Eight years ago, architect Michael Gottschalk decided to branch out into another area of business by developing his own brand of high-end bathroom fixtures. Blu Bathworks now has 15 full-time employees and sells its products throughout North America.
Gottschalk thought there was a market in Canada and the United States for European-style fixtures, which were hard to get in North America.
With his background in design and real estate development, and the backing of a well-resourced business partner, Gottschalk assumed that once he developed his product, the market would respond.
That wasn’t the case.
“It was a massive challenge,” he recalls. “We didn’t fully understand how goods were sold in the plumbing industry. What we didn’t understand was how [the showrooms] got the goods in the first place, and the whole substructure of moving goods.
“There are a few key players you really need endorsement from, or you’re really stuck.”
Gottschalk had spent hundreds of thousands of dollars developing his product, only to realize he’d failed to learn exactly how the industry works. For instance, getting large showroom distributors to carry your product is key.
Hiring was another challenge.
“I can kind of hire somebody for product [design] because I get product, and I’m comfortable with operations,” he said. “[But] I didn’t know how to hire somebody for marketing [or] … sales.”
Things fell into place when he hired the right salesperson, who had 18 years of experience in the fixtures industry and knew how to open the right doors to get Gottschalk’s products on the shelves.
“Without that person, I don’t have a business,” Gottschalk said.
On lessons learned | “Looking back on it, I would certainly [get to] know how the goods are sold in the market I’m developing for. … What we learned was that these wholesalers, they actually get rid of somebody in order to take you on. And after that it’s all about, ‘What are you going to do for me? Why should I take a chance on you?’”
Has a work or life challenge taught you a key career lesson? Contact Jen St. Denis at [email protected]
