marketing to contractors

A report from Point to Point

B E S T P R A C T I C E S F O R S E L L I N G B U I L D I N G

P R O D U C T S T H R O U G H C O N T R A C T O R S

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BEST PRACTICES FOR SELL ING BUILDING PRODUCTS THROUGH CONTRACTORS

But with a number of rapid changes occurring in the industry, it is becoming increasingly difficult to gain a solid understanding of contractors in the U.S. Using third party data, interviews with individual contractors, and our own industry experience, we have identified major market trends, and the challenges they pose for building product marketers:

• Addressing a disparate, fragmented group

• Connecting with contractors through a variety of outlets

• Approaching individuals who are resistant to change in product use

• Marketing during economic downturns

• Understanding the impact of technology on contractor decision-making

• Reaching time-starved small businesses

In a changing market, savvy building product marketers can transform these obstacles into opportunities. Some of these lucrative possibilities for marketers include:

• Reaching Hispanic contractors (who will make up an estimated 63.2% of the workforce by 2025)4

• Knowing how to address either broad audiences or specific segments of the contractor audience (residential vs. commercial, new vs. remodeling, small vs. large, one trade vs. another)

• Connecting with suppliers (who often serve as a direct line of communication between manufacturers and contractors)

• Creating product trial offers and guarantees (a sure way to gain loyal customers)

• Using interactive marketing (the Internet, mobile marketing, and mobile apps)

For more insight on selling through contractors, read the following white paper. To learn how an in depth knowledge of the contractor cohort and an integrated marketing strategy can be tailored to best meet the goals of individual building materials manufacturers, contact advertising and interactive marketing firm Point to Point today.

In the past year, residential contractors spent an estimated $39 billion on building products.1 Overall spending for the construction industry in 2010 is projected to be $869 billion.2 And 99% of contractors are involved in some way in their organization’s building product purchases.3 Contractors have tremendous influence over the purchase of building products, and manufacturers must develop sound strategies for approaching this group. Building product marketers who recognize specific contractor needs and create strategies to meet these needs will ultimately succeed in selling through this audience.

EXECUTIVE SUMMARY

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INTRODUCTION IN SHEER NUMBERS , CONTRACTORS

ARE POWERFUL

• This year, spending in the construction industry was $869 billion.5

• Before the recession in 2006, residential contractors alone spent $83 billion on building products.6

• In 2007, residential contractors spent roughly $27 billion on building products at The Home Depot.7

• In current terms, adjusted for the recent decrease in residential construction spending, residential contractor spending for 2010 is an estimated $39 billion.8

In many of the instances where contractors do not have sole purchase authority, they maintain involvement in building product decisions.

• 99% of general contractors say they are involved in some way in their organization’s building product purchases.9

Given their influence, it is obvious that effectively reaching, connecting with, and selling through contractors is imperative for building product manufacturers. So who exactly are the members of this important group?

Contractors are a diverse audience of painters, plumbing & hvac tradesmen, electricians, carpenters, plumbers, and other professionals who specialize in new and remodeling construction for both the residential and commercial segments.

Developing and implementing a strategy for reaching contractors is complicated. The contractor market is multidimensional. Contractors are highly fragmented and hard to reach. And the fact that the industry is constantly evolving poses a challenge for building materials manufacturers who must connect with contractors at exactly the right time in exactly the right way.

As building product marketers, what are best practices for reaching contractors? What trends in the market are important? And how can you utilize knowledge of these trends to win contractor support? This paper will provide a method for understanding the contractor, highlight some of the most challenging aspects of reaching contractors, and suggest solutions for addressing these issues to successfully sell building products through this complex group.

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UNDERSTANDING THE MAIN TRENDS :

THE MARKET AT A GLANCE

Contractor businesses range in size, capabilities, and expertise. While there are over 330,000 businesses in the category, it can be divided into subcategories based on trade.

CHART 1 | CONTRACTOR FIRMS BY TRADE (2008)

Trade Number of Firms

Plumbing & HVAC 96,821

Electrical 61,400

Painting 41,415

Carpentry 34,577

Masonry & Concrete 30,000

Source: http://business.highbeam.com/industry-reports

CHART 2 | WORKERS BY TRADE (2008)

Trade Number of Workers

Plumbing & HVAC 864,100

Electrical 694,900

Painting 450,100

Carpentry 1,300,000

Source: http://www.bls.gov/oco

The majority (80%) of these companies specialize in plumbing & hvac, electrical work, carpentry, concrete and masonry, or painting, but glass glaziers, flooring contractors, and drywall contractors are also included in this segment.

