Leading Strategies East Peoria IL

By Luis F. Solis

Although the role of the lumber and building materials supplier is ingrained in the construction supply chain, if pro dealers fail to implement new competitive strategies, their profits will suffer long-term. To help you add value on a strategic level, there are three business models that, when rigorously applied, can enhance business success and value.

Role #1: “Blanket” the customer's needs. In this case, the dealer provides a wide assortment of products to blanket a target customer base's needs. The assortment can be relatively shallow, as it is particularly tuned to the needs of a well-defined market segment, such as medium to large framers or contractors, fast-growing regional builders, production builders, or other niche segments. This works because of the one-stop-shop concept. It's very important to select a large enough segment to achieve profit and growth objectives, but to select just one. Some of the largest distributors in home building have adopted this strategy, but sometimes with too many segments on the radar screen.

Role #2: Specialize in a specific family of products. This approach is suitable for product sectors containing a large variety of items. In contrast to the first role, product specialists sell a deep assortment of the chosen product family to a variety of different customer segments. Plumbing, electrical, and flooring are good examples.

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