Busting the myths of counter sales

f'\ usroven EXeEcTATIoNS coNTTNUE to escalate and the \-,traditional perceptions of good customer service are becoming obsolete, as are the dealers and wholesalers that cling to outdated business models. Some of the beliefs of the past need to be held up to scrutiny. We may find that what once passed for truth is nothing more than a myth.

Myth #l: The customer knows best.

This isn't the same thing as ..the customer is always right." This is about letting the customer know when there may be a better alternative than the conventional wisdom.

The late_st technology isn't always the best fit in every situation. When it comes to something as fast paced ani layered as construction industry, most customers don't have access to or the awareness of resources available to the building material supplier. The customer is dependent upon the expertise of the wholesaler to offer suggestions and to provide the most effective way of achiwing the desired results.

Truth: Customers rely on distributors to provide them with the knowledge to enable them to make iiformed decisions.

- Myth #22 We don't need no stinkin' marketing plan.

Froln my days as a salesman, I remember unopened boxes full of expensive marketing promotional brochures getting tossed into the trash because they were out of date. Why were they unopened? Because the salesmen wouldn't use them.

I'm not sure where the marketing and sales rivalry began, but a dialogue needs to open up between the mar_ keting department and the sales team. If the marketins department isn't providing relevant and useful materialsl then the sales team needs to communicate that. By combin_ ing their efforts, the marketing department can arm the sales team with some powerful tools of persuasion.

Truth: Marketing is essential to growth.

Myth #3: Nlcustomers buy on price.

It only seems that way because ,.price customers" are the most vocal. There are two types of buyers: transaction_ al and relational. The transactional buyer, as implied by the name, is focused only on the transaction. What's the cheapest, the best, the fastest for the money? If a dealer wins one transaction, he earns no loyalty from the transactional customer, only an opportunity to compete again in the next transaction.

A relational customer, on the other hand, is focused on finding a distributor he can trust and depend upon. Money is a factor, but the relational customer believes that if he builds a relationship with a trustworthy supplier, he'll be treated fairly on the price. Smart suppliers seek out and focus on the relational customer.

Truth: Some customers value a trustworthy supplier more than a cheap price.

Myth #4:lt you just keep selling, growth is inevitable.

Many dealers and distributors seem to believe that they deserve an increase in revenues with each passing year. That's like saying you deserve a raise because it's your birthday.

Growth requires strategy. Retaining customers, prospecting for new clients, and gaining market share are a few of the elements in the growth strategy. Start by having a clear awareness of your daily cost of operation. Growth comes from knowing that number and exceeding it on a regular basis. Research the market potential for the communities in which you work. Uncover the fastest growing markets in these communities and determine if you can leverage the strengths of your firm to take advantage of these new developments. Growth doesn't just happen.

Truth: Growth is a choice and it requires deliberate planning.

Myth #5: A satisfied customer is a loyal customer.

Think of it this way: A customer can be "satisfied" with your company and your competitor at the same time. "Customer satisfaction" means you met the bare minimum of the customer's expectations and is no guarantee of customer loyalty.

Loyalty is earned by actions. Are your deliveries to customers accurate and on time? Can your customer get a live voice when calling your branch? Are your projects on schedule and problem-free?

Truth: Customer loyalty is earned by the actions you take.

Myth #6: Wholesale is different from retail.

Admit it. Part of you still wants to believe the customers in wholesale are somehow different from the ones that shop in the mall. You still believe that the wholesale industry exists in a separate realm from retail.

Maybe so, but the contractor at your counter buys from retail businesses, too. He takes his five-year-old son for ice cream where the server turns a double-dip cone into performance art. He takes his truck for an oil change and is served cookies and coffee while he waits. He eats donuts at a bakery that offers free WiFi. These vendors and others like them have raised the standards for service-everywhere.

Truth: There are no borders in business anymore.

Myth #7: lf it ain't broke, don't fix it.

Wholesale distribution will continue to thrive, but only by moving into new territory. There are wholesalers who are doing business today the same way they did in 1970. Success can be an obstacle to continued success. Past glories and achievements can lull a business into a sense of complacency.

Unfortunately, the old business model is failing fast and successful growth means leaving something behind. D-i-y centers and big box merchants will continue to be a threat. Fortunately, for the wholesale supplier, these behemoths belong to mega corporations that are unwieldy and slow to respond to changes in the business landscape.

Truth: If it ain't broke, break it. It's probably out of date anyway.

Myth Busting

No wholesaler can afford to maintain a casual businessas-usual attitude. With new competitors coming in, multiple channels vying for a share of your customers' minds, and roller-coaster-like market swings, it's quite the challenge to stay ahead.

Knowledge of the construction industry, awareness of competitors' competencies, and a critical assessment of the company's strengths and flaws are essential elements in meeting customers' expectations. Companies that achieve this will find a more rewardins. less competitive marketplace.

Mike Dandridge High Voltage Performance highvoltageperforrnance.com

(254 624-6299 mikedan@mac.com

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WESTERN RED Cedar Lumber Association held its annual meeting in conjunction with BC Wood's Global Buyers Mission.

