Is your outdoor furniture business truly maximizing its profit potential? Uncover nine powerful strategies meticulously crafted to elevate your revenue streams and optimize operational efficiency. Ready to transform your financial outlook and ensure sustainable growth? Explore how a robust outdoor furniture store financial model can illuminate your path to increased profitability.
Steps to Open a Business Idea
Embarking on the journey of opening an outdoor furniture store requires meticulous planning and strategic execution. The following table outlines essential steps, from foundational business planning to establishing robust operational systems, crucial for achieving success and profitability in the competitive outdoor living retail market.
| Steps to Open a Business Idea | Super Short Description |
|---|---|
| Develop A Comprehensive Business Plan | Outline your mission, target market, competitive analysis, and financial forecasts, defining a clear niche for sustainable growth. |
| Secure Funding And Manage Finances | Secure adequate funding (e.g., SBA loans) and implement robust financial management, including an operating reserve for stability. |
| Establish Supplier And Inventory Systems | Build strong supplier relationships, negotiate favorable terms, and optimize inventory management with a modern POS system. |
| Choose A Strategic Location And Design Showroom | Select a high-traffic location and design an immersive showroom with strategic layouts to enhance customer experience and drive sales. |
| Hire And Train Knowledgeable Staff | Recruit customer-focused staff and provide comprehensive training on product knowledge and sales techniques to boost performance. |
| Develop A Multi-Channel Marketing Plan | Integrate digital marketing (SEO, social media, e-commerce) with traditional tactics to build brand awareness and drive sales. |
| Launch And Implement Loyalty Programs | Generate excitement with a grand opening and immediately launch a customer loyalty program to foster repeat business and long-term value. |
What Are Key Factors To Consider Before Starting Outdoor Furniture Store?
Launching an Outdoor Furniture Store requires careful planning across several key areas. Success hinges on a thorough market analysis, securing a strategic location with adequate showroom space, establishing reliable supplier relationships, and developing robust outdoor furniture store profit strategies. Understanding these foundational elements before opening helps set a strong path for growth and profitability.
The market outlook for outdoor furniture is robust. The US outdoor furniture market was valued at approximately USD 91 billion in 2023. This sector is projected to grow at a significant CAGR of 59% through 2030, indicating strong consumer demand and substantial potential for outdoor furniture business growth. This growth underscores the importance of strategic planning to capture a share of this expanding market.
Initial startup costs are a critical consideration for any new retail venture. For a furniture store, these can range from $50,000 to over $500,000. A major portion of this investment, typically 40-50%, is allocated to inventory. Therefore, optimizing inventory for seasonal outdoor furniture demand becomes critical for managing cash flow effectively and ensuring long-term profitability. Efficient inventory management prevents overstocking during off-peak seasons and ensures popular items are available during high-demand periods like spring and summer.
Profitability in the outdoor furniture sector is directly linked to effective financial management. Gross profit margins for furniture retailers generally fall between 40% and 55%. To achieve furniture store profit maximization, focusing on negotiating better supplier deals for outdoor patio furniture and implementing effective pricing strategies are essential. For more detailed insights into financial planning for an outdoor furniture business, consider reviewing resources on outdoor furniture store profitability.
Key Areas for Consideration:
- Market Analysis: Understand current trends and consumer preferences in the outdoor living sector.
- Strategic Location: Choose a site with high visibility and sufficient space for displays and inventory.
- Supplier Relationships: Build strong partnerships for quality products and favorable terms.
- Financial Planning: Develop clear outdoor furniture store profit strategies to manage costs and maximize revenue.
How To Boost Patio Furniture Business Revenue?
To boost patio furniture business revenue, an Outdoor Furniture Store must implement a multi-channel sales approach. This strategy combines a robust e-commerce platform with an exceptional in-store experience, all supported by targeted digital marketing campaigns. This integrated method ensures maximum reach and engagement with potential customers.
E-commerce plays a critical role in increasing sales. In 2023, e-commerce sales within the US home furnishings sector exceeded $75 billion. Adhering to the best practices for outdoor furniture store e-commerce allows businesses like Outdoor Oasis Furnishings to capture a significant share of this expanding online market. A seamless online shopping experience, from product browsing to checkout, is essential for converting online visitors into buyers.
