Ironhaus

Reaching High-End Customers

As the housing market slows down in most areas of the United States, hearth dealers who rely on builder business are looking for ways to supplement sales. Tim Campbell is president of Ironhaus, Hamilton, Mont., one of the top custom fireplace manufacturers in the nation. He says that high-end clients (builders and homeowners) are part of an undertapped market that has promising longterm profit potential.
“No matter what the economy is like, the wealthy are going to be buying and building homes,” Campbell says. In 30 years as a blacksmith and eight years as the president of Ironhaus, Campbell has seen a gradual rise in appreciation for good fireplace design among consumers, especially high-end consumers. They are becoming less willing to settle for the standard fireplace box and doors. They want something unique that reflects their sense of style. “If dealers want to reach high-end consumers they need to give them something that everyone else doesn’t have,” Campbell says.
For many years, Ironhaus has been creating beautiful custom fireplaces in Montana and Wyoming for high-end builders, architects and discriminating clients looking for truly handcrafted quality. As the demand for the company’s unique designs increased in popularity, it introduced a full line of custom, handcrafted fireplace enclosures that are now available to design-conscious consumers across the country.
“Many dealers have been hesitant to tap into the custom fireplace market because they think it’s going to be too much hassle and not enough margin,” Campbell says, but nothing could be further from the truth.
Ironhaus’ custom fireplace line integrates the best zero-clearance, direct-vent and B-vent gas fireplaces with unique enclosure designs. Customers can choose from a variety of finishes, textures, handles and embellishments to create the perfect fireplace for their homes or outdoor spaces. “All customers have to do is decide what they want, and we do the rest,” Campbell says. “It’s a no-brainer for dealers and customers who get something they can’t get anywhere else.” He adds that if a customer wants to create a one-of-a-kind design, Ironhaus can do that, too.
Campbell recently started a new dealer network of specialty retailers interested in reaching out to high-end customers. As the network grows, his mission is to educate them about the best ways to tap into the high-end fireplace market. First, he says, identify your customers. Before spending time and effort trying to attract high-end customers, make sure that there is a potential client base in your area. It does not make sense to set up a Mercedes dealership in the middle of the desert. Do research to ensure that there is reasonable demand.
Second, Campbell advises creating partnerships with custom homebuilders. If there is a high-end market in your area, chances are that it is being underserved; that is the key. Most builders have been doing fireplaces the same way for a long time. They are comfortable with their fireplace options and do not know that better choices are available. Approach custom homebuilders and tell them that their clients are looking for particular fireplace products and that you can provide them. If they are assured that it will make their clients happy and that it will be easy for them, you will have a new business partner.
Third, Campbell says, show the best in your showroom. Set up displays and vignettes that show off your fireplaces. Nine times out of 10, anything displayed on your showroom floor is going to sell. Buy as many displays as you can afford so that customers can see and touch them. “Dealers sell our products like crazy because they look so different from anything that is out there,” Campbell says.
Campbell admits that the high-end consumer has not traditionally been the biggest part of the market, but notes that it is a lucrative niche. “There is a large, affluent group of consumers in this country who want something out of the ordinary, but can’t find it in most fireplace shops today,” he says. “Offer products that appeal to those customers and you will see your reputation, and your profits, grow.”
Visit the Ironhaus Web site (www.ironhaus.com)for more information about its products or to become a part of its dealer network.

by Sharon Sanders
Patio & Hearth Products Report
September/October 2007
page 20
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