There are currently 832,100 residential building contractors in the U.S., and 827,200 nonresidential building contractors.10 As the economy changes and one market becomes more profitable than the other, these categories begin to merge because some contractors take jobs in both areas.

Also of note, one of the overarching characteristics of contractor firms is their status as small businesses.

CHART 3 | PERCENT OF FIRMS UNDER 10 EMPLOYEES (AS OF 2006)

Trade

Percentage of firms under 10 Employees

Plumbing & HVAC 77%

Electrician 78%

Carpenters 89%

Painters 87%

Drywallers 74%

Glass Glaziers 74%

Roofers 7%

Masonry 81%

Flooring 88%

Source: http://www.census.gov/econ/susb/

In the United States, the contractor industry has been undergoing significant transition, and these changes are affecting the way in which building product marketers should think about this target audience.

Some noteworthy trends include:

• The increased utilization of information technology

• A greater focus on eco-friendly building

• Higher customer awareness of construction materials.11

The most notable change, however, has been the economy.

While predictions suggest that there will be a need for an additional 1.1 million special trade contractors within the next few years, the trend toward higher unemployment has been dramatic.12 The unemployment rate in construction has climbed from 6.2% in 2000 to 19.0 % by the end of 2009, and up to 20.1% most recently.13

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In spite of these changes in the construction industry, contractors continue to have a steady influence on building product specification and purchasing. According to one prominent contractor trade publication reaching over 80,000 individuals in the industry, its readers have specifying and purchasing authority over:14

• Doors 87% of the time

• Windows 87% of the time

• Cabinets 82% of the time

• Floors 76% of the time

• Siding 75% of the time

• Tiles 75% of the time

• Plumbing fixtures 73% of the time

• Insulation 73% of the time

• Lighting 72% of the time

• Faucets 71% of the time

As a result of the transitions within the contractor market and its tendency toward fragmentation, building product manufacturers hoping to connect with contractors are faced with a number of obstacles. The most pressing challenges include:

• Addressing a disparate, fragmented group

• Connecting with contractors through a variety of outlets

• Approaching individuals who are resistant to change in product use

• Marketing during economic downturns

• Understanding the impact of technology on contractor decision-making

• Reaching time-starved small businesses

By understanding contractors’ interests, behavior, thought processes, desires, and concerns, manufacturers can transform these obstacles into tools for improving their marketing approach. Leveraging contractor market trends and characteristics will allow building product marketers to reach contractors at the right time in the right way, with as little waste as possible.

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CHALLENGE 1

FRAGMENTATION AMONG CONTRACTORS

With new tradesmen entering the profession, businesses restructuring due to economic downturns, and immigration influencing the demographics of the trade industry, the contractor market is becoming more and more fragmented. Not only are contractors divided based on trades, but also in the sizes of their firms, the projects they undertake, and their backgrounds.

SOLUTION: Building product marketers should understand the differences that emerge between contractors while simultaneously taking into account overall trends in the industry. For those that do so, a number of opportunities for improved marketing strategies will emerge.

REACHING H ISPANICS . As of 2007, 690,000 Hispanic-owned firms in the U.S. operated in the construction, repair, or maintenance industries.15 In 2008, 30% of the U.S. building maintenance/construction workforce was Hispanic.16 By 2025, Hispanics within the construction workforce are estimated to reach 63.2%.17

Although there are a large number of Spanish-speaking contractors in the United States, manufacturers, by and large, do not focus on this group to the same degree they do English-speaking contractors.

The opportunities for marketers are numerous.

• Cost savings. Spanish-language advertising venues are less expensive.

• Segmentation opportunities. Marketers can target specific regions with a high density of Hispanics in order to reach the most relevant audience while mitigating marketing waste.

Manufacturers who create Hispanic-directed messages and place them in areas where there is a large Hispanic population can successfully take advantage of these opportunities. According to recently released data, California had the highest number of Hispanic-owned businesses (566,000) in 2007, with Florida coming in second, and Texas in third.18 Messages in these areas will be particularly influential because not all marketers are focusing on this group.

