| Introduction | | | | purchase most of the products that are installed within |
| The current construction environment is predicted to | | | | the building. They do however; select the trade |
| decline from previous years. The economic stimulus | | | | contractor and manufacturers that install their own |
| package may positively affect the construction market | | | | products. Because the specifications frequently offer |
| later in the year for publicly funded projects. Building | | | | multiple product choices, the installer selection process |
| Product Manufacturers (BPM) need to identify more | | | | effectively dictates the products selected. Most building |
| projects and increase their close ratio to continue to | | | | product manufacturers do not meet with General |
| grow their sales. In order to be successful, a strategy | | | | Contractors unless there is a problem on the job. Most |
| must be built to address all stakeholders within the | | | | General Contractors do not have the time to receive |
| construction continuum where a potential sale can be | | | | calls from all of the building product manufacturers. The |
| secured or lost. | | | | GC/CM/Design Build firm is charged with managing |
| Construction Market Overview | | | | and coordinating the construction process to be on |
| Growing your sales in a declining construction market | | | | time and within budget. Building product manufacturers |
| can be easy if you understand the product selection | | | | can provide value to the General Contractors by |
| process and your sales staff has the right information | | | | making sure their trade contractors are trained, can bid |
| at the right time. Every year the sales team is given a | | | | projects accurately and are capable of conducting the |
| new budget with higher goals. Great sales people | | | | work required by the scope of the project. If the GC is |
| continue to meet their sales budget year after year. | | | | confident with the trade contractor, they will select |
| Why are they successful while others are not? How | | | | them over an unknown entity regardless of minor bid |
| do they grow their sales when the market declines? | | | | differences. |
| Their secret is being at the right place at the right time | | | | On occasion, a privately funded project will be |
| prepared with the right information. | | | | awarded to a single General Contractor who will then |
| Manufacturers of products incorporated into buildings | | | | manage his bidding process through an "invitation only" |
| and other construction projects will need to work | | | | process. These "Private Construction Offices" are |
| smarter to maintain their sales growth. Although some | | | | usually invisible to most building product manufacturers |
| products will continue to be used for renovation and | | | | unless your subcontractor receives and then shares |
| maintenance projects, new construction will become | | | | an invitation to bid. Typically, these projects are tracked |
| much more competitive. Building product manufacturers | | | | on large construction data service only through the |
| will need to fine tune their marketing programs to | | | | planning and design stage. Getting access to these |
| maximize their presence in specifications and identify | | | | "private" projects through an invitation from the |
| bidding projects where products can be sold. All lead | | | | General Contractor or from the invited subcontractor |
| generating programs need to lead directly to sales that | | | | provides the building product manufacturer with a |
| can be measured and graded based upon their | | | | competitive edge. Being in the right place at the time of |
| return-on-investment (ROI). The best sales leads | | | | invitation gives the BPM sales person a competitive |
| always lead to sales. | | | | advantage over her competitors. |
| Product mix and product innovation can play a | | | | Most products installed in a new building are installed by |
| significant role in differentiating one product from those | | | | specialty trade contractors. This audience, in most |
| of the competition by bringing value to the installing | | | | cases, is the building product manufacturers' ultimate |
| contractor and/or the building owner. Ushering these | | | | customer, regardless of whether products are sold |
| products and existing products through the | | | | directly to the installing contractors or if they are sold |
| specification and construction process requires the | | | | through distribution channels. Knowing your customer |
| same strategy. | | | | and supporting their business through promotion efforts |
| Who decides which products will be selected for a | | | | and education programs is common sense marketing. |
| building project? | | | | Generally, trade contactors are small businesses that |
| The construction industry is comprised of a variety of | | | | work within a limited geographic area. Staying in touch |
| specialists who each play a role in the selection, | | | | with your customers is essential to understand the |
| purchase and installation of various products. This can | | | | competitive environment, ensure the successful |
| vary from product to product but for the most part, | | | | installation of your products and introduction of new |
| the process starts with the building owner, who | | | | products. Depending upon your product grouping there |
| compiles a design team to engineer, design, and | | | | are channels to maintain this contact such as |
| specify the project. After the project (or phase in the | | | | associations, trade shows, industry journals, and you |
| case of Design Build) has been designed and specified, | | | | direct sales channel. Timing is critical to capturing the |
| the project is passed to the construction management | | | | interest of the trade contractors. When they are |
