It is now over two decades since Australia’s then Prime Minister Paul Keating made the well known statement about Australia’s economic woes of the early 90’s, that Australia was in “the recession we had to have”. The question is: are we again in a recession we had to have? Circumstances are very different from the late 80’s and early 90’s in terms of Australia’s financial wealth pre the economic downturn, and I for one believe that there have been some poor economic management decisions by the current and recent federal government. Additionally, the reaction from the consumer has been different. On one hand we are seeing businesses in our industry struggling for work, some to the point of liquidation and on the other hand the two recent home shows with which KBDi has been involved (see report below) resulted in excellent results for all concerned.
Many consumers are clearly cashed up and some are even prepared to part with some of their cash. But, they are generally highly informed, very particular, looking for high levels of service and value for money. The kitchen and bathroom consumer – in general, has been becoming more sophisticated and demanding for many years and this trend shows no sign of abating. More than ever those in the business of design and renovation need to focus on their chosen market segment and deliver the product and service that segment expects – all the while maintaining business profitability.
Business profitability is achieved in a number of ways. Several articles in this eMag cover issues that every person whether operating as a sole trader or managing a corporate structure need to consider. Including: use of contracts; insurance; and training/professional development. Also, check out the news from suppliers such as the latest products from Perrin and Row and from Hettich on the launch of their new showrooms.
Many people make money when times are economically down, it takes working smarter and harder to do it.
Until next month good reading and brisk business
Alex Milne