UNDERSTANDING YOUR AUDIENCE BEYOND THEIR

PROFESS ION. Marketers must learn to view contractors as people rather than businesses. Those who wish to gain a complete understanding of contractors should think of them as people outside of their professions. One study of contractors who make purchasing decisions and work at companies with fewer than 10 employees indicated contractors:19

• Believe they are good at fixing things

• Want to get to the top of their careers

• Consider themselves creative people

• Look at the work they do as a career, not just a job

• Listen to the radio every day

• Believe it is worth paying extra for quality goods

After having made the effort to understand contractors as more than just building product consumers, manufacturers can create messages that appeal to contractors in a deeper, more meaningful way.

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One way to do this is to understand their hobbies and interests. A survey of over 1,000 contractor trade publication subscribers detailed some of these notable facts:20

• 84% of contractors are male

• 82% are married

• 93% are homeowners

• Dining out is their favorite way to relax

• Going to movies is their second favorite leisure activity

• 70% vote

• 47% volunteer with nonprofits

• Enjoy bicycling, boating, fishing, golf, and swimming

• Enjoy travel

Taking these and other components into account, building product marketers can make informed decisions about promotions and media buying. In these instances, marketers can place ads where they know contractors will see them (at the movies, for example) and offer promotions contractors will genuinely want (such as contests for free trips, boats, or golf equipment). In this way, marketers can further overcome the obstacle of fragmentation within the market.

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CHALLENGE 2

CONTRACTORS LEARN ABOUT BUILDING

PRODUCTS FROM A VARIETY OF SOURCES

Since contractors are a diverse group, it is no surprise that their methods for obtaining building product information also vary. While some contractors get product information from wholesale suppliers, fellow contractors, and trusted sources at big box retailers or local hardware stores, others rely on their own knowledge and experience with products or take into account architect and design specifications and customer preferences.

In a recent study of construction buyers, respondents said they consulted professional publications, manufacturers’ websites, Internet searches, and took into account word of mouth when making purchasing decisions.21

Even on the individual level, contractors are relying on multiple resources to learn about building products, making it difficult for product marketers to understand how to best reach them.

SOLUTION: Contractors cannot buy a product if they don’t know about it. So in order to ensure they stay up-to-date on building materials, manufacturers should communicate with them based on where they are getting their information.

REACHING BROAD AUDIENCES . Marketers hoping to reach all contractors (of any size and any trade) should be sure to educate suppliers (wholesale, big box stores, and localized hardware stores), create word of mouth among contractors, and advertise to the end consumers who will potentially request products.

REACHING SPECIF IC SEGMENTS . Those who want to focus on one type of contractor must have different strategies based on where their target groups most often obtain product information. In instances where contractors rely on big box stores, the opportunity for relaying information is very limited, and the best approach is a direct line of communication from manufacturer to contractor.

For those who want to win the support of small contractor firms, making the “little guy” feel as if he is important (by assigning him sales reps and communicating with him frequently) is one of the best tactics.

CONNECTING WITH SUPPL IERS . When it comes to new products, contractors often listen to suppliers. A 2006 Readex research study of masonry contractors acknowledged, “To help them evaluate masonry materials, [masonry contractors] tend to favor information directly from other people rather than non-personal sources like the Internet. Most rely on dealers/distributors for this type of information.” 22 Based on this finding, one of the best ways to keep contractors informed about your products is to constantly keep suppliers and dealers up to date.

When it comes to communicating with suppliers, similar methods apply. Be sure to maintain clear product information on your website, and have your sales reps reach out to suppliers and dealers either in person or over the phone. With suppliers, just as with contractors, you will be most effective if you only initiate contact when you have valuable information for them.

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UT IL IZ ING THE INTERNET . As is evident from recent research, building product manufacturers should also remember that contractors are increasingly using the Internet for product information. 70% of contractors research new equipment online, and more than 60% visit manufacturer websites.23 And the number one thing construction buyers want from manufacturer websites, after product pricing, is ease of navigation.24 Manufacturers should have product details easily accessible on their websites and focus on simple site design. Contractors are busy individuals, and although this is a challenge in and of itself, it is important that manufacturers use the Internet as an efficient means of communicating with contractors.

And although social media isn’t particularly strong among contractors today, marketers should view it as an opportunity to capitalize on an emerging trend. Particularly during difficult economic times, when contractors are looking for free access to advice, marketers have the ability to pave the way for effective social media marketing and communication with contractors.

“If a customer has seen a commercial on a product they

may request it, so we want to be knowledgeable.”

