Revenues Up, Outlook Mixed Among Kitchen/Bath Dealers

HACKETTSTOWN, N.J. – U.S. kitchen and bath dealers saw business waver a bit in volume in this year’s third quarter, although business still remains better than 2010 levels.

The third-quarter 2011 Kitchen & Bath Market Report from the National Kitchen & Bath Association (NKBA) offered an up-and-down picture, with sales volume dropping from this year’s second quarter, offset by increase in prices.

The survey of NKBA-member dealers showed that the average number of consumers starting a kitchen remodel came in at 7.8 per dealer for 3Q2011, down 6% from the previous quarter. An average 5.9 consumers per dealer started bathroom remodels in the third quarter, down 9% from 2Q2011.

The average kitchen job in 3Q2011 totaled $32,275, up 7% from the previous quarter, while the average bathroom remodels carried a $14,638 price tag, up 30% from 2Q2011.

All the third-quarter numbers for kitchen and bathroom remodeling are well-above the levels of 2010. The report showed average dealer sales of all kitchen/bath work at $339,294 for this year’s third quarter, up 69% from the same time last year.

Potential customers kept coming in the door during 3Q2011, with the monthly visitor count per dealer averaging 22.8 people – 8% better than the previous quarter, and a 42% boost from last year’s third quarter.

Dealers, however, aren’t betting on the boom times returning soon. The report showed that 33% of surveyed dealers offered a optimistic forecast for the industry as a whole,  36% viewed the market pessimistically.

The dealers offered a somewhat brighter outlook on their own turf, with 32% seeing increases during the last three months of the year. Only 15% thought their revenues would decrease in 4Q2011, while the majority – 52% — predicted no change.

“Although optimism seems to be taking a hit, the numbers today from a year ago are encouragingly higher, ranging in increase from 4 to 85 percent higher on various points,” said Bill Darcy, NKBA executive vice president.

The NKBA surveys approximately 150 kitchen and bath dealers across North America each quarter. In the latest report, there were insufficient responses from any particular geographic region to generate statistically significant regional data.

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