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Is Selling And Installing Rollout Shelves A Viable Business

10/22/16       
Tonyc56 Member

My son and I are in the window treatment business and we've been thinking of adding another product line to our existing business. Someone recommended getting into kitchen rollout shelves. We're have been seriously looking into it since if I'm not mistaken one would not really have to be a finish carpenter to install rollout shelves. According to this same individual a franchise called Shelf Genie gets $600 on average per opening for rollout shelves. If true It would seem like there's good money in it. Though I do not want to go down the franchise route. To the kitchen experts out there do you think it's viable business opportunity. If so where would one get more info such videos on how to build and install kitchen roll outs and drawer dividers.

10/22/16       #3: Is Selling And Installing Rollout S ...
Pat Gilbert

I'm skeptical.

People at the age most likely do that are also notoriously frugal.

10/22/16       #4: Is Selling And Installing Rollout S ...
Derrek

We offered them for a while as an add on sale. We were getting about 100 bucks a roll-out. We were buying them ready to go from a place that sold them for 1 price for any size, in 1" increments. They came with the guide mounted. We did alright if they did the whole kitchen. We got out of it as it wasn't our core business. Its viable just plan on an avg. Sale of 500-1500.
As for "That" demographic if you are referring to the 55+ age group, while they may be frugal, they actually have money as opposed to available credit and like things in there home to be nice and are a great market segment to target.

10/23/16       #5: Is Selling And Installing Rollout S ...
rich c.

$600 for 2 rollout shelves? Wow! They must work in better neighborhoods than I did! I think it would a hard marketing nut to crack! I can't imagine people go out and look for someone to just put in pullout shelves.

10/23/16       #6: Is Selling And Installing Rollout S ...
Pat Gilbert

Derrek

Doesn't matter they are notoriously frugal and not going to pay $600 for roll out shelves in one opening.

That is my opinion, I could be wrong but I doubt it.

OTH the 50 to 60 year olds will buy a kitchen remodel. But not so much after 60.

10/23/16       #7: Is Selling And Installing Rollout S ...
Derrek

Yeah, I'm probably wrong on that. That 10 million in sales that I have had to that age group over the last 18 years is probably just an anomoly.

10/23/16       #8: Is Selling And Installing Rollout S ...
Pat Gilbert

I'm extremely skeptical, of that statement.

Just to be clear you are saying that you have sold 10 million dollars worth of cabinet work to people over the age of 60?

10/23/16       #9: Is Selling And Installing Rollout S ...
Pat Gilbert

This chart indicates what I'm talking about.


View higher quality, full size image (720 X 540)

10/23/16       #10: Is Selling And Installing Rollout S ...
Factory Man Member

Tony,

Retro-fitting existing cabinets with full extension roll out trays is a very viable business, but not at $300 a tray.

You should be able to do very well at a $150 a pop and sell quite a few.

As with any business the hard part is marketing and finding the customers.

10/24/16       #11: Is Selling And Installing Rollout S ...
Ted

Tony, I think this could be a great sideline business for your window treatment.

I wouldn't listen to people telling you about pricing amounts, your market could be entirely different and will dictate the price you charge. You just need to beat ShelfGenie.

I would think the system is relatively easy to learn, and you would need only 1 or 2 suppliers.

I would keep it simple and charge per roll-out. Maybe there is some sort of savings as they go up in qty.?

Also, how to market? Could you slip in a section under a current window treatment ad?

The one tricky area, if you ask me, is that you need a minimum amount of work to make each trip worthwhile. Also, don't be tempted to expand into other cabinet work, just keep it as simple as possible to start.

Would be curious to hear about your results if you decide to take this on. Good luck making the decision.

10/25/16       #12: Is Selling And Installing Rollout S ...
Jim Member

Sounds like that $600 figure came from one individual. Maybe someone trying to promote the franchise.
As far as what empty nesters spend their money on I would say a substantial part of it is on their home after the kids have moved out.

10/25/16       #13: Is Selling And Installing Rollout S ...
rich c.

We've been an empty nester for 17 years, I've been retired for 2+ years. I'm not spending anything on our home. Only big expenditure has been a new car and planning on investing in our 9 month old grandson's college education. Also saving big time for my self-funding long term care as well, since my Mom will soon be paying $4,000+ per month on assisted living!

10/25/16       #14: Is Selling And Installing Rollout S ...
Pat Gilbert

Just to be clear empty nesters are a prime target for kitchen remodels.

