3 key components for success

By Roy Burleson

quently overlooked. Manufacturers also benefit when an installed sales program is successful. In fact, some suppliers report as much as a ten-fold increase in sales when dealers offer their products installed.

of a successful installed sales program are the program managers, the owner's commitment to the program, and supplier support programs.

Our last article discussed the importance of the installed sales manager. Most installed programs being implemented by LBM dealers have the potential to exceed seven figures in sales and enjoy margins of 307c to 4OVo. With these profit possibilities, dealers should spend a good deal of time and energy selecting the proper installed manager. It's unlikely their installed program will generate profits without a full-time person accountable for the program's success.

Over the years, I've seen many programs make dramatic turnarounds when part-time or unqualified managers are replaced with one who's better qualified. Doing it right the first time will save time, money and a great deal of grief.

Another key component to the success of an installed sales program is the owner or top management. Many owners don't always exhibit the leadership skills necessary to make this new "service" successful. Dealers that introduce install sales by telling their staffs they are going to "try installed sales" display a non-committal attitude. The staff, realizing that management isn't fully committed, tends to ignore or discount the value of the program. Management must display a "do or die" attitude in order to gamer employee support. The staff needs to understand why the program is important to the business, and to their collective futures.

They need to understand that this service provides their customers rvith tangible business solutions and is a great way to differentiate themselves from their competitors. Research and common sense point out that customers tend to buy more from businesses that add value. Installed sales programs meet that challenge.

It should be pointed out that installation is typically a bigger challenge than distribution or supply. In fact, the product is usually secondary to installed service. It is management's role to deliver this message in a clear and concise manner so there are no misunderstandings. Management shouldn't expect their employees to automatically embrace the concept.

The dealer usually has two choices. He or she can either take the time to properly sell the program up front or wait until the program has proven itself. The first approach takes several hours or days; the second takes trvo or three years. The choice is simple.

While competent management coupled with a qualified installed manager are obviously essential to the success of an installed sales program, the importance of supplier support is fre-

That being said, they should also be vierved as an active partner and should invest in the program's success by providing support services specific to installed sales. In addition to offering quality products, in-store displays, product training, and other merchandising materials, supplien should also assist rvith programs that specifically address challenges that builders wrestle with each and every day. The suppliers need to play a dynamic and active roll in any installed program. A true supplying partner offers valueadded programs that help with the profitable execution of the program.

There are many things a manufacturer or supplier can offer other than timely delivery of their products and should be an integral ingredient of a successful installed program. Installation training conducted in the field is probably one of the most sought after support services.

The staff also needs to understand horv the installation service addresses builders' challenges. They should also be able to articulate the benefits in their presentations. With the help of the supplier, the dealer's sales staff should be able focus their presentations on adding value and lowering costs instead of offering a lorv price.

Our next article rvill address very specific issues that builders struggle rvith and how your installed program can curtail or even eliminate them.

- Rol Burleson is director of Builder Solutions for Guardian Building Products, Greer, S.C. Contact him ar (248) 7ffi-5791 o r roy b u r Ie son @ bp.g uard ian.com.