More and more Americans prefer to remodel their existing homes rather than buy new ones. According to the 2017 Demographic Change and Remodeling Outlook, market spending “on improvements, maintenance and repairs…reached a record high in nominal terms of $340 billion in 2015, according to the latest estimates from the Joint Center for Housing Studies. This is an increase of 12 percent from the 2013 level and 7 percent from the recent market peak before adjusting for inflation. Market spending continued to climb in 2016, up an estimated 6 percent to $361 billion.”
It’s no surprise that homeowner spending is higher in major metro areas. Cities like New York, Phoenix, Denver, San Francisco, Portland and Seattle—areas where cost of living is high—are seeing commensurately higher levels of spending on remodels as people seek upgrades to existing homes instead of purchasing new, more expensive ones.
The Joint Center for Housing Studies predicts that the residential remodeling market will continue to prosper in the coming years, estimating that “homeowner spending on improvements is project to increase 2 percent per year on average through 2025 after adjusting for inflation.”
Similarly, the number of remodelers has steadily risen since the economic contraction following the housing crisis and recession. According to the JCHS, the number of residential remodelers reached more than 700,000 in 2012.
Even if we narrow that down to focus more exclusively on the kitchen and bath remodeling market, it’s still saturated. The National Kitchen and Bath Association, for instance, has more than 14,000 member companies.
When combined with the fact that kitchen and bath improvements are the two most popular types of remodels, it’s crucial that kitchen and bath remodelers gain a competitive advantage any way they can and to find ways to ensure they’re not missing out on lost revenue amidst high demand for these types of projects.
That’s where we believe emerging technology like PLNAR can play a pivotal role.
PLNAR is not designed to entirely eliminate site visits, but it is built to increase efficiency across the sales cycle for remodelers. This is especially true at scale, when an entire remodeling company has implemented the augmented reality app and its sales reps can increase the number of potential leads to chase, deals to close and projects to begin. When an entire remodeling company has increased its capacity by 30 to 70 percent, all because it implemented one app that can easily measure room dimensions and eliminate pain points for the customer, the ability to capture more of your local or regional market becomes a very real possibility, one that doesn’t require you to hire more sales staff or sink thousands of dollars into advertising or marketing strategies (though that certainly couldn’t hurt either).
There’s also something to be said for the level of convenience technology can provide for the customer. In large metro areas that feature dozens of competitors—and in a booming market such as kitchen and bath remodels—it should be every kitchen and bath remodeler’s priority to find new ways to gain competitive advantage. In today’s world, that means identifying ways to improve and perfect the customer experience. If a piece of technology, like PLNAR, can provide the customer with a time-saving and hassle-free experience, it will significantly reduce costs to the remodeler, as well as shorten the time needed for project completion.
As the remodeling trend grows, spending increases and the kitchen and bath market becomes even more saturated, it’s more important than ever that companies find new methods to compete, grow market share and attract customers by providing new, convenient opportunities and experiences.