Excel os on engineered sqles Gonsullanl

By Dan Harris Director Trus Joist University Greenwood Village, Co.

UIROM an engineered lumber sales .a' rep's perspective. the builder's need for a trustworthy design source is not always immediately obvious, especially since builders universally ask, "Isn't there a cheaper way?"

With price the one consistent objection, it seems pretty simple to just make sure they get a cheaper product and voila, you'll get the sale. The truth is that the price objection is just one way builders use to flush out sales reps who don't know their business. Builders will pay more if the rep can justify the cost difference to them. If the rep has done his part right, the builder will be able to prove to his customer (the home buyer) that he's made certain product decisions and why they cost more. When your builder looks to you as a trusted designer/framing consultant, he's also relying on the information you give him as justification to the home buyer.

There are lots of ways to get to this point, but to start, the fundamental basis of a trusting relationship is professionalism and credibility in the sales rep. Easy for me to write, but much more complex to pull off in real life, but only if you let it be. Just keep in mind what all of your competitors do: (a) get plans, (b) provide a drawing and design, (c) show that the work has been done. and finallv (d) tell the builder that ir meets code and is the cheapest alternative. This is a straightforward sales process, and creates a false sense of security to the sales rep who relies on this method, primarily because it's easy to get short-term success. Many builders, anxious to latch onto some kind of reasonably priced alternative will accept this sale because they only want to "hear" that the design is correct and adequate. Many have no idea what the design entails, nor what they're buying. There's only shortterm credibility and no professionalism in this approach, though.

Great sales reps go a step further and make sure that they can effectively communicate their design solution and, as importantly, demonstrate that the design meets the criteria for that builder and for that project. Seems simple-and it is! There are lots of approaches to take, but let's look at the simple version, a checklist:

The checklist can be a verbal one or a formal typed up version for file. I recommend the formal version. It is more professional.

Notice in the sample checklist there are options in each product category. This allows the builder to make conscientious decisions about his project. If the plans were spec'ed in 2xl0s at 16" o.c., the rep can check off a9-112" joist at 16" o.c. (a simple switch of dimension for I-joist), or suggest that a deeper joist at a wider o.c. spacing (such as 19.2") could be reviewed, too. When your builder says he wants the cheapest, the rep can ask if 24" o.c. or code minimum would be adequate. Many builders, even the ones who claim they want cheap, don't want a 24" o.c. system, and once they see the code described as a "minimum" criteria, may back out of their "cheap" request. The truth: they really don't want the cheapest system, only the least cost for a well designed floor. That's a big difference.

Don't assume you know what is best for the builder, a fault that many seasoned reps make. Always, always go into every project with an open mind, have your checklist ready and ask questions. There could easily be changes in what your builder is dealing with-a particularly demanding homeowner, a change in the project that affects the floor system, or a problem the builder's embarrassed to mention. Never assume. Many reps try to argue away their assumptive sales approach under the guise that they "know their customer so well that they don't need to ask anymore." If you believe this, it should set off a red flag that says you've become complacent. No one, including yourself, wants to hear another person claim they "know" you.

The key here is to get the information up front. You are doing the builder and yourself a favor by positioning yourself as a trusted source if you get it right or even close to right the first time. Let the other guys fumble around trying to cheapen their designs after the builder says it costs too much, because they didn't do any up-front research.

In addition to your checklist, there are more things to learn: how are the other homes in the area built? What can you tell the builder about similar jobs you've done? What was accepted or considered bad? If you've got your checklist and priorjob knowledge that illustrate your points, you'll have a captive ear and the trust of the builder.

To illustrate, here are the two opposites:

Sales Rep A gets the plans, hands off to a "tech guy" to run the design, gets the plans back, and delivers them (usuallv unchecked or only casually ; checked to see that the price is about right) to the builder. The builder complains, "The price is too high. Can't you sharpen your pencil a bit on this?" The rep goes back, finds that the joists can be reduced in size or the o.c. spacing changed or some other cost cutting feature to cheapen the price, and returns with an alternate design and the cheaper price.