Enhancing the in-store customer experience is equally vital for driving sales. Retailers who focus on providing an enhanced customer experience typically observe a 10-15% increase in sales conversion rates. Enhancing in-store customer experience for outdoor furniture buyers involves creating inspiring displays and ensuring staff are knowledgeable and helpful. Unique outdoor furniture display ideas, such as fully accessorized patio vignettes, allow customers to visualize products in their own outdoor living spaces, directly helping to increase outdoor furniture sales.
Strategies to Boost Sales in a Competitive Market
- Segmented Email Marketing: This approach can increase revenue by as much as 760%. By tailoring messages to specific customer groups, such as those interested in luxury or sustainable outdoor furniture options, businesses can deliver highly relevant content that encourages purchases.
- Targeted Digital Advertising: Utilize platforms like Google Ads and social media to reach consumers actively searching for outdoor furniture. This includes optimizing for long-tail keywords like 'sustainable outdoor furniture sales' or 'luxury outdoor patio sets.'
- Personalized Recommendations: Leverage customer data to suggest complementary products or upgrades, boosting the average transaction value. For instance, if a customer buys a patio set, recommend matching cushions or an outdoor rug.
What Legal And Regulatory Steps Are Required To Open Outdoor Furniture Store?
Opening an Outdoor Furniture Store like Outdoor Oasis Furnishings requires careful attention to legal and regulatory steps to ensure a smooth launch and protect your business. The primary actions involve registering your business name, establishing a legal entity, obtaining an Employer Identification Number (EIN), and securing all necessary state and local business licenses and permits. These steps are foundational for compliant operations and long-term viability, directly impacting outdoor living retail profitability.
Essential Legal Requirements for Your Outdoor Furniture Store
- Business Entity Formation: Forming a legal entity, such as a Limited Liability Company (LLC), is crucial. The cost to file for an LLC in the United States typically ranges from $50 to $500. This structure is a cornerstone of financial management tips for outdoor furniture retailers, as it provides vital liability protection for personal assets, separating them from business liabilities.
- Employer Identification Number (EIN): A federal EIN is required for tax purposes, even if you don't plan to hire employees immediately. This number is free to obtain directly from the IRS.
- Seller's Permit/Sales Tax Permit: A seller's permit is mandatory in 45 states for collecting sales tax. The average state sales tax rate is approximately 5.77%, not including additional local taxes. Compliance ensures you can legally collect and remit sales tax on your Outdoor Furniture Store sales.
- Product Safety Compliance: Adherence to product safety laws is non-negotiable. Key regulations include the Consumer Product Safety Act and furniture flammability standards, such as TB 117-2013. Penalties for violations can reach up to $100,000, severely damaging your business's reputation and outdoor living retail profitability. Ensuring your products meet these standards helps attract eco-conscious consumers to outdoor furniture stores by building trust.
How To Increase Profits For A Small Outdoor Furniture Store?
To increase profits for a small Outdoor Furniture Store like Outdoor Oasis Furnishings, focus on three core areas: stringent cost control, strategic inventory management, and diversifying product offerings. These strategies directly impact your bottom line by reducing expenses and boosting revenue per sale. For instance, even a small reduction in operational costs can significantly improve overall profitability.
Reduce Operational Costs Effectively
- Target Expenses: Begin by scrutinizing all operational costs. Identifying and cutting unnecessary expenses is crucial for furniture store profit maximization.
- Energy Efficiency: Simple changes, like converting to energy-efficient LED lighting, can reduce electricity expenses by up to 75%. This directly contributes to reducing operational costs in an outdoor furniture showroom.
- Impact on Profit: Data shows that reducing operational costs by just 5% can elevate net profit margins by over 20%, making cost control a powerful lever for outdoor living retail profitability.
Implementing an inventory management system is vital for small Outdoor Furniture Store operations. This system helps in optimizing inventory for seasonal outdoor furniture demand, preventing costly overstock during slow periods and ensuring products are available during peak seasons. Effective management can significantly cut carrying costs, which typically amount to a substantial percentage of inventory value annually.
Optimize Inventory and Diversify Products
- Inventory Management Systems: Utilize modern POS systems with integrated inventory tracking. These systems can cut carrying costs by 10-15%, a critical element for managing cash flow.
- Seasonal Planning: Focus on optimizing inventory for seasonal outdoor furniture demand. The peak season for outdoor furniture sales typically runs from April to July. Avoiding overstock during off-peak times prevents holding costs and markdowns.
