ProSales Buying and Selling Research Report

Transcription

1 ProSales Buying and Selling Research Report - July 2015 Table of Contents PROJECT TEAM: Grant Farnsworth Account Manager Grant Gries Project Director Page PROJECT OBJECTIVES AND METHODOLOGY 3-4 DETAILED RESULTS 5-37 CLASSIFICATION 6-13 PRODUCTS AND BRANDS SOLD INSTALLED SALES VENDOR RELATIONSHIPS INFORMATION SOURCES

2 Project Objectives and Methodology 3 Project Objectives and Methodology The findings cited in this report are based on a survey sponsored by Hanley Wood. The survey was conducted by The Farnsworth Group. Project Objectives Design and execute a survey among building material dealers/lumberyards, specialty dealer/distributors, building material wholesalers and two-step distributors. (This report contains the Building Material Dealers/Lumberyard data). Primary objective was to capture data on categories currently offering, number of brands offered (in each category), and percentage of sales from their primary brands. Other firmographic information collected: Number of locations, sales volume, Proportion of sales to various pro types, builder types Project Methodology! 92 surveys were completed online with Building Material Dealers and Lumberyards across four census regions. 4 2

3 Detailed Results 5 Classification 6 3

4 # of Locations Operating, Sales Volume Q2. Including yours, how many different locations does your firm operate? % % 8.7% 8.7% 9.8% 3.3% to 4 5 to 9 10 to or more 25% Q3. What was your location s total sales volume (sales to all types of customers) in 2014? 22.8% 14.1% 9.8% 9.8% 10.9% 4.3% 4.3% 6.5% 6.5% less than $500,000 $500,000 - $999,999 $1.0 - $2.9 million $3.0 - $4.9 $5.0 - $9.9 million million $ $14.9 million $ $19.9 million $ $49.9 million $ $74.9 million $ $99.9 million 7 Number of Outside/Inside Sales People Employed Q4_1. How many OUTSIDE salespeople does your location currently employ? % 14.1% % % None to to 25 More than 25 Q4_2. How many INSIDE salespeople does your location currently employ? % 14.1% % 16.3% 9.8% 4.3% 3.3% None to to 25 More than

5 Number of Credit Accounts for Pros Q5. How many credit accounts for professional customers are currently active at your location? % 23.9% % 6.5% 4.3% 1.1% None or more 9 Proportion of Sales Q6. About what proportion of your location s sales are to each of the following types of customer? (Mean Summaries) Builders/new residen-al 43.3% (If have sales to builders) About what proportion of your builder/ contractor sales are to each of these types? Custom 46.5% Produc9on 24. Commercial 16.3% Other builders 13.3% Remodelers / specialty contractors 18.5% Other 3.5% Sub- contractors 9.7% Consumers 11.8% General contractors 13.3% 10 5

6 Importance of Sales Staff Q7. How important do you feel your location s sales people are in helping your professional customers make the right decisions about the types and brands of building products they choose for their projects? Very % 59.8% Top 2 Ra9ng 87% Not At All % 9.8% Mean ra'ng 4.43 Median ra'ng Sales Staff Introducing/Recommending brands Q8_A. About what percentage of the time do your location s sales people recommend specific brands of products when working with customers? 75% 43.5% 29.3% 2.2% 8.7% 16.3% Never 1% - 24% 25% - 49% 5-74% 75% - 10 Q8_B. About what percentage of the time do your location s sales people introduce new products or brands when working with customers? % 34.8% 23.9% 2.2% 3.3% Never 1% - 24% 25% - 49% 5-74% 75%

7 Proportion of Building Materials Purchased From Q10. About what proportion of your location s building materials are purchased from each of the following? (Mean Summary) From distribu-on 44.6% From Manufacturers directly 49.2% Other 6.2% 13 Products and Brands Sold 14 7

