If more owners fully understood the many financial and intellectual rewards of belonging to a buying group, a whole lot more than the estimated 6% of the industry's kitchen/bath professionals would be committed, active group members.
Chapel Hill, NC (PRWEB) July 17, 2014
The SEN Design Group, an independent organization of kitchen and bath professionals, announces the release of its latest white paper titled: “The Power of One, the Power of Many.” The white paper analyzes a wide range of research and reveals the primary reasons behind the successes and engagement of kitchen/bath firm owners who belong to buying groups, while documenting the primary hesitations of those that don't.
Stated Ken Peterson, CKD: "If more owners fully understood the many financial and intellectual rewards of belonging to a buying group, a whole lot more than the estimated 6% of the industry's kitchen/bath professionals would be committed, active group members."
Kitchen/bath dealers' costs of goods sold represent the single greatest expense on their Profit & Loss Statements, and just a 1% reduction in this category will directly increase their net profit by that same 1%. This reduction comes from the ability to purchase product better through a buying group. Increases in revenue, on the other hand, do not guarantee an equivalent impact on dealers' bottom lines since variable expenses come into play.
Written by notable industry leader, Ken Peterson, Certified Kitchen Designer (CKD), “The Power of One, the Power of Many,” proves that a company is never too small to buy better, discounting a prevailing notion that small companies cannot gain much benefit from joining a buying group. As proof, the white paper cites the monetary return of one member - with only modest annual revenues - that earned roughly $200,000 in total rebates from 1995 to 2012. "Those extra membership benefit dollars paid for his two children's college educations," wrote Peterson.
In the same sense that a business is never too restricted to buy better, large businesses are never too large to learn from others. Along with collective buying power, a buying group offers members the opportunity to gain valuable financial, marketing, and operational information from networking with successful peers, business management training, and one-on-one business coaching services. "Larger, more prosperous kitchen/bath owners avoid the triple evils of arrogance, insulation, and complacency by being actively engaged and challenged in buying groups," concluded Peterson.
Interested parties may read the white paper by downloading online at http://www.sendesign.com or by calling 1-800-991-1711.
About the SEN Design Group:
The SEN Design Group is the industry’s first kitchen and bath buying and business development group. As a 20-year-old professional organization, SEN has over 200 members nationwide and more than 75 quality vendors in cabinetry, appliances, plumbing fixtures, decorative hardware, closets, lighting, bathroom products, flooring, tile, business services and accessories who offer their products/services to the membership at group rates. Additionally, SEN offers over 40 business development services to its membership, including financial management planning, business coaching, business management training, sales training programs, marketing tools to generate leads, networking, and management systems. In 2014, SEN introduced the industry's first end-to-end kitchen/bath dealer management system, automating more than a dozen operational functions between CAD on the front-end and accounting software on the back-end, thereby greatly increasing productivity, growth potential, and profitability for its members. For more information on SEN, visit http://www.sendesigngroup.com.