Five reasons why traditional home improvement companies are concerned

No one is more clear about the products of traditional home improvement companies than they are themselves. They are even afraid that friends will come to the company to decorate and the relationship will be broken. There are several reasons for this concern.

(1) The high cost of home improvement products

The operating cost of traditional home improvement companies is actually very high. For a large and powerful company, assuming that it has sales of over 100 million yuan a year, all kinds of marketing costs account for 5% - 8%, not to mention the small home improvement companies that are not so large in scale. It also takes a considerable part as a component to the sales staff, including the manager, customer service, engineering staff, and market personnel, which account for more than 15% of the total. In addition, there are other uncertainties such as store rental, corporate social security, etc., which also account for more than 20%.

These costs are superimposed, and the total number accounts for about 40070 of the total sales amount. Moreover, a traditional home improvement company often undertakes the project by subcontracting to the project manager and pays it to the project manager at 60% of the contract amount. The project manager got about 10% of the profits, and the sales that finally fell into the home improvement company's own hands had already been discounted much more than initially.

(2) Low product core competitiveness

As I mentioned above, the marketing capability of traditional home improvement is far greater than its R&D ability. The weakness of the product's R&D links has led to a significant reduction in its core competitiveness. The core of competitiveness is innovation, that is, it has its own unique value, so as to provide customers with diversified services. However, the status quo of traditional home improvement is the same as the products sent to customers by both parties in the south and the north. What is the significance of the brand? In addition to exquisite packaging, environmental protection and after-sale protection, what are the actual differences from other non-brand products?

(3) Replace customers with "I" as the center

Traditional home improvement companies will list a thick list of their own budgets and craft instructions for customers, which is actually guided by the designer to select. However, some of the products that designers recommend to customers are not required by customers. All this is the so-called professional guidance that home improvement companies make to increase their profits.

These items that are of little significance to some households have been repeatedly emphasized by the home improvement companies and caused additional expenditures in the decoration. The home improvement companies are trying their best to persuade the customers to accept these projects because the cost is high, and those who really do deserve attention because of security issues. Some of the materials, such as fire-retardant coatings, sound insulation, and baseboard materials, were ignored by home improvement companies because of low profits and construction problems.

(4) Product Standard Confusion

Large-scale traditional home improvement companies usually have their own variety of process standards, but they are often difficult to land. Most traditional home improvement companies use subcontracting to project managers to complete the project. There is no attribution between the employees of the project manager and the home improvement company. Strictly speaking, these workers are not industrial workers in the home improvement industry. They are only part-time workers or short-term workers under the contractor's head. They have not received systematic training, lack of industry awareness and team awareness, and have even closer professional honour and group responsibility. no. The fact that wages are not fixed, social security is low, technical learning can't keep up, and the working environment is not good is their actual working conditions, and the product standards implemented in this state will inevitably be confused.

(5) Insufficient supervision

Traditional home improvement companies do not have special third-party regulators. The supervisors are the employees of the company. They are both executives and regulators, and their supervision and quality can be imagined. I have repeatedly mentioned in the previous article that the product development of the traditional home improvement industry is extremely lacking. In this case, how about the monitoring of product quality and process nodes?

At present, the traditional marketing type home improvement has fallen into the embarrassing position of development. This is not a problem of a certain company, but a problem in the business model of the entire industry. The meager operating profit and high cost have brought tremendous pressure for the development of the company. Moreover, the homogeneity of products has greatly reduced its core competitiveness and cannot meet the needs of customers. It has also led to a narrow market in the future. Based on the above realistic factors, traditional home improvement companies must achieve self-breakthrough and thoroughly reform from the inside to change their business model in order to fight a development path, so that it is possible to compete in the hundreds of millions of markets. Have a place.