Tom Kraeutler is
co-host of “The Money Pit” home-improvement radio and TV shows. A former home
inspector, he’s also the home-improvement editor for AOL, as well as an author,
columnist and blogger. His Web site is www.moneypitmedia.com. Bath &
Kitchen Pro Publisher Bob Miodonski recently interviewed Kraeutler to discuss
the bath-and-kitchen market in today’s economy.
Bath
& Kitchen Pro: How has the economy
affected the type of remodeling jobs people are doing?
Tom
Kraeutler: For one thing, it’s a
value proposition. What will give homeowners the best return on their investment?
People are not indulging in luxury like they were two years ago. They’re
keeping a cushion by keeping cash in their pockets. Contractors coming into a
home have to keep that in mind. They’re not going to be selling everything or
all high-end products. A customer may splurge on tile, for example, but mostly won’t
buy something unless they see a return on their investment.
BKPro:
Do the bath and kitchen still deliver the
highest returns on a homeowner's investment?
TK:
The bath and kitchen still give the best
return. People can get back 75% or 85% of their investment for the kitchen and
bath. I spent 20 years as a home inspector, and the kitchen has always been
what sets a home apart. It’s the central meeting place. It’s the board room for
the family, where all the planning takes place. Whenever you go to a party, you
wind up in the kitchen. The kitchen probably is more important than the bath.
The kitchen is more the public space, while the bathroom is the private space.
Water
efficiency is a good reason to do a remodeling project today. Everyone wants to
go green, but they’re overwhelmed with information. When choosing a green
product, the first question consumers ask is, “Does it work?” The contractor is
the consulter, the home-improvement coach. He has to take the time to explain
why one adhesive is better than another because it has less off-gassing. If the
contractor does that, he’ll stand head and shoulders above the competition.
As
a contractor, you must talk during your presentation about what your company
has done to understand and embrace green technology. Explain how that
technology is good for the environment and for the performance of the products.
BKPro:
Do water-saving showerheads and toilets have a
performance problem or a perception problem?
TK:
It’s not a performance problem; they work very
well. It’s a perception problem. As a contractor, you need to acknowledge there
were problems; do not ignore them. Explain why the technology works today. It’s
not that hard. The toilet has been redesigned. For example, the trap used to be
unglazed. Consumers can appreciate the difference between unglazed and glazed.
The trap is wider. Engineering has perfected the design.
Same thing with the
showerheads that have been redesigned to mix water and air. They give you good
body coverage. Even if customers don’t ask for an explanation, you need to be
able to understand the technology.
BKPro:
How do you freshen a remodeling job that’s,
say, 10 years old without doing a total makeover?
TK: Be
strategic. Do it selectively. Look at the parts: Replace a countertop; change
the appliances; put in a planter. Lighting is not a hard thing to do. I live in
a home that my family built in 1886. When I moved into it, the kitchen had dark
cherry cabinets, tan walls and tan ceiling. The cabinets were good quality, but
I couldn’t live with 1970s style. So, I kept the cabinets and redecorated
around them. Change the hardware on the cabinets, and you’ll be amazed by the
difference. We call hardware the jewelry or bling for cabinets.
BKPro:
You said recently the No. 1 question about
bathrooms and kitchens from consumers is how to do a project. Can you
elaborate?
TK: Remember
when you tackle a bath or a kitchen, it’s a major inconvenience. You can’t go
long without a kitchen. As a contractor, you have to acknowledge that. Let your
customers know what to expect. They want to know what the procedure is and how
do they start. You have to give them options. First, though, determine what
they want and need and can afford. This will help the professional focus in right
away. Have them visit showrooms to see what’s available. They have many online
resources as well.
BKPro:
Will the bath-and-kitchen market be
substantially different coming out of the recession?
TK:
I see pent-up demand for more remodeling
projects. As the market loosens up, people will be building more additions and
buying homes that better suit their needs. Luxury will come back in as people feel more comfortable spending cash. We
have the best economy in the world, and we’ll
snap back from it. People will continue to
improve their homes.