A look at why the luxury kitchen and bath business works. The speaker argues for positioning at the high end rather than competing on price, and explains how customer experience and value drive profitability in this market.
Kitchen and bath. We're currently in this business. Janelle and I are in this business. It's a great business. Right the again, back to the home services and interest rates. The first thing, the greatest ROI that a homeowner is going to get their kitchen and bath right. It's going to cost you 100 to 200 to do your kitchen. It's going to cost you 15 to $25,000 per bathroom. We are on the top end of the luxury scale. That's where we love to be. You are either the low cost leader, the Chinese product pusher or you are the Louis Vuitton. It's totally your choice. You could be the Walmart, you could be the Louis Vuitton. We choose to be the Louis Vuitton. Less jobs, more profits, you know, easier clientele to manage versus, you know, what do you get when you're working with, you know, the Walmart shopper. That's like I need to get the best price and going to call 15 other shops. I would just rather most of my products and businesses are on the higher end of the scale. So I just want to deal with more sophisticated people. That price is irrelevant. It's customer service, it's experience, it's what they're going to get less of. You know, how much does this cost? And more about what's the value of what I'm going to get. And so the margins are great in that business. We love it. A lot of repeat clients. We're doing some celebrities right now that it's very interesting and lucrative.
