Installed sales provide real solutions

By Roy Burleson

IMPLY trying to out-bid the competition won't work with builders looking for solutions. And, it reduces dealers' margins.

If a builder perceives its material supplier isn't adding value, the dealer is in jeopardy of losing business and being replaced by a more aggressive firmone that markets. sells and delivers additional value like installed sales.

Single Source. Juggling l5 to 20 subcontractors effectively is an arduous task. A builder must manage large numbers of interdependent processes. Subcontractors can't perform their tasks until the previous step in the process has been competed. When there is a delay, the builder has to perform multiple juggling acts-calling suppliers and rescheduling deliveries and installation crews. These are very non-productive functions.

A single source solution for various products along with installation services saves the builder needless aggravations, time and money. When a dealer installs multiple products, the builder only needs to make one contact to reschedule several deliveries and installations. All builders have schedules to meet and are more profitable when their supplier aids in meeting these schedules.

Insurance and Workers Comp. lt is extremely important for builders to employ subcontractors with the proper insurance. Minimum requirements for coverage, terms and limits have to be met and verified for general liability, vehicles, and employee liability and workers compensation. Most require that subcontractor insurance carriers meet minimum rating and financial requirements. However, when a dealer acts as a subcontractor by offering bundled installed services. the builder needs to track less certificates-making the process more convenient and less time consuming.

Relationships. A dealer's staff already enjoys a solid relationship rvith its builder customers and has probably been involved rvith the job since the builder first brought in his plans. They see and understand the bi_e picture. from start to finish. Most builders rvould rather deal rvith their supplier representative than a subcontractor. Typically. they vierv the dealer's staff as more professional. less elusive. and more responsive to their needs. They are reliable and are consistently available during normal rvork hours. Just being available is a superior service in the eyes of many builders.

Also. the builder can rest assured knorving that the installing dealer is properly insured and rvill be in business for the long haul.

Save Time and

Reduce Cycle

Times. When a dealer provides products installed. it reduces the builder cycle time. Frequently the installation rvill take place at the same time the materials are delivered. Coupled rvith the fact that over 807c of the builders are experiencing completion delays because of installation issues. the need for installed sales programs becomes readily apparent. Installed sales programs are real. time-saving solutions. Communications.

Communication problems cost money. too. Dealer communication systems are typically superior to most subcontractors. They see and understand the total picture. from start to finish. Issues can be discussed and solutions provided that a multitude of different subcontractors rvould never be able to effectively address rvith all parties involved on the project.

A dealer maintains re_eular business hours rvhere a member of a support team always answers the telephones and responds to the builder's needs. Most subcontractors can't provide this level of service quality.

C onvenience. Professional salespeople knorv horv to identify problems their builders encounter rvith subcontractors. Once the issues have been uncovered. they offer solutions that installed programs can provide.

Horv many builders have problemfree relationships rvith their subcontractors? Any problems in the construction process that can be eliminated benefit the builder.

Cost Savings Initiatives. Today's sophisticated builder wants to look at the big picture. It is no longer acceptable to look solely at the installed bid or price. Many are actively developing processes that effectively lorver costs. When dealers install multiple products. builders save time and money. Superintendents have ferver calls to make and can juggle ferver subcontractors. There are ferver insurance certificates to chase dorvn. ferver invoices to process. and ferver checks to write. Processing an invoice costs builders betrveen $10 and $50 each. The more installed services that can be bundled on a single invoice. the more the builder can reduce costs. "Ferver" activities equate to lorver operating expenses for the builder!

- Roy Burleson is dire<'tor of Builder Solutions for Guardian Building Produ<-ts, Greer. S.C. Contact him ot (248) 760-5791 t tr n trhu r Ie y n @ hp. guard i un.c un.

Rrtrnrls

Charter Oak Hardware, Covina, Ca., has been sold by Jim Marston Sr. to his son. Jim Marston Jr.

