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2005 was a tough year for the Glazing Industry, with many companies reporting a drop in sales and margins.

With the replacement window sector facing over-capacity and near-saturation, the impact throughout the entire Industry will be widespread. But it's not all doom and gloom - despite many companies facing a downturn, others have seen significant growth. So, why will some companies face extinction and others evolve and prosper?

Business Consultant Andrew Scott highlights 6 Steps that could make a big difference in 2006:

1. Current Market

All products, even Industries, have life cycles. Take for example the video cassette recorder. As it gained popularity, prices came down, and the product improved. Along came the DVD player. Again, as volume increased, prices came down. Soon DVD Recorders will replace the DVD player, and so it goes on. Yes, there is still a small market for video recorders, but the big question is, would you want to be in the video recorder business?

For trade and retailer companies relying on the existing replacement window market - directly or indirectly -volumes will inevitably continue to drop. Doing nothing is not an option.

To stay in such a market means (a) winning more business from your competitors, and/or (b) reducing your operating/direct costs, and/or (c) improving the perceived value of your offering to secure better margins.

In short, you need to rethink your business, marketing, and sales strategy.

2. Consumer Trends

Like the DVD replacing the video recorder, the market for ‘replacing the replacements' is still potentially exciting . With the popularity of TV programmes like Property Ladder and Better Homes, consumer interest in design features and individuality are creating opportunities for those companies who can reposition and market themselves as ‘design consultants' rather than ‘double glazing installers' in the consumers' eye.

The same applies to conservatories - higher prices are gained by those companies who sell ‘the dream' rather than ‘the product'. Major innovations in glass technology will make a big difference here - both in terms of insulation and decorative features.

3. Niche Markets

Some of the most successful and profitable businesses started in niche markets, from Apple Computers to Lexus cars.

Look carefully at the niche companies in the Glazing Industry - for example composite doors, vertical sliders and decorative glass - and you will see some surprisingly successful and profitable companies.

A double glazing firm offering Vertical Sliders will probably attract leads and customers.

Create an exclusive ‘Heritage Window Division' promoting craftsman-made vertical sliders and suddenly you are regarded as a specialist by consumers, thereby commanding better prices and better conversion rates.

Consider Marks & Spencers simple new marketing pitch - ‘This isn't just food; this is M&S Food…..'

Manufacturers often overlook niche-markets as being problematic, low-volume distractions to their core business. The reality is by offering these products you will attract new customers who will also buy your core products.

4. Batteries Not Included

IKEA is a staggering business. It's like a sweet shop for adults - call in to buy a £200 wardrobe and leave with £400 worth of goods. Your local electrical retailer will upsell batteries, cables, upgrades and insurance as part of their business process. What is your business process for upselling?

Almost all businesses - trade and retail - have upsell opportunities to increase revenue and margins.

5. Training and Development

Your people play a critical role in your company's success, more so in a competitive market. Its great to invest in machinery, but surely investing in your people is equally important? Some companies have ongoing production and/or installer training programmes. But how well trained are your office staff, drivers, engineers and other customer-facing personnel? Could they be loosing you sales without even knowing?

When we employ sales people, we very often provide product and systems training, and assume they are capable sales people. Great, but why not consider investing in sales training to improve their skills, thereby increasing your business revenue and probably reducing the discount levels given out?

6. Window Industry Seminars

The Window Industry still represents tremendous opportunity for growth and profit, for those companies with the foresight to adapt. April 2006 sees the start of two hard-hitting Seminars to help companies grow and improve in this changing market. Sales Masterclass is a sales training Seminar for anyone involved in sales or customer-contact, and Business Supergrowth provides specific growth and profit strategies and principles for business owners, managers and directors.