- Product Diversification: Retailers that diversify their product lines with complementary items like outdoor heaters, umbrellas, and decor often see a 15-30% increase in average transaction value. This directly helps to boost patio furniture business revenue and enhances the customer experience by offering complete outdoor living solutions.
By controlling costs and strategically managing inventory, Outdoor Oasis Furnishings can significantly improve its financial health. Furthermore, expanding the range of products offered under the umbrella of outdoor living spaces ensures customers find everything they need, increasing their average spend. For more detailed insights into managing profitability, consider exploring resources on outdoor furniture store profitability.
What Are Effective Marketing Strategies?
Effective marketing for an Outdoor Furniture Store like Outdoor Oasis Furnishings requires an integrated strategy. This approach combines strong digital marketing efforts, building local community partnerships, and creating compelling in-store displays. Over 70% of furniture shoppers begin their purchasing process online, highlighting the critical need for a robust digital presence. This blend helps to reach potential customers at various touchpoints, from initial online research to the final in-store decision, ensuring comprehensive market coverage and driving outdoor furniture business growth.
Utilizing social media is essential for driving outdoor furniture sales. Platforms like Instagram and Pinterest are highly effective due to their visual nature, allowing brands to showcase stylish outdoor living spaces. Brands on these platforms can achieve engagement rates of around 16%, making them powerful tools for connecting with potential buyers. Beyond social media, optimizing for search engines (SEO) ensures that when customers search for 'outdoor furniture near me,' Outdoor Oasis Furnishings appears prominently. This digital foundation is crucial for furniture store profit maximization in today's market.
Leveraging Local Partnerships and In-Store Displays
- Leveraging local partnerships for outdoor furniture business growth creates a steady stream of high-quality referrals. Collaborating with landscapers, home builders, and real estate agents can be highly beneficial. These referrals boast a 37% higher customer retention rate compared to other acquisition methods, directly contributing to outdoor living retail profitability.
- Creating unique outdoor furniture display ideas to increase purchases within the showroom can significantly boost sales. Lifestyle vignettes, which allow customers to visualize products in a realistic setting, can improve sales by as much as 40%. For more insights on financial performance, consider resources like Outdoor Furniture Store Profitability. These immersive displays enhance the customer experience and help them envision how furniture will transform their own outdoor spaces.
Develop A Comprehensive Business Plan
A comprehensive business plan is essential for an Outdoor Furniture Store like 'Outdoor Oasis Furnishings' to define its path to profitability. This document must clearly outline the company's mission, identify its target demographic, provide a detailed competitive analysis, present robust financial forecasts, and articulate clear outdoor furniture store profit strategies. A well-structured plan acts as a roadmap, guiding operational decisions and attracting potential investors or lenders. It helps to maintain focus on core objectives, such as boosting patio furniture business revenue and achieving overall outdoor living retail profitability.
Businesses with a formal, written plan experience 30% faster growth compared to those without one. This strategic document should meticulously detail how the store will operate, from inventory management to customer engagement. For an Outdoor Furniture Store, understanding seasonal peaks is crucial; 60-70% of annual sales typically occur between spring and summer. Financial projections must account for these fluctuations, ensuring adequate cash flow and inventory levels during peak demand periods. This foresight is key to maximizing outdoor furniture sales and overall furniture store profit maximization.
Key Components of an Outdoor Furniture Business Plan
- Target Demographic: Define who your ideal customer is. 'Outdoor Oasis Furnishings' focuses on modern consumers seeking high-quality, stylish solutions.
- Competitive Analysis: Understand the market landscape. With over 20,000 furniture stores in the US, identifying a unique selling proposition is vital.
- Niche Identification: Consider specializing, such as focusing on sustainable outdoor furniture sales. The market for sustainable goods is growing 56 times faster than conventional products, offering a significant advantage.
- Financial Projections: Include a detailed break-even analysis. For an Outdoor Furniture Store with $600,000 in annual revenue and a 45% gross margin, total fixed costs must remain below $270,000 to achieve profitability.
