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Hearth & Home September 2015

Richard Wright
Publisher/Editor,
Hearth & Home Magazine
hearthandhome.com

Perspective:
The Tipping Point!

It’s been about 20 years since we began talking about the Outdoor Room as a trend of great importance to all those in the hearth, barbecue and patio industries. At this point, many consumers who were creating an upscale outdoor lifestyle have positively impacted all of you – manufacturers and retailers alike – to a greater or lesser extent.

It may have been by the purchase of a fire pit, or the purchase of a built-in barbecue along with the island, refrigerator and bar stools. The ticket could have been only $1,300, or $6,000, or $15,000 or a heck of a lot more.

If you’re one of the smart, or lucky, ones, your sales could have been in the hundreds of thousands of dollars as customers created outdoor kitchens, separate areas for dining, and/or different locations for relaxing in front of an outdoor fire.

Now, we believe a Tipping Point has been reached. Not only have many of the best builders in the country added Outdoor Rooms to their offerings, but a subset of those builders has been formed – specialists in designing and building Outdoor Rooms. Yep, that’s the only, or primary, job they do.

Many architects and landscape architects also have been creating Outdoor Rooms, and for quite a number of years. Put all those groups together, count the Outdoor Rooms they will build year after year, beginning right now, and the numbers are staggering.

The amount spent on an Outdoor Room can easily run “north of $250,000,” says Tim Gehman, director of Design for Toll Brothers. The Pennsylvania-based company ranked fifth among the nation’s homebuilders in 2014, based on sales of $2.7 billion representing 4,235 closings the previous year.

John Shippy, an Outdoor Room specialist based in Lake Forest, California, has been involved in a landscaping and Outdoor Room project that cost between $5 million and $8 million. Florida Outdoor Room specialist Ryan Hughes has completed projects in North Carolina and as far afield as Toronto, Canada. 

Those in the design and building industries appear to be firmly involved in the Outdoor Room trend, and tell us they see it maintaining for a long, long time. 

Match that with the 75-million Baby Boomer generation (ages 51 to 69) that is in the process of retiring and purchasing retirement homes; Generation X (ages 35 to 50), 65 million strong and in their prime earning years, and the huge Millennial generation (ages 18-34) that has just entered its home-buying years and has a great desire for outdoor living. 

The results could be – should be – a Perfect Storm (I know, that phrase has been overused and abused, but it fits well here).

We have the design and building communities on board; we have three groups of consumers ready and already buying homes, second homes and retirement homes; and we have manufacturers prepared with an array of upscale Outdoor Room products (well, the hearth industry could be doing a much better job designing upscale, outdoor fireplaces).

The Tipping Point has been reached; your coming work years should be very rewarding.

More Stories in this Issue

Consummate Merchants

By Tom Lassiter

Selling exclusive product while overwhelming the customer with their breadth of assortment has made the merger of Chair King and Fortunoff Backyard Store one of the largest retailers in the patio furniture industry.

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Focus on the Consumer

By Richard Wright

Chris Robins, new CEO of Char-Broil, talks fast, moves faster, and views her task through a clear lens of experience.

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Builders of Dreams

By Tom Lassiter

Demand for luxury outdoor living – for sophisticated Outdoor Rooms® – continues to grow throughout all regions of the country.

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The Specialists Deliver

By Tom Lassiter

A sub-category of the building profession has emerged; there are now specialists who can deliver the perfect Outdoor Room®, from concept to completion.

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Bullish on Outdoor Living

By Lisa Readie Mayer

Bull Outdoor Products has multiple irons in the fire, from servicing a thousand dealers, to becoming a force in the competitive barbecuing circuit, to selling into Europe, the Caribbean, the Philippines and South America.

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Trust, but Verify

By Bill Sendelback

You may trust your cordwood dealer to provide dry wood, but verify it with a moisture meter – courtesy of Travis Industries.

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2015 July Business Climate

In early August, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, barbecue and patio products, asking them to compare July 2015 sales to July 2014. The accompanying charts and selected comments are from the 198 useable returns.

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