- David, Carpenter

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Another hurdle for marketers is building brand loyalty. Contractors use multiple building products on a daily basis and come to trust certain brands. Once a contractor has become comfortable with a specific product or brand, he is understandably hesitant to switch. A manufacturer may have a better product, but it is difficult to convince contractors that this is the case. Contractors often think like Eric, a carpenter, who said, “if a brand has been reliable in the past, we continue to use it.”

SOLUTION: In order to convince contractors to become your loyal customers, there are several steps you can take.

TRIAL OFFERS AND GUARANTEES . If contractors have the opportunity to try your product and see how it performs, they will be more likely to trust your brand and welcome the changes or improvements your product can provide. If contractors know manufacturers will back up products with guarantees, they are more willing to become loyal supporters.

DEALER SUPPORT . The Readex research highlights dealer support as being one of the top criteria in masonry contractor selection of brands.25 Additionally, an Energy Smart Marketers study of electrical contractors indicated that contractors felt they could sell led lighting more effectively if manufacturers provided samples, sales brochures, and product application guides.26 Manufacturers who recognize the anxiety produced and the risks faced when contractors switch products have an opportunity to demonstrate a deep understanding of their customers.

“Using a new product or brand would make me nervous.”

-Christy, Painting Contractor

PRODUCT GUARANTEE:

When we asked contractors what

single action manufacturers could

take to gain their loyalty, here’s

what they had to say:

• “If there is an issue with a

product, knowing there is a

guarantee is the number one

thing that will keep us with

[the manufacturer]”

• “Manufacturers should

demonstrate support for their

products. I want to know I can

talk to someone who is going

to provide a guarantee for the

product if I have any problems.”

• “Give contractors a small free

sample so they can try

the product on their own.

Contractors want to try new

products before they will trust

them.”

CHALLENGE 3

CONTRACTORS ARE RES ISTANT TO CHANGE

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When the housing and commercial construction markets undergo slower periods, contractors experience a number of economic challenges as they struggle to keep their businesses afloat.

Evidence of this phenomenon is apparent within Bureau of Labor Statistics data about mass layoffs and employment within the industry (Charts 4 & 5). But on a more individual level, one contractor told us, even when you get work, you see less on the bottom line: “I’ve had to come in lower on bids and to under-price things just to maintain jobs.”

During periods of economic decline, two potential challenges for building products companies emerge: (1) contractors change buying habits, and (2) messages to a financially strained group may fall on deaf ears.

CHART 4 | BUREAU OF LABOR STATISTICS DATA:

EMPLOYMENT OF SPECIALTY SUBCONTRACTORS

Year

Employees (in thousands)

2000 4243.7

2001 4245.9

2002 4214.2

2003 4332.8

2004 4528.4

2005 4799.5

2006 4899.3

2007 4758.3

2008 4255.8

2009 3615.1

2010 (As of April) 3522.7

Source: Bureau of Labor Statistics, http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?series_id=CES2023800001&data_tool=Xgtable

CHART 5 | BUREAU OF LABOR STATISTICS DATA:

MASS LAYOFF EVENTS FOR SPECIALTY

TRADE CONTRACTORS

Year Mass Layoff Events

2000 546

2001 684

2002 832

2003 880

2004 807

2005 868

2006 641

2007 842

2008 1,111

2009 1,392

2010 (As of April) 390

Source: Bureau of Labor Statistics, http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?series_id=MLUMS00NN0059003&data_tool=Xgtable

SOLUTION 1 : The challenge of selling through contractors whose buying practices change during economic downturns can be viewed as a branding opportunity. When the economy takes a dive and contractors lose work, those who survive do so because of their commitment to quality work at low prices. During tough economic times, contractors rely more than ever on their reputations, on receiving bids through referrals, and on giving customers low bids.

STRESS QUALITY . Marketers can connect with contractors during economic downturns by highlighting quality. Manufacturers should demonstrate their ability to help contractors by offering products that will bolster their ability to get and maintain work.

CHALLENGE 4

ECONOMIC DOWNTURNS IN

CONSTRUCTION MARKET

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PROMOTE PR ICE . According to a 2008 study, remodelers felt that the number one thing manufacturers could do to help improve their financial conditions was to offer discounts and rebates.27 In reality, contractors (like most customers) want the biggest bang for their buck. Getting the best quality for the best price becomes an even bigger part of the decision-making process in a bad economy because contractors must continue to produce solid results for their customers, even as they are dealing with lower work volumes and competitive pricing. In this environment, manufacturers who are able to offer deals on products while maintaining the integrity of those products will succeed.