Developing a comprehensive plan addresses questions like 'How can an outdoor furniture store increase its profit margins?' by providing a structured approach. It forces a clear articulation of strategies to increase outdoor furniture sales and improve customer retention in an outdoor furniture business. This foundational work supports long-term outdoor furniture business growth by ensuring all efforts are aligned towards measurable financial success and operational efficiency. The plan also serves as a critical tool for securing funding, as investors and lenders rely on its details to assess viability and potential returns.
Secure Funding And Manage Finances
To successfully launch your Outdoor Furniture Store, like 'Outdoor Oasis Furnishings,' securing adequate funding is critical. This initial capital ensures you can cover setup costs, inventory, and operational expenses. Options such as SBA loans or business lines of credit are common avenues for retail businesses. For example, the average SBA 7(a) loan for a retail business is approximately $215,000. A strong business plan, demonstrating a clear path to outdoor living retail profitability, is essential to secure this type of financing and convince lenders of your venture's viability. This foundational step dictates your ability to acquire initial inventory, which can cost upwards of $150,000 for a new store.
Implementing sound financial management tips for outdoor furniture retailers from day one is non-negotiable. Establish a dedicated business bank account separate from personal finances. This separation simplifies tracking and provides a clear financial picture. Utilizing accounting software, such as QuickBooks or Xero, allows you to meticulously track all revenue and expenses. This detailed tracking is fundamental for reducing operational costs in an outdoor furniture showroom and maintaining healthy cash flow. Accurate financial records also aid in understanding your profitability and identifying areas for cost savings.
A crucial financial buffer for any retail business, especially one with seasonal sales like an Outdoor Furniture Store, is an operating reserve. This reserve should cover at least 3-6 months of fixed expenses. For instance, if your monthly fixed costs are $30,000, a reserve of $90,000-$180,000 is necessary. This financial cushion allows you to navigate seasonal sales lulls, unexpected maintenance costs, or other unforeseen expenditures without jeopardizing your business's stability. Maintaining this reserve is a core strategy for long-term furniture store profit maximization and ensures business continuity.
Key Financial Management Steps
- Secure diverse funding sources: Explore SBA loans, business lines of credit, or even targeted grants to ensure sufficient capital.
- Implement robust accounting systems: Use dedicated software to track every dollar, identifying spending patterns and potential savings.
- Build an operating reserve: Aim to save 3-6 months of fixed expenses to buffer against seasonal fluctuations and unexpected costs, crucial for outdoor furniture business growth.
- Monitor cash flow diligently: Regular cash flow analysis helps in making informed decisions about inventory and operational spending, supporting retail furniture management.
Establish Supplier And Inventory Systems
A crucial step for any Outdoor Furniture Store aiming for sustained growth is establishing robust supplier and inventory systems. This involves identifying reputable manufacturers, negotiating favorable terms, and implementing efficient processes to manage stock. Strong supplier relationships directly impact your ability to offer competitive pricing and unique products, which are vital for increasing outdoor furniture sales and boosting patio furniture business revenue.
Building Strong Supplier Relationships for Your Outdoor Furniture Store
- Identify Reputable Manufacturers: Research and select suppliers known for quality, reliability, and ethical practices. This ensures the durability and aesthetic appeal of your outdoor living retail profitability offerings.
- Negotiate Favorable Terms: Always negotiate payment terms, delivery schedules, and bulk discounts. For instance, negotiating 15-20% discounts for early-season or bulk orders can significantly improve your gross margins by 5-10%, directly contributing to furniture store profit maximization.
- Maintain Clear Communication: Consistent and transparent communication with suppliers helps prevent delays and resolves issues swiftly. Ensure timely payments to build trust and prioritize your business for future orders.
Optimizing inventory management is essential for increasing profits and reducing operational costs in an outdoor furniture showroom. An efficient system minimizes holding costs and ensures product availability. This is key for strategies to boost sales in a competitive outdoor furniture market, especially given the seasonal demand for outdoor living spaces.
Optimizing Inventory Management for an Outdoor Furniture Store
- Implement a Modern POS System: Use a Point of Sale (POS) system with integrated inventory tracking features. This allows real-time monitoring of stock levels, sales data, and popular items, improving retail furniture management.
- Manage Seasonal Stock Effectively: Outdoor furniture demand fluctuates with seasons. Forecast peak and off-peak periods accurately to avoid overstocking or stockouts. Holding costs can amount to 20-30% of inventory value annually, making precise optimization essential to outdoor furniture store profit strategies.
