qlled es Builders need you when you add value

By Roy Burleson

fD EFORE vou set too excited about -fDtne ritte bf th-is anicle. you might want to examine your organization's value proposition.

Builders need solutions! They need suppliers that add value. While it's true that building material dealers add value in the supply chain. some are rewriting their business plans to increase their worth to the construction industry. Some have looked around, see no real difference between their offerings and the competitors' down the street, and feel it's time for a change.

First, let's look at some of the dayto-day challenges builders face. Homes have to come in, on or under budget. Schedules have to be met. Customer complaints have to be reduced or eliminated. They also have to wrestle with insurance and liability issues and honor wananties. Builders have personnel issues and employee turnover just like any other business. Juggling subcontractors can also be a daunting task. And, of course, for those builders that want to create a positive image and reputation in their respective markets, customer satisfaction is always on their minds.

Owners of smaller organizations might deal directly with these issues, while larger builders might have dedicated personnel assigned to them. Either way, it costs the builder time and money to juggle these and other tasks.

Before addressing a possible solution, let's also take a peek at current market conditions. It's no secret that new construction has slowed dramatically in many parts of the country. Today's business climate has caused the entire industry to look at their organizations differently. Your competitor wants (needs) more market share to make up for the slowdown. If the competition accomplishes this goal, others in his market will lose even more business.

Builders wield a lot of power. They dictate what products go into their houses and who installs them. All across the country, both suppliers and subcontractors are looking for new and better ways to earn the builder's business while attempting to stay profitable. And it usually comes down to one of two options: lower prices or increase value. If a dealer simply supplies, price frequently becomes the differentiator. On the other hand, if you offer services like installed sales, they tend to add value and take the focus off price. Sharp builders recognize the difference between low prices and solutions-focused cost savings.

Just compare our industry today to just a few years ago. Most dealers were reluctant to offer installed sales. However, that's not the case today. Because they need to differentiate themselves, many dealers offer installation services for the building materials they sell. They recognize that service adds a lot more value than simplv supplying products. Many dealers are installing framing, foundations, plumbing, doors, windows, kitchens, fireplaces, garage doors, insulation and after-paint products for the builder.

Also, many specialty contractors are adding other installation services to their core installed product offering. Some that offer five to 10 installed products might have been offering just one or two a few years ago. When a supplier helps the builder save time and money by offering bundled installation services, it makes the builder's job easier. The fewer calls the builder makes, the fewer subcontractors he has to juggle and the more valuable the installing supplier becomes. Billing is also simplified when the builder has fewer installers on the job. One statement is easier to process than a halfdozen.

Most dealers sell quality products. When things go awry on the jobsite, the cause is usually poor or late installations. In today's business climate, builders need meaningful solutions, while dealers need additional sales. Why not consider providing the builder with cost-effective solutions and at the same time, generate more income per house by offering installed sales?

If you currently offer installed sales, consider adding to the services you currently provide your customers. The more services you offer and the more solutions you provide, the more difficult it becomes for the competition to make a run at your business.

- Roy Burleson is director of Builder Solutions for Guardian Building Products, Greer, S.C. Contact him at (248) 760-5791 or roybur Ie s o n@ bp. g uardian.c om.