Special Orders

[ SALES CONNECTION ]

By Bryan Rice

Special Orders

In the process of building our first home in the early ’80s, the Lampert Lumber yard in Fridley, Minnesota, where I began my career, stocked almost everything needed in the construction process.

Windows: “Pick from these stock sizes and get out your paintbrush.”

Shingles: “What color? Pick from these 10 colors.” Of course, we picked wood blend.

Siding: “12-inch smooth, or would you like to ‘upgrade’ to textured hardboard?”

Interior doors and trim: “Flush oak or mahogany?”

We were thrilled when our builder asked us to pick a color for our range hood. Now, we had some real decisions to make. Of course, we picked harvest gold.

My, how times have changed. Even with in-stock inventory at record levels, special orders now account for up to 75% of the total package that comes from the lumberyard. Trusses and engineered wood systems, roofing, windows and exterior doors, siding, decking, interior doors and millwork, cabinetry and countertops, and more. It’s all about selections, choices, and, in most cases, budget.

Take windows, for example. The type, features, sizes, design and regulatory specifications, colors, manufacturer, series, price considerations, build schedules and more factor into decisions for the builder and the end customer. The same applies to other categories, sometimes down to the hardware.

With the growth of big box stores, specialty stores, one-steppers and similar competitors, the landscape has changed. This shift accelerated with engaging websites and social media. The accessibility of Amazon and other platforms has further expanded information availability. Now, artificial intelligence will undoubtedly take this to a new level. Customers today are more informed and tech-savvy than ever, and we need to be as well. It can sometimes be challenging, but here’s the good news. We win if we execute our game plan.

Embrace Value-Added Services

Hopefully, your company is committed to value-added services such as design, estimating, delivery, installation, breadth of inventory, project and special-order fulfillment, manufacturer software, displays, literature and showroom selections. These are what set you apart from the competition. In short, you need to provide in-house capabilities that are second to none. However, these services only create real value if we leverage them effectively.

Sell the Mix

As an industry, we can offer key product categories, along with lumber and sheet goods, that provide customers with solutions beyond just materials. Roofing, windows, siding, drywall, insulation, millwork, cabinetry and decking all contribute to our sales while simplifying the process for our customers. Less running around, fewer touchpoints, integrated project management and billing, coordinated delivery and backend support add value. Sometimes, it’s important to think inside the box.

Price with Integrity

When it comes to commodity and hardline price plans, along with special-order pricing, it’s critical to have a model that is fluid, fair, competitive and profitable. More importantly, it must be structured with everyday integrity. This means implementing a pricing framework that provides guidance and margin expectations for key product categories, project types and transaction levels. Manufacturer sell factors from electronic offerings should also be considered while allowing flexibility where needed.

Special order terms, return policies and other conditions should be clearly defined. Since special orders make up an average of 40% to 70% of a lumber yard’s business, they aren’t just a category. They are one of the most essential aspects of the operation.

Recently, I visited a couple of major box stores in the Twin Cities area. One did an outstanding job while we were looking for future appliances. They had a wide selection and great displays, and the associate asked insightful questions. Even though it wasn’t in stock, the associate provided us a complete estimate within minutes, including graphics, specs and pricing. And no, we did not go with the gold color. Candidly, the experience was much better than the major distributor our builder had recommended. We never even heard back from them. However, based on what I observed, I don’t believe this level of service carried over into their building materials department.

While traveling in a warmer climate, I stopped by another big-box store. I wandered around, browsing displays and asking about product choices for an upcoming project. The experience reminded me how much opportunity there is in the building material industry, as long as we execute at a higher level than what I saw there.

Cabinetry? “The door styles are all over there.”

Roofing? Same story.

I have nothing against these stores. They’ve built their success, and I don’t mean to downplay that. But here’s the good news. People matter. You and your team bring so much to the table. Happy selling.

Bryan Rice is a building materials advisor/consultant. Committed to sustainable and profitable growth, Bryan brings more than four decades of hands-on experience in the building materials industry, demonstrating expertise and insight. For more information, visit www.bryanriceconsulting.com.