SOLUTION 2 : When the economy takes a dive and contractors lose work, building product companies are hesitant to implement any kind of marketing that targets contractors.

BE INFORMATIVE . Even when your customers are struggling financially, it is important that they stay abreast of new technology and services and invest in the future. Manufacturers who advertise during these slow growth periods can therefore gain a competitive edge.28 During hard times, contractors continue to plan for the future, meaning they still seek information about new products and pay attention to what marketers are saying.

“Products aren’t maintaining quality, so we have had a lot of

loss because my business is 100 percent referral, my word is all I have. I have to do things for

free when there are problems with products, just to keep clients happy…my biggest

challenge with this economy has been that the quality of

materials has gone down.”

– Eric, Carpenter

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As we have all experienced, there has been a rapid growth in Internet and cell phone use over the past decade. Back in 2000, only 46% of adults used the Internet. In 2010, that number reached 79%. In 2000, 50% owned cell phones. 82% owned a cell phone by 2010.29 For contractors, technology has become an important part of keeping up with business and conducting product research. At the same time, many contractors are just beginning to fully embrace the Internet and often remain skeptical of complicated websites that do not allow them to easily access information.

Increasingly, contractors are turning to the Internet to get information about building products, obtain bids, and participate in online forums (Chart 6). In fact, one contractor forum had over 60,000 members and almost 950,000 posts at the time this paper was written, and the network of which it was a part had 112,00 members.30 More importantly, a staggering 98% of general contractors used the Internet for product research in 2008.31

CHART 6 | WEB PERFORMANCE OF CONTRACTOR-RELATED

WEBSITES 2006-2010

Website % VAR Page Views

Remodeling Online Growth of 48.8%

Replacement Contractor Growth of 266.9%

Masonry Contractor Growth of 265%

Source: Hanley Wood Business Media Web Performance Statistics for 2006, 2007, 2008, 2009, and 2010

Manufacturers should be aware that contractors are not flocking to the Internet as quickly as other groups, and contractors are not uniform in their acceptance of technology. Eric, a carpenter, told us, “I hate email. I hate the computer. I prefer the phone or being face to face with customers and suppliers.” Masonry contractor Josh, on the other hand, found the Internet invaluable to his work, saying,

“We use computers a lot, we find our bids online, and we look at manufacturer websites for product information.”

Staying up-to-date on technological changes and knowing how contractors are using technology remains a constant challenge, but it is beneficial for manufacturers to be aware of these changes in terms of what they mean for marketing.

SOLUTION: Although contractors may not be early adopters of technology, the overall trend in advertising is a transition away from print and toward online. A recent report quantified this shift: in 2009, online ad revenues continued to climb to $24.2 billion, while print ads fell 28.6% to $24.8 billion. Additionally, the report suggested that by 2014 online ad spending would increase to $34.4 billion, and “digital technologies will progressively increase their impact across all segments of entertainment and media as digital transformation continues to expand and escalate.” 32 It is already becoming clear that interactive has become the dominant marketing medium. Although contractors may not have fully embraced the Internet, building product manufacturers should understand interactive as the future of marketing.

GO ONLINE . In business-to-business marketing, there was an increase in online marketing revenue of 7.5% during Quarter 1 of 2010.33 While 68.7% of the B-to-B marketer respondents in an American Business Media study anticipated increasing their spending for online marketing in 2010, only 27.9% planned to increase their spending in print. And, between December of 2006 and March 2010, there was a 51.76% decrease in ad pages in building, engineering, and construction trade publications (Chart 7).34

For building product marketers, as for marketers in other areas, the trend toward online advertising is clear.

“I always speak with customers in person or on

my cell phone. It is easier to communicate with customers

when I can hear their voices and understand how

they’re feeling.”

