10 Reasons why Office Furniture retailers should also target Projects
It is no secret that during the pandemic most businesses have faced a severe impact and so has the Office Furniture business. But many retail chains or Office Furniture store owners/ resellers have not only managed to stay afloat, they have also been able to increase their business during these difficult times, by a strategic shift in focus. So how have they done it?
One of the main strategic initiatives that have helped office furniture stores who were earlier predominantly focusing on the retail and B2B segments has been a new initiative to target commercial projects and office furniture projects for large scale offices / educational institutions, government buildings, libraries, auditoria, hospitals and clinics. This means connecting with real estate agents, landlords, interior designers, architects and anyone who can connect you to such a requirement and once you have established a credible opportunity, connecting with Stellar, to help you with entire turnkey project planning and implementation.
You already have a presence in your market as an office furniture dealer/distributor or showroom and adding this service to your portfolio not only increases your business opportunity but also your reputation and business credibility. So here are the top 10 reasons for you to consider this opportunity seriously:
1. Larger business volume
Naturally, as in any business, there are short-term goals and long-term direction, that may be driven by ease of conversion and profit margins, but the fact remains that each project presents a much larger business opportunity and may even be as much as your entire annual turnover in one single transaction. So this may take time and we may have to offer very special volume-based rates but even a small profit percentage can be quite significant for any business.
2. Larger Deal Sizes
While the overall volume in a commercial project is more, it also means that the average deal size is more substantial. That gets you the ability to leverage that for your own existing Office Furniture business as well. It also establishes your credibility for a customer who wants to deal with an organization that has a larger deal size experience.
3. Completed projects are live exhibits
You can use an existing project you have executed as a live example of your professional expertise in the office furniture business. That obviously helps build trust and respect for your business in front of other, new customers who will want to deal with you.
4. Chances of business recurrence
Clients who have taken your service for a particular project are likely to need it again when they execute new projects and if they have a good experience naturally they will also be happy to refer you to other interested customers.
5. Amenable Payment Terms
In a B2B scenario, we may sometimes have to offer credit to some customers, but for large projects, the payment terms are always in cash or LC and therefore there are very few chances of your business capital getting stuck. Moreover, since the commercial dealing can be directly between the client and Stellar, you may actually not need to invest any working capital for this segment.
6. Brand building
Executing large projects helps establish your own brand in your market and also opens opportunities for you in neighbouring cities/countries as your name and brand spread.
7. More publicity
If you have executed a large project, you may want to invest n some local public relations, with pictures, videos and feedback from your clients which will be a very strong PR activity and help increase the publicity
8. No investment in inventory
Another great benefit for furniture stores and retail chains, to target commercial projects is that you need not invest in a single item of inventory as it is all custom made, packed and shipped directly to the customer.
9. Longer turnaround time
Definitely, projects take a longer time to materialize and then to execute than normal B2B or retail sales but they also generate very large volumes. Therefore there may be an advantage of a business transaction that is spread over a longer time period and does not strain/drain your existing business resources.
10. Stellar Support
Last but not the least, commercial projects are complex endeavours. They need a variety of skills and resources from 3D rendering, space planning, simulation to product planning, manufacture and logistics. If you do not have these resources yourself, don't worry a bit, as Stellar offers complete turnkey end to end support, to make your project a success.
Stellar Global is an international office and hospital furniture manufacturing company that has been in the business for over 32 years and exports furniture to over 80 countries worldwide. We have helped plan and execute hundreds of large scale projects in different parts of the world from co-working places to commercial offices, government buildings, educational institutions - schools & colleges, libraries, auditoria, hospitals, operation theatres and clinics. Get in touch with us if you're planning any large scale commercial project and need help with any type of commercial furniture.