How much does one of your internal team’s kitchen designs really cost you? Do you know?
If you do, you’d be the first kitchen and bath (K+B) business owner or manager I’ve met who did.
Most K+B owners simply have no idea. They might have an idea about their kitchen design team’s average salary. That’s it.
Luckily I have a simple formula that can help them figure it out. But they usually don’t like the number they get.
So how much does a kitchen design cost your company?
Before I ever bring on a new Outsource Kitchen Design client, they must know how much each internal design costs them.
The reason most K+B owners don’t know the answer is that they haven’t established metrics and committed to a process of gathering them.
Without those metrics, we have to use this rough formula to get to a “good enough” answer. It’s pretty simple.
Of course it’s a rough formula but it’s a start until good metrics are in place. Design revisions aren’t added because the original design was used for the math.
The real reason kitchen & bath companies don’t know the costs of their kitchen designs
The difficult part of the formula I listed above is the number of unique designs. Most companies don’t keep data for completed designers per designs per month.
So OKD sets up a simple quantification process for 90 days to determine real design quantities, and multiply by four.
Here’s how much kitchen designs cost your competitors..until they started working with OKD
Over the years we’ve determined design cost averages for dozens of companies. A few are outlined by business type; averages include sick days, training time, vacations, turnover, holidays, etc..
- K+B showrooms with a single dedicated designer earning $58K plus benefits averaging 2.43 unique designs per day: $138.37 per design.
- Kitchen cabinet manufacturers with in-house design departments with designers averaging $53K plus benefits averaging 3.11 unique designs per day: $97.24 per design.
- Online kitchen cabinet retailers with in-house designers averaging $42K plus benefits averaging 2.94 unique designs per day: $74.83 per design.
Then you have to factor in that on average, K+B companies only sell 6 out of 10 designs made. Our customers were really shocked at how expensive those designs were!
OKD Can Lower Your Per-Design Price
Within 3 months, OKD had lowered the per-design price of our customers’ kitchen designs dramatically. How did we do it?
- Creating efficiencies by ruthlessly streamlining processes
- Tracking key performance indicators to identify gaps in the sales process
- Committing to continuous quality improvement
We can do that for your company, too. Contact me today to get started.