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Meeting Recap

SEPTEMBER 21-24, 2021 ORLANDO, FLORIDA

Session Logistics

  • The room will be divided into six groups and there will be six tables assigned to each topic.
  • Each session will have a 50 minute discussion period. You and your team will rotate to the next table upon requested.
  • The session leader will lead the topic’s discussion and assign a note taker (for conclusions only) out of each of the groups.
  • At the end of the session, each group is required to turn in their notes with their key findings (conclusions).
  • Marqet will be uploading each group’s findings onto this platform before the next session begins (one every hour) so each group can see the previous group findings, address them, challenge them, or not repeat the same discussion or provide the same conclusion
  • At the end of the day, all of the feedback for each topic will be live on the RLIVE and available for all to see and time permitting, we will review the findings for each topic at the end of the day.

RHG 365 ROUNDTABLE DISCUSSIONS

Purpose:

Discuss best practices related to handling price increases with your clients without affecting the relationship and square footage volume.

Things to consider:

  • Supply chain cost increases that affect your profitability
  • Sales mix such as customer base, install type (kitchens vs other)
  • Strategies that have worked in the past for your business
  • Things you are willing to forgo for a higher profit
  • Internal areas you could improve in to not pass on increases

Things to avoid:

  • Price gouging strategies
  • Discussions around certain vendor prices and/or customer (retailers) pricing models
  • Unproductive conversations that do not contribute towards the growth of your company and/or the Group

Takeaways

Group 1

  • Instead of raising price, move colors/materials into higher groups (a former level A moves to level B)
  • Offer smaller price increase PLUS the ability to sell upgrades (so Fabricator and Account can make more money).  Aka Hot Sauce!
  • Don’t just implement a price change – talk to your Customer first and show them the details and the WHY
  • Offer price increase with concessions (slower lead time, charge for mis-measurers, etc)
  • Take your slowest playing Customers, and give them lesser price increase for quicker pay

Group 2

  • Offer a lesser price increase while decrease material/color offering
  • Prepping, educating, and providing data to Customers to justify the price increase
  • Price increase lessens if Customer volume/revenue increases
  • Lesser price increase but the ability to sell upgrades
  • If your single source, you can take more price (larger price increase)

Group 3

  • Change material thickness to better workflow/acquisition cost
  • Importing material to lessen price increase. We need to give you a 10% price increase but if we insert these colors that we import, we can reduce the price increase to 7%
  • Be a specialist and charge accordingly

Group 4

  • Don’t be afraid to take price, everyone else is busy and cannot take the business
  • Offer services that your competitors cannot offset your price increase (i.e. next day install)

Group 5

Group 6

Purpose:

Review member experience relating to offering an SF&I program for retail customers

Things to consider:

  • How does your company get leads
  • What does the investment look like
  • What type of employee is needed
  • Operational cost increases related to this type of program
  • Audience requirements

Things to avoid:

  • Comparing to retailers and home centers
  • Discussions around certain vendor prices and/or customer (retailers) pricing models
  • Unproductive conversations that do not contribute towards the growth of your company and/or the Group

Takeaways

Group 1

Group 2

  • Very High Close Rate
  • Technology to Quote/Filter Leads Like “Video Ask”
  • Bring High Margin Product Samples (Or Targeted)
  • Train on Commission Programs for Mutual Success In Profitability

Group 3

Group 4

Group 5

Group 6

Purpose:

How does your company create efficiencies to be more productive and increase profitability

Things to consider:

  • Daily production vs equipment utilization
  • Material and headcount optimization
  • Tricks of the trade that may not be familiar to others

Things to avoid:

  • Price gouging strategies
  • Negatively speaking about any particular manufacturer or distributor
  • Discussions around certain vendor prices and/or customer (retailers) pricing models
  • Unproductive conversations that do not contribute towards the growth of your company and/or the Group

Takeaways

Group 1

Group 2

Group 3

  • Tie metrics for production into equipment is an action item. For equipment, providers build into their system for easy reporting. Example: Start and End Time as it relates to payroll dollars.
  • BACA has time tracking. Will send an email with the excel production.
  • Software Changes are being made to get that information on Poseidon Routers.
  • Incentive System is key to match the behavior wanted. Many ideas and contests are being shared.
  • Use T$ as a key metric