| specialist. General Contractors, Construction Managers | | | | bidding a project that contains your products is the |
| and Trade Contractors collaborate to adhere to the | | | | time you need to reach out to them with the benefit |
| plans and specifications. Materials for the project are | | | | statement for your products and value proposition to |
| supplied to the construction team directly from | | | | them. |
| manufacturers, through distribution channels, or the | | | | Growing Sales through repeat business |
| manufacturer themselves may perform the installation. | | | | Sales growth is a function of finding new customers |
| At any point throughout this process a building product | | | | and maintaining existing customers. In the construction |
| may be selected or eliminated from a project. You | | | | industry, there are few building products that are |
| need to be at the right place when each of these | | | | considered 'consumable', and most products have |
| influencers need your product information. | | | | extended lives. Growing sales requires the building |
| Owners | | | | product manufacturers to build repeat sales through |
| Ultimately, the building owner has the right to make | | | | their relationships throughout the design-build continuum. |
| product selections. Many times the owner defers | | | | Owners satisfied with products will request them in |
| these decisions to the architects, engineers and | | | | their new or renovation projects. Specifiers that have |
| specifiers, especially in cases where the decision is | | | | successfully completed a project with your products |
| complex and the product selection is determined by | | | | will be inclined to specify them again (frequently with |
| the facility itself. If your product is one that can provide | | | | the same master specification). General Contractors |
| an owner with a significant long term vale from energy | | | | who are satisfied with your Trade Contractor will invite |
| savings, to low maintenance and long life cycles, to | | | | them to bid subsequent projects. Trade contractors |
| enhanced aesthetics; it may be practical to include the | | | | that made money installing your product and did not |
| owner in the decision process. Ideally, this will lead to | | | | get called back to the job will become loyal to your |
| sole source specifications and large scale multi-facility | | | | product. |
| opportunities. | | | | Identifying More Opportunities leads to Sales Growth |
| Specifiers | | | | As a building product manufacturer you need to |
| Specifiers are the ultimate gate keepers for which | | | | manage the demand creation at the specifier level but |
| products are included in each building project. Many | | | | most importantly you need to manage the sales effort |
| engineering and architectural firms focus with | | | | when projects are being bid. Project leads need to be |
| specialized industry sectors. Identify these firms and | | | | relevant to your products, timely, and contain all of the |
| focus your demand creation strategy. Can you identify | | | | details that will allow your sales team to close the sale. |
| which firms specify your products and which firms | | | | In tough economic times the competition becomes |
| specifiy your competitions' products but not yours? | | | | stronger for fewer projects. Building product |
| Are your sales people calling on the right firms to get | | | | manufacturers need to protect the specifications they |
| into the spec? | | | | have worked to produce and those new specifications |
| Launching new products requires the building product | | | | they may not have influenced. They also need to |
| manufacturer to provide educational seminars to the | | | | identify those "or equal" opportunities where their |
| engineers and architects to help them identify where | | | | product is not named. |
| to use products and more importantly, where not to | | | | The most efficient method for a sales person to |
| use the new product. The drive to keep construction | | | | monitor their territory is through the use of a service |
| costs down and minimize construction delays have | | | | that scans the public project specifications for your |
| resulted in the common practice of specifying more | | | | products and/or your competitor's products as they hit |
| than one manufacturer for any product. In many | | | | the street for bid. Trade contractors may also provide |
| cases, the words "Or Equal" conclude the supplier list, | | | | you with private project information if your products |
| effectively keeping the specification open to all | | | | are specified or can be utilized on the project. |
| suppliers throughout the construction phase. | | | | Summary |
| Ideally, you want to talk to specifiers when they are | | | | Growing sales is all about being in the right place at the |
| writing the spec for projects that can use your | | | | right time with the right information. When the |
| products. Being at the right place at the right time | | | | construction market is booming, building product |
| requires you to monitor data services that report new | | | | manufacturers have no difficulty in selling more |
| projects in design; routinely call on the architectural and | | | | products. When the construction market contracts as |
| engineering firms within each sales territory to learn of | | | | we see in 2009, the building product manufacturer's |
| newly awarded projects; or simply owning a place | | | | sales and marketing strategy needs to aggressively |
| within the specifiers standard specification writing | | | | address both the upstream demand creation |
| platform. | | | | stakeholders as well as, find and close a higher |
| General Contractors and Trade Contractors | | | | percentage of projects when they are constructed. |
| For the most part, General Contractors do not | | | | |