Sales Rep B gets the plans and asks for five to l0 minutes to review the project to make sure he understands the requirements. He pulls out the checklist and uses it as the basis for making joint decisions, referring to the plans as needed. Options are reviewed and noted on the checklist. Additional questions are asked in this process. Open-ended questions can be: "I'11 put together the estimate based on what we just went over. Are there any other considerations that are important here?" Or, "Any special architectural constraints or unusual situations that I should be aware of?" Closed-ended questions need to be specific and germane to the plan: "Who do you have lined up to frame this house?" (You may know that certain framers are notorious for forgetting to add the necessary parts and pieces that get the job red-tagged.) "Do you have product sheets on the plumbing fixtures so we can make the adjustments for plumbing penetrations?" "It looks like the main beam in the crawlspace or basement is not lined up under a bearing wall. This may create an overload for the floor joists to carry the bearing wall. Do I have the flexibility to move that beam so they line up?"

When the rep hands off the plans to the "tech" guy, the drafter has all the pertinent information to get the job designed right the first time. Really good reps go a step further and instruct the drafter to provide one or more options in the design. This rep also reviews the plans and creates an estimate with the "as specified" requirements and any additions or deductions to the original. When the plans and estimates are delivered to the builder, the drafted plans are rolled out, and the original checklist is attached. The rep summarizes the key points of the plan, referencing the spec sheet, and comments on any special structural changes or plumbing modifications. The builder may still ask, "Can't it be done any cheaper?" and to this, the rep has his alternatives in hand and is prepared to discuss them.

A lot more has happened in the sales situation with Sales Rep B, and this comes at a cost. That cost is spending 10 to 15 more minutes up front, possibly an hour or more of additional drafting time for the tech guy, and certainly an hour or more of time for the sales rep to review the drafter's work and prepare alternative estimates. Is this more time than Rep A spends? Not really. Rep A and his tech guy spent the same amount of time, only shifting it from useful time for the benefit of the builder to wasted time in traveling to visit the builder an extra time because the first estimate was too high, having the tech guy work twice (probably interfering with another job the second time), and creating no value in the eyes of the builder other than being a delivery boy with a price. Take the time up front to do it right. Use a checklist, supervise the drawings, and demonstrate to your builder that you know your business and how to make his project work. Do this to build credibility, and the price will drop from being the only subject to just a footnote.

Wholesaler Shutters Sawmill

Wisconsin-California Forest Products, Redding, Ca., permanently closed its sawmill and planer last month, citing "a lack of log availability;'

"We will continue as wholesalers and importers of industrial lumber, selects and lumber components as well as imported logs," John Ferguson said in a written statement.

He added that they continue to offer rail car unloading/loading, lumber storage, and truck reloading services.

The company said it had reached the point where it was no longer financially viable to saw logs anymore, pointing out the scarcity of timber available from federal lands.

"With the disappearance of the federal timber sale program over the past 10 to 15 years, logs have been tougher to source and more costly," said Ferguson.

Jewett-Cameron Acqu isition

Jewett-Cameron Lumber Corp., North Plains, Or., has acquired the business and certain assets of Greenwood Forest Products. Inc.. Portland, Or.

With 2001 sales over $40 million, Greenwood Forest Products processes and distributes industrial wood and other specialty industrial products, primarily to original equipment manufacturers.

Greenwood Products, Inc., a newly organized Oregon corporation and wholly-owned subsidiary of JewettCameron Lumber Corp., will continue the acquired business. Former Greenwood Forest Products president Cary Dovenberg will serve as president and c.e.o. of the new company.

Jewett-Cameron Lumber, the principal subsidiary of Jewett-Cameron Trading Co. Ltd., operates DCs in North Plains and Ogden, Ut.

Pro Dealer Revives Retail

Southern Lumber, San Jose, Ca., held a grand re-opening to celebrate its newly remodeled store.

The March 18 event showcased the 1O0-year-old dealer's three new showrooms that range in size from 2,000 to 3,000 sq. ft. The showrooms feature doors, flooring and cabinets.

The dealer also doubled its SKU counr to 12,000, by adding 6,000 items to its paint, plumbing, electrical and hardware departments.

"The number one competitive advantage in the future will be the ability to change faster and more frequently than the competition. It will be those companies that have built the capacity for change that will be the winners in the future."

- Greg Bridgeford, senior v.p.-business development, Lowe's Cos.

The remodeling took Southern Lumber three months and cost the store $500,000. The dealer remained open during the course of the renovation work.

"We got the reputation of being a specialty store, and our transaction counts were falling," said c.e.o. and president Jeff Pohle, explaining the reason for the changes.

Pohle also stated that Southern Lumber will begin an ad campaign that will include cable tv, radio and newspaper.

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