number are accurate. Maybe this is based on a segment of the market and not all fabricators.
Industry Analysis & Industry Trends

This industry primarily cuts, shapes and finishes countertops for kitchens and food preparation areas.  In the five years to 2014, the industry benefited from improving employment, rising disposable incomes and historically low interest rates, which spurred a rise in residential construction.

Residential construction and private spending on home improvements largely drive demand for the Countertop Manufacturing industry, as countertops are commonly installed in new homes and during kitchen renovations.

Going forward, a steady rise in these upstream industries will continue to benefit the industry. A shift in consumer preferences toward more expensive countertop materials, such as engineered stone and recycled glass, is also expected to enhance industry revenue....(THIS IS NOT REFLECTED IN OUR SEARCH TREND NUMBERS - GRANITE REMAINS CONSISTENT AND EXCEEDS OTHER SURFACE MATERIALS SIGNIFICANTLY)

Industry Report - Industry Analysis Chapter

Countertop Manufacturing industry revenue is expected to increase at an average annual rate of 5.7% to $5.1 billion in the five years to 2014, which includes strong projected growth of 7.1% in 2014 alone. The industry has benefited from a rapid rebound in residential construction, as countertops are installed in new homes and apartments. In addition, an increase in private spending on home improvements during the past five years bolstered industry growth, as kitchen renovations are another major driver of industry sales. However, Countertop Manufacturing industry revenue is still below its 2005 peak, as the housing crisis and accompanying recession slashed into industry sales... (THIS CHANGE HAS SPURRED THE NEED TO GO DIRECT TO THE CUSTOMER WHICH IS NOT REALLY WHAT I SEE THIS WEBSITE TALKING ABOUT.)
 
Source: http://www.ibisworld.com/industry/countertop-manufacturing.html

Countertops Search Volume according to Google

We are constantly monitoring the trends in the countertop market and in this case Countertops Search Volume.

This report is very interesting in that it shows us the most search materials for countertop in the US for the past 10 years.
 

Here you will see that countertops is leading .. this number is inclusive of all the other countertop searches as this report is based on key words used in search requests.
Clearly granite countertops are the most often searched for material in the US and has been for the past 10 years. Quartz is on an interesting track that we should all take notice but it still is only 1/3 of the searches for granite countertops. In this report we also illustrate marble and concrete searches as well. Clearly focus on granite is important but we should now take notice of quartz as the up an coming alternative material.
Unless the price of quartz comes down granite will remain the leading material and in my opinion does not have the qualities to knock natural granite from its 10 year rein as the champ when it comes to countertops.