Increase Profits - Add Closets to Upgrade Packages!
Upgrades are an easy way to put more profit in your pocket. This list outlines a few of the reasons why upgrades are a good selling opportunity.
Capture Rates on Upgrades
- Typical mark-ups for closet upgrades are 30%. So, if a home buyer purchases a $2,000 closet upgrade, you receive $600 profit!
- New technology and software make closet designing easy and allow closet dealers to finalize designs well in advance of move-in. Home buyers get to see what their closet will look like in advance.
- Upgrades install within the same production schedule as standard product.
- Builders don’t have to worry about installation delaying the closing.
- Home buyers move into a home that is personalized for them.
- Home buyers want to incorporate the storage upgrade in their mortgage – storage costs as little as a cup of coffee per day when included in a mortgage.
- Home buyers will save by installing upgraded closets before they move in. Because of the efficiencies in the selling and installation processes. Closet dealers don’t spend as much time and effort in selling process as retailers and installation is much more production oriented.
If you offer closet upgrades, your program should ‘capture’ no less than 40% of your home buyers. Match the cost to the price level of the home (.005% of base price) Match the products to the buyer’s lifestyle. Read more about the cost of closet upgrades
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