Change Factors
by Bob Miodonski
April 18, 2008
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| The products on display generally can't be purchased in home centers or online.
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Colleen Horner adapts to a shifting market and customer base.
Customers walking into the Colleen Horner Kitchen • Bath • Tile • Stone
showroom near downtown Milwaukee sometimes ask, “Is there really a Colleen
Horner?”
The answer, of course, is yes.
Horner is president not only of the company that bears her first and last
names, but also carries the same title with Horner Plumbing, a company founded
by her late husband in 1969. She has learned the plumbing contracting business
and the showroom business from the ground up, having started by doing the books
of Bruce Horner’s fledgling plumbing firm.
“Horner Plumbing stands behind everything we sell in our showrooms,” Horner
says. “That helps the showroom business a great deal because no one wants
disgruntled customers.”
Horner Plumbing installs all the plumbing sold through two showrooms in
Milwaukee and Pewaukee, WI. Master Plumber Tim Barber does the plumbing
estimates on all the remodeling jobs and high-end residential new construction.
“Tim’s a wonderful resource for all our designers and a great font of
knowledge,” Horner says. “He has an unbelievable memory and knows exactly how a
product like a free-standing tub should be installed. He takes ownership of all
the projects we do.”
Changing Market
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| The Colleen Horner showroom in Milwaukee is designed for
walk-in traffic. |
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The first Colleen Horner showroom opened 10 years ago in Pewaukee,
selling high-end plumbing products, tile, countertops, cabinets, accessories
and soft goods such as towels and linens.
Originally, that two-level, 3,800-square-foot showroom catered mostly to
the tastes of people having custom homes built.
Colleen Horner got her start in the showroom business in 1988 by managing
Horner Plumbing’s Private Design Centre, a 2,200-square-foot showroom open by
appointment only. When the plumbing contractor closed a deal with a builder,
Design Centre employees scheduled an appointment with the homebuyer to review
all the plumbing products that might go into the new home. They would try to
entice the customer into upgrading and adding onto the plumbing originally
specified.
When Colleen Horner started a separate showroom in 1998, she opened its doors
to the public with regular store hours. She hired consultant David Lyon, who
not only designed the showroom, but also suggested that Colleen Horner use her
first and last names for the business to make it sound more appealing.
“We want the retail trade, that’s what we’re after,” Horner said in an
interview 10 months after her first showroom opened. “I think Colleen Horner
Bath & Tile should enhance Horner Plumbing and vice versa.”
Although successful, the suburban location was
driving distance for most showroom customers. Horner started
to scout locations in Milwaukee, being attracted particularly to the city’s
rejuvenated Historic Third Ward. What had been an industrial and warehousing
district now housed shops, restaurants, bars, condos and the Milwaukee Public
Market.
“I wanted someplace downtown for walk-in customers,” Horner says. “This area
was exploding with activity.”
A smaller space across the street was available, but Horner discovered her
current 5,000-square-foot, first-floor location when her contracting company
was hired by the building owner to do the plumbing. The second showroom opened
in March 2003.
Besides substantially more foot traffic, the most noticeable difference inside
the new showroom is the kitchen presence – displays featuring cabinets,
countertops and appliances along with plumbing products and accessories.
Outside both showrooms, however, the market has been shifting from new home
construction to the remodeling of high-end homes and converting of downtown
buildings to condos.
“New home construction activity is very low right now,” says Marc Frisco,
general manager of the showroom operation. “People are staying put a little
longer. They come to us to give them a fresh new bath or an updated look in
their kitchen.”
Changing Business
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| Colleen
Horner with one of the many working fixtures in the showroom. |
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Colleen Horner hired Frisco in the fall of 2006, the same year Horner
Plumbing acquired competitor Bayview Plumbing. The contractor now employs 70
plumbers, while 12 people work in the showroom company. Frisco, whose
background includes real estate and management, met Horner through his wife,
Melissa, who sells soft goods such as linens and towels to the Colleen Horner
showrooms.
Unlike custom homebuyers, remodeling customers increasingly were asking Colleen
Horner staff to take control of the entire bath or kitchen project. Rising customer
expectations demanded that Horner take a closer look at her showroom
staff.
“We had hired people based on their personality and trained them,” Horner says.
“The job is too complex to do that. We didn’t always get the best
results.
“We needed people who understood the entire design. They need to understand a
space and visualize the entire project. We’ve never been a place where people
come in just to buy a faucet or a sink. Marc came in to save the day.”
After Frisco was hired, the showroom staff turned over entirely in about a
year. The Milwaukee location now has four full-time accredited designers and
Pewaukee has two.
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| The
new showroom has a strong kitchen presence with cabinets, countertops and
appliances. |
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The showroom staff’s compensation combines salary and commissions. The
investment in qualified employees is considerable, Horner says, and critical to
the showrooms’ success due to the relationships they’re able to forge with
customers and outside designers.
Typical remodeling jobs range from $50,000 for a second bathroom that may
include an air-jet tub, a vessel sink and stone floor, to $140,000 for a master
bath. Not many kitchen projects come in under $100,000 when the price of
high-end appliances is added to the bid.
When overseeing projects, the company subcontracts the non-plumbing
installations. Colleen Horner showrooms sell all the bath-and-kitchen products
except the kitchen appliances, which it purchases through a local
retailer.
Although showroom staff members hear about universal design, “green”
construction and other trends from customers, their clients’ purchases usually
come down to how a combination of products would look in their bathrooms and
kitchens. That’s why having the showroom operation is such an
advantage.
“Our clients are all about aesthetics. They see something on display and they
want it,” Frisco says. “Most of what they buy is what they see here.”
New Challenges
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| Customers
tend to buy products and accessories they see displayed in the showroom. |
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While Colleen Horner clients tend to be less price conscious than the
average consumer, that’s not to say that some of them don’t shop around a bit.
Milwaukee has giant retail home centers, as most metropolitan areas
do.
One of Colleen Horner’s biggest suppliers on the wholesale side sells directly
to the public through its own showroom operation. And, some builders have
showrooms as well.
Perhaps the biggest nuisance, however, is the Internet. The occasional consumer
has shopped the Colleen Horner showroom and even tapped its employees’ design
expertise, only to inform them that he’s found products at a lower price
online.
The company combats these challenges in a number of ways.
First, it displays and sells products that normally are not found elsewhere in
the Milwaukee area or online. Its product lines include Herbeau, Brizo,
Hansgrohe, Grohe, Dornbracht, Bain Ultra, Toto, Cesame, Rohl, Lefroy Brooks, Le
Bijou, Jado, Vitraform, Artistic Tile, Oceanside Glass Tile, Sonoma Tile, M2
Glass Tile, Pratt & Larson, Tres Feltman, Bisazza, La Fata Cabinetry,
Dutchmade, Sokee, Robern and Stone Forest.
“But we try to give clients exactly what they want,” Horner says, “even if we
don’t stock the item.”
In addition, the Colleen Horner showroom company buys as many of its lines that
it can direct from manufacturers. This helps its margins as well as addressing
the competitive issue.
Perhaps most importantly, however, it depends on the relationships its staff
develops with customers to drive its business.
“We don’t stock what the big-box stores sell, and we face an ever-growing
online pressure,” Horner says. “But we look at the entire room, instead of
individual pieces.
“It really goes back to the staff, though. It’s all about the people you employ
and all about relationships.”
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