Case Studies

Mar 16 2009 11:04AM | Permalink | Email this | Comments (1) |
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By Bruce Case

The downturn in new home building has driven many manufacturers, suppliers and subcontractors to focus their sales efforts on remodelers.  Remodeling is a challenge in this environment but not nearly as tough as new home construction.

Selling to remodelers requires a different sales approach than selling to new home builders.  Think of selling medicine to a hospital - with high volume, low margins, winning over 1 key decision maker, etc. - verses selling medicine to each individual doctor.  To sell to each individual doctor - or to each remodeler - takes a grass roots, committed and consistent focus.  The good news is that the pressure on margins created by the high volume purchases of new home builders is not as pervasive.  The bad news is that selling to remodelers is a bit like hurding cats.

We buy from manufacturers, suppliers and subcontractors that:
1.  Make it easy to spec, price, purchase and to obtain their products or services:  We buy one or two items at a time,  and we are on a tight timeline (in both the sales and production process) so we need it when we need it.  Think through the holistic process for a remodeler - not just your one segment - to see if you are making it easy for the remodeler.  You might have a great product, that is easy to price but if your suppliers aren't getting it to the remodeler on time, the entire chain breaks down.
2.  Relationships sell. I believe any sale is truly made on trust and relations. This is no different in selling to remodelers.  A promotion from headquarters that is not bolstered by "boots on the ground" relations won't work in todays world.  But how do you create relations with the myriad of remodelers spread in every corner of the country?  Get involved in their issues (NARI, NAHB, etc.), sponsor events they love (fishing, hunting, events for their team, community, etc.), have a beer with them.

Remodeling can be very rewarding but it is not an easy entry business/quick sale for the manufacturers, suppliers or subcontractors trying to crack into it.  The good news is that it can provide needed stability and risk mitigation to your revenue streams.

This post originally appeared on www.CaseInstituteofRemodeling.com