The Importance of Home Storage and How to Spec Green Solutions by
The Importance of Home Storage and How to Spec Green Solutions by © 2009 SCHULTE Agenda • • • • Industry Trends Misperceptions What we learned home buyers want How to offer the best storage and organization program – Options – Specifications • How to specify green solutions © 2009 SCHULTE Industry trends • Closets are used every day – 2 times per day. • 64% of home buyers say they do not have adequate storage space.* • Home buyers replace economy shelving that builders install – it doesn’t work for them! • More than half of all home buyers choose a closet upgrade, if offered.* *NAHB Study © 2009 SCHULTE Industry Trends Home buyers rate large walk-in closets as the #2 feature for their dream home.** More than 2,000 home owners said that their 2nd priority when purchasing a new home was the right amount and type of storage.*** **GfK Roper Reports® US, 2004-4, Q62,GfK Roper Consulting ***Better Homes and Gardens, January 2008 research study. © 2009 SCHULTE Industry Trends Consumers spend $1.5 billion on upgraded closets at retail and 54% of this is spent on homes less than five years old. © 2009 SCHULTE Industry Trends • Magazines devoted to organization – Real Simple, Organize, CLOSETS • Magazines with monthly features on organization – Woman’s World, Family Circle, Better Homes & Gardens • TV Programs devoted to organization – Mission: Organization, Clean House Sales Tip © 2009 SCHULTE Common Misperceptions Closet upgrades will cost less after move-in • After-market closet dealers typically charge up to 40% more than new construction dealers • The home owner throws away the closet you had put in for them – and if you are giving them plank and pole, then they have a lot of repairing to do. • No opportunity to get into mortgage or have builder warranties Sales Tip © 2009 SCHULTE How much will a master closet cost after move in? Average Cost of Master Closet Installed After Move In $4,770 $4,400 $5,000 $4,500 $3,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $2005 2006 2008 Information from reports by Vance Publishing Corporation. © 2009 SCHULTE Common Misperception Offering closet upgrades interferes with closing on time and they’re easy to install after move in. SCHULTE’s products: • Are production-oriented with many pre-assembled parts • Are wall mounted so they don’t interfere with flooring contractors •Have allowances built in to account for bowed walls • Are designed with software so drawings can be e-mailed and signed off so there is no miscommunication – so no last minute changes Sales Tip © 2009 SCHULTE Common Misperception Closet upgrades are only for custom homes: Today’s new products are so fast to install and the support programs so easy to offer upgrades, you should consider closet upgrades in homes in any price range. •Additional shelving in the master closet •Wood versus wire shelving •Garage storage Sales Tip © 2009 SCHULTE Common Misperception Closet Upgrades are only for high end custom homes: Here is a typical example: 2-foot shelf stack and additional 10 feet of double hang in master: •Add 12-feet of adjustable garage shelving in granite •Change fixed wire shelving in master to adjustable wood shelving w/chrome rod $125 $220 $400 These are some affordable upgrades for your lower priced homes. Offer one or more. © 2009 SCHULTE What Home Buyers Want •Professionally installed so they have no hassle later. •Home buyers can organize their home for the cost of a cup of coffee a day, included in their mortgage. •Unpacking is easy when they have a place to put everything. •Create a personalized space designed exclusive for their home that nearly doubles the capacity of storage areas. •Adjustability to move shelves as they load the closets •Adaptability to re-configure closets as their needs change © 2009 SCHULTE How to Offer the Best in Storage © 2009 SCHULTE Why Should You Evaluate your Storage and Organization Program? • Help you sell upgrades that generate profit dollars for you. • Create easier installation jobs for the dealer. • Perfect timing – today’s market is driving builders to perform value engineering. • Visit www.schultestorage.com, click on “Contact Us” and order the free guide. Sales Tip © 2009 SCHULTE How to Offer the Best Storage Upgrades • Don’t expand the closets – customize the closet Sales Tip © 2009 SCHULTE How to Offer the Best Storage Upgrades • Write specifications for each room of the house and communicate the value it offers to your home buyers 15% Long Hang 60% Double Hang 25% Shelving Sales Tip © 2009 SCHULTE How to Offer the Best Storage Upgrades • Child’s Bedroom 66% Triple Hang 33% Shelving and Drawers © 2009 SCHULTE How to Offer the Best Storage Upgrades • Follow this guideline to make upgrades affordable and included in most of the homes you sell © 2009 SCHULTE How to Offer the Best Storage Upgrades Common Storage do’s and don’ts Don’t: • Install doors that swing inward into a small closet • Use bi-pass doors and return walls that limit accessibility • Don’t put any obstacle on the wall where storage is required – or place them as high or low as possible Do: • Use pocket doors or bi-swing doors • Allow 24” on return walls © 2009 SCHULTE How to Offer the Best Storage Upgrades Storage Considerations: • Tint all windows in a closet • Keep obstructions to a minimum – put light switches on the outside of closet • Have your contractor draw the design that is to be used as standard to be sure it matches your specification; and to use as to compare future bids. • Communicate the mark-up you wish to the contractor to be sure they add this in any quote to a home buyer. Sales Tip © 2009 SCHULTE How to Offer the Best Storage Upgrades • What products to consider Ventilated Wire Melamine Adjustable Sales Tip © 2009 SCHULTE Green Products • SCHULTE products offer more LEED points than our competitors – Use 100% recycled steel in all wire product – Use epoxy powder coating that contains no solvents and releases negligible amounts of VOCs – Melamine is made from 100% recycled material and 93% from sustainable forests – Melamine meets environmental certification from the Composite Panel Association. – Melamine is CARB compliant. © 2009 SCHULTE Summary • Consumers want more out of their closet space and they want to be able to afford it • SCHULTE’s products and upgrade programs allow this to happen easily •Add “green” to your closet selling •Train your sales force to sell a storage and organization program © 2009 SCHULTE SCHULTE QUESTIONS ? COMMENTS? © 2009 SCHULTE
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