Gan you serve e-conttactors?

By Cal German President DMSI

Iaf ONTRACTOR sales are the future \-rof business for many of today's retailers, wholesalers and jobbers. And the Internet promises to play an important role in how effectively they can serve the builder market.

Your business will need to offer Internet based value-added services to establish a competitive advantage with a customer base that is growing more "e"-literate by the day. That means extending your business through the World Wide Web now.

As the 21st Century approaches, it brings with it electronic- or "e-customers." This new kind of customer expects everything to be online from product information and special pric- ing to inventory availability and transaction entry. Sharing information like this online all the time will increase your sales and help your customers operate more efficiently and profitably.

E-customers want to be in control. With an Internet connection and a Web-enabled distributor quote/order entry system, e-customers have access to live, real-time, 7 x 24 x 365 information about products, pricing, availability and more anytime, anywhere. They transact with you at their convenience. Through Internet access to your business system, they control the transaction while you benefit from reduced order taking costs, re-entry time and errors. This new generation of customers will leave your sales force with more time to promote business at a higher level than order taking/management, ideally creating more of these highly profitable, low maintenance ecustomers.

Serving the ec o n trac tor/deal er requires extending the functionality of your business system and its information out to your customers. Using ecommerce tools such as DMSI's EntryNET, contractors or dealers create, save, retrieve, revise and convert quotes into orders instantly online giving them complete control over their transac- tions. They can view the status or delivery commitments of all orders, even if they weren't generated online-making it easy for them to see what they have coming and determine what they need for the nextjob.

Immediately after submitting an order an instant confirmation is received so they know exactly what they ordered, at what price, and that the available material has been secured. Control like this eliminates the e-customer's concern that a faxed or calledin order may be misinterpreted, lost or entered too late to secure available stock and ensure the order will be ready for delivery or pick-up.

Web-catalogs provide a similar service to 24-hour showrooms, but with more convenience. Contractors and dealers can view new products with their clients without making a trip to the showroom. And when intesrated

E-customers want to

be in control.

into a Web-enabled quote/order system, products can be ordered directly from the web-catalog.

A familiar catalog index and layout helps customers find products quickly. On-line Web-catalogs make it easy to reference or link to manufacturers technical specifications and installation instructions, helping contractors finish bids faster and more accurately. Providing your customers with convenient access to information makes it that much easier to do business with you.

Ultimately, a Web-catalog will save you time and money because they are easy to maintain and instantly available to your customers. Printed catalogs, on the other hand, are expensive to distribute and maintain. They are often outdated and generally in circulation long after products and pricing have changed.

As distributors search for ways to add value to their services and capture contractor/dealer sales, Internet quoting, ordering and catalogs will play a huge role.

As the new NAWDREF study on Electronic Commerce for Distribution Channels notes: "Truly interactive Web commerce will shock the entire distribution channel into creatine a new business model."

and raised to prominence in l-lthe immediate post-World War II era, today's major lockset companies have undergone a significant transformation during the past several years due to a changing marketplace. In studying how manufacturers have tweaked their hardware lines in terms of price, style, function and finish, Harloc's Jeff Kates sees five trends:

(l) Focus. Hardware manufacturers have come to rely more and more heavily on particular distribution channels such as builders, remodelers or consumer-oriented home centers. To carve out a niche, many manufacturers concentrate their resources on providing new product development, service programs and distribution programs customized for a single channel of distribution.

(2) Finish. One major concern for new construction builders, which is prompted by changing consumer preferences, is high performance finish and finish durability. Although a variety of different colors and textures oflocksets are popular in Europe, Americans continue to prefer polished brass. And, due to a constant attack by perspiration, salt, heat, rain and humidity, polished brass tends to pit, tarnish and discolor. The challenge for manufacturers has been to produce a bright brass product that stands up to these assaults. Lockset makers have developed more durable finish processes and provide extended warranties.

In the past, a lacquer or clear coat process was popular. Today, most manufacturers use advanced powder coating technology or vacuum deposition to improve finish durability.

When researching finishes, consider the end use. Hardware for a seaside home will require a much stronger and perhaps more costly finish than a home in a more temperate climate.

(3) Regulations. Since 1992, all construction and remodeling professionals have been required to address the Americans with Disabilities Act. The chief aim of the ADA is to provide individuals with disabilities equal opportunity and access to "public" accommodations, employment, transportation, state and local government services, and telecommunications. Both new and existing buildings must now comply with these requirements.

With l3%o of the national population, or 34 million people, over the age of 65 and an additional 76 million baby boomers turning 50 last year, market- ing professionals have found that they not only comply with the ADA, but also generate sales since the increased functionality of these products appeals to these consumer segments. In the lockset industry, for instance, much energy has been devoted to the development of levers because they serve dual purposes. They address ADA requirements, but can also be showcased for their ease of use and decorative appeal. There has been a marked increase in consumer preference for levers over the traditional knob design.

Many manufacturers

concentrate their resources on a single channel of distribution,

(4) Security. An increasingly important concern when purchasing or installing residential hardware is its security rating. Home security has been a growing public concern, causing demand for additional security features to skyrocket. Many homeowners are investing in American National Standards Institute (ANSD Grade 2, light commercial products to benefit from additional security features.

FBI statistics show that a prowler enters a home every 11 seconds and project that one in three homes will be robbed in the next 20 years. And according to the National Crime Prevention Institute, the most econom- ical countermeasure the homeowner can deploy is to install good hardware on their homes and make sure the existing locks on both doors and windows are being used on aregular basis.

Furthermore, the average age of homes is getting older-over 26 years-and many of these homes still have their original doors, windows and hardware. Experts recommend examining the hardware on those homes. They may be outmoded and in need of replacement with newer products. But security doesn't end with door locksets. Doors, windows and jambs must be solid and strong in order for the homeowner to maintain the highest level of home security.

To meet the need for increased security, high security features are a must in the product mix of most major manufacturers. Harloc's deadbolt locks, for instance, include reinforced cylinder casting, an anti-pry rotating cylinder guard, an all-steel latch, and solid brass cylinder assembly.

(5) Installalion. In today's "I need it done yesterday" society, quick and easy installation is essential. The faster the hardware can be installed, the sooner builders can meet deadlines. Efficient installation maximizes both productivity and profitability.

Management courses often teach that if a step in a process is not valueadded, then that step should be taken out. Consequently, manufacturers are continuously trying to remove complex and time-consuming steps from the installation of all hardware.