Give Customers What They Crave: Storage!
by Gil Foltz
Storage is increasingly becoming an important upgrade to new home buyers, who are demanding more space and better storage options. Better Homes and Gardens recently surveyed 2,000 home owners and discovered that the right amount and type of storage was their second priority when buying a home. And a recent Roper Research survey showed that home buyers rate large walk-in closets as the second-most important feature in their dream home. In fact, in both studies, storage was ranked second only to a state-of-the-art kitchen.
Many homebuilders clearly aren't giving their customers what they want-home buyers spend $1.5 billion annually replacing basic shelving builders install because it doesn't work for them. How big is the gap between what builders are providing and what home buyers desire? According to a National Association of Home Builders study, 64 percent of home buyers say they don't have adequate storage space. Storage may be an afterthought in some home designs, but consider that most people use their closets at least twice daily. This makes closets a highly visible and important aspect of our daily lives. The average price of a professionally installed closet upgrade after move-in is $4,400, according to a study by Vance Publishing Corp. Obviously, then, at least a segment of home buyers are willing to pay to have the right storage systems in their homes.
An Easy Sell
So, what does this mean to you? Great opportunities await. Upgraded closets make a home feel personalized, which has a positive influence on customer satisfaction. By taking advantage of a storage-upgrade program, you can receive additional profits that are now enjoyed by after-market closet companies and big box retailers.
Offering home buyers the option to choose storage as an upgrade will help them in the moving process. They'll be able to organize their homes and have a place for everything before they move in. And when they add the cost into their mortgages, they can include storage systems throughout the home for less than the cost of a cup of coffee per day.
The first step is to add the storage upgrade option. Next, you'll need to educate your design center staff about the program. Follow these tips to ensure a high storage upgrade capture rate:
- Match the product to the targeted home buyer's lifestyle.
- Get supportive literature and displays so home buyers have something to see and touch.
- Use two options per closet to give home buyers a controlled choice and to keep it simple.
- Match the cost of the upgrade to the base price of the home and use products that meet a variety of price points; for example, a master closet upgrade below .5 percent is optimal for high capture rates.
- Be sure your design center staff receives a comprehensive training program so they feel comfortable selling storage upgrades.
- Continually review the storage upgrade program to add new floor plans and make adjustments as necessary.
U.S. residents spend $22 billion to rent storage space, according to the Self Storage Association. Talk to your storage providers about ways to offer seasonal storage upgrades to different areas of their homes, which add additional profits to your home sale. Garage storage is a large and growing market, and offering this upgrade can add to your profits.
The best approach to storage is to consider that the dollars spent by consumers on custom solutions can go to your company or to someone else's. Many closet installation companies will do the work for you, from design to training your employees to installation. All you have to do is enjoy the extra profits and the added level of customer satisfaction.
Gil Foltz is the Executive Vice President of Schulte Storage.
www.schultestorage.com
513.277.3700
Storage Dos and Don'ts
When designing floor plans for a community or single-home construction, follow these helpful tips:
Don'ts
- Don't impede the interior space by installing a door that swings inward in a small storage space.
- Don't use bi-folds that only allow 67 percent access to storage space or by-pass (sliding) doors that only allow 50 percent access.
- Don't put light switches inside the closet; they take up space on the return wall that could be used for storage.
- Don't place a receptacle, cable connection, phone jack, speaker wire, alarm box, computer cable or other feature in an area where it will interfere with the storage system. If these items need to be located in the closet area, place them very high or very low where they will not affect the storage system installation.
Dos
- Do use pocket doors that allow 100 percent access to storage space. Notify the installer if there are pocket doors on a wall where storage is being installed.
- Do use bi-swing, hinged doors that allow up to 90 percent access to storage space.
- Do frame closet doors toward the center of the entry wall to create more usable space along both return walls.
- Do use space below windows for seats, shelving or drawer units depending on the height and width dimensions of the window and clearance from adjacent walls.
- Do install the attic access as close to the center of the closet ceiling as possible; clearance from the opening to any wall should be at least 22 inches.
- Do install ceiling or floor-mounted HVAC supply vents and returns 24 inches from walls, ensuring they don't interfere with closet components installed along the walls. When return vents are required, ceiling mounts or wall mounts above 84 inches are suggested.
- Do use metal shields on outer edges of studs where plumbing, wiring or HVAC lines are present to protect them from screw penetration during storage installation.
Keep These Storage Factors In Mind ...
- Windows in storage areas should be tinted so the sun doesn't damage clothes.
- Keep obstructions to a minimum, including attic access, windows, switches, electrical boxes, vents, control panels and medicine cabinets.
- When possible, don't install plumbing on walls where shelves will be mounted. When this is not possible, ensure that all plumbing is to specification; shelf installation might interfere with pipes that are not spaced properly.
- Communicate all hidden obstructions to the closet dealer before installation. This will prevent possible damage as well as save trips back to the shop to retrieve the proper hardware.
- Have the closet dealer pre-draw all of the base product offerings to establish your standard specifications and costs. This will allow you to compare future bids.
- Have your dealer pre-draw all upgrade offerings to establish specifications and costs. It also will allow home buyers to add the cost of the closets into their mortgages.
- When dealing with multifamily and high-rise properties, use adjustable storage. In a high rise, consider products that are easy to transport and stage.