But not after the age of 60

10/26/16       #15: Is Selling And Installing Rollout S ...
D Brown

As far as not over 60 , it depends on your location , in my area about 50% of the population is of retirement age or older .
in the last 40 years I have prolly done 75% of all my custom kitchens for older than 60 clients , so they can and do spend.

10/26/16       #16: Is Selling And Installing Rollout S ...
Pat Gilbert

That would be an anomaly.

What state are you located in?

10/26/16       #17: Is Selling And Installing Rollout S ...
Derrek

Pat,
Its not an anomoly, its a market segment that some of us have figured out how to work with and profit from. A graph from the Internet and you repeating doesn't make it correct. There are over 40 million people in America over 60 years old. I don't care that 90% are frugal, I care that the 10 % spend boatloads and that I can target a very small percentage of that 10% and be very profitable with the work that I do.
When I firststarted, I would judge people by age, thinking that old people dont spend money. Luckily I figured it out. I will take estimates for people over 60 all day long over anyone under 50. My own research and success tells the story. Its no anomoly.

10/27/16       #18: Is Selling And Installing Rollout S ...
Pat Gilbert

" I don't care that 90% are frugal, I care that the 10 % spend boatloads and that I can target a very small percentage of that "

That is by definition an anomaly. However profitable it might be.

The odds would be better marketing to the largest percentage.

10/27/16       #19: Is Selling And Installing Rollout S ...
ted

Let's point out that the population that would most benefit from the roll out shelves is those over 60

10/27/16       #20: Is Selling And Installing Rollout S ...
D Brown

Pat , I'm located in Southern Oregon a regionally and economically depressed former timber town that has always been a difficult market to flourish in . The good thing is many retirement age folks already have the money and are ready to write a check for the new project. They are not dependent on current economics to support themselves.

Also it seems in my area we have the highest savings per capita in the state , so out of 65,000 draw , there are prolly 5,000 that are extremely wealthy , they and all their friends are my target market .

BTW I do not love roll out shelves except in pantry units and do not push them , mainly because they are not easily accessed from a wheel chair where full extension drawers are easier to access , especially for my over 60 clients . Just saying .

10/27/16       #21: Is Selling And Installing Rollout S ...
Pat Gilbert

Is this soon after they bought a house in the new location?

10/27/16       #22: Is Selling And Installing Rollout S ...
Pat Gilbert

Somebody mentioned shelf Genie.

From their website:

"According to an article published by the AARP Public
Policy Institute entitled “What is Livable? Community
Preferences of Older Adults,” 87% of adults ages 65 and
older want to stay
in their homes and
communities as they
age. Among people
ages 50 to 64, 71%
want to age in place.
Baby boomers
and senior citizens
are the wealthiest
demographic, and they
are half of ShelfGenie’s
growing client base.
Baby boomers and
senior citizens choose
ShelfGenie because our
customized shelving"

As some of you have indicated this is something that people do buy after the age of 60

10/28/16       #23: Is Selling And Installing Rollout S ...
cabinetmaker

we own a a cabinetshop and counter top shop with granite, corian and p-lam Tops go in and requests to fix front doors, garage doors, rollouts, etc come and we do a lot for the customer, we have a large crew and can handle it it is all scheduled in advance and use other shops when we can Our core business is tops and cabinets, but we take on more if there is a profit in it

10/28/16       #24: Is Selling And Installing Rollout S ...
D Brown

Pat , sometimes they have lived in the same house for many years , some are new purchases and regular remodels.
They perhaps have figured out that they can not take the money with them so some want to up grade the kitchen and such maybe because they have been frugal their
whole lives and want to have something beautiful in the last parts of life , I give them the great products and personal service that they deserve and they pay my price with a smile .

10/28/16       #25: Is Selling And Installing Rollout S ...
Pat Gilbert

You will have to excuse my aversion to anecdotal information.

The majority come to the conclusion that you are talking about between 50 and 60.

Anyway this industry is all about niches and this one is actually quite interesting.

My theory is that making money is about control and prediction (same thing if you think about it). You only make money from activities from which you have good prediction.

This business, if you can create demand, beats being a clay pigeon in the commercial world.

