New Offering and Business Model Provides a Competitive Edge and Increased Margins to Interior Designers
The Specialty Group Ltd., a Va.-based provider of luxury window treatment products, today announced the availability of its proprietary LuXout brand of shades to designers throughout the mid-Atlantic region, as well as nationwide. The move marks a second phase, following the success of a limited trial among select markets.
“Unlike many of our other lines, LuXout is exclusively for the trade, giving them the opportunity to offer their own uniquely branded products,” said Tony Lovette, Specialty Group president and founder. “By sourcing materials directly from top-quality global providers, we’re able to ensure our designers that their customers won’t find this line of products down the street, including at big box retailers or online.”
While designers market LuXout products as their own cobrands (LuXout by), the line comes with a wide range of marketing materials and selling tools, including product literature, samples and displays, as well as direct mail and electronic marketing pieces. Exclusive sales and marketing agreements not only ensure that LuXout designer-dealers aren’t competing with retail or web-based outlets, but also limit the number of designers offering LuXout within each geographical area.
“We know what today’s designers are up against,” says marketing director Omnia Al-Kilany. “It’s very difficult for them to compete when their customers can go elsewhere, like online, or to a big box retailer who’s just down the street offering the same products at deeply discounted prices.”
In order to circumvent those issues, the company is sourcing and distributing materials direct, which company officials say eliminates many of the traditional steps in manufacturing and wholesale. As a result, prices for LuXout shades are extremely competitive, when compared to other major shade providers, allowing designers to protect—or even increase—their margins.
“With LuXout, our intent was to completely upend the way we do business, in order to streamline and give designers what often equates to an extra 20 or so percent margin to work with,” Lovette says. “Not only do they have their own cobranded line of products, but they can use that increased margin to offer them at competitive prices with higher profits, compared to other similar, high-quality brands. This is what we’re hearing and learned from our initial test market.”
Going forward, LuXout will maintain the uniqueness of its brand and products by making the lineup a constantly evolving product line. In order to do so, Lovette says his company will lean on the relationships and resources built along its 50-year history to produce a constant stream of new products and innovations.
The Specialty Group Ltd.
1221 Admiral Street
Richmond, VA 23220