May 3 2007 1:58PM | Permalink | Email this | Comments (1) |
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Many manufacturers are discouraged from calling on home builders by their first customers because the customers don’t want to lose control over their relationships with their builders.  I can’t tell you how many times a customer has told me “stay away from my builders, I will handle them”.  If the manufacturer follows his customer’s direction the two of them will most likely spend a lot of time talking about price and the manufacturer will have a very narrow view of the market because this view will be seen through his customer’s eyes.  The manufacturer will not have an understanding of the builder’s needs and issues and many opportunities will be missed.  The manufacturer will also not have knowledge of other factors and “influencers” that can and do affect the specifications of many products that go into a new home. 

Let’s examine some of the benefits that can be derived from a manufacturer’s builder sales strategy.  They are:

1. The manufacturer can gain a broader view of the total market and gain great insight that can assist the manufacturer and the first customer
2. The manufacturer can enhance his market position and market share because he will have more opportunity to secure product specifications
3. Gain a greater understanding of opportunities and issues
4. Exert more control in the market
5. Identify partnering and/or acquisition opportunities
6. Gain enhanced market intelligence

The bottom line is that if a manufacturer is to be truly successful it must have strong relationships with first customers, utilities, lenders, architects, code officials, Realtors, industry consultants, trade contractors and all others who are involved in the supply chain and who influence the purchase decision.