My expectation is that growth in the bathroom remodeling market will be modest in 2023—flat to low single digits. The increasing rates will lead to more people staying in their homes, which tends to result in more remodeling activity. However, with the increased cost of borrowing, the market might see the opposite effect on larger ticket items like bathrooms.
We’re planning to outperform the market because of the way our business model is built around marketing and the amount of additional funds that we’re putting toward those efforts. So, we’re projecting growth in the 18-20% range for 2023 and plan to take market share.
We need to return to fighting to win jobs by focusing on the value we’re adding for the customer.
I’m a little bit nervous about the capital markets. With the interest rates going up, will the financing companies be able to get the spreads that they’re looking for? Or will they start to tighten their policies around credit scores?
We might start to see some restrictions on lower credit score individuals and whether we can get them financed or not. That could be a challenge that we’re facing because 40-45% of our projects are financed through our finance partners, and another portion is financed through individual customer HELOCs and other programs like that.
RELATED: 2023 Game Plans: Less Growth, More Marketing
The frenzy we’ve seen in the market over the past couple of years is over. Everyone was so busy that they didn’t really need to follow up with customers.
We’re going to see more patient consumers who will take longer to make decisions and commit to bathroom remodeling projects.
We need to return to fighting to win jobs by focusing on the value we’re adding for the customer, as opposed to sort of taking orders like we have been the past couple of years.
Our salespeople will need to adjust and be patient with the consumer, and respond in meaningful ways as they think about spending money with us.
That’s a pivot in mindset that some people will have a difficult time making.
Read all 2023 Thought Leader predictions and game plans here
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