
2 minute read
tulled es Become part of your customerts solution
By Roy Burleson
fN TODAY'S tough marker. more Ithan ever builders need your help. New home starts are down in most areas of the country. Inventory is high. Many builders are struggling, and some have even shut their doors. Of course, I am not telling you anything you don't already know.
Builders are desperately searching for answers. Opportunities surface when your customers are searching for business solutions. Now might be a good time to take a deep breath and examine your sales offerings and service quality. Is your company's sales approach addressing builders' real problems? Is your company positioned to take advantage of today's market conditions? Are your salespeople looking for opportunities to help your customers in ways that add value and provide tangible business solutions? Is your service quality superior to your competitors?
The simple answer to helping builders in this environment is lower prices. But that only serves the builder, while eroding your margins. How about the best of both worlds? Help the builder lower costs (not prices), while at the same time preserving margins. Installed sales programs do both.
Juggling subcontractors is a tedious and time-consuming activity for most builders. Many of the builder's scheduling problems can be eliminated when you supply and install several products. This service can be a real time-saver when you eliminate the need for the builder to juggle multiple suppliers and subcontractors. Saving a builder time is like putting extra profits directly to his bottom line.
However, this won't happen automatically. The salesperson is likely to get drawn into the pricing game if he or she isn't properly trained. Make sure your salespeople are skilled at qualifying builders. They need to understand where opportunities exist before offering solutions. already exists. You don't have to create it. You just have to help the builder identify installation issues. challenges or problems, and offer better solutions. And your company probably has a long-standing and credible image in the market. The builder realizes you are properly staffed and insured. If you were a builder, with whom would you rather contract-a sub who may or may not be in business tomorrow, or a credible building material dealer who has already passed the test of time? And the products you sell have to be installed by someone, why not you as part of a total solution?
Frequently dealers can help builders reduce their cycle times with a properly executed installed sales program. The odds of the builder meeting targeted closing dates are greatly improved when there are less subcontractors to juggle. There are numerous opportunities for dealers to help the builder meet their deadlines.
L Let's examine this from another / ^ direction. Today's market condi- 'uons are maKlng lr tougner to com- \ pete. Most of your competitors sell the same products as you-if not by brand name, certainly by function. Most offer similar terms. deliverv and other services. You have two choices when vying for business. You can attempt to out-price (bid) or you can out-service your competition with something even more valuable than cheap pricing.
Becoming a value-added supplier might be as simple as replacing his most unreliable sub. However, once again, the salesperson needs to properly qualify the builder. Asking the proper questions before offering a price is critical. Too many salespeople attempt to either bid or offer some kind of predetermined solution before they fully understand the problem. Can you imagine a doctor or mechanic offering a solution before analyzing the problem? You would shop elsewhere and so do builders!
The need for installation services
Installation is a service. It solves problems. The experience is far more personal and meaningful than a onetime low price. While price is important, helping your builder customers reduce costs is critical today. When you help the builder solve problems, improve communications, reduce finger pointing, and eliminate frustrations, your organization becomes more than just a supplier of product and your relationship will become more meaningful. The builder is inclined to be more loyal with his eye on solutions and notjust price.
- Roy Burleson is director of Builder Solutions for Guardian Building Products, Greer, S.C. Contact him at (248) 760-5791 o r roy b urle s on @ bp. guardian. c om.