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Branded Products: Differentiating the Independent Building Materials Channel

Tom Wolf published this article on January 9, 2012 in Build your Business. No comments. | Comment

Rabobank, an international food and agribusiness consultancy, recently released a report on the growth of private label brands in the food industry.  The report’s authors make a number of good observations about the growth of private label brands in the food distribution network.  In particular, they argue that private labeling gives retailers an attractive way of differentiating themselves in a very crowded marketplace.

Wolf products are designed to do the same thing for independent building material dealers.  Wolf Classic Cabinets, Wolf PVC Trim Boards, Wolf Deck and Wolf Molding products are all high quality products priced very competitively.  More to the point, they are manufactured exclusively for the independent building materials dealer channel.  As such, they provide one more way for independent dealers to distinguish themselves from the big box retailers.

This differentiation is not an issue in the new construction arena.  Independent dealers can typically run circles around the big boxes when it comes to serving the new construction industry.  Differentiation is an issue, however, when it comes to big-ticket remodeling projects where quality, knowledge and price are big factors.  And it is here that Wolf’s branded products can help the independent dealer make a clear distinction with the big boxes.

Because of its large buying power and robust connections with innovative manufacturers, Wolf has been able to create and sustain a uniquely streamlined and highly efficient supply chain dedicated to core building products. These Wolf branded products are as good as anything in the market and generally priced below the competition, which means that independent dealers can easily go head to head with the largest box retailers on any kitchen, decking or siding remodeling job out there.  As such, these products also give independent dealers the ability to make very clear their distinctiveness in the marketplace.

The Rabobank study underscores the general utility of private labeling as a differentiation strategy for large-scale food retailers.  Wolf branded products support the same sort of differentiation strategy for the independent building materials dealer.  Selling great products that cannot be found in big box retailers is one more way for independent dealers to stay independent and successful.