tqlled Targeting repairs and remodels

By Roy Burleson

L.TEW construction sales probably I \ account for most of Your income. However, new construction has slowed for most building material dealers, so let's examine other installed opportunities: home improvements and remodeling.

America's average housing stock is approximately 30 years old and is in need of repairs and remodeling. If the current market downturn in your market is having a negative imPact on your sales and profits, offering installation services for homeowners could provide some relief.

Home improvement contractors are a dime a dozen. That doesn't mean theY are qualified, reputable or skilled at their trade. It just means they are Plentiful. Check with your local Better Business Bureau or contractor licensing authorities and you will more than Iikely discover a need that exists for homeowners in your market. Home improvement contractors are typically creating a large share of consumer complaints.

Today's homeowners are looking for professionals to take care of their home improvement needs. Not onlY are they pressed for time, but they also lack the skills and tools to do most jobs themselves. DePending on how the project is classified, between $200 billion and $300 billion is spent annually on home improvements. Approximately 807o is sPent in the "Pro installed" segment, while only about 20Vo is d-i-y. This opens a tremendous market for the progressive building material dealer that can provide this much-needed service.

Most homeowners have a difficult time finding installers that provide quality projects they truly need. Also' today's consumers are more demanding. They not only want a quality job' but service quality is also very important to the majoritY of them. TheY want companies that deliver positive experiences. However, frequently that isn't what is being delivered in the marketplace. This service void provides real opportunities for dealers that can fill the need. Today's consumers simply want better services and are attracted to credible businesses that provide it.

The majority of home imProvement contractors are self-employed individ- opportunities with homeowners.

There is a plethora of opportunities for dealers that want to explore new sales channels and opportunities. Studies have shown that homeowners are far more likely to remodel and update their house during the first three to five years of ownership than at any other time. Public records offer a gold mine full of these potential customers. Also, homeowners that recently moved into a new home have needs as well. Many want to add decks, fences, screened porches, and other projects that are typically undertaken after moving into a new home.

Let's look at this from a homeowner' s persPective. When given a choice, who would they rather emPloY to complete a project, a guY working from a pickuP truck or a building material dealer that has been in business for decades or longer?

Also, it is a whole lot easier to make contact with a dealer that has a retail uals. Most don't stay in business very long, while many get into financial trouble personally, with suppliers and/or with the taxman. In fact, approximately 95Vo fail within five years. The ease of entrY into the remodeling business, the lack of any regulatory or effective licensing controls with teeth, and their volatile nature all combine to increase the homeowner's risk.

In addition, the older, more established remodeling companies typically market their services to the higher-end customer looking for more extensive remodeling projects like room additions and other major remodeling projects. They normally don't serve customers who need core Projects and products that comprise many installed location open during normal working hours and staffed with PeoPle that actually answer the phone. This type of operation provides buyers with a peace of mind that is of value' And this value proposition generates better margins than new construction.

Customer expectations guarantee a ready market for installation services. If you are looking for sales opportunities, take a few minutes and exPlore this market. Because most homeowners lack the time, skills or tools to complete the projects themselves, it could be just what the "sales doctor" ordered.

- Roy Burleson is director of Builder Solutions for Guardian Building Products, Greer, S.C. Contact him at (248) 760-5791 o r royburle son @ bp. guardian' com.

Riley Creek Exits Wholesale

Riley Creek Lumber Co., Idaho's largest lumber producer, will discontinue wholesale lumber distribution and close its two-year-old distribution center in Denver, Co., bY the end of the year.

"We are refocusing on our core strengths of lumber manufacturing, product develoPment, and customer service," said Marc BrinkmeYer, owner of the Laclede, Id.-based firm.

Erol Deren, formerlY President of Riley Creek's DC, is now vice President of sales & marketing for RileY Creek Lumber. "The relationships, talent, and education gained over the establishment of RileY Creek Distribution will assist in better serving Riley Creek Lumber's core customers and help the company to navigate the current market conditions," Deren said.

Deren will develoP and manage companywide sales and marketing in conjunction with North Idaho staff and three to four emPloYees from the Denver office. "Riley Creek is looking at some new initiatives for potential product lines and services which we believe will be very attractive to our customer base," he explained. "This is a good opportunity to improve value in a tight market."

EWP Distributor Renamed

Six years after EWP manufacturer Standard Structures Inc. spun off its clistribution division, the wholesale company now has a new name.

Renamed Precision ComPonents Systems, the firm was formerly known as Standard Structures-Northwest, Beaverton, Or., and Standard Structures-Southwest, Scottsdale, Az., leading some customers to believe it was still owned bY Windsor, Ca.based SSI.

Although the wholesaler has always distributed SSI products, it recently signed a formal distribution agreement to help clarify the companies' relationship. Although PCS primarily serves the West, it is moving to become a national plaYer and has salespeople as far east as RYe, N.H.

PCS is particularly well suited to distribute SSI lines, since its senior staff is comprised of manY former employees of Standard Structures. "Our ties to Standard Structures go back many, manY Years," said Anthony Masolini, managing member of PCS. "The recent changes here and at Standard Structures position both companies well as we increase our market shares and become more successful. We're excited about the future."

Chehalis Yard Gets ComPanY

Palmer Lumber Ace Hardware, Chehalis, Wa., will concentrate primarily on the pro trade, after opening a second hardware store in town.

Palmer Lumber's Parent company' West Coast Mills, Purchased a shuttered grocery store building in June' as well as the remaining inventory from Waldock's Ace Hardware in downtown Chehalis when long-time owner Dave Waldock shut his doors Sept. l.

A few employees transferred from Palmer Lumber to the new store and about 20 were hired and trained over the last few months.

The new Market Street Ace Hardware opened Nov. 2, featuring a full line of paint, hardware, work clothing, and a garden center. The store occupies a freshly remodeled 21,920 sq. ft. of the building, with a smaller adjacent section left to be possibly developed or leased in the future' said Palmer Lumber general manager Jim Pruitt.