How to Sell Building Materials to Homebuilders

How to Sell Builders

http://seethewhizard.com/summit

YOUR TAKE AWAY

• Several actionable strategies you can use now to grow your sales.

DON’T BE AN OLD WHITE GUY

CONTRACTOR CAN KILL SALE

New or Different

THE MARKET

• Controlled by the channel

• Does not want better performing products

• Does want solutions to problems

FREQUENT PROCESS

• “We have a better product!”

• Communicate benefits

• Builder doesn't buy

The Real BarrierTo Building Materials Sales

PerceivedProductBenefits

Cost & Risk of Change

WHAT THE BUILDER WANTS

1. Solutions to Problems

2. Knowledge

3. Competitive (Not Lowest) Price

4. Relationship- Local supplier

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

THE CONSUMERIZATION OF BUILDER BUYING

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

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

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

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

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

H OW TO S E L L B U I L D E R S

PURCHASING

• Gate keeper

• Shopping list

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

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

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

CUSTOMER SERVICE MAKES YOU BULLETPROOF

5 STAR SERVICE

7 STAR SERVICE

H OW TO S E L L B U I L D E R S

BOOKS TO READ

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

http://seethewhizard.com/summit

How to Sell Builders