Atrickle down theory that doesn't always work

ENOVATION of existing homes of all ages and descriptions is being ballyhooed by building material associations and builder groups, manufacturers, consumer and trade magazines,but do these projects always have a traceable effect on home centers and buildins products dealers?

Story at a Glance

Excellent industry sponsored projects are currently generating consumer enthusiasms for home improvement and remodeling but too often the dealer is ignored or fails for some reason to tie into these promotions.

The ball is rolling. Consumer demand is being created. As Larry W. Bussey, 1985 chairman of the National Remodelors Council, says, "We believe that the renolated ranch [in Dallas] is sure to become the key market of the 1980s."

So, how is all of this affecting the home center market? Can retailers really relate the potential number of remodeling jobs and customers to their sales? Can they use them to promote the store as a home improvement center for both d-i-y customers and contractors?

Here, it seems. is where the trickle down theory becomes plugged. For details on how some dealers were affected by these promotions, see the accompanying box.

It seems that the dealers should be drawn into the remodeling promotions. They can receive the help of the Wood Products Promotion Council and the manufacturers in staging remodeling and home improvement seminars in conjunction with the projects. They can utilize both consumer and industry publication tearsheets or reprints to shorv what can be done by d-i-yers.

The customer with remodeling interest aroused by promotions should be responsive to displays spotlighting remodeling products and showing how they can be used. Backup literature reinforcing the easy application of these products to im-

What l)ealers Had To Sav

In a random survey, managers ofboth independent and chain home centers in Dallas and New Orleans were contacted and asked the following questions. To prevent any possibility of embarrxsment,

Neworleans

Q: Are you aware that the Southern Forest Products Association has showcased the remodeling ofa house in your area? Are you planning any promotion in relation to it?

A: "Not aware of the project."

A: "No, haven't heard anything about it."

A: "Familiar with the project, but don't know the impact on dealers as yet. No tie-ins to promotiorn or intemal projects to my knorvledge."

A: "Not the least bit familiar with this. They haven't done anything with the dealers."

anonymity was granted to those responding. While this sampling does not pretend to be a scientific survey, our editors feel it is a fair representation of what is happening in the market-place.

Dallas

Q: Has your home improvement business been affected by the Renovate the Ranch project? Are you planning any promotions or in-store tie-ins?

A: "No difference. Market still depressed."

A: "Don't know anything about such a project."

A: "No impact on my sales."

A: "Not aware of any remodeling project. There's been nothing out ofthe ordinary in sales for remodeling."

A: "Not sure I'm familiar with what you're talking about. We're too busy to keep up with such things."

prove the home and their affordability should clinch the sale.

Each promotional remodeling project utilizes many materials. Products from almost 50 categories of building materials were used in the Renovate the Ranch project in Dallas, Tx., in conjunction with the National Association of Home Builders'January show This is typical of most promotional remodeling projects.

Georgia-Pacific's Dunover Place in Atlanta, the tract house remodeled by the American Plywood Association in Washington State and the recently completed renovation sponsored by the Southern Forest Products Association in New Orleans were showcases of building products. Manufacturers have been generous in supplying materials.

Public exposure to the remodeling projects is high. For example, Renovate the Ranch was co-sponsored by Metropolitan Home magazine, Remodeling magazine and the National Remodelors Council of the National Association of Home Builders. In terms of exposure, this meant more than 2.5 m1llion Metropolitan Home home readers; 47,000 Re mode lin g (industry) readers ; NAHB members; show attendees and several dozen manufrcturers who cooperated with the project.

In addition, the figures for homes needing renovation and repair are encouraging. At least 35000,000 ranch and split level houses built after World War II, countless Victorian and pre-1940 homes add up to a tremendous potential market ofaging residences.