Marketing to Builders and Homeowners

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1 Marketing to Builders and Homeowners Mecklenburg Extension Office Tuesday, May 31st, 2011 Charlotte, North Carolina 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 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 Charlotte, NC Metro Region Has a Population of 2.3 Million People

7 Metro Population Distribution in 2009 Cabarrus 172,223 Catawba 159,125 Gaston 208,958 Iredell 158,153 Lincoln 76,043 Mecklenburg 913,639 Rowan 140,798 Union 198,645 Total NC 2,027,584 York 227,003 Lancaster 77,767 Total SC 304,770

8 Research Tools-Find Homeowners Building Permits = #1 Method for Detailed Information 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 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 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 (Primary SIC Code Hits) Manufacturer Wholesaler Retailer Household HH 2511 = = = 303 Furniture Uph 2512 = 8 Kitchen 2434 = = = 573 Cabinets Millwork 2431 = = = 25 Office 2521 = = = 32 Furniture Store 2542 = = = 56 Fixtures

17 Example Yellow Pages Search ( General Contractor Within 25 Miles of Charlotte, = 1,236 Hits Commercial General Contractor Within 25 Miles of Charlotte = 2,215 Hits Commercial and Industrial Contractors Within 25 Miles of Charlotte = 258 Hits Use the Category Option to Filter the Search

18 New Home Guide for Charlotte for the Charlotte Metro Region Printed Version Available at Area Grocery Stores List the Details of Local Large Housing Projects Can Search the Online Version to Narrow Searches Advertisements Provide Additional Information

19 State Licensing Boards-Lists of Builders and Contractors NC at SC-Look Up Contractors at Specify Residential Builder or Commercial Contractor

20 Business Strategy- Manufacturer and Retailer Your Business Strategy Determines Your Targets Your Business and Marketing Plans Detail Your 4-P s o Product o Promotions o Place o Price

21 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

22 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

23 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

24 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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