Kitchen and bath remodelers had an impressive year in 2022. In fact, the industry is growing rapidly and all signs are pointing to another big year in 2023. Let’s look back at the many changes and improvements within the sector over the past 12 months. Therefore, you can reflect on your company’s successes and failures while preparing to improve in the new year.
Key Takeaways for Kitchen and Bath Remodelers in 2022
According to House Method, kitchens and bathrooms were the two most popular rooms to renovate or remodel for homeowners in 2022. That’s above other popular choices such as primary bedrooms, living rooms, and basements. In addition, 27% of homeowners tackled a bathroom remodel during the year. That’s far and away the most popular room in the house to update.
As you can see, kitchen and bath remodelers were very busy in 2022. And as a result, the industry realized many improvements to become more efficient and sell more jobs. For example, the top five key takeaways for kitchen and bath remodelers in 2022 are:
Trends data can tell you a lot about a given market. And there’s plenty we can learn from homeowners. For starters, it’s clear that there’s a massive need and want for remodeling.
It’s been a volatile housing market in 2022 due to high mortgage rates. Consequently, homeowners are deciding to remodel their homes instead of searching for a new one. Let’s take a closer look at each takeaway and how each will impact the coming year.
Sales Software in the Kitchen and Bath Industry
Automating the sales process has become a priority for kitchen and bath remodelers in 2022. This is where sales software has transformed the industry.
Sales reps no longer have to dig through product sheets or waste time transporting contracts to and from the office. Innovative sales applications are giving your reps control over the sales journey and providing more clarity to homeowners.
For instance, Leap software supports your team throughout the entire process, from the initial contact with a customer to job completion. You can access all your customers, sales material, work orders, pricing, and more all in one easy-to-use application. We also provide features such as the drilldown view, which gives you built-in access to your products in an organized list.
The variety of product options in the kitchen and bath space are never-ending. That’s why the drilldown feature has become such a hit with remodelers. And there’s many other benefits to sales software that are helping to drive the industry forward.
Price Control Improvements
Price control has often been a concern for kitchen and bath remodeling businesses. In general, price discounts, paper errors, and outdated pricing packages have cut into margins.
This is another reason why many companies are going digital with their sales process. Automating sales gives you complete control over your pricing structure. Therefore, you can ensure that your sales reps aren’t giving too much of a discount or offering incorrect pricing on any given product or service.
You can now set pricing and make changes at any time that automatically update within the software for each of your reps. You can also easily add new product offerings to the software as they come in.
Overall, sales software is helping kitchen and bath remodelers create a repeatable sales process that eliminates common errors altogether.
So Long to the Paper Sales Process?
The manual sales process with paper contracts and product books is no longer the industry standard. And this transition is really resonating with remodelers and their customers alike.
Going digital saves everyone time and money. The customer buying experience is improving as well. You can present product information directly to a potential customer without having to go through hundreds of samples.
The entire sales journey is becoming more efficient and effective. And best of all, it’s saving remodelers more time in-home to schedule more jobs and bring in more revenue.
Demographics Insights for Remodelers
According to the House Method report mentioned above, Gen X and Millennials made up 55% of the entire market. Gen X is the generation of Americans born between 1965 and 1980. Millennials were born between 1981 and 1996.
That’s the majority of your customer base. And it’s important to understand your demographics data. The report suggests these homeowners are remodeling for one of a few reasons, including to upgrade or modernize, fix a safety issue, increase the home value or increase the overall enjoyment of the home.
Revenue Growth in 2022
It will take some time before official numbers are released, but revenue projections suggest it was another great year for kitchen and bath remodelers in 2022. In fact, projections suggest full year revenue will hit $189 billion. That’s an increase of 16% year-over-year.
“This new Market Outlook report provides revised market size estimates and 2022 forecasts in the Kitchen and Bath Industry, as well as gauges the economic and housing market shifts that continue to impact our market,” NKBA CEO Bill Darcy said, according to Contractor Mag. “Despite some economic headwinds, kitchen and bath remodeling demand remains strong. Residential kitchen and bath spending is anticipated to grow by 16% to $189 billion in 2022.”
Moving Forward into 2023
Are you ready to drive your sales forward in 2023? If so, you may want to consider Leap’s point-of-sale software to scale your business.
Leap software is built to help kitchen and bath remodelers maximize their potential, stay organized, communicate better, and close more jobs. We’ve also partnered with industry leaders that complement our software, including measurement software, marketing tools, payments, and financing.
To learn more, fill out the form below and schedule a 15-minute demo with one of our experts. As we look back at trends for kitchen and bath remodelers in 2022, it’s great to see the industry flourishing as we strive to provide better services in the coming year.