Builders want to get their projects off the ground in a timely and cost-effective manner. And dealers hoping to keep their business or attract new business often find themselves facing similar obstacles, such as costs, resistance by the builders to change, and resistance to upgrading materials.
Looking at this problem, many dealers end up trying to cut costs themselves to attract builders, which in turn hurts profits or causes mistrust amongst builders who assume that low costs may equate with low quality or lack of other services. It is possible, however, to both improve your own profits while helping builders cut costs. This dynamic can attain you new builder relationships while helping to strengthen existing relationships at the same time.
STRENGTHENING SERVICE
Builders face enormous pressure to get their projects completed quickly, as well as correctly. Any type of delay in service from shipping to incorrect material can cause a delay that costs them money. Dealers who want to set themselves apart from the competition and retain builder business need to pay attention to the service end of their occupation.
Tighten up shipping times and implement strategies for ensuring that the correct materials go out each and every time. Shorten lead times where possible, and you’ll find the builders will want to return to your business, increasing your profits while they cut their own costs by eliminating delays.
BETTER MATERIALS
Builders face a lot of challenges including things that are beyond their control, like the weather. By offering products like Barricade house wrap that can withstand weather despite delays, you allow the builder the ability to adjust and continue working, rather than needing to replace and redo previously done areas.
Better materials help builders move more quickly, which means that it saves them money. This translates into repeat business, which in turn increases your bottom line.
EXPAND TECHNOLOGY
Builder mindsets have changed following the recession, and many builders are now more likely to embrace things that will help their properties sell, and that includes technology and new advances in energy savings.
Take a look at what you already offer, then see where you can expand to keep up with new innovations. For example, if you specialize in exterior products, see how you can offer builders a way to create a tighter building envelope. If you specialize in wiring, start offering packages that include security, sound, or automation. Home buyers are beginning to ask for and expect these items, which means that builders need to include them in their plans. If you offer current clients and new clients ways to increase sellability of their final project, you’re more likely to increase business.
REDEFINE VALUE
Builders want discounts. They want the lowest prices available and are willing to shop around in some instances. Offering rock bottom prices, however, isn’t always feasible for dealers who have their own bottom line to consider.
This means that in order to appease builders who want value and to keep your profits up, you need to redefine what value means to your customers. Rather than simply offering the lowest prices around and cutting back on quality or service to meet those prices without going under, you may need to start spinning your services to builders in other ways.
For example, when you reach out to construction managers, mention the fact that your high-quality products are easier to install, which means less labor and fewer labor hours. When you speak to the sales manager, emphasize your quick shipping or fast turn around times. Reach out to the builder’s marketing department and emphasize the ways in which your products are going to be attractive to buyers. The key is to let the builder know that you offer value in ways that don’t necessarily come from the lowest price around.
EDUCATE
You want builders to upgrade and you want new builders to find and use your products and services. But how can you do that beyond offering competitive prices and services? Educate builders on your product.
Get to know your products better than anyone else. Find their high points and what will make them attractive on every level. For example, if you are selling Barricade house wrap, emphasize to the builder that it’s easier to work with so it will cut labor costs. Explain how it can be used to create a tight building envelope that will lower energy costs for the buyer. Offer solutions for problems that builders didn’t realize that they had by helping them get to know the product better. By educating your builders, you help them make decisions that will positively impact you both.
REACH NEW BUILDERS
To be competitive in today’s market, you need to change the way you approach your builders. Change up the ways you define value and watch your profits soar.
