Making gazebo sales easy

f UXURY purchases often plumIJmet during tighter economic times. But gazebos are one typically high-end product that manufacturers hope to make recession-proof.

Making gazebo kits easier to assemble and of a wider range of materials has also made them practical purchases for a wider audience of doit-yourselfers and buy-it-yourselfers.

"It's trendy to have a gazebo, especially when the economy is strong and consumer confidence is high," says Craig Bailey, sales & marketing manager for Cedarshed Industries. "Most people who buy gazebos, however, are high end. which helps mitigate any troughs in demand cycles."

Gazebo Junction's sales of cedar gazebo kits have risen steadily over the last nine years. "I believe this is due to the need for people to enjoy their outdoor settings without the hassle of mosquitoes and bees and other pests," explains general manager Paul Boehlke. "As the popularity of back yard ponds and flower gardens grows, so grows the popularity of screened-in structures to sit and enjoy them."

Paralleling the rising interest is an increase in the sales of easy-to-install kits. Boehlke says, "I believe that gazebo kit sales have far exceeded the expect panelized eventually will catch up and surpass it," Bailey says, despite the preassembled kits' higher price tag. "For people who hire someone to do the assembly, the precut kit may actually cost more once it's installed, since the labor costs are much greater."

Either way, the kits are easy to assemble. "They're similar to building a model airplane," he says. "Everything is labeled; connect A to 8."

Making installation less intimidating is also the rationale behind Cedarshed's liberal warranty, a "soft landing" program, Bailey calls it. "If (the installer) makes a mistake or cuts something too short, we'll just replace it and send them a new part by UPS," he says.

To sell gazebos, dealers still have to do part of the work, namely letting customers know the kits are available. "The best way to increase sales," notes John Hickey, Summerwood Outdoors, "is to have a full-size unit set up on display. People need to stand inside to get a good feel for the product."

Bailey agrees: "You definitely have to have one on display. It's hard to sell a gazebo from a picture. Of our 200 to 300 dealers, the top-selling sales of gazebos stick-built on site. In dealers every year are those that have fact, we have a number of contractors one on display. And, you can't use it who used to stick_build that now Dre_ to store stuff. You've got to landscape fer to purchase kits due to the time it. .It's.a romantic thing. It can't be savings. To stick-build a gazebo, with slttlng ln a corner on sloped concrete' the {uality and appeaiance of u because that doesn't conjure up Gazebo Junction kit, would take a romance. It needs a good location." skilled caryenter at least a week where ^ "Displays work well," says Dave our kits can be fully installed in an Gooley' marketing manager' Handy afternoon." Home Products. "If they are incorpo-

The trend has been to make instal_ rated with spas or hot tubs, it gives the lation even easier. For years, Cedarshed has sold its kits pre-cut, which can be assembled bv a non-caroenter in two to four days with no cutting, routering or special tools. In 2000, the company introduced a panelized version that can be installed in less than a day. The floor, baluster and roof sections arrive preassembled.

"Pre-cut is still the largest part of our market, but we consumers other uses for gazebos. Our screen kits, cupolas and weathervanes also show the consumer options that enhance a gazebo."

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Boehlke asrees: "Our best merchandising item is obviously a display model It's tough to sel It's sell a $7.000 s.azebo

7,000 gazebo to someone who can only see it in pictures. We offer dealers a substantial reduction in cost for display models. We have a product manual, indoor display boards, outdoor vinyl banners and brochures for our dealers. All these things help, but none work like product knowledge and salesmanship."

He continues: "When we look at our most successful dealers, in terms of sales, as compared to those that have been less successful, we repeatedly find the same characteristic. When a dealer has someone who is the 'gazebo expert' who is willing and eager to discuss the kits with customers, who knows the gazebos in and out, knows differences in manufacturers, and can answer all questions, or installation even easier. knows where to go to get answers, they typically are successful. Simply having a display model and brochures is not enough."

Don Barlow, president, Finyl Vinyl Building Products, Huntington Beach, Ca., suggests dealers not only set up a display, but also "have periodic demonstrations showing customers how easy it is to install." (It's especially effective for vinyl gazebos, Barlow claims. "Once homeowners see a vinyl gazebo install, they will never go back to wood," he says.)

Dottie Bourassa, senior factory rep, Ozark Mountain Cedar Products. Melbourne, Ar., also advises, "Provide your customers with the best product, that is easily assembled, and for the best price available, so that the customer feels they are getting a great value for their money."

Assuming the dealer has a display model, the value of actually stocking kits is debatable. Gazebo Junction's dealers typically do not stock the kits. "We have gazebo sizes ranging from 10' to 2l' in three different lines with numerous designs," Boehlke explains. "It is easier for a dealer to allow the customer to dictate what size and model they would prefer, rather than the dealer pushing the size and model in stock. When a customer purchases a kit, the dealer places the order with us and we ship it in two to four weeks, depending on the time of year."

Cedarshed finds many dealers don't have an inventory, because usually, Bailey says, "somebody wants something a little different than what you have. But we do have some dealers who stock, so they can buy by the truckload. They get a 207o discount if they order l5 or more gazebos."

