North Fulton County Extension Office

Tuesday, June 14th, 2011

Atlanta, Georgia

Harry W. WattBusiness Improvement Specialist

Wood Products ExtensionNC State University

harry_watt@ncsu.edu704-880-5034

www.cnr.ncsu.edu/localwood

Marketing to Builders and Homeowners

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

EntertainmentDoors

Dining RoomGarageTrim

Living RoomBathroomStairs

BedroomKitchenFlooring

FurnitureCabinetsMillwork

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

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%

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 Homeownersfor 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

504650462542StoreFixtures

571250212541OfficeFurniture

521150312431Millwork

571250312434KitchenCabinets

571250212511HouseholdFurniture

RetailerWholesalerManufacturer

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

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

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’s-

o 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 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”

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

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