While the ride in the building materials industry has been pretty incredible the past couple of years, the truth is that a potential slowdown is looming. We can hope for changes addressing inflation and high interest rates, but in the meantime the focus should be on what you can control. Choose to take this time to finally take a breath and reevaluate your business and strategy.
Here are my favorite tips for how dealers can plan for continued success now and in the future!
Don’t be afraid to diversify and pursue new channels of business.
Review your sales percentages by channel, i.e. new construction, remodel, multi-family, etc. Identify ways to get more involved in each channel of business to help insulate yourself in the event there is a slowdown in one of the channels.
Review all operating costs and ensure you are maximizing your spend at every turn.
Oftentimes we see sales growth on the topline and are very happy with those results. But with sales growth comes increased operating costs, so be sure you are dialed into the operating costs as a % of sales. That number is very important to pay attention to in order to drive incremental profit to your bottom line.
Are you able to stay cost-neutral but still grow your level of service to your customers?
For example, is there someone who is in a position today that could be better utilized in a different role? Or are there inventory dollars in a product line that is not turning and you would like help exiting that line and getting into a new line? This type of creative thinking allows you to potentially offer an improved level of service to your customers without adding any cost to the bottom line.
Take advantage of your opportunities and use your connections.
Lumbermen’s is positioned to ensure you have a low-risk program and partner. One of our mottos is, “It’s about you, not me.” This means we will identify dealer-specific programming strategies that will help your business have the right product mix at the right price.
Identify new customers or new products.
Think of it in these terms…if I sell the same amount of pieces of the same products to the same customers in the coming year, will my business increase or decrease and will I be happy with those results? If you want to grow your market-share, one of the ways is to identify new customers or new products. Partner with Lumbermen’s to display a new product without stocking it and train up your sales team and customers to capitalize on new opportunities.
Marketing – sales is a contact sport!
Find new and innovative ways to connect with your customers via social media, e-mail campaigns, direct-mail, etc. If you do not have the resources to do this yourself, Lumbermen’s is willing to help. Reach out to marketing@lumbermens-inc.com to connect with our marketing team today!
Can my Distributor partner help me drive sales? YES, WE CAN!
We have Field Sales Reps (FSR’s) and an Events Coordinator that can help drive more leads and engagement to your location. In addition to our Outside Sales Reps, we have layered on additional investments to help you sell more of the things you buy from us.
The goal at Lumbermen’s is to walk alongside our dealer partners and to continue to offer top-notch service and support to help you grow your business. If you haven’t already, please schedule a time to meet with your Sales Rep to discuss a strategy that works for you.
Written by: Shawn Montague, VP of Building Materials
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