Customization

Changes are automatically saved. Reset Settings

Decorative Showroom Executive Director's Message

Jeff MacDowell Executive Director, LPG

The ‘K’ Economy:
Why Your Showroom Strategy Must Evolve

We’re living in what economists are calling a “K-shaped economy.” Outlets like Bloomberg, Forbes and CNN all describe this same divide—one segment of the population continues to grow wealthier, while the other struggles to keep pace. For our industry, that distinction has enormous implications.

The Affluent Are Still Spending

The affluent consumer is not pulling back. In fact, they are spending freely—but differently. They value privacy, time and quality, and they seek innovation, wellness and products that feel “worth it.”

These clients aren’t just buying a faucet; they’re buying the way it feels to start their day. They’re investing in steam showers, intelligent toilets, spa lighting and radiant floors—features that elevate daily routines into something restorative.

If that’s the case, why would we design showrooms around budget-level products for customers who aren’t spending?

The Case for Selling Up

Operating a brick-and-mortar showroom is expensive. Real estate, displays and trained staff come at a premium. That investment only makes sense if your displays reflect a profitable audience—the ones who are actually buying.

For price-sensitive customers, it’s time to guide them toward exclusive, high-margin options like Current Faucets or Bello (bellousa.com), both available through Luxury Products Group. These lines allow showrooms to earn up to 50% gross profit—and that’s the difference between barely surviving and sustainably thriving.

The Wholesale Mindset Challenge

Many wholesale operations struggle with this shift. Owners who built their businesses on selling water heaters and PVC fittings often can’t relate to a customer who thinks a Brizo faucet “isn’t expensive enough.”

When your day-to-day revolves around quoting rough-in materials, it’s hard to imagine a salesperson guiding a client through the emotional side of design—showing how the right products can make life easier, calmer and better.

But that’s exactly what the showroom environment demands. For example, if a bathroom floor is being replaced, why wouldn’t you suggest radiant heating? And if you do, you need to sell the timer as well—so it’s warm when the homeowner steps inside. Miss that detail, and you’ve sold disappointment, not luxury.

The Future: Expertise or Extinction

Boutique showrooms already understand this. They invest in expertise, design experience and storytelling. They train their people to connect emotionally and technically.

Helping Our Groups Move Forward

Wholesale showrooms, on the other hand, risk slipping into irrelevance if they don’t evolve. If owners stop investing in training, displays and showroom experiences, the decline will accelerate. The lower end of the market will continue to migrate to big-box stores—where convenience and price rule, and expertise is unnecessary.

" The winners in the K economy will be the ones who double down on design, elevate their expertise and curate an experience worth paying for. "