8 Categories Sold Q9_A. Does your location currently sell this category? Doors: exterior 88. Molding/millwork/trim: interior 78.3% Stair parts/systems 68.5% Adhesives/sealants/caulks 88. Molding/millwork/trim: exterior 78.3% Siding: hardboard 64.1% Fasteners 87. Lumber: manufactured trusses/joists 77.2% Tools: power 63. Housewrap 87. Decking: treated lumber 77.2% Windows: fiberglass 54.3% Lumber: OSB Doors: interior Lumber: dimensional Lumber: sheathing 84.8% 84.8% 83.7% 83.7% Deck railing systems Siding: fiber cement Windows: wood or clad wood Insulation 77.2% 76.1% 76.1% 72.8% Cabinetry Siding: vinyl Foundation waterproofing 53.3% 52.2% 48.9% Windows: vinyl Lumber: engineered 82.6% 81.5% Windows: skylights/ roof Roofing materials 72.8% 72.8% Windows: aluminum Wood finishes/ preservatives/ repellants 47.8% 46.7% Decking: composite/vinyl 81.5% Siding: engineered wood 71.7% Manufactured stone veneer 43.5% Locksets/hardware 79.3% Tools: hand 69.6% Paints/stains 41.3% 75% 75% 75% 15 # of Brands Carried per Category Q9_B. If sell, how many different brands in this category does your location currently carry? (Mean Summary) Adhesives/sealants/caulks 5.11 Lumber: sheathing 2.86 Manufactured stone veneer 1.80 Tools: hand 4.95 Molding/millwork/trim: exterior 2.82 Decking: treated lumber 1.79 Lumber: dimensional 4.04 Wood finishes/ preservatives/ repellants 2.79 Stair parts/systems 1.75 Tools: power Fasteners Roofing materials Paints/stains Siding: engineered wood 1.62 Doors: interior 3.54 Lumber: OSB 2.60 Windows: fiberglass 1.60 Doors: exterior 3.40 Windows: vinyl 2.54 Insulation 1.60 Deck railing systems 3.39 Housewrap 2.28 Windows: aluminum 1.59 Decking: composite/vinyl 3.32 Windows: wood or clad wood 2.20 Foundation waterproofing 1.56 Cabinetry 3.24 Lumber: manufactured trusses/joists 2.00 Siding: fiber cement 1.53 Locksets/hardware 3.21 Lumber: engineered 1.99 Windows: skylights/roof 1.52 Molding/millwork/trim: interior 3.00 Siding: vinyl 1.94 Siding: hardboard

9 % of Category Sales from Primary brand Q9_C. If sell, roughly what percentage of your sales n this category came from your location s primary brand in 2014? (Mean Summary) Windows: aluminum 86% Siding: fiber cement 74% Lumber: sheathing 67% Stair parts/systems 84% Wood finishes/ preservatives/ repellants 73% Cabinetry 66% Windows: skylights/roof 83% Lumber: engineered 73% Windows: vinyl 66% Decking: treated lumber 82% Siding: vinyl 72% Deck railing systems 66% Foundation waterproofing Siding: hardboard Manufactured stone veneer 81% 81% 8 Doors: interior Paints/stains Molding/millwork/trim: interior 71% 7 7 Adhesives/sealants/ caulks Decking: composite/ vinyl 66% 65% Insulation 8 Windows: wood or clad wood 69% Fasteners 65% Housewrap 79% Doors: exterior 69% Lumber: OSB 64% Windows: fiberglass 78% Locksets/hardware 68% Lumber: dimensional 6 Lumber: manufactured trusses/joists 78% Molding/millwork/trim: exterior 68% Tools: power 58% Siding: engineered wood 74% Roofing materials 67% Tools: hand 53% Categories where Adding/Changing Brands Q11. For which of these products did your location add and/or change brands in the last 12 months? Decking: composite/vinyl 17.4% Windows: vinyl 8.7% Lumber: dimensional 4.3% Adhesives/sealants/caulks 15.2% Tools: power 6.5% Siding: fiber cement 4.3% Deck railing systems 14.1% Manufactured stone veneer 6.5% Lumber: sheathing 3.3% Housewrap 13. Tools: hand 6.5% Foundation waterproofing 3.3% Windows: wood or clad wood 12. Windows: fiberglass Windows: aluminum 3.3% Cabinetry 12. Wood finishes/ preservatives/ repellants Stair parts/systems 2.2% Paints/stains 10.9% Decking: treated lumber Siding: vinyl 2.2% Molding/millwork/trim: interior 9.8% Lumber: OSB Siding: hardboard 2.2% Doors: exterior 9.8% Molding/millwork/trim: exterior Siding: engineered wood 2.2% Roofing materials 8.7% Fasteners Lumber: manufactured trusses/joists 2.2% Insulation 8.7% Lumber: engineered 4.3% Windows: skylights/ roof 1.1% Doors: interior 8.7% Locksets/hardware 4.3% None of these 40.2% 25% 25% 25% s may exceed 10 due to mul'ple responses. 18 9

