Marketing to Builders and Homeowners...• New Home Developments = Groups of Prospects • Visiting...
Transcript of Marketing to Builders and Homeowners...• New Home Developments = Groups of Prospects • Visiting...
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North Fulton County Extension Office
Tuesday, June 14th, 2011
Atlanta, Georgia
Harry W. WattBusiness Improvement Specialist
Wood Products ExtensionNC State University
www.cnr.ncsu.edu/localwood
Marketing to Builders and Homeowners
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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.
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Lots of Value-Added Wood Products to Make and Sell for Home
Construction for Manufacturers and Retailers
EntertainmentDoors
Dining RoomGarageTrim
Living RoomBathroomStairs
BedroomKitchenFlooring
FurnitureCabinetsMillwork
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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
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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
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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
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Population Growth 2000 to 2009
Source-Census Bureau Quick Facts, USA Change = 9.1%
High Population Growth Offers Unique Challenges
Total USA9.7%
Total GA18.3%
Rockdale21.5%
Hall29.0%
Gwinnett36.9%
Fulton12.8%
Forsyth78.4%
Douglas43.6%
De Kalb3.9%
Cobb13.2%
Clayton9.7%
Cherokee51.1%
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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!
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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
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Contacting Homeownersfor Wood Products
• Personal Visits
• Mailings
• Replying to Inquiries
• Home Shows
• Home Tours
• Retail Sales Events
m* rader’s Fabric & Decorating of Beckley, WV
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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
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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
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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
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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
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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
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Wood Products SIC Codes
504650462542StoreFixtures
571250212541OfficeFurniture
521150312431Millwork
571250312434KitchenCabinets
571250212511HouseholdFurniture
RetailerWholesalerManufacturer
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Wood Products SIC Codes-# Hits in the Atlanta Metro Region (Primary SIC’s Used)
521142 = 415031 = 1102431 = 60Millwork
2599 = 24Misc Furniture
5046 = 1305046 = 1302541 = 2StoreFixtures
502112 = 585021 = 1602521 = 2OfficeFurniture
5712 = 585031 = 1102434 = 16KitchenCabinets
571216 = 5185021 = 160HH 2511 = 4Uph 2512 = 1
HouseholdFurniture
RetailerWholesalerManufacturer
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Example Yellow Pages SearchWithin 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
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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
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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
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Business Strategy
• Want to Seek Out Those Prospects That You Can Service Well at a Profit $
• Think in Terms of-
o Alignment With Your Resources and Abilities
o Delivery Expectations
o Quality Expectations
o How Well Do They Pay “in Full” and “On Time”
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Focusing on Locally MadeWood 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
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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
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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