Wolf

The Battle for the Remodeling Professional

Tom Wolf published this article on February 20, 2012 in Build your Business. No comments. | Comment

In a recent survey conducted jointly by Qualified Remodeler, Residential Design & Build and LBM Journal, remodeling professionals were asked where they get their building materials and why.  For the independent dealer channel, the good news is that 60% of these professionals run their buying through traditional lumberyards.  The bad news is that 40% of them do not.  As this survey suggests, a real battle is raging in the building products industry between the big box retailers and the independent dealer for the loyalty of the remodeling professional.  And while the big box retailers have some important advantages, the independent dealer channel has all the attributes it needs to win a decisive victory in this important battle.

In a review of the survey, John Cashmore lends credence to this assertion by suggesting that “knowledgeable staff and long-standing relationships” play strong roles in bringing most professional remodelers to the independent dealer.  One big reason why not all professional remodelers patronize independent dealers, he adds, is because they haven’t had the time or the ability to build such a relationship.  Many of these remodelers, the survey suggests, “tend to have been in business for a shorter period of time or are unable to establish credit at traditional lumberyards.”

Lest independent dealers get too confident about their ability to attract professional remodelers, however, Cashmore points out that the big boxes also have some competitive advantages in this battle for the professional remodeler.  Big box retailers generally “stand behind what they sell,” and the professionals place a high value on that.  The fact that “some traditional lumberyards still struggle with returns and claims” does not win them fans among the professional remodeler community.  Big boxes, the survey finds, have figured out how to handle returns and claims on a more consistent basis and this has turned out to be a real draw.  Some remodelers also like the big boxes because of “their location and price.”

The survey does a good job of capturing the multiple buying motivations of professional remodelers and argues that the big boxes have some of what this important group of customers wants from suppliers.  But, the survey also makes it clear that independent dealers have the potential to beat the boxes in the battle for the loyalty – and business – of this customer base.

To win this battle, independent dealers will have to convince the pros that they are uniquely qualified to serve their needs.  This they should be able to do especially when it comes to big project remodeling jobs.  Independents know how to provide the appropriate products for each job; their low overhead cost structures and efficient supply chains produce very competitive prices; and they typically stand behind the products they sell.  This is what professionals want; this is what independent dealers do best; this is what will win the professionals’ loyalty; and this is what will secure the economic future of the independent channel.