-David, Carpenter

CHALLENGE 5

TECHNOLOGICAL

D ISRUPTORS

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CHART 7 | CHANGE IN AD PAGES FOR BUILDING,

ENGINEERING, AND CONSTRUCTION

TRADE PUBLICATIONS

Year % VAR Ad Pages

2006-2007 -1.92

2007-2008 -12.22

2008-2009 -37.62

Total (2006-2009) -51.76

Source: http://www.americanbusinessmedia.com/abm/Business_Information_Network.asp?SnID=666088281

REEVALUATE YOUR WEBSITE . Knowing that the Internet has a bright future among contractors and B-to-B marketers alike, building product manufacturers must view their own websites as valuable marketing tools. Contractors are becoming more acclimated with the Internet, but it is still imperative that manufacturer sites are clear, easy to use, and have logical layouts. By having a user-friendly site, you will be more likely to command contractor attention, even among those who are just beginning to use the Internet. As one study concluded, with contractors “it’s really about being easy to navigate and providing product…information. It’s about the substance, not the style.” 35

LOOK TO MOBILE MARKETING. Contractors widely use cell phones to conduct business, and knowledgeable marketers should view mobile marketing opportunities as a lucrative possibility. Manufacturers, for example, could build databases of customer phone numbers and send convenient messages about discounts directly to contractors’ cell phones. As we will explore in the final section, contractors do not always have time to speak with sales representatives or seek out discounts, and targeting them via cell phone, their lifeline to the outside world, could be a hugely rewarding tactic.

MAKE AN APP FOR THAT . We now live in a world where there is an “app” for pretty much everything. In fact, the mobile application marketplace is predicted to grow at a rate of 807% in the next three years.36 With the advent of the smart phone, it can be assumed that even the less-techno-savvy contractor will eventually access apps on his cell phone. Especially if those apps are easy to use and helpful. This explosive technology provides an excellent marketing opportunity for manufacturers, a handful of whom have already created apps that aid customers and drive purchases.

Sherwin Williams, for example, introduced ColorSnap, an award-winning mobile phone application that allows customers to capture a color and get the closest matching Sherwin-Williams paint color, obtain coordinating colors or create a custom palette.37

Similarly, Benjamin Moore’s app, ben® Color Capture,™ is an iPhone application that, with the tap of the screen, lets you snap a picture of any color inspiration, anywhere in the world, and instantly match it to one of the more than 3,300 hues that comprise Benjamin Moore’s color system.38

Another example of the building product manufacturer foray into this area is LumberCalc, a specialized lumber calculator that allows you to quickly convert a unit of lumber’s given dimensions to board feet, and calculate order totals given an MBF price. It also allows you to submit a request for a quote to Bear Creek Lumber directly from your phone.39 Particularly among busy contractors who crave quick and easy access to information, mobile apps present an exciting new marketing possibility.

“My office is in my van. I have a wireless laptop in my van and I constantly use it to visit manufacturer websites.”

-Michael, Plumber

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As of 2006, 82.4% of the top five contractor trades had fewer than 10 employees.40 As small business owners, contractors must focus on obtaining new bids, advertising their services, and managing employees, in addition to working on construction jobs.

All of these factors combined mean contractors are time-starved individuals who must constantly prioritize in order to balance their outside lives with managing successful businesses. Connecting with a group of people who have very little time to dedicate to building product research is an immense challenge for manufacturers.

SOLUTION: Reach contractors at their convenience, and only when you have valuable information for them. If marketers can prove they understand the contractor schedule, they have one more opportunity to win support from this audience. Once a building product manufacturer proves it will not waste a contractor’s time, contractors will be more likely to trust the manufacturer and listen to what it has to say.

BE AN ALLY . Due to the time constraint associated with contractor-manufacturer interaction, manufacturers can benefit from knowing what contractors will consider useful information. For example, since contractors struggle to maintain workloads during a bad economy, marketers can provide tips for winning bids. Alternatively, understanding that contractors must be comfortable with new products before they use them could lead manufacturers to include free samples in product demonstrations. Overall, marketers hoping to win over contractors should take into account the straightforward advice of one contractor: “we are busy and working, and manufacturers should come directly to us and show us new products.”

“I can’t spend hours on a manufacturer website…so

manufacturers need to have a basic search system I can

use to obtain product details quickly.”

-Eric, Carpenter

“I am busy and I appreciate those [manufacturers] who

come to me and are willing to meet with me for ten minutes,

and show me new products.”

-Michael, Plumber

CHALLENGE 6

CONTRACTORS ARE

T IME-STARVED

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Best practices for selling building products through contractors center on creating customer loyalty based on a thorough understanding of the customer. If contractors view a manufacturer as being trustworthy, dependable, and attuned to their needs, this will lead to a mutually beneficial relationship.

