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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Behr upgrades its oil finish

The Home Depot partner points to its most advanced oil formula.

BY HBSDealer Staff

Quick-Dry Oil Base Wood Finish joins the Behr coatings lineup in June. The product is described by Behr as its most advanced oil formula for decks, fences and siding.

This new product dries in only 60 minutes, dramatically faster than traditional wood finishes, and requires no more than a single coat, the company says.  That brings a time-saving element into the value proposition — DIYers and professionals can now complete exterior projects—from cleaning to prepping and staining—all in one day.

Beginning this month, Quick-Dry Oil Base Wood Finish is available at The Home Depot stores nationwide in five colors: Clear, Cedar Naturaltone, Redwood, Chocolate and Cordovan Brown

Advanced oil formula dries and resists rain in just 60 minutes. It is recommended for use on exterior wood surfaces only, such as decks, siding or fences, and can be applied to damp wood within 1-3 hours of rainfall, rinsing and removal of standing water.

The coverage rate: Up to 300 sq. ft. per gallon and sells at retail for about $40.


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Knauf buying USG for $7 billion

After months of pursuit, USG agrees to sell at premium more than 30% above its trading price three months ago.

BY Andy Carlo

German building materials manufacturer Knauf and USG Corporation have come to a sale agreement.

Knauf will buy all of the outstanding shares of USG for about $7 billion. The deal calls for USG shareholders to receive $44 per share, consisting of $43.50 per share in cash payable upon closing of the transaction and a $0.50 per share special dividend that would be paid following shareholder approval of the transaction.

The price tag is a premium of 31% over USG’s closing price of $33.51 and a 36% premium to the $32.36 average closing price for the preceding 12-month period, both as of March 23; around the same time Knauf began seriously pursuing USG.

Following news of the deal, shares of USG were up nearly 4% and trading as high as $43.

In statement issued this morning, Alexander Knauf, general partner of Knauf, said, “We are excited to enter into an agreement to acquire USG. As a long-term USG shareholder, we greatly admire USG’s strong brands, leading market positions in North American wallboard and ceilings and highly talented employee base. We look forward to building on USG’s strong presence in North America.”

Based in Iphofen, Germany, Knauf manufactures building materials and operates 220 factories worldwide. The company was USG’s second-largest shareholder behind investor Warren Buffet’s Berkshire Hathaway company.

Knauf had initially made a $5.9 billion offer on March 15, but it was rejected by USG. Pressure from shareholders in recent months – particularly from Buffet – forced USG to reenter negotiations. At last month’s USG shareholder meeting, all 4 of the board members standing for election and supported by the Chicago-based company did not gain shareholder approval.

This deal means Buffet’s exit from USG ownership.

“Our board has worked diligently to evaluate all strategic options to maximize value for our shareholders, and we are pleased to have reached this agreement which provides our shareholders with significant and certain cash value,” said Jennifer Scanlon, president and CEO of USG. “We believe this transaction will create new opportunities for both companies’ customers and will benefit USG’s employees who will be part of a truly global building products company.”

The transaction is expected to close in early 2019, subject to customary closing conditions, including regulatory approvals and approval by USG shareholders.

The crown jewel of USG’s product offerings is its iconic Sheetrock brand of wallboard.


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