Designs on Profitability According to a June 2016 press release from the National Kitchen & Bath Association, kitchen and bath remodeling totaled $31 billion, or 25% of the total US remodeling market of $121 billion. Other positive indicators are the National Association of Home Builders’ Remodeling Market Index of 57, which is considered a high degree of confidence, and a forecast for 2017 existing-home sales of 5.5 million. Another positive trend is Baby Boomers who are continuing to work beyond the traditional retirement age, living healthier and determined to remain in their homes. This is a market of 41 million Americans with approximately $18 trillion in wealth.

The Kitchen Is the Center of Home Life According to the 2017 U.S. Houzz Kitchen Trends Study, 34% of homeowners renovating their kitchen are increasing the room’s size, while 51% of new kitchens are opened to other rooms and 20% to the outdoors. Contemporary is now the #1 kitchen style choice, increasing 3% to 22% of those homeowners who changed their kitchen style during a renovation. Traditional is still #1 among Baby Boomers while Millennials prefer modern or farmhouse styles. The largest group of homeowners, 30%, spent $25,001–$50,000 to complete their kitchen renovations during 2016; followed by 19%, $15,001–$25,000; and 17%, $5,001–$15,000.

Consumers Ready to Spend on Bathroom Remodels The 2016 U.S. Houzz Bathroom Trends Study reveals that, like kitchens, homeowners have significantly changed the style of their bathroom from traditional, 30%, and no particular style, 42%, to contemporary, 27%, and modern, 17%. Another important trend is larger master bathrooms because two people share them; so 47% of the shower area, 46% of the toilet area, 27% of the vanity or make-up area and 26% of the walk-in closet area were separate by full- or partial-height walls. The largest group of homeowners, 42%, spent $10,001–$25,000 to complete their bathroom renovations during 2016; followed by 23%, $25,001– $50,000; 17%, $5,001–$10,000; and 7%, $2,501–$5,000.

Missing the Mark on Marketing As reported in the May 2016 issue of Kitchen & Bath Design, 66% of kitchen and bath dealers and designers didn’t have a marketing plan, 50% didn’t target specific audiences and 20% didn’t utilize digital marketing tactics. Although 30% of dealers and designers who participated in the survey increased their 2016 marketing budgets and 40% planned to increase their budgets during the next 12 months, their market budgets averaged just 2.6% of their annual revenues. Despite the proven effectiveness of digital marketing, 32% of dealers and designers weren’t using it because of a lack of knowledge/skills; 26%, it takes too much time to implement; 24%, business is doing fine without it; and 21%, unclear about benefits.

Kitchen Features That Add the Most Value to a Home, November 2016 Percent Custom cabinetry 41% Kitchen island 30% Creative lighting 21% Granite counters 18% Large pantry 14% Stainless-steel appliances 12% Tile backsplash 7% Breakfast bar 6% Realtor.com, November 2016

A Smart Home Starts in the Kitchen According to a late-2016 Scripps Network Interactive survey of 700 US homeowners, 25% said the kitchen is the first room in their home where they would add smart- home technology features, followed by the front door, 15%, and then the living room, 13%. The top smart-tech features they would add to their kitchen were smart refrigerators, connected and app-enabled appliances, voice- activated wireless speakers and motion-sensor lighting. Generationally, Gen Xers, at 28%, were the top group that would add smart-tech features to their kitchen, followed closely by Millennials, 27%, and Baby Boomers, 23%.

Advertising Strategies Show that you’re a trusted advisor by helping kitchen and bath designers and dealers develop a clear and targeted marketing plan that sets specific goals, identifies prime target audience(s) and describes the marketing tactics to reach them effectively. Suggest the “Smart Home for Spring” promotion. At various price points of products and services purchased for kitchen or bath remodels, consumers receive a free smart-home-tech device of equally graduated value. Consider a booth at a shopping mall with a few sample products and expert advisors. Distribute a flyer with a special offer for a spring remodel and/or distribute 500 free scented bars of soap or a kitchen mitt imprinted with your logo.

New Media Strategies Use social media, especially with younger adults, to promote yourself as the experts in smart-home, high-tech design and products. Assign this project to a younger staff member and have him or her serve as a spokesperson for social media posts and videos. Explain to designers and dealers that their time and efforts are better spent focused on a single social media, learning all they can on how to use it effectively, and then creating and posting content that engages with a specific target audience. Host a live video stream (Facebook Live) at the home of a recent customer and promote it on social media and in your business. Provide all the refreshments, invite the customer’s neighbors, friends, etc. and show their reactions to the customer’s new kitchen or bath.