VIEWPOINT


NMBS LOOKS TO MEET HEAVYSIDE MERCHANTS’ CHALLENGES


Dean Hayward, NMBS head of sales & marketing


AS THE 2023/24 financial year beds in, the industry is continuing to face significant challenges around skills and recruitment, and supply and inflation-led high materials prices.


At NMBS, we held a


roundtable discussion centred on three main questions covering the key barriers for 2023, the main areas for focus, and what businesses were most positive about for this year. Heavyside committee merchants Leicester Doors & Timber Ltd T/A Build Yard, Joseph Parr Building & Timber Materials, George Tufts & Son Limited and Henshaws Roofing & Building Supplies Ltd, highlighted staff recruitment and retainment as a major issue. They reported finding and hiring dedicated employees as a challenge, because of the wage they are currently able to give them. Fortunately, apprenticeships were earmarked as a good way to find, train and retain employees because recruits are encouraged to stay in the business through their apprenticeship.


Price instability The general economic downturn has made housebuilders and homeowners more hesitant to spend money on renovations of homes and new buildings. The Government has also removed schemes such as Help to Buy, significantly impacting housing markets. Despite the downturn, Heavyside committee merchants expect the industry will bounce back over the next six months as people find they still need to carry out home repairs and move into new properties.


Heavyside industry products, apart from timber and roof tiles, are at their peak price. Merchants explained how they are trying to maintain profit margins while offering competitive prices.


As the price of materials fluctuates, merchants are buying goods at a higher price and the costs are dropping. As a result, merchants reported reducing the volume of materials bought to reduce the risk of being priced out of the market and not being able to sell expensive stock.


Supplier support Heavyside committee merchants expressed willingness to collaborate more closely with suppliers. Many question whether some suppliers are still set in pandemic patterns and have not reduced their prices to adapt with current market costs. Businesses reported struggling with overvalued stock and added they were working with suppliers to look at price drops to support the industry as a whole. Here, the aim is to encourage merchants’ customers to invest in more cost-effective products and help maintain the Heavyside market.


Customer service We asked what they were most positive about for their businesses in 2023.


The Heavyside committee merchants were aware of the need to move away from letting the customer know what they can have and towards letting them know merchants have what the customer wants.


Having correct levels of stock to meet customer needs and


May 2023 www.buildersmerchantsjournal.net Many


question whether some


pandemic patterns, and have not reduced their prices to adapt to current market costs.”


suppliers are still set in


the rest of the merchant sector to focus on to get ahead of the recession?


One of the answers was to actively reduce overheads Ensuring Heavyside merchant businesses are combatting overheads is crucial. By improving efficiency through employee training, the workforce can work towards a faster business model that is more cost-effective. Keeping tight control of customer credit limits is also key to improving cash flow issues. Setting clear expectations and following up with customers, even if it might slightly damage the relationship initially, will help the business stay afloat financially.


competitive prices encourages customer loyalty and trust. After all, good customer service is more important now than ever before.


Remaining competitive


Independent Heavyside merchants tend to have good levels of stock and experienced employees, unlike some larger national businesses who may well be looking to cut staff and branches to reduce their overheads. Again, the high quality of customer service independent merchant businesses can offer will allow them to compete with national businesses and retain their market share.


Staying one step ahead


We also asked the question what three things would our roundtable participants advise


Put customers first Asking customers for their honest opinions is a sure way to understand their needs better. Automating texts that ask for feedback is a simple way Heavyside merchants are getting useful customer insights for use in developing their businesses. Training customer- facing employees with product knowledge helps reduce the work and research customers do make before making a purchase. Making the customer feel supported throughout the buying process is a good way to ensure return business and satisfied customers in the long term.


Invest in the future Heavyside merchants reported boosting sales training for customer-facing employees to encourage taking down customer details. This allows sales lead follow ups with information about discounts on products they are interested in. BMJ


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