THE PROFITABLE FENESTRATION

More than once I have read in various reports and articles this year that the 20% of earners in the UK fund 80% of all home improvement work. Just think about the significance of that for a second. The top fifth wealth bracket in this country funds four-fifths of all home improvement work. That is a very large slice of the pie, underpinned by wealth that is very unlikely to be affected by the coming recession and the various crises that have caused it.

That top tier of client is likely to be much more inclined to purchase higher-end products. The types of homes they live in are likely to be higher in value and prestige. Plain White windows simply won’t cut it. And here lies a very profitable opportunity for the entire industry to take aim at.

If we assume the other 20% of home improvement work is going to be dented by the recession, that means we still have at least 80% of the market to aim for. That’s still a very large chunk of the market to aim for. But we have to go into that part of the market with products that are going to inspire and excite the end user. After adjusting our plans for our own installations business for 2022, I can speak from experience that it is the more luxurious end of the product portfolio that attracts the higher contract values that we are all going to want more of in the coming years.

The premise of higher quality products being more profitable is not a new concept. We have known about it for years. It’s the coming economic problems which have once again put this part of the market back into focus. It is the wealthier demographic that is going to continue to provide opportunities for installers over what is going to be a very hard couple of years.

I can speak from experience. At the end of 2021, we knew that our economic circumstances were changing. We were having regular discussions at our family-run business and understood what was coming. We also understood the changes we had to make to be able to make 2022 a successful year even if in a more general sense things went downhill. That feels like an understatement at the moment with what is going on right now.

We were always considered to be at the higher end of the market in our local area, but we knew that if we were going to make that next step up we were going to have to commit 100% to become a business that was focused much more on the wealthier demographic. We knew that no matter what economic hardships were coming, the bracket of people we wanted to attract would not be deterred. As it was, 2022 has turned out to be a good year for us, with sales of aluminium windows and doors much higher than in 2021. Flush windows have been a very good seller for us, with at least a third of the windows we have fitted being flush casements. We have sold many more bi-folding doors than in previous years, and have now begun to sell the very sexy Spitfire range of aluminium entrance doors. We’re also working more with self-builders and clients taking on larger renovation projects. The common theme with all our clients who land in the product niches I have just described has all wanted our higher-end products. Not a single shiny White window between them.