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How to develop remodeler sales

By Suzanne Paclttl Osmose

IIO-IT-YOURSELF and buy-itlJyourself expenditures for remodeling were no bigger in 1991 than in 1983. Repair/remodeling spending growth carne from remodeler/conftactor buying. The over $100 billion spent annually on residential remodeling should increase 5-l0%o per year through 2000. With professional remodeling 807o of the pie, residential remodeling expenditures should exceed those of single family construction over the next few years.

This should confirm a retailer's commitment to expanding remodeling contractor sales opportunities. Special contractor seryices start with identifying their needs.

Expanded contractor services represent increased sales potential in a broad range of product categories.

Story at a Glance

ldeas retailers can use to increase sales to remodeling contractor customers.

Consider a Preferred Contractor Program, if you don't have one, and discuss product needs with your best customers. Schedule product training seminrs and create a riesouroe library ofaudio and video tapes.

Brands can make a difference in customer satisfaction. Pricing is often less significant to remodelers than to new home builders, but warranties are more important. A 1992 survey of retailers catering to contractors identified the best selling brands in a number of categories. Osmose pressure treated wood with the osmose Limited Lifetime Warranty, for exam- ple, ranked #1 in the pressure reat€d wood category. Georgia-Pacific vinyl siding and Owens-Corning roofing were other #1 best sellers.

In addition to brand selection, consider increasing the number of products you provide on a special order basis. For many contractors, special orders represent tp to 407o of their business. In addition, credit programs, discounts and rebates can increase sales. Since individual sales are often small, but overall volume high, pricing should be based on volume potenrial, rather than individual order size.

Building supply retailers all over the country are aggressively wooing remodelers. It is important that your remodeler/contractors know how important they are to you.

Providing comprehensive pricing information helps contractors main0ain their estimating system. When they have a price list from you, they will be less likely to shop around. Shopping for individual projects can take up time which should be spent on the actual project. Make sure your contractors get the immediate attention they need.

Encourage your sales staff to greet your best customers by name. Cash customers, for example, are often ovedooked because documented sales hisories arc not available. This group can represent a sizable sales volume and should be identified and aclnowledged.

Display showrooms are important Providing a pleasant, professional showroom for your remodeler/contractors' customers will both help them and increase yorn visibility witl local homeowners.

Many retailers provide a separate contractors desk structured for quick service. Your staff should have a basic understanding of building so orders can be handled efficiently and advice given promptly. Order entry must be fast and simple. Invoicing by job and submitting invoices weekly allows contactors to easily post material costs to job costs. Convenient self-service options, like drivethrough lumberyards, maximize sales. The faster your customers get in and out, the happier they will be.

If space will allow, a separate contractor room will make your remodelerlcontrac0or customers feel welcome and let them know how much you value their business. Offer free coffee and donuts, use of calculators and phones, a library of special order catalogs, specification books, etc.

A quick and accurate delivery system scores high with contractors. Some retailers with several locations offer delivery from the location closest to the job site. More retailers are providing delivery service no matter the order size. Although delivering a $20 order can be expensive, the renrrns in customer loyalty and repeat business can justify it.

Let remodeler/contractor customers lnow you want and value their business. Offer hats and mugs with your logo, sponsor appreciation events, develop seminars and seek feedback.

Special attention and service makes sense. Creating long-term relationships and listening to a customer segment with great potential sales growth will ensure you sucoess.

CURT BEAN LUMBER Co., Glenwood, Ar., (1) welcomed Southern Forest Producls Association members for a regional meeting and lour of ils state-otthe-ari facility on March 24. (2) Watching rough green lumber coming out oi ihe mill on ils way to the trimmer optimizer and drop sorter. (3) Following lunch al the Riverwood Inn conference cent€r, Glenwood, the qroup received an update from SFPA otficers - (a) The lackladder picks up rough logs and slarls them on their lrip through the mill.

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