For this reason, best practices include:

• Understanding fragmentation within the industry

• Reaching contractors through a variety of outlets

• Allowing for product trial and creating product guarantees

• Using Internet, mobile marketing, and mobile apps

• Having flexible and informative sales representatives (and knowing which contractor type will benefit from speaking to your representatives)

• Recognizing the demanding contractor schedule

• Knowing how your brand and products fit into the market

Although this white paper presents a basic strategy for all building product marketers, a comprehensive and integrated marketing strategy must be tailored to best meet the goals of building materials manufacturers on an individual basis. As an advertising and interactive marketing firm with extensive experience in business-to-business and building materials marketing, Point to Point can build upon these ideas to help manufacturers develop specific methods for overcoming the challenges that arise within this sector.

SUMMARY OF BEST

PRACTICES FOR SELL ING

THROUGH CONTRACTORS

Best Practice: Having

Coordinated Sales and

Marketing Departments

Having marketing and sales

teams with aligned strategies

contributes to overall company

productivity. A disconnect

between sales and marketing

hurts the flow of information

and causes problems for

the manufacturer. The sales

department should be in

communication with marketers

and keep them informed

about which products they are

currently selling, and report back

about what drove the sales.

Marketers, on the other hand,

should give the sales department

an idea of which products they

plan to market and when. Open

lines of communication between

sales and marketing will make

the odds of conversion from

prospect to sale much higher.

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1 http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1FQ2lxxMkEY&refer=home

2 www.census.gov/const/C30/release.pdf3 Internet Use of General Contractors Hanley Wood eMonitor

Report 20084 Source: 2000 – 2008, Bureau of Labor Statistics, US

Department of Labor (Projections are based on a linear trend using 2000 – 2008 Bureau of Labor Statistics data.)

5 http://www.census.gov/const/www/c30index.html6 http://www.bloomberg.com/apps/news?pid=newsarchive&si

d=a1FQ2lxxMkEY&refer=home7 http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1FQ2lxxMkEY&refer=home

8 www.census.gov/const/C30/release.pdf9 Internet Use of General Contractors Hanley Wood eMonitor

Report 200810 http://www.bls.gov/oco/cg/cgs003.htm11 www.doe.mass.edu/cte/frameworks/trends_ov/plumbing.pdf12 www.doe.mass.edu/cte/frameworks/trends_ov/carpentry.doc13 http://www.bls.gov/iag/tgs/iag23.htm#workforce14 http://www.remodelingmediakit.com/audience/15 http://network.nshp.org/forum/topics/survey-of-business-

owners16 2008 U.S. Department of Labor Bureau of Labor Statistics17 Source: 2000 – 2008, Bureau of Labor Statistics, US

Department of Labor (Projections are based on a linear trend using 2000 – 2008 Bureau of Labor Statistics data.)

18 http://www.infozine.com/news/stories/op/storiesView/sid/42337/

19 Spring 2009 SMRB Simmons Report20 Hanleywood American Housing Conference Report21 2010 BuyerZone Report22 2006 Hanleywood Masonry Construction Buying Practices

Study23 Reed Construction Data24 2010 BuyerZone Study25 2006 Hanleywood Masonry Construction Buying Practices

Study26 http://www.digitalhomedesignline.com/news/21850064927 Hanleywood M2 Research 2008

28 2009 Economic Uncertainty American Business Media Report, 2001 Yankelovich Harris Study, Pennsylvania State University: ISBM Report, Raji Sriniva, Gary Lilien, and Arvind Rangaswamy, 2002, Buchen Advertising Inc. 1949, ’54, ’58, ’61, Harvard Business Review: 1923

29 http://www.pewinternet.org/Presentations/2010/Jun/How-Media-Consumption-Has-Changed-Since-2000.aspx

30 http://www.quantcast.com/p-40K46e7R-kCVc, http://www.quantcast.com/contractortalk.com

31 Hanleywood eMonitor Report 200832 http://www.readwriteweb.com/archives/report_online_ad_

revenue_will_soon_surpass_print.php33 www.americanbusinessmedia.com34 http://www.americanbusinessmedia.com/abm/Business_

Information_Network.asp?SnID=66608828135 2010 BuyerZone Study36 http://www.boygeniusreport.com/2010/03/05/

mobile-application-market-could-grow-to-over-15-billion-by-2013/

37 http://www.sherwin-williams.com/press/trade/releases/2010/0614_colorsnap_v2/

38 https://www.appstorehq.com/bencolorcapture-iphone-36775/app

39 https://www.appstorehq.com/lumbercalc-iphone-83684/app40 http://www.census.gov/econ/susb/

NOTES

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