BUSINESS RESOURCES + TOOLS TODAY’S WHOLESALER
The art of wholesaling: contracting through the wholesaler perspective
BY RICH SCHMITT CONTRIBUTING WRITER
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i, my name is Rich Schmitt. I write a monthly column called
Smart Management in The Wholesaler, a sister publication to Phc News. John Mesenbrink asked if I would write a column from the perspective of the wholesaler. While I talk to a lot of
wholesalers every month, I thought it might be better to let them speak for themselves. Plus, since the wholesaler’s perspective is probably as diverse as the contractor’s, this column will be a sampling at best. I asked some top people in wholesale companies in this
industry for some ideas and combined them with some conversations that I have had in the past. I have only included wholesalers who really spend time with their contractor partners and who view the relationship as a partnership. I asked them one question: If you could suggest just one thing to your contractor
customers that would help to make them more successful, what would it be? The suggestions follow, but one thing that I heard from
every wholesaler was, “We want contractors to succeed. As a wholesaler, our success is directly related to their success. When contractors fail, we often suffer too. Successful contractors are better long-term customers.” Your first reaction might be that wholesalers really
don’t understand your business and, in general, you are probably right. But the guys I interviewed are very involved with their contractor customers, so they see the good, the bad and the ugly parts of a bunch of diverse contracting businesses. So here are some suggestions to consider as you operate your business: Don’t be afraid to ask for our help. “We won’t always
be able to help, but we always want to help.” Take advantage of the training we offer and take it
seriously. “We work hard to provide our contractors with good product and business training. We know that
If you could suggest just one thing to your contractor customers that would help to make them more successful, what would it be?
properly trained techs do a better job. The job is done right, which makes the end customer happy, with fewer callbacks. The job is done faster and that makes it more profitable for the contractor. We offer business training because we know that
owners with good business skills are stronger long-term customers and that’s good for both of us. Contractors seldom get into trouble because they aren’t good with
By upselling to the “Best” option, the contractor
pockets an extra $100 for the install, and the homeowner gets the faucet he/she wanted. I know some of my contractors have given up and just send the homeowner to a Big Box to buy the faucet. Sure, it’s less hassle, but they lose the profit that they could make on the product itself. Plus, with the weak economy, there are just not as many installations out there, so you try to make the most of the installs that you do get. One more thing: We sell enough high-end faucets that we know that, even in this economy, some homeowners are spending money on upgrades.” Pay on time. “I know this probably sounds like I’m
being selfish, but I see good contractors get into trouble as they get behind with their wholesalers. I work with my contractors so they stay current. At first, some may think I am just being a jerk, but I know from experience that
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their tools; they get into trouble because they don’t control their business. Also, if our training is missing the target, contractors
need to let us know. If we are not covering the right topics, tell us what is needed. If you have suggestions, we are eager to do better, but most contractors don’t even take time to fill out the course review.” Stay on top of your job costs. “The best contractors do
a good job of understanding their costs, so their bids are solid. They know the labor side and the material side, plus they understand that their business has to cover its overhead. Some of my customers seem to need help with every job they win because they bid it wrong. You know the drill; they forgot something, they used old costs, they missed on the hours required. The most successful contractors occasionally make mistakes, but their bidding process is solid. They take time to get it right. Frankly, I’m less willing to help a guy who makes the same mistakes over and over. If you need more information from us, tell us what you need.” Take time to upsell, so you can make more money. “My
most successful contractors are not high-pressure sales people, but they take time to show customers a few options (Good, Better and Best). I know it takes more time, but it is often worth the effort. If a homeowner needs a new faucet, most contractors charge for the install; they also mark up the faucet. The homeowner only needs one faucet. So why not make the best possible return on that faucet install. There are 3 scenarios:
phc october 2011
www.phcnews.com
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