- Diversify Product Offerings: Consider adding complementary items like outdoor rugs, lighting, or decor to diversify revenue streams and appeal to a broader customer base, enhancing overall outdoor furniture business growth.
Attracting eco-conscious consumers to outdoor furniture stores represents a significant market opportunity. This segment increasingly seeks sustainable materials and ethical sourcing. By aligning with these values, your Outdoor Furniture Store can tap into a growing market and enhance its brand image.
Sourcing Sustainable Materials to Attract Eco-Conscious Consumers
- Prioritize Sustainable Suppliers: Seek out manufacturers offering environmentally friendly options. Examples include recycled plastic furniture, FSC-certified teak (Forest Stewardship Council), or aluminum made from recycled content.
- Highlight Eco-Friendly Benefits: Clearly communicate the sustainable aspects of your products to customers. This appeals to a market expected to reach $150 billion by 2025, showing your commitment to responsible business practices.
- Enhance Brand Visibility: Promoting your sustainable outdoor furniture sales initiatives can improve brand perception and attract high-value customers looking for ethical choices. This positions your business as a leader in the outdoor living retail profitability space.
Choose A Strategic Location And Design Showroom
Selecting the right location is fundamental for an Outdoor Furniture Store like Outdoor Oasis Furnishings. A high-traffic retail location with excellent visibility and ample space is crucial. This directly impacts foot traffic and potential outdoor furniture sales. The average cost for commercial retail space in the US is approximately $23 per square foot annually. For instance, a 4,000-square-foot showroom could incur an annual lease cost of $92,000, highlighting the significant financial impact of location choice on profitability. Prioritizing accessibility and visibility helps attract more customers and supports overall outdoor living retail profitability.
Optimize Showroom Layout for Sales Growth
Designing an immersive showroom is essential to elevate the customer experience and drive sales. Effective retail furniture management of the showroom layout can significantly increase outdoor furniture sales by up to 50%. This involves creating unique outdoor furniture display ideas to increase purchases, such as fully accessorized patio vignettes. These displays allow customers to visualize how furniture will look in their own outdoor spaces, enhancing their purchasing decision. A well-organized and aesthetically pleasing showroom encourages longer browsing times and higher conversion rates, contributing directly to boost patio furniture business revenue.
Allocate Space for Inventory Management
Beyond the display area, the chosen location must provide sufficient backroom or warehouse space for inventory. A typical recommendation for an Outdoor Furniture Store is a 70% showroom to 30% storage ratio. This balance ensures smooth operations, from receiving large shipments of patio furniture to efficiently fulfilling customer orders. Adequate storage prevents clutter in the showroom, maintains a professional appearance, and supports effective optimizing inventory for seasonal outdoor furniture demand. Proper space allocation is a critical factor in overall furniture store profit maximization by ensuring product availability and operational efficiency.
How to Hire and Train Knowledgeable Staff for Your Outdoor Furniture Store
Hiring a customer-focused team is crucial for an Outdoor Furniture Store. Implement a robust training program to ensure staff possess deep product knowledge. This training is fundamental to maximizing revenue and ensuring customer satisfaction. For instance, comprehensive training can boost an employee's sales performance by over 20%. Staff must be experts on materials like teak, aluminum, and wicker, understanding their durability, maintenance requirements, and unique benefits. They should also be proficient in offering customization services for outdoor patio sets, guiding customers through fabric choices, frame colors, and modular configurations.
Highly engaged employees directly impact an Outdoor Furniture Store's profitability. Studies show that highly engaged employees lead to 21% greater profitability. To attract and retain top talent, offer competitive wages. The median wage for US retail salespeople is about $14.50/hour. Supplement this with a commission structure, typically ranging from 5-10% of sales. This incentivizes staff to excel and provides a clear path for increased earnings, fostering a dedicated and high-performing sales team.
Customer service is extremely important in an outdoor furniture retail environment. Excellent service is a cornerstone of improving customer retention in an outdoor furniture business. Research indicates that 86% of consumers will pay more for a better experience. This highlights the direct link between service quality and customer willingness to spend. Staff should be trained not just on product features, but also on active listening, problem-solving, and follow-up. This creates a positive shopping experience, encouraging repeat business and strong word-of-mouth referrals for 'Outdoor Oasis Furnishings'.