Group 4

  • Team goal and incentive-all have the same goal, not by department
  • Chain is only as strong as its weakest link
  • Training and preventative maintenance training
  • Manufacturer comes up with machine maintenance incentive

Group 5

  • The router or cutter should be running at 85%. Average shops are currently running at 60%
  • Smed-single minute exchange of dyes. 9-minute table turns is the goal
  • 30 observation steps to figure out why not running in 15-minute intervals
  • Put the alarm on the machine when it is not running.

Group 6

  • Square Foot is a common measurement used. That metric does not work. Not timely. LF was also used. Bad Metric. Sales Dollars Used-Better but not the Best.
  • Use T$ to Plan, Schedule with T$ Track with T$.
  • Why is it better? Directly related to financial performance.

Purpose:

Share how an established business can leverage their operation to expand into the commercial segment.

Things to consider:

  • How does your company get leads
  • What does the investment look like
  • What type of employee is needed
  • Operational cost increases related to this type of program
  • Audience requirements

Things to avoid:

  • Price gouging strategies
  • Discussions around certain vendor prices and/or customer (retailers) pricing models
  • Unproductive conversations that do not contribute towards the growth of your company and/or the Group

Takeaways

Group 1

Group 2

Group 3

Group 4

  • Outsourcing
  • Take off software
  • Deposit – Prepay
  • Conduct review
  • Overseas material

Group 5

  • More Deposits Up Front
  • Documenting Everything
  • Specific Niche
  • Value Add
  • Freight Cost
  • Paid when Paid

Group 6

  • Value Add – Substitute
  • Bidding (add few items what is included, add more not included)
  • Company Cam/Documentation
  • Have suppliers by bank
  • Lock in subs $ install

Purpose:

What does it take to optimize your sales and marketing efforts to increase your closing rate

Things to consider:

  • Tactics that have worked with you in the past
  • Tools needed to increase closing ratios
  • Audiences that are easier to close vs others

Things to avoid:

  • Price gouging strategies
  • Discussions around certain vendor prices and/or customer (retailers) pricing models
  • Unproductive conversations that do not contribute towards the growth of your company and/or the Group

Takeaways

Group 1

Group 2

Group 3

Group 4

Group 5

Group 6

Purpose:

Review the effectiveness of marketing in the digital space and outline best practices

Things to consider:

  • Your personal experience
  • Outsourcing vs. handling in house
  • Opportunity cost in doing vs not
  • Managing customer relationships as exposure increases

Things to avoid:

  • Price gouging strategies
  • Discussions around certain vendor prices and/or customer (retailers) pricing models
  • Unproductive conversations that do not contribute towards the growth of your company and/or the Group

Takeaways

Group 1

  • Social Media: Engage with your customers, if something works, amplify it
  • Finding the right solution or partner is important
  • Asking for reviews
  • Blogs on website
  • Boosting Market Place – on Facebook, never mention installs or services, post only stones with price per square foot. Needs to be done by a personal handle
  • Your approach to asking for tags and reviews should not be intrusive
  • Pay per click – educate your employees to not click on ads

Group 2

  • It is important to understand fabricators to understand they have limitations in what they can do and put the investment forward to let professionals handle the digital world
  • Review metrics and analytics as well as traffic flow on pages to maximize traffic
  • Post as many photos as you can on google my business
  • Look into platforms that help drive reviews
  • Have someone specific in charge within the operation

Group 3

Group 4

Group 5

Group 6

  • Customers are not looking at ads and saying, “oh I will remodel my kitchen”.
  • Ask for the review.  Never acknowledge a negative review, burry them a hundred more.
  • A great kitchen install can give you 3 to 4 people.  A bad job will cost you a lot more.
  • Geo-fencing works for some but not all
  • Recommendations from social media based on personal posts are important
  • Help in managing box store reviews needed
  • Reputation is the most valuable thing you have
  • Listings (Angies) are not effective

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