[1] Chris Lynch, Janet Wheeler, Steve Power. [2] Danny & Kim Bachman. [3] Jack Heavenor, Dick Jones, Rob Marusic, Harold Mischke. [4] John Harris, Ben Meachen, Doug Nelson, Steve Mynick. [5] Harry Erskine. Shane Hartsch. Mark Woofinden, David Hughes. [6] Alan Lazauskas, Chris Beveridge, Scott Lindsay. [7] Danen Duchi, Jeff Robinson. [8] Monis Douglas, Jack Alley. [9] Robert Sandve, Paul Mackie. [10] Joe Petree, Craig Fleischalker. [11]

GO BLUE: Sierra Pacif c lndustries, Redding, Ca., hosted its annual open house Sept 16 [1] Red Emmerson, Dave Meurer. [2] George Emmerson, Hal Fay. [3] Darren Duchi, Charlie Moss, Neil Rasmussen, Joe Allotta. [4] Hans Ward, Kip Burns, Kathy Spoon [5] Kevin Paldino, Jay Francis, Dan l\4clntire, [6] Rob n & Mark Medearis [7] Christina Roggenkamp, John Ospital [8] Brad R x, Daniel George, [9] Chip Brittain, Dan Mandevllle, Jim Frank, [10] Jason Faulkner, Harvey

Hetfeld. [11] Bll Carroll, Danny Osborn, Robert West, Greg Thom [12] Mike Mackrn, Matt Carlton [13] Mark Miller, Jon Hagen. [14] Josh Dean. Thom Wright. [15] John Diederch, Rafael Sandoval, Charlie Schweitzer. [16] Bob Burger, Rocky & Jeanne Mullen, Mark Young. [17] Eric Shelby. Rob Crummett [18] Jack Chase, lMargaret & Bob Bretz [19] Harold Dodero, Jim Talley, Kev n Binam. Terry Johnson.

(More phatos on next page)

EYE ON SPI (continued from previous page). l'll Ken Laughlin, Ralph Morris, Robert West, Dick Jackson. [2] Marty Fox, Scott Mackechnre [3] Rick Vaughn, Greg S nclair. [4] Tom & Dianne Franklin, Dee Sanders. [5] M ke Thompson, Lori Col ins [6] John Tum no. [7] Millard Meeks, Dan Wolter [8] Edward Halsey, Stepl'en Srirr. Heane' Hampton, Anne Erickson. [9] Greg Srnclair, J m Miller, Steve Passe, Brian Kelly, [10] Ke th

Blackburn, Jerry Mosier, Andrew Cross [11] Gregory Hexberg, James Danielson. [12] Tim Livingston, Dan Fisher [13] Barry Schre de'. Lo'era \4a'odi [14] Tom Liberator, Bob Shepherd [15] Greg Kruse, Mike Thelen ['16] Paul Cheatham, Aaron Sulzer. [17] Dave Durst, Padam Malepati, John Reader. [18] Eric Ford, Mark Emmerson. [19] Terry Kuehl, Bob Long For free downloadable photos fromthis and other industry events, visit

DECK EXPO & Remodelino Show took over Baltimore Convention Center, Baltimore, Md., Septi 15-17 [1] Steve Klotz, Gary Maulin. [2] Jim Miller, Dave Martel. [3] John Junod, Marilyn Greene, Joe Junod. [4] Erica Biser, John Leisenheimer. [5] Kim Drew, Tom Diem, Chris Webb. [6] Richard Kleiner, Russell Richardson. [7] Matt Cullen, Rich Kapres, Brian May. [8] Glenn Eberle, George Eberle. [9] Dick Benson, Jon Bailey. [10]Chuck Casey, Brian Orchard, Phil Lail, Eric Sigmon. [11] r Ihe l,lednnt l,hsazine r Odoberz0l0

Ralph Leyh, Kristin Zommer, Rick Wearne. [12] Brian LaFave, Scott Schmidt. [13] Penny Hanis, David Palmer, Caylon Huckabay. [14] Arden Fuller, Peter Krihak, Frank Butterfield. [15] Jay Flom, Michael Grant, Daniel Gaxiola. [16] Arne Zenneck, Michael Sloop. [17] Scot Jeffus, Brent Gwatney. [18] Carey Garst, Erin Canosa. [19] Kevin Friday, Deby Jones, David Finkenbinder. [20] Peter Staal, Joe Holt. (More photos on next two pages) r The Medant lrhgazine r 0dober2010

BIG PRIZE: Over 100 golfers participated in the Los Angeles Hardwood Lumberman's Club's annual Alan Bohnhoff Memorial Golf Tournament Sept. 23 at the Costa Mesa Country Club, Costa Mesa, Ca., where [11 Michael Bohnhoff awarded the perpetual prize-Gerry, a carved wooden girafte. [2] Dan Bohannon, Jim Gaither, Charley James, Charley Fiala. [3] Alan Arbiso, Bob Goin. [4] Jason Brettigan, Craig Jordon, Roger Reyes, Marty Fox. [5] Charley Bohnhoff, Walter Ralston, Pete Peterman. [6] Danny Clark, Don Reel, Don Clark.

Celebrating 43 years of tine hardwood manulacture and distribution

For the finest service in the industry call on Swaner for a steady, reliable source of quality hardwood products at competitive prices.

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