
4 minute read
Sales more than double, dealer gets steady builder customers \^/ith complete housing package
"The most difficult part of boosting a $500 builder sale up to a $5,000 sale is for the salesman to make the transition in his own mind. A few years ago, #500 wa.s a big sale. Now, he has to keep reminding himself what we're giving the builder for his $5,000;'
That's Glenn C. Knight, sales manager for the H. O. Seifiert Co., talking. The firm is a Veyerhaeuser Registered Homes dealer in Everett, Wash. The comment sums up the company's attitude toward increasing profits through the sale of addi tional products right along with the basic WRH package.
NO PRICE HANG-UP
Knight says at first it's easy for a salesman to think his competition is going to cut him to pieces because his figure sounds so high. "But we work hard at telling a builder what he's getting for his money and why he's better ofi buying the complete package from us."
Knight points out that from the beginning of the program, his goal has been to sell as many products in the house package as possible.
"We've been able to boost our sales from $2,000 up to an average of about $5,500 per house, primarily by showing the builder that we could save him time by doing the running around that he nor- mally would do to line up suppliers with the best prices," he explains.
"The builder knows we don't always have the lowest prices on all items, but he also knows we're pretty close. He can forget buying and use his time more constructively for building and selling."
Company president Roy Sievers who, along with his brothers John and Harold, operate H. O. Seifiert, explains the selling concept,
Sfory ql d Glonce
Dealer diversifies, adds products to basic WRH plan saves builders' time by offering total service, more components stabilizes own prices.
oolt depends on servicer" he says. toA few years ago it became apparent to us that we had to get out of the 'stick' business. It was becoming too competitive; we had to drop prices every time we turned around, to make sales. So, we started fab. ricating trusses as an added service for our builders, then we got into the WRH program about three years ago."
Sievers says the advantage of the program is that his firm now ofiers builders a total service other dealers in the area can't ofier. At the same time, H. O. Seiffert says, he gets steady builder customers at stable prices.
Know Their Costs
Before trying to sell additional products, salesmen are told to get to know costs. ooWe've got to know the builder's costs as well as he does," Sievers points out. "After that, we can sell the builder on the idea of knowing his own costs; then he knows how expensive it is for him to check prices {rom every dealer on every item."
H. O. Seifiert sales men now do such a good job of servicing builders right on the job site that most of them never come to the yard or fabrication plant, says Knight. o'Builders know us through our salesmen, and the same man calls on the same build.
ers regularly to keep up a good working relationship."
Besides the basic house package, the firm now sells such items as windows, interior castings, molding, shelving, panelirg, doors, particleboard, underlayment and some manufactured cabinets. "We get the builder anything he needs," says Knight, "and we often suggest ways we might help him solve a problem we spot on the job site."
Last spring, H. O. Seifiert also started erecting component shells to help their builders get homes closed in faster and allow them to build more homes a year.
Market Is Booming
"Boeing is building a huge plant in Everett and the housing market is booming," Knight explains. "It's just a case of who can finish a home and move on to another."
Knight says none of his dozen WRH builders feel the erection by the dealer in any way competes with the builder because Seifiert Lumber is actually serving the builder. "We're merely erecting on a subcontracting basis."
H. O. Seifiert often puts up a house on a comparison basis with the builder's conventionally-built house. "W'e try one to give the builder a chance to look at costs carefully.o'Usually the cost for our erected shell is about comparable to their conventionally-built homes, but sometimes it runs $100 to $I40 more. But still the builder knows he can ofiset this additional cost in the interest he's having to pay for every day he doesn't have the home in sale condition.
"Compared with conventional construction, there's also no time lost because of the weather when components are used. The house is closed-in in a day, making it possible to do inside work without delay," Knight explains.
He says one builder liked the Seiffert erection process so well that twice he's asked the firm to put up houses, lined up his subcontractors, and taken ofi for a two-week vacation. o'He figures it saves him that much time," Knight says.
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