84 Lumber Co. submitted plans to build a $3-million,27-acre yard in Olympia, Wa., by 2007

Billings Hardware, Billings, Mt., has been sold by Mary Ricker to T.J. Comstock, his five sisters, and their parents

Heppner Hardware, Heppner, Or., is closing at the end of the month with the retirement of Cliff Green, owner for22 years

San Diego Hardware, San Diego, Ca., has moved after l14 years in the city's historic Gaslight Quarter to a new location in Kearny Mesa, Ca.

Lowe's Cos. opened a new 116,000-sq. ft. store with garden center May 5 in Cotati, Ca.; expects to open a 116,000-sq. ft. store with 29,000-sq. ft. garden center during 3rd quarter 2006 in Redding, Ca., and is considering anchoring a new 13l-acre development planned for San Luis Obispo, Ca. ...

Lowe's has begun construction on a 120,000-sq. ft. store with 27,000-sq. ft. garden center in Tulare, Ca.; is seeking approval to

Correction

In last month's annual ranking of the nation's Top 25 Wood Treaters, Eastex Forest Products, Houston, Tx., was erroneously listed as #13 with 2005 treated production of 141 million bd.ft. (April, page 12).

Eastex should have been ranked #19 with 2005 treated production ot 114 million bd. ft. We apologize for the error.

build a 130,000-sq. ft. store in Manteca, Ca.; had its plans for a 172,000-sq. ft. store with garden center in Visalia, Ca., rebuffed by the city council and was asked to submit a new proposal, and will install ADT alarm systems in its new and existing stores over the next two years ...

Home Depot opened a new store March 2 in Ocotillo (S. Chandler), Az., and hopes to open a 102,000-sq. ft. home center with 35,000-sq. ft. garden center on ll.4 acres in Claremont, Ca., in April 2007 and a 114,700-sq. ft. replacement store with 35,000-sq. ft. garden center in Covina, Ca., by October 2007

Home Depot submitted plans for a 100,000-sq. ft. store in Roseburg, Or.; is negotiating to build on 12 acres in Bellflower, Ca.; continues fighting to build on 14 acres it owns in El Cajon, Ca., and is seeking rezoning to allow for a 102,500-sq. ft. store with 28,000sq. ft. garden center on 26 acres in Warrenton, Or. ...

Home Depot will test the sale of automotive products at l0 stores in Florida; completed its $3.51billion acquisition of Hughes Supply, and will launch Team Colors, a sports-themed paint line representing more than 125 different tqrms

Cavanaugh Hardware t 98year-old, 10,000-sq. ft. building in Auburn, Wa., has been torn down to make room for a condo/retail development that will include a hardware store/museum, The Cavanaugh Hardware Co. & Heritage Center...

Wnor:snns/trrutrcur:rs

J ewett-Cameron Trading C o. Ltd. has consolidated operations in North Plains, Or., after selling its Ogden, Ut., distribution center in December...

Masonite International Corp. next month is permanently closing its Premdor Components cut stock facility in Corning, Ca. ...

OrePac Building Products, Wilsonville, Or., this spring will implement DMSI's RF Navigator Warehouse Management System at its branches in Ontario and Sacramento, Ca., and plans to install the system at all 12 locations over the next three years ...

Jeff Hunter's Log Farm, Parowan, Ut., was decimated April 17 by a multi-milliondollar fre of undetermined origin ...

Plum Creek cut its second shift in half at its Hungry Horse, Mt., sawrnill due to insuffrcient supply of larger dimension timber; the 45 affected workers were offered transfers to other area plants

East Teak Trading Group, Sultan, Wa., has been acquired for $20 million by an investment group led by Don Daseke, who becomes chairman and c.e.o. of newly formed East Teak International ...

Swanson Group, Glendale, Or., is reducing production by 75% this month at its stud mill in Glide, Or., due to high log costs

Alcoa /nc. will sell its Alcoa Home Exteriors division, which produces 14,000 different products such as siding, soffits, fascias, trim, decking and railings ...

Teuxo Roofing Products Inc., Joplin, Mo., changes its name June I toTeuxo BuiWing Products Inc., reflecting its expanded products and services...

Housing starts in March (latest available figures) fell 7.8% to a seasonally adjusted annual rate of 1.96 million ... single-family starts dropped 12% to a 1.59-mil-

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