Poll Question: The price game

Every product has a price. And every price has a sensitivity.

BY HBSDealer Staff

Some customers demand lower prices. Some dealers recommend lower lifetime cost of ownership. Some manufacturers publish price increases. Everyone is sensitive to price, and in different ways — and in different channels.

This week’s HBSDealer poll questions looks into the evolution of price sensitivity in a growing housing market and a price-obsessed digital economy.

Specifically: here’s the question: How would you describe your customers’ price-sensitivity in today’s market?

  • Increasing: Price is everything, especially in the age of Amazon.
  • Holding steady: It’s always been important. Still is.
  • Decreasing. More customers seem to appreciate value over price.

The poll is open, look to the right of the screen to cast your vote (or scroll down your handheld device.) Or, let us know your thoughts on price sensitivity here.


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How would you describe your customers’ price-sensitivity in today’s market?

Drexel Building Supply has big plans

A new facility is expected to create more than 113 jobs over the next three years.

BY HBSDealer Staff

Drexel Building Supply, the Wisconsin-based pro dealer, plans to construct a new $2.1 million facility in Columbus.

The project is expected to create 113 jobs over the next three years, the company said in statement issued through the office of Wisconsin Gov. Scott Walker.

“In addition to the good-paying jobs created by this project, this expansion allows Drexel Building Supply to take advantage of a growing market and position itself for future growth,” said Walker. “This investment is the latest example of the many companies choosing to establish or expand operations in Wisconsin because of our strong business climate and dedicated workforce.”

With headquarters in Campbellsport, Drexell operates 7 locations in the state including 2 design centers and has about 250 full-time employees.

“Building a new home or tackling a remodeling project is an important time. It is Drexel’s mission to supply happiness throughout each project making it a unique, enjoyable and exciting experience for our clients,” said Joel Fleischman, owner and president of Drexel Building Supply. “Our mission goes beyond our store’s walls. We want to impact our clients, our team and our community in positive and amazing ways daily.”

To support the expansion plans, the Wisconsin Economic Development Corporation (WEDC) has authorized up to $450,000 in state income tax credits over the next three years. The actual amount of tax credits Drexel will receive is contingent upon the number of jobs created and the amount of capital investment made during that time.

Drexel Building Supply started as Campbellsport Building Supply in 1985 when Albert Fleischman purchased a lumberyard from Brittingham & Hixton Lumber Co. Initially the company focused its business on contractor sales and over the years the company increased its presence in Wisconsin by purchasing other building material and design companies. In 2012, the company was rebranded as Drexel Building Supply.

In addition to the 113 jobs expected to be created by Drexel Building Supply, an economic modeling study estimates the project could indirectly generate 44 additional jobs in the region. Those 157 new jobs are expected to generate more than $1.6 million in state income tax revenue over a five-year period.

The project is also being supported by a $185,000 Transportation Economic Assistance (TEA) grant that the Wisconsin Department of Transportation’s (WisDOT) awarded to the City of Columbus in April. That grant is being used to support the extension of Hall Road and improvements to Wisconsin Highway 16. The Hall Road extension will serve the new Drexel.

Earlier this year, Drexel opened its latest location in Columbus.


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The changing business of Kitchen and Bath

Preserving old-school relationships with new-school solutions in K&B.

BY Darren Taylor

E-commerce solutions for the kitchen and bath industry are becoming a must-have for contractor suppliers. This comes with a mandate that combines the complexity of business-to-business with the ease of consumer simplicity. Ultimately, the right online solution can enhance, develop and support customer relationships. But it involves the relentless pursuit of the exact mix of data, technology, training and support.

In the end, it preserves old-school relationships, adds a new-school solution for customers and becomes a tool to spur new business.

A Rich History of Relationships

Contractor supply has historically been a relationship business. Customers go to the supply house and talk face-to-face with staff about the products needed for each project. The staff, in turn, gets to truly know the customers, developing relationships that extend beyond simply serving as order-takers.

You can maintain that personal touch by tailoring the right online solutions to each customer. And you can create a platform for everyone involved in the transaction to get jobs done faster.

What Customers Want

Distributors are adapting to a changing buyer profile that expects online services. They should range from requesting and checking quotes, to reviewing local inventory and pricing in real time, to placing orders quickly for scheduled delivery.

More than half of suppliers are slowly investing in e-commerce systems and personnel. But that’s mostly to help current customers. Too many are not using e-commerce to win new business.

E-commerce is more than just creating a shopping cart. It’s a complete digital transformation.

A Complex Transaction

Customer needs differ across the industry, so regularly gaining their input is critical. It’s equally critical to gain input from every level of the supplier organization.

Even with stakeholder input from all levels, e-commerce can seem, well, a little impersonal. However, the personal nature of the transaction can be maintained if the right online process can work seamlessly with the local branch.

With support from the staff at the local branches – particularly inside sales – and with communication from the local contractor, the face-to-face support and service will remain. Orders and any follow up should go through the local branch – not a call center – so customers know they are still dealing with suppliers at the local level that understand their markets and their needs.

The right online solution also frees up time for the outside sales staff. With advanced features, like easy-to-use custom pricing and quoting tools, the outside team can better support new and potential customers at all levels. Instead of tracking down invoices and delivery slips, outside sales reps can leverage digital platforms in a way that sparks better conversations with customers and brings sophistication to a centuries-old industry.

Suppliers in the kitchen and bath industry, meanwhile, can continue to serve as personal consultants, troubleshooters and more, all in a face-to-face capacity. That provides better, faster service, while maintaining an unmatched level of local, personal support for customers.

Benefits for Vendors

E-commerce sites can also serve as a vendor’s marketing tool, salesperson and cashier.  Benefits include:

  • An easy and fast search experience for consumers of products and inventory at the local level.
  • Mobile solutions like phone and tablet access that give customers the ability to search and order products anywhere, anytime, including on a job site.
  • The ability to increase customer reach and become the preferred online vendor for customers.
  • Increased sales and loyalty with existing and new customers.

The Right Solutions

So what does it take to offer world class e-commerce?  Solutions that:

  • Help people get jobs done more efficiently, freeing talent for higher-value tasks. Self-service support functions like viewing and paying invoices can now be done online, much more quickly, and at the customer’s convenience.
  • Allow access anywhere from desktop computers to job sites through mobile phones. Offer technical documents, catalogs, component and accessory information, as well as substitute items and recommendations.
  • Include side-by-side input from customers and support from employees.
  • Invest in training and data so the solutions themselves become an indispensable part of customers’ everyday lives. Training should be mandatory for all sales and branch staff, ensuring the face-to-face support can be seamless and add value.
  • Offer support that involve local branches, which are critical for both your customers and your employees. Be sure all users know the types of support offered and that support tickets are addressed quickly and completely.
  • Leverage technology: Power your digital customer experience with top-tier e-commerce, search, marketing automation, analytics, and data platforms. At MORSCO, this gives customers the 24/7 access they need, increases our ability to make complex online transactions that vary by a customer’s needs and creates the customer value that goes beyond the online shopping cart.

In the rush to offer e-commerce solutions to customers, we must remember the importance of the long-standing relationship nature of the business and ensure that any solution supports full integration of the old and the new.  It’s an exciting time for those who can adapt.

Darren Taylor is chief marketing officer for Morsco.




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