Marketing to Builders and Homeowners
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1 Marketing to Builders and Homeowners Kanawha Extension Office Tuesday, June 7th, 2011 Charleston, West Virginia Harry W. Watt Business Improvement Specialist Wood Products Extension NC State University
2 Discrimination Policy Statement The work upon which this project is based was funded in whole or in part through a grant awarded by the Wood Education and Resource Center, Northeastern Area State and Private Forestry, U.S. Forest Service. In accordance with Federal Law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. (Not all prohibited bases apply to all programs.) To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, DC or call (202) (voice and TDD). USDA is an equal opportunity provider and employer.
3 Lots of Value-Added Wood Products for Home Construction for Manufacturers and Retailers Millwork Cabinets Furniture Flooring Kitchen Bedroom Stairs Bathroom Living Room Trim Garage Dining Room Doors Entertainment
4 The Goals-Quantity & Quality Goal #1 is to Find Suspects/Prospects/Customers Who Can Place Orders for Your Wood Products = $ Revenues! Goal #2 is to Find Better Customers Who Are Willing to Pay More and Quicker Than Those You Have Now!
5 Homeowners Value The Things That Improve Their Lives Style and Design Functionality Value (Balance of Price and Quality) Relationship With Manufacturer and Retailer Customer Service During and After the Sale
6 Homeowners and Builders Are the Mainstay for Many Locally Based Wood Products Businesses Residential Construction-New and Remodeling Projects Local Businesses Can Best Handle Small Quantities Local Businesses Can Best Meet Needs for Custom Designs Local Businesses Can Best Utilize Local Materials and Labor The Charleston Metro Region Has a Population of 444,000 People
7 Population Growth 2000 to 2009 Boone -3.2% Clay -3.0% Fayette -3.1% Kanawha -4.2% Lincoln 0.2% Putnam 7.9% Raleigh 0.0% Roane -3.7% Total 0.6% Source-Census Bureau Quick Facts, USA Change = 9.1% Low Population Growth Offers Unique Challenges
8 Research Tools-Find Homeowners Building Permits = #1 Source of Active Projects New Home Developments = Groups of Prospects Visiting Job Sites of New Construction and Remodeling County Land Ownership Records Phone Searches by Location
9 Putting Out Lures for Homeowners to Find You Websites-Your Company s Site + Links Yellow Page Advertisements Newspaper Ads Magazine Ads
10 Contacting Homeowners for Wood Products Personal Visits Mailings Replying to Inquiries Home Shows Home Tours Retail Sales Events m* rader s Fabric & Decorating of Beckley, WV
11 Lots of Research Tools to Find Builders and Contractors Business Databases Yellow Pages-Online is Best Home Builder Associations Building Permits Internet Searches Home Tours New Home Guide State Contractor Licensing Boards
12 Builders and Contractors Typically Specialize in What They Build for Residential Housing Projects Single Family Homes-Speculation and By Client Duplex and Small Apartments Multi Family Apartments Condos Nursing Homes and Assisted Living New and Remodeling Projects Second Homes
13 Advertising and Promotions for Manufacturers and Retailers Website for Your Company and Products Web Advertising General and Targeted Advertising Home Tours Product Insertions Yellow Pages Advertisements Newspaper and Magazine Advertising Street Signs at Your Projects Sponsorships
14 Business Databases to Find Builders and General Contractors Available for Purchase or Can Use at a Local Library Use SIC Code to Filter By Business Type and Location Contain Useful Detailed Information - Names of Company Owners and Managers - Contact Information-Address, Phone # s, Websites - Size of Business - How Long in Business - Nature of the Business
15 Wood Products SIC Codes Manufacturer Wholesaler Retailer Household Furniture Kitchen Cabinets Millwork Office Furniture Store Fixtures
16 Wood Products SIC Codes-# Hits in the Charleston Metro Region Manufacturer Wholesaler Retailer Household HH 2511 = = = 31 Furniture Uph 2512 = 0 Kitchen 2424 = = = 61 Cabinets Cab + Furn Millwork 2431 = = = 94 Office 2541 = = = 8 Furniture Store 2542 = = = 6 Fixtures
17 Example Yellow Pages Search Within 25 Miles of Charleston ( Contractor = 512 Hits Commercial General Contractor = 147 Hits Building Contractor = 258 Hits Residential Builder = 142 Hits Use the Category Option to Filter the Search Can Set the Distance for Coverage Area
18 State Licensing Boards-Lists of Builders and Contractors West Virginia Division of Labor-Handles the Licensing of Residential Builders and General Contractors Can Search Database by City-Charleston = 147 Licensed Contractors Contractors and Residential Builders Are One of Many Important Contacts for Sales of Cabinets, Furniture and Millwork
19 Business Strategy- Manufacturer and Retailer Your Business Strategy Determines Your Targets Your Business and Marketing Plans Detail Your 4-P so Product o Promotions o Place o Price
20 Business Strategy Want to Seek Out Those Prospects That You Can Service Well at a Profit $ Think in Terms ofo Alignment With Your Resources and Abilities o Delivery Expectations o Quality Expectations o How Well Do They Pay in Full and On Time
21 Focusing on Locally Made Wood Products Local Food Movement is a Great Success The Public Understands the Value of Local for Food Some of the Public Understands the Value of Local for Wood Products Can Incorporate the Local Message in All of Your Outreach Efforts to Homeowners and Builders
22 Using Local Woods to Grow Sales Lots of Local Hardwoods and Softwoods Can Be Cheaper Than Imported Woods Local Woods Do Have a Historical Use Story That Can Be Promoted Local Woods Are Green and Sustainable and More Environmentally Friendly Than Non-Wood and Imported Woods
23 Summary-Go Local Lots of Prospects Don t Know Who You Are Lots of Builders and Homeowners to Contact Lets Promote the Locally Made Wood Products Mfgrs Lets Use a Locally Made Theme in Our Promotions Local Woods Are Available for Cabinets, Furniture and Millwork Wood Products
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