10 Manufactured Components Carried Q12. Which of these manufactured components does your location currently offer? % 69.6% 68.5% 60.9% 27.2% 23.9% 8.7% Pre-hung doors Floor joists Roof trusses Pre-hung windows Wall panels Pre-built stairs None of these s may exceed 10 due to mul'ple responses. 19 Installed Sales 20 10

11 46.7% Do NOT offer installed sales Installed Sales Offered 5 For which of the following product categories does your location currently offer installed sales? 32.6% 29.3% 28.3% 25% 21.7% 19.6% 16.3% 15.2% 15.2% 14.1% 14.1% 25% Doors: exterior Windows Cabinetry Insulation Doors: interior Locksets/ hardware Molding/ millwork/ trim: interior Framing Molding/ Roof trusses millwork/ trim: exterior % 10.9% 10.9% 2.2% Decks Roofing Housewrap Floor joists Siding Stairs Wall panels Shelving/ mirrors 1.1% 1.1% 1.1% 1.1% 1.1% Flooring Shower doors Garage Doors Fireplaces Water heaters *Includes top responses. s may exceed 10 due to mul'ple responses. 21 Installed Sales Q14. If your location offers installed sales, who handles the product installation? 75% 42.9% 53.1% 46.9% (n=49) 4.1% Subcontractor who works for other firms also Employees of firm Subcontractor who works only for your firm Other Q15. If your location offers installed sales, what proportion of your location s installed sales are to each of the following types of customers? (Mean Summaries) (n=49) Builders: produc9on 33.8% Consumers 18.9% Builders: custom 25.6% Remodelers/ replacement contractors 10.4% Other 3.1% Builders: commercial 8.2% 22 11

12 Installed Sales Q16. (If offers installed sales) Is your location more or less likely to be involved in selecting the brand of product to be used in an installed sale than in a non-installed sale? (Mean Summaries) =49 More likely if installed sale 53.1% No difference 42.9% Less likely if installed sale 4.1% Q17. If your firm offers installed sales of products, do you project this business to: =49 Increase over next two years 79.6% Remain about the same 20.4% Decrease over next two years Installed Sales Q18. How does your location charge customers for product installation? (n=49) 75% 53.1% As a separate fee Included in cost of materials Both Combined labor and material * may exceed 10 due to mul'ple responses

13 Vendor Relationships 25 Number of Vendors Using, Meet With Q19. Thinking about companies that sell building products to your location, about how many different vendors does your location currently do business with? 5 Mean 64.6 Median % 41.3% 3.3% 14.1% None 1 to 5 6 to to More than 40 Q20. About how many building product vendors personally meet with individuals at your location each month? 5 Mean 12.6 Median % 42.4% 4.3% 7.6% 6.5% 1.1% 3.3% None to or more 26 13

