Marketing to Builders and Homeowners North Fulton County Extension Office Tuesday, June 14th, 2011 Atlanta, Georgia Harry W. Watt Business Improvement Specialist Wood Products Extension NC State University harry_watt@ncsu.edu 704-880-5034 www.cnr.ncsu.edu/localwood
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 20250-9410 or call (202) 720-5964 (voice and TDD). USDA is an equal opportunity provider and employer.
Lots of Value-Added Wood Products to Make and Sell for Home Construction for Manufacturers and Retailers Millwork Cabinets Furniture Flooring Kitchen Bedroom Stairs Bathroom Living Room Trim Garage Dining Room Doors Entertainment
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! Think Sales Volume and Margin $Profits = $Revenues - $Expenses
Homeowners Value The Things That Improve Their Lives Consider: Style and Design Functionality Value (Balance of Price and Quality) Relationship With the Manufacturer and Retailer Customer Service During and After the Sale
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 Atlanta Metro Region Has a Population of 4 Million People
Population Growth 2000 to 2009 Cherokee 51.1% De Kalb 3.9% Fulton 12.8% Rockdale 21.5% Clayton 9.7% Douglas 43.6% Gwinnett 36.9% Total GA 18.3% Cobb 13.2% Forsyth 78.4% Hall 29.0% Total USA 9.7% Source-Census Bureau Quick Facts, USA Change = 9.1% High Population Growth Offers Unique Challenges
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 I m a Homeowner and I m Ready to Buy!
Putting Out Lures for Homeowners to Find You Websites-Your Company s Site + Links Yellow Page Advertisements Newspaper Ads Magazine Ads Job Site Signs Signs on Company Vehicles Company Clothing
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
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 www.newhomeguide.com for Atlanta State Contractor Licensing Boards
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
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
Business and Marketing Plans Create a Plan for Business Success Identify What is Important o Goals and Objectives o Tactics o Target Markets and Customers o Products and Delivery Systems o Financial Analysis
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
Wood Products SIC Codes Manufacturer Wholesaler Retailer Household 2511 5021 5712 Furniture Kitchen 2434 5031 5712 Cabinets Millwork 2431 5031 5211 Office 2541 5021 5712 Furniture Store 2542 5046 5046 Fixtures
Wood Products SIC Codes-# Hits in the Atlanta Metro Region (Primary SIC s Used) Manufacturer Wholesaler Retailer Household HH 2511 = 4 5021 = 160 571216 = 518 Furniture Uph 2512 = 1 Kitchen 2434 = 16 5031 = 110 5712 = 58 Cabinets Office 2521 = 2 5021 = 160 502112 = 58 Furniture Millwork 2431 = 60 5031 = 110 521142 = 41 Misc Furniture 2599 = 24 Store 2541 = 2 5046 = 130 5046 = 130 Fixtures
Example Yellow Pages Search Within 25 Miles of Atlanta (www.yellowpages.com) Commercial/Industrial General Contractor = 455 Hits Building Contractor = 424 Hits Residential Builder = 1,139 Hits Use the Category Option to Filter the Search Can Set the Distance for Coverage Area
State Licensing Boards-Lists of Builders and Contractors GA Secretary of State s Office Handles the Licensing of General Contractors Can Search Online-Limited Filtering www.sos.georgia.gov/plb/contractors/default.htm Contractors and Residential Builders Are One of Many Important Contacts for Sales of Cabinets, Furniture and Millwork
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
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
Focusing on Locally Made Wood Products Local Food Movement is a Great Success-Example 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
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
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