Key Training Areas for Outdoor Furniture Staff
- Product Knowledge: Train on specific materials (e.g., marine-grade polymer, powder-coated aluminum), construction techniques, and care instructions for all outdoor furniture pieces.
- Sales Techniques: Focus on consultative selling, understanding customer needs, cross-selling complementary items like cushions or covers, and closing strategies.
- Customization Options: Educate staff on all available personalization services for outdoor patio sets, including fabric swatches, frame finishes, and modular configurations.
- Customer Service Excellence: Develop skills in active listening, handling objections, resolving issues efficiently, and ensuring post-sale satisfaction to improve customer retention.
- Warranty & Returns: Ensure a clear understanding of all warranty policies, return procedures, and product guarantees to provide accurate information and build trust.
Develop A Multi-Channel Marketing Plan
An effective marketing plan for an Outdoor Furniture Store integrates both digital and traditional tactics to build brand awareness and drive sales. This multi-channel approach ensures maximum reach for 'Outdoor Oasis Furnishings' to attract diverse customers, from first-time founders seeking guidance to seasoned entrepreneurs looking for streamlined planning solutions.
A standard marketing budget for retail businesses is typically 7-10% of gross revenue. For a store targeting $700,000 in sales, this translates to an annual budget of $49,000-$70,000. This investment funds effective marketing strategies for luxury outdoor furniture and other products, crucial for boosting patio furniture business revenue and achieving outdoor living retail profitability.
How can an outdoor furniture store leverage digital marketing for growth?
- Mastering SEO: Local SEO is vital; 46% of all Google searches are for local businesses. Optimizing for phrases like 'outdoor furniture store near me' (searches for which have grown over 500% recently) is crucial for attracting nearby customers. This directly increases outdoor furniture sales by making the store easily discoverable.
- Social Media Engagement: Utilize platforms like Instagram and Pinterest to showcase unique outdoor furniture display ideas, attract eco-conscious consumers, and build a community around outdoor living. Regular posts can drive outdoor furniture sales and improve customer retention for an outdoor furniture store.
- E-commerce Integration: A major role. Online furniture sales are projected to comprise 25% of the total market by 2025. A seamless online store is essential for modern outdoor living retail profitability, allowing customers to browse and purchase patio furniture sets conveniently. This diversifies revenue streams for the outdoor furniture business.
To increase outdoor furniture sales and maximize furniture store profit maximization, consider integrating email marketing, targeted online advertisements, and local community partnerships. These tactics, combined with a strong online presence, ensure a comprehensive approach to attracting high-value customers and adapting to patio furniture market trends.
Launch And Implement Loyalty Programs
To maximize an Outdoor Furniture Store's profitability, launching and effectively implementing customer loyalty programs is crucial. This strategy fosters repeat business and builds long-term customer value. For 'Outdoor Oasis Furnishings,' immediately introducing a loyalty program alongside a grand opening can generate excitement and encourage initial sign-ups. This approach capitalizes on the momentum of a new business launch to secure early customer engagement and lay the groundwork for sustained revenue.
What kind of loyalty programs work best for outdoor furniture customers?
- Tiered or points-based programs are highly effective for outdoor furniture customers. These structures allow customers to earn rewards based on their spending, encouraging larger purchases and repeat visits.
- Research shows that loyalty program members spend 12-18% more annually with a brand than non-members. This demonstrates the direct impact on 'outdoor furniture store profit strategies' and overall 'increase outdoor furniture sales.'
Implementing loyalty programs for repeat outdoor furniture customers is a core strategy for 'furniture store profit maximization.' Acquiring a new customer costs five times more than retaining an existing one. This fact underscores why customer retention is paramount for 'Outdoor Oasis Furnishings' and any 'outdoor living retail profitability' goal. Focusing on keeping existing customers engaged directly contributes to a stronger bottom line and consistent revenue streams.
A central component of 'improving customer retention in an outdoor furniture business' is offering valuable perks through loyalty programs. These exclusive benefits build lasting loyalty and differentiate your store in a competitive market. For instance, providing early access to new collections creates a sense of exclusivity and anticipation. Members-only discounts provide direct savings, while offering free delivery—which can save a customer $75-$150—adds significant value and convenience. Such incentives motivate repeat purchases and enhance the overall customer experience, leading to higher lifetime customer value.