how to sell building materials to homebuilders
TRANSCRIPT
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How to Sell Builders
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YOUR TAKE AWAY
• Several actionable strategies you can use now to grow your sales.
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DON’T BE AN OLD WHITE GUY
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CONTRACTOR CAN KILL SALE
New or Different
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THE MARKET
• Controlled by the channel
• Does not want better performing products
• Does want solutions to problems
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FREQUENT PROCESS
• “We have a better product!”
• Communicate benefits
• Builder doesn't buy
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The Real BarrierTo Building Materials Sales
PerceivedProductBenefits
Cost & Risk of Change
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WHAT THE BUILDER WANTS
1. Solutions to Problems
2. Knowledge
3. Competitive (Not Lowest) Price
4. Relationship- Local supplier
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H OW TO S E L L B U I L D E R S
BUILDER FRUSTRATIONS
• Uneducated Sales People
• Unexpected Price Increases
• Website Not Up To Date or Useful
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THE CONSUMERIZATION OF BUILDER BUYING
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H O M E B U I L D E R S
TARGET BUILDERS
• Top 50/Medium/Small
• Expensive/Custom
• First Time Buyer/Tract
• On Your Lot
• Multifamily
• Green
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H O M E B U I L D E R S
3 TYPES OF SALES
1. Convert from comparable product
2. Upgrade
3. New product
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H O M E B U I L D E R S
CONVERT FROM COMPARABLE PRODUCT
• Cost alone won’t do it
• Builder has cost to change
• Focus on purchasing
• Find pain point
• Source of supply is critical
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H O M E B U I L D E R S
UPGRADE
• Involves a trade off - help them find the money
• Focus on sales/marketing
• Value of brand
• Differentiation
• Lost on the option list
• Sales training critical
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H O M E B U I L D E R S
PERFORMANCE PRODUCT CHALLENGE
“If they can’t see it, it doesn’t matter”
“I just have to warranty the home for a year”
“No one is asking for it”
Need to Make The Invisible - Visible
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H OW TO S E L L B U I L D E R S
PURCHASING
• Gate keeper
• Shopping list
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H OW TO S E L L B U I L D E R S
PURCHASING
• Fix problem with current supplier
What Does He Wish For?
• Better delivery / Distribution process
• Advance notice of price increases
• Competitive pricing
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H OW TO S E L L B U I L D E R S
SALES AND MARKETING
• Show us what customers want - trends • Help us differentiate our homes explain value
of your brand • Help us sell more homes at better margins
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H OW TO S E L L B U I L D E R S
CONSTRUCTION MANAGEMENT
• Faster and easier to install • Better lead times and availability • Fewer callbacks • Help with code changes
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CUSTOMER SERVICE MAKES YOU BULLETPROOF
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5 STAR SERVICE
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7 STAR SERVICE
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H OW TO S E L L B U I L D E R S
BOOKS TO READ
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H OW TO S E L L B U I L D E R S
KEYS TO BUILDER SALES
• Knowledge
• Building Industry • Your Target Builder Segment • This Builder • Your Product Category • Builder Sales Process
• Importance of Influencers
• Three Doors to Builder Sales
• Competitive Price
• Great Local Supplier
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How to Sell Builders