How to develop remodeler sales

By Suzanne Paclttl Osmose

IIO-IT-YOURSELF and buy-it- l/ yourself expenditures for remodeling were no bigger in 1991 than in .1983. Repair/remodeling spending growth cane from remodeler/contractor buying. The over $100 billion spent annually on residential remodeling should increase 5-l0%o per year through 2000. With professional remodeling 807o of the pie, residential remodeling expenditures should exceed those of single family construction over the next few years.

This should confirm a retailer's commiElent to expanding remodeling contractor sales opportunities. Special contractor services start with identifying their needs.

Expanded contractor services represent increased sales potential in a broad range of product categories.

Story at a Glance

ldeas retailers can use to increase sales to remodeling contractor customerc.

Consider a Preferred Contractor Program, if you don't have one, and discuss product needs with your best customers. Schedule product training seminars and create a resoufce library ofaudio and video apes.

Brands can make a difference in custome,r satisfaction. hicing is often less significant to remodelers than o new home builders, but warranties are more important. A 1992 survey of retailers catering to contractors identified the best selling brands in a number of categories. Osmose pressure treated wood with the Osmose Limit€d Lifetime Warranty, fu exarn- ple, ranked #1 in the pressure reated wood category. Gemgia-Pacific vinyl siding and Owens-Corning roofing were other #1 best sellers.

In addition to brand selection, consider increasing the number of products you provide on a special order basis. For many contractors, special orders represent up to 40Vo of their business. In addition, credit programs, discounts and rebates can increase sales. Since individual sales are often small, but overall volume high, pricing should be based on volume poten:al, rather than individual order size.

Building supply retailers all over the country are aggressively wooing remodelers. It is imporant that your remodeler/contractors know how important they are to you.

Providing comprehensive pricing information helps conEactors maintain their estimating system. When they have a pnce list from you, they will be less likely to shop around. Shopping for individual projects can take up time which should be spenton the actual project. Make sure your contractors get the immedia0e attention they need.

Encourage your sales staff o greet your best customers by name. Cash customers, for example, are often ovedooked because documented sales hisories are not available. This group can represent a sizable sales volume and should be identified and aclnowledged.

Display sbowrooms are imporant

Providing a pleasant, professional showroom for your remodeler/contractors' customers will both help then and increase you visibility with local homeowners.

Many retailers provide a separate contractors desk structured for quick service. Your staff should have a basic understanding of building so orders can be handled efficiently and advice given promptly. Order entry must be fast and simple. Invoicing by job and submitting invoices weekly allows conEactors to easily post material costs to job costs. Convenient self-service options, like drivethrough lumberyards, maxinrize sales. The faster your customers get in and out, the happier they will be.

DECK building is a popular remodeling ptoiect.

If space will allow, a separate conmctor room will make your remodelerlcontractor customers feel welcome and let them know how much you value their business. Offer free coffee and donuts, use of calculators and phones, a library of special order catalogs, specification books, etc.

A quick and accurate delivery system scores high with contractofs. Some retailers with several locations offer delivery from the location closest to the job site. More retAilef,s are providing delivery service no matter the order size. Although delivering a $20 order can be expensive, the returns in customer loyalty and repeat business can justify it.

Let remodeler/contractor customers lnow you want and value their business. Offer hats and mugs with your logo, sponsor appreciation events, develop seminars and seek feedback.

Special attention and service makes sense. Creating long-term relationships and listening to a customer segment with great potential sales growth will ensure you success.