Reply by DS

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Posted on Working with Contractors

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3360 posts in 3028 days

#1 posted 12-08-2017 05:02 PM

We have kind of a similar situation here in our showroom for our custom cabinetry.

The counters and appliances that compliment our cabinetry and even a lot of the specialty hardware such as fancy pullouts and such are all subsidized by the respective manufacturers. In our case, our mutual clients are all the same target demographic. Our showroom is a fairly permanent fixture and there is decent traffic by the RIGHT people there.

Most items are placed at about 50% discount to us, while others are at the manufacturers complete expense.
We even have an independent manufacturer’s representative who invested to build one of our displays that showcases her products and in exchange, she gets to hold events in our showroom free of charge. It is a win-win since these attendees are our potential clients and our clients are her potential clients as well.

Your situation is different mainly in that the showroom goes away when the house sells.

If you go into a situation like this, it would not be in hopes of selling the displayed pieces, but rather, that they would attract new clients for you to build new pieces for. The cost of your display piece gets expensed against your advertising budget and do not expect a profit from the direct sales of the display item.

If you do not have an advertising budget, or feel this is outside your current business objectives, then I would not go into such an arrangement.

-- "Hard work is not defined by the difficulty of the task as much as a person's desire to perform it.", DS251

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