10/28/16       #26: Is Selling And Installing Rollout S ...
Derrek

15 years ago that over 60 is frugal was much more prevalent. That age group was the end of the depression era demographic, who were much more frugal and kept everything because they knew what it was like to go without. Todays 60-70 year olds are the first wave of the baby boomers, who are an entirely different demographic. They have also been described as a pog in a python going through our economy, ahuge demo that hit there key spending years in the early to mid 2000's. They have a totally different outlook than the depression era, and many of them have done well.
Todays 2 installs, both over 60, totalling $7000. Yesterday's design appts, 3 people over 60, one $5500 sale, one $3700 sales, one pending of $4000.
Todays appts, 2 of the 3 over 60

Some are new mover, some are long time in home.

10/28/16       #27: Is Selling And Installing Rollout S ...
D Brown

Derrek , I think you hit it on the head , I'm a mid range boomer and like nice things , even travel and cruises , we don't live above our means on a daily basis but we have worked hard for many years and have our health still so if we don't do it now , when will we do it ?

10/29/16       #28: Is Selling And Installing Rollout S ...
David Buchsbaum Member

Website: http://atlantacloset.com

A fellow I ate lunch next to at the Closet Summit a couple of weeks ago said he did $1M last year with Shelf Genie somewhere in the midwest and that they wanted him to take over another market. So apparently it is a real thing. If I remember correctly he said he did all the sales himself and had one guy who did all his installations.

10/31/16       #29: Is Selling And Installing Rollout S ...
Jordon

Website: http://www.jordonscabinets.com

In my area Shelf Genie gets about $300 for a maple/butt joint rollout depending on size.
I sell a bunch for about half that in conjunction with refacing/refinishing jobs.
The challenge with just doing rollouts would be 3 customer trips (estimate, contract, install) for a small project.

10/31/16       #30: Is Selling And Installing Rollout S ...
Charles

Jordon,

Offering roll-outs in conjunction with refacing/refinishing sounds very smart. Nice job. :-)

I would think that selling roll-outs by themselves could be reduced to two trips at most.

First trip: Estimate. I don't sell roll-outs, but I can price my product on the first trip (most of the time). I use a 3-part NCR (No Carbon Required) form that has my company name and info pre-printed with lines for items, total price, deposit amount, and final balance. I use an old-fashioned ballpoint pen to fill in the description and dollar amounts. If the customer is ready to go, I have them sign and give me a deposit check. I leave one copy of the form with them.

Second trip: Install, collect final check.

If the customer is not ready to commit, I sign the estimate, leave two copies with the prospect, and also hand them a pre-stamped, pre-addressed #10 envelope. I then ask them to simply sign when they are ready, write a check, and include one of the copies with the check in the envelope. Then, simply mail it back to me. The postage is already there. This still keeps the job down to two trips.

Optionally, if this works for some jobs AND the way you want to do business, this could be done in one trip. Often the customer has a good idea of what they want ahead of time. Sometimes they will even tell you on the phone/email before you visit. (If they don't know, I do NOT try to ask them ahead of time. That is what the sales visit is designed to do.) Carry an inventory in your vehicle along with your tools. Give the estimate (use the same form as above), have the customer sign, do the job, and collect the check. Go home happy, stopping at the bank on the way. Or, if you have mobile banking on your phone, deposit the check after you leave the job. Then, drive home happier. You just saved the cost of a trip to the bank as well. As I said at the beginning of this paragraph, this is an option that you may or may not want to offer. It's your business: run it the way it makes the most sense for you.

Yes, there will be some jobs that will require some design work back at the office, or some special items that I need to get pricing. In that case, I get their email address and send them the estimate ASAP. I have already made a personal impression by visiting them the first time. So, I don't feel that I need to make a second in-person trip to get the project. I send them a PDF of the same form (I call it a Sales Order) that I mentioned above. Instead of my signature on the PDF, I simply type in my name and date. I ask them to print it, sign it, include a check, and mail it back. In this case they provide their own envelope. Works well for me.

12/20/17       #31: Is Selling And Installing Rollout S ...
tonyc56 Member

All,

Update my son and I installed our first rollout shelves for a pantry. We charged $155 per shelf. According to the customer had gotten a prior quote from the franchise shelf genie of $300 per shelf. Hopefully this will eventually lead to successful business venture.


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View higher quality, full size image (960 X 1280)

12/20/17       #32: Is Selling And Installing Rollout S ...
Pat Gilbert

How did you get the job?

12/20/17       #33: Is Selling And Installing Rollout S ...
tonyc56 Member

Advertised in a local paper


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