| Contrary
to whatever the designer might tell you, many kitchen designers
are self-employed. This of course means that they won’t earn a
penny unless they make that sale.
Some designers might earn as much as £2000 in a week.
On
average, kitchen companies pay their designers between 7% and
12% of order value if they sell a kitchen for cash. However, this
figure can rise to as much as 20% if you choose to buy a kitchen
on the finance package that they offer. A few, unscrupulous companies
also pay the designer around 50% of over charges. This means that
if the designer sells the kitchen for more than the ‘book price’
then he or she gains from this overcharge. Thankfully, the majority
of kitchen companies aren’t like this.
In theory,
it sounds as if designers make lots and lots of money. In practice,
it isn’t like that. Lots of customers like to haggle over the
price – and a self-employed designer would rather sell the kitchen
at a reduced price instead of not getting a sale.
Most kitchen
companies therefore also set up a sliding scale of reduced commissions
that a designer can earn if he sells a kitchen for less than the
official price. An example of the reduced commissions that a kitchen
designer might earn can be found in figure 1.
This
offers an example of this percentage of reduced commission that
a designer might earn in this circumstance.
Figure
1:
| Amount
below 'book price':
0
> 2%
2
> 7%
7
> 14%
14
> 20%
20%
+ |
£
Earnings:
Normal
75%
50%
30%
£60 |
As can be
seen from the figures above, if a kitchen designer sells a kitchen
at 1.9% below book price, then he would still earn his full commission.
Also, in this particular example if he sells a kitchen at 13%
below book price, then he would only earn 50% of his commission.
Should he only be able to sell the kitchen at a price level that
is more that 20% below book price, then, if the company chooses
to accept the order, the designer will earn £60.
In practice,
a designer would do well to ‘convert’ 40% of his appointments
into actual sales.
However, the
success of a designer doesn’t tend to depend upon overall conversion
rates, although it helps. Some designers are stronger at knowing
when a customer is willing to pay more for something than others.
These are
the designers than can earn thousands of pounds every
week.
In figure
2, we compare the earnings of 2 individual designers.
Figure
2:
Kitchen
1:
Kitchen
2:
Kitchen
3:
Total
earnings: |
Designer
1:
£400
£700
£1000
£2100 |
Designer
2:
£60
£350
£300
£710 |
Two kitchen
designers each sell three kitchens in a week. Kitchen 1 is a cash
sale of £4000. However, designer 2 reduced his kitchen price by
21%. Kitchen 2 was another cash sale, but this time for £7000.
This time the extra discount offered by designer 2 was 13%. Kitchen
number 3 was sold on finance, but an additional discount of 19%
given by designer 2 cost him £700 in unearned commission! Now
you know why a kitchen designer often starts at a higher price
and works his way down!
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