Putting your customers to work for you The challenge of installed sales

[NSTALLED SALES has proven to lbe a viable, profitable niche for building material retailers, although there's always the concern that their contractor customers will perceive the service as competition. When handled properly, installed sales actually can enhance the relationship between supplier and pro customer.

Offering installation services requires a qualified labor force. The best source is your contractor base. Those meeting qualification requirements increase their business. and view the relationship more as a partnership than as competition.

Installed sales does place the retailer in an uncertain position-your relationship with your homeowner customers hangs in the balance of the performance by your contractor customers.

"Whether you choose to simply refer work to qualified contractors, or perform installations under terms of your own agreement, the responsibility for customer satisfaction will be yours," says installed sales consultant

Dick Meyers. "Little difference in the amount of work exists between referring jobs and assuming all contractual responsibility. Profits, however, are taken on both material and labor only when the entire project is written as your contract."

What was once the responsibility of the homeowner-locating, hiring and working with the contractor-is now yours. Owens Corning suggests: o Check out contractors with your local Consumer Affairs Office. Better o Ask for local references and find out if they were satisfied with the er's acceptance ofthe work. o Ask to see a copy of the contractor' s certificate of insurance. or for the name of his or her insurance agency to verify coverage. The contractor should be insured for worker' s compensation, property damage and personal liability in case of accidents. Remember, if the contractor isn't insured, you could be held responsible. o Make sure your contractor is licensed and meets the minimum licensing or bonding requirements in your state. If the contractor is not licensed, then retailer and homeowner:

Business Bureau or the National Association of the Remodeling Industry to see if they have information about any of the remodelers you are considering.

When offering installation, sales are no longer concluded in one step, or at time of delivery. Most work occurs in clients' homes, and requires not only specialized trade skills, but an ability to satisfy customer expectations; working under constant customer scrutiny.

What was once the responsibility of the homeowner-locating, hiring and working with the contractoris now yours. contractor's work. Ask questions such as: "Did the contractor begin work on time?" "Was the job site kept neat?" "Would you use this contractor again without hesitation?" You can even ask for a list of past projects in your area and go take a look at the work.

- Have no legal protection from faulty materials or workmanship,

- Could have a lien placed on the home by suppliers he may not have paid, o No matter how comfortable you are with any contractor, always sign a contract. A written, legally binding agreement signed by all parties should stipulate the scope ofeach project, the price and a schedule of payments contingent on progress and the homeown-

- Are breaking the law since unlicensed individuals can't apply for permits.

Typically, partial payment is withheld until every last bit of construction is completed and the homeowner is completely satisfied with the contractor's work. Holding back payment at least equal to the contractor's profit (107o-207o) ensures that every last detail is finished. Never allow a situation to develop where the contractor can break even or make a profit by walking away before the job is finished.

Prices can be pre-set for standard jobs, such as installing a ceiling fan or a garage door. Custom projects, such as building a deck or a fence or replacing siding, roofing or windows, may have to be quoted on an individual basis.

For more intricate creations, Katie and Gene Hamilton, co-founders of the HouseNet Web site, suggest asking homeowners for "a picture of what (they) want because it's difficult for someone to envision (their) dream without seeing it first. When it comes to remodeling, a picture clipped out of a magazine that illustrates what you want is worth a thousand words." o Stay current on the progress of each project. For lengthy jobs, schedule regular meetings during the course of the project to discuss how things are going in general and any changes to the project. piogitr, have conpiled a:,list,of local -qUaliliod p.rotessionats',,and iecomdbnd .lhdm,'to..homeoWheis..seeking domeons,.to ihstattrhbir puchase or provide assislance with,ihomd

The extra work involved and expertise required usually mean adding to your sales force. Estimating, sales and coordination of projects require staffing. Sales reps with product knowledge alone cannot provide the required volume of sales. Personnel must have remodeling construction expertise and the ability to work with both customers and installers.

Offering installation can set you apart from the competition, and increase your customer demographic base by appealing to the segment of the population that purchases products installed. It doesn't require additional nor increased receivables, yet, best of all, usually does provide positive cash flow and strong margins.