14 Vendor Visits Q21. What would make you most interested in a visit from a building product vendor?* % % 52.2% 47.8% 33.7% New product presentation Exclusivity opportunities Special program (rebates, incentives, etc.) Profitability of selling products Comparisons with competitive products Supplier research on product performance Q22. When building product vendors call on your location, who do they typically meet with? 75% % 59.8% 34.8% Sales management/sales staff Senior management Purchasing department Merchandising managers/ buyers 1.1% Inside sales coordinators *Includes top responses. s may exceed 10 due to mul'ple responses. 27 Vendor Calls Q23. Have building product vendors called on your location s core customers in the past 12 months? n=92 Yes 68.5% No 17.4% Don t know 14.1% (If yes) have they made joint calls with your sales people when calling on your location s core customers? Yes 90.5% = 63 No 9.5% 28 14

15 Vendor Calls Q24. Would you prefer that building product vendors make joint calls on your location s core customers with your sales people? = 92 Yes 66.3% No 10.9% No preference 22.8% 29 Insulation Thickness Q25. How important are your firm s salespeople in deciding which brands of products are sold to customers? Very % 37. Top 2 Ra9ng 72.8% % Not At All % 7.6% Mean ra'ng 3.95 Median ra'ng BoMom 2 Ra9ng 10.9% 75%

16 Q 26. How important are each of the following attributes in a successful relationship between your location and its building product vendors? (Mean Summaries) Successful Relationship Drivers Accurate deliveries Quick problems resolution Knowledgeable sales reps Product availability Special order capabilities Short lead times Streamlined ordering processes Product literature availability No-hassle returns Product samples and displays Deliveries in small quantities Available sales reps Available technical reps Broad range of products Dealer training services Low prices Support of contractor training at your location Installation training Regular personal visits Online ordering Not At All Very 31 Q 27. How well do the vendors that currently sell building products to your location perform on each of these attributes? (Mean Summaries) Relationship Driver Performance Accurate deliveries Broad range of products Special order capabilities Knowledgeable sales reps Product availability Available sales reps Streamlined ordering processes Product literature availability Short lead times Product samples and displays Quick problem resolution Deliveries in small quantities Available technical reps Regular personal visits Low prices Dealer training services No-hassle returns Support of contractor training at your location Online ordering Installation training Not At All Very 32 16

17 Importance vs Performance Accurate deliveries Quick problems resolution Knowledgeable sales reps Product availability Special order capabilities Short lead times Streamlined ordering processes Product literature availability Importance Product samples and displays Performance No-hassle returns Not At All Very 33 Importance vs Performance Deliveries in small quantities Available sales reps Available technical reps Broad range of products Dealer training services Low prices Support of contractor training at your location Installation training Regular personal visits Online ordering Importance Performance Not At All Very 34 17

18 Information Sources 35 Actions Taken after Seeing Ad in ProSales Q28. In the last 12 months, what actions have you taken as a result of seeing ads in ProSales? Discussed ad with others 60.9% Visited an advertiser's web site 57.6% Passed ad along to others 56.5% Recommended a product/ service 32.6% Filed ad for future reference 26.1% Contacted an advertiser via phone, fax, or mail Purchased/ordered a product/ service Contacted advertiser's local sales rep or distributor 21.7% 20.7% 20.7% Other 1.1% No actions taken 19.6% 75% *Includes top responses. s may exceed 10 due to mul'ple responses

19 Most Valuable Information Q29. What types of information in advertisements and manufacturers literature are most valuable to you? New, product announcements 64.1% Competitive comparisons 53.3% Installation information 48.9% Dealer needs and interests 47.8% Warranty 44.6% Listing of full product line 41.3% How product helps avoid callbacks 40.2% Pricing 35.9% Volume discounts/rebate programs 20.7% Testimonials from other dealers 17.4% 75% *Includes top responses. s may exceed 10 due to mul'ple responses