Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.
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2015 2016 2014 2016 2015 2014 TOP REASONS FOR UPGRADED PRODUCTS When a distributor wants to sell you an upgraded product, what is most likely to convince you to make a purchase? Improved profit margin Differentiation from other remodelers and builders Other Improved image Improved lead flow 37.7% 28.7% 32.5% 36.1% 13.2% 17.2% 10.5% 12.3% 6.1% 5.7% 28.9% 33.1% 14.2% 18.4% 5.4% Moving to a better version of a product or a product with more features typically comes down to the chances for improved. profitability. Differentiation is also key. Source: Qualified Remodeler 2016 Supplier Survey MOST VALUED SUPPLIER TRAITS Rank the value you place on the following service attributes you seek from distributors and suppliers Correctness of orders Timeliness of deliveries Willingness to make good on mistakes Quick response to questions and inquiries Fair prices Warranty Easy-to-use and dependable website Jobsite support Drivers and staff interface well with homeowners Brand name Product training for my team Point-of-sales investment / showrooms Strength of point-earning program 9.5 9.6 9.2 9.4 9.3 9.0 9.3 9.3 9.0 9.0 8.7 8.6 8.7 8.5 8.4 8.6 7.8 8.2 7.8 7.2 6.8 7.4 6.8 7.0 7.3 6.9 7.2 6.8 6.7 7.0 6.8 6.2 6.6 6.5 N/A N/A 6.2 4.7 6.6 Year-over-year, there were no significant changes to the list of most-valued supplier traits. Correctness of orders is No. 1., while fair prices come in at No. 5. Source: Qualified Remodeler 2016 Supplier Survey Twin Cities are home to a number of top de- sign/build remodelers in the country. Dealers know there is a sizable enough market to be able to build a base and viable business out of remodeling activity. And it is still true that someone who focuses on production home builders is generally not in a good position to be able to serve remodelers properly. So in a market like the Twin Cities, you have two different specialty branches of the lumber and building material business. Some suppliers will focus on the production guys and some guys are focused on remodelers. What I do see happening with some of those guys is they are expanding their focus a little bit. e question becomes: How do I expand the kind of high-level, high-touch, concierge service that I provide to remodelers to oth- er customers who might want the same kind of services? Custom home builders are an ob- vious one. QR: Are the LBM dealers who cater to remodelers getting involved in online ordering? Brooks: Not to a great extent at this point. It's timely that you brought that up, because it has come up with some good LBM dealers lately, in particular the types of items people are buying online. Beyond home improve- ment, what do people generally buy online? Clothing and books are at the top of the list; building materials are way, way down at the bottom of the list. is discussion among LBM dealers is about the amount of risk there might be in purchas- ing the wrong item online. Building materials are going to rank pretty high in that regard. So we feel there is a fair amount of resistance to purchasing building materials online versus going to a lumberyard or dealer. But I can see where remodelers are going online to buy items like lighting fixtures and plumbing fixtures just because no brick and mortar store can provide the kind of selection you can find online. QR: Big-box retailers are working hard to engage with professionals. What are you seeing? Brooks: I think the barrier for any large supplier, whether it be a chain like a BMC, a Builder's First Source or whether it's Home Depot, is that they have to come up with a formula. Within their formula, they're very good at what they do. Last year, Home Depot QualifiedRemodeler.com QR January 2017 37