Manassas, Va., retailer Backyard America stocks pressure treated southern pine gazebo kits, as well as sells them by special order. "We do both equally well," explains president Ernie Sears. "Stocking will help sales because there are always those customers who wait until the last moment to get a gazebo for a special event."

Finally, dealers have to choose a supplier and type of material; kits are available in vinyl, aluminum and a range of wood species. Like Handy Home Products, Summerwood and Cedarshed, Gazebo Junction uses western red cedar. "It's known for its resistance to rot and maintaining its shape," says Boehlke. "We once used treated pine, but found it to twist and shrink over time. It is important that the lumber in our gazebos holds its shape to make sure the screens and windows can be easily removed year in, year out."

Ozark Mountain makes panelized gazebo kits of aromatic eastern red cedar. Bourassa says the species is durable and insect-resistant. does not check like pine, is less expensive than redwood, and features a beautiful, unique coloration and aroma.

"Another advantage," she adds, "is we are able keep the price of the aromalic eastern red cedar consistent, unlike the extremely volatile western red cedar. This enables us to keep our prices down."

"A small disadvantage of the aromatic eastern red cedar," Bourassa admits, "is the number of knots. They are secure, however, and this helps maintain the stability of the wood. It is a nice look, but it is not for all."

Finyl Vinyl recently introduced a new line of Victorian gazebos made from pvc components. Barlow noted that the vinyl won't rust, rot, corrode or split; resists insects and impact; doesn't require maintenance, painting or staining, and is light weight, affordable and easy to work. Even the most complex kit, he noted, can usually be installed by an experienced two-member crew in four to six hours.

"Many dealers have told us this is the most complete line of gazebos and support materials they have seen," he said, noting that it was his remodeling company's disappointment with other gazebo products that led to their decision to design and develop their own line. "We recognized that a well-engineered gazebo. with proper instructions that is easy to install, would be tremendously popular."

D)RICE and honesty are the most I important traits buyers look for in their engineered panel suppliers, according to Market Resource Associates' sixth biennial Plywood & OSB Industry Study.

MRA surveyed 1,001 retailers (66Vo), wholesale distributors (26%), industrial buyers (4%), and office wholesalers (47a), asking them to rate their suppliers of softwood plywood and/or OSB against specific performance criteria.

The most important overall attribute was price (34.67o), followed by consistent product quality (26.97o), ship time (20.27o), and service (18.37o).

Next, respondents ranked, on a scale of one to seven (one being "not important," seven being "very important"), the importance of each of ll performance attributes. Honest negotiations (6.6) and Shipment arrives undamaged (6.5) were the two most important attributes to buyers of engineered wood panel products, followed by Shipment arrives as specified (6.5), On-time shipment (6.3), Handles claims well (6.3), Easy to order from (6.2), Contact is easy to reach by phone (6.1), Knowledgeable sales personnel (6. I ), General appearance of the unit (6.0), Producer considers me important (5.8), and Unit contents clearly marked (5.7).

Few buyers are purchasing a significant amount of panels using online services. Companies that are buying at least some product online did rise from 2.17o in 2000 to 4.4Vo in 2002 for plywood, and from l.6%o to 4.2% for OSB-yet two-thirds of those buy less than l07o oftheir panels online.

In the next two years, 42.9Vo expect to increase their online purchases, 0.47o expect them to decrease, and 56.87o predict they will remain the same. Two-thirds of those who anticipate rising in online purchases, though, expect the increase to be less than lOVo.

Finally, buyers were asked to rank three of their current plywood and OSB suppliers on the I I performance attributes. Twenty-nine suppliers were included in the study, including both manufacturers and wholesalers.

The highest rankings for softwood plywood were, for:

Shipment arrives undamaged: Scotch Plywood Co.

General appearance of the unit: Scotch Plywood Co.

Units contents clearly marked: Boise Cascade

Contact is easy to reach by phone: Woodford Plywood

Knowledgeable sales personnel: Woodford Plvwood

Honest negotiations: Woodford Plywood

Easy to order from: Woodford Plvwood

Shipment arrives as specified: Amerhart Ltd.

On-time shipment: Sc'otch Plywood

Handles claims well: Amerhart Ltd.

Producer considers me imporlant: Woodford Plywood

Overall rating: Woodford Plywood

For OSB:

Shipment amives undamaged: BMA Enterprises

General appearance of the unit: Dixie Plywood Co.

Units contents clearly marked:

Viking Forest Products, Inc.

Contact is easy to reach by phone: Dixie Plywood Co.

Knowledgeable sales personnel: Dixie Plywood Co.

Honest negotiations: Norbord Industrie s I nc.

Easy to order from: Viking Forest Products, Inc.

Shipment arrives as specified: Huber Engineered Woods

On-time shipment: Dixie Plywood Co.

Handles claims well: Dixie Plywood Co.

Producer considers me important: Dixie Plywood Co.

Overall rating: Dixie Plywood Co.

Few buyers are purchasing a significant amount of panels using online services.

Although wholesalers received the highest scores in most categories, they typically were graded by fewer respondents; some wholesalers were named by as few as eight buyers. Conversely, larger manufacturers, such as Georgia-Pacific, LouisianaPacific, Weyerhaeuser and Boise Cascade, were each ranked by hundreds of buyers.

- For information on purchasing the entire study results, contact Market