MARGIN Builders By Tom Leahy
Don’t forget fencing! Stocking strategies for growing profit margins of today’s fickle economic landscape, one thing holds true: Americans are spending more time and money than ever before commissioning building professionals to create design-centric outdoor living spaces. In an industry breakdown of the most sought-after products, the fence—a once overlooked element of an outdoor living space— has become the rising star of the backyard equation. A fence can not only extend a homeowner’s personal design aesthetic to the property line, but also offers a needed privacy solution amid the newfound desire to revive underappreciated backyard living spaces.
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Underscoring this trend, the chief economist at Porch.com has tracked a 1 % increase in fence installation services over the last year. In addition to a meteoric rise in fencing projects, a ouzz study reported a 1 % yearover-year jump in searches for deck, patio and porch professionals, with a sharp uptick in decking and railing installations. In short, Americans’ fervor for outdoor home improvement has hit a historically high level and shows no signs of slowing down. So, that poses the question, is the channel prepared to meet the continued demand for outdoor living products in 0 1?
MIXED MATERIALS: Fortress Estate ornamental privacy fencing combines classic ornamental steel fencing with wood or composite pickets. (Photos by Fortress Building Products)
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The Merchant Magazine n
February 2021
Prepare for increased demand in outdoor living product categories to win customers. The country’s burgeoning interest in outdoor home improvement caught many dealers and distributors flat footed in the first half of 0 0. Some were left emptyhanded or pressed to pay a premium to stock their yard, as existing inventory quickly cleared. Admittedly, it was unnerving to purchase product amid a volatile economic climate. owever, it was our experience that those who had su cient inventory in stock saw it move. Ahead of prime building season, dealers and distributors can move forward with confidence by evaluating their 0 1 stocking strategies. Preparation is key to not only handle the influx in demand, but to also win over customers in today’s competitive marketplace. This includes stocking product for the entire backyard package, and with it, fencing solutions. For example, if a customer walks onto a dealer yard to purchase decking and railing product but isn’t able to complete the backyard build with fencing, they will spend their money at the lot down the street. We can’t stress this enough—don’t let customers walk away. Introduce products with familiar value propositions to stay ahead of the competition Because fencing has gained heavy traction across the outdoor living category, we recommend stocking this product ahead of peak building season. Building-Products.com
