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Kitchen Designer |
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| 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 kitchen 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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