A dose of competitive immunity

By Roy Burleson

n-lfMES are good. Sales are up. You I have a number of profitable years under your belt. So why should you even consider offering installed sales to your builder customers?

The answer is very simple. Your customers need the products you sell installed. Every product you sell is going to be installed by someone. Soon it could even be your biggest competitor down the streetl Some builders still do some of the work themselves-but what about the installations they sub out? This creates opportunities for your company to serve your customers better than your competitors.

And what about production builders that sub most. if not all. installations when building a house? Today's builders are using more subs per house; more and more builders rely on someone else to install. That means the opportunity is growing. In some parts of the country, building material dealers have a very difficult time selling some products unless they offer them installed. Think about it. If you were a builder, with whom would you rather contract-a sub that may or may not be in business tomorrow, or a credible dealer who has already passed the test of time?

Let's examine this from another angle. For the most part, building material suppliers all sell the same products. Most offer delivery services and credit to their better customers. Most have honest and knowledgeable employees. That means our competitors offer just about the same type of products and services that we do. That's one reason we frequently have to bid to get the business. When all else is about equal, price can be the tiebreaker. But do you really want to win business because you have the lowest price? Wouldn't you rather be known for offering solutions?

The competition wants your business, so how about building some competitive immunity into your sales strategy? Simply implement a program that sets you apart from your competitors and make your business immune to their low bids and other sales techniques. Guess what? A properly executed installed sales program can do just that. When any business provides services its competitor doesn't offer, it provides the company with a distinct competitive advantage, immunizing it from a competitor's sales and marketing approaches. And, yes, even immunity against those low bids your salespeople compete against.

Every business needs to find better ways to compete. You need to develop specific solutions for your customers, professionally sell those solutions, and shop changes manufacturers, yet their customers continue to buy from them. Why? Their business was built on service and not product. then properly execute delivery of the service. When builders contract for installation services, they are buying an experience that product alone can't offer. Builders need product, distribution and installation. Guess which one is most problematic?

The Big Picture. Your staff is involved with most jobs from start to finish. They see and understand the big picture, from groundbreaking to closing. They can offer suggestions and solutions for issues that a myopic sub would never get involved with.

Cycle Times. When you provide products installed, it can help reduce a builder's cycle time. Frequently installation will take place at the same time materials are delivered. And when a dealer installs multiple products, one after another, there are less scheduling issues that the builder has to address.

Single Source Solution. Builders frequently save time (money) when they eliminate multiple installers and suppliers. When you become a single source solution, they can spend less time juggling installers and can focus on more important issues.

Credibility and Peace of Mind. You enjoy a credible reputation in the market. Your business is reliable and consistently available during normal work hours. The builder can rest assured knowing that you are properly insured and will be in business for the long haul.

The competition wants your business, so how about building some competitive immunity into your sales strategy?

In my travels around the country, I have met dealers that install many of the products they sell. They move a lot of product by selling this value-added service. In many areas, dealers no longer sell a significant amount of roofing, insulation, siding, windows, framing, and so on because they don't install it. Specialty shops or contractors that install now sell these products. Their products aren't necessarily superior-they're just installed. In fact, many times they sell the same brands. Occasionally the specialty

Communications. Everyone knows that communication problems can lead to lost time and money. The sophistication of your communication system is superior to that of most subcontractors. In the eyes of a builder, being available to field calls or answer questions is a superior service. especially when compared to a voice mail system employed by many subs.

Relationships. Your staff has solid relationships with their customers. Builders trust them. Many builders would rather deal with your salespeople than a subcontractor. Frequently subs are less reliable and hard to locate.

Lumber, building materials and millwork are probably your core products. That's what most pro dealers inventory and that's what they sell. Adding to the value of your core products by providing the builder with installation services can help increase sales. Also, by differentiating yourself, you can relieve some of the pricing pressures your competitors have been putting on you.

- Roy Burleson is director of Builder Solutions for Guardian Building Products, Greer, S.C. Contact him at (248) 760-5791 or royburle son@ bp. guardian.c om.