Lines of supply: traditionally characterized by small companies making low-volume purchases, the remodeling market definitely can be a challenge to supply—but it also can be a lucrative revenue stream for pro dealers that treat remodelers like VIPs rather than fill-in business

Prosales, Sept, 2004 by John Caulfield

Figure 1

Where Remodelers
Purchase Building Materials

Percent of respondents who indicated their firm purchases building
products at this type of establishment. The type of establishment
with the greatest response is highlighted in red.

                           Lumber/
                           building    Specialty
                           materials   dealer or
Building material          dealer      distributor   Subcontractor

Lumber                     80.1%        1.9%          0.7%
Decking                    69.6         6.5           2.2
Wood siding                68.4        10.5           6.0
Molding                    65.1        11.5           1.7
Housewrap                  61.5         7.2           5.7
Doors                      53.1        19.9           1.4
Fiber-cement siding        50.0        17.7          11.7
Stairs                     46.9        21.1          14.6
Caulks and adhesives       44.3         9.1           1.4
Patio doors                42.6        29.2           1.9
Windows                    40.0        37.1           1.9
Locksets                   34.4        18.2           2.4
Insulation                 33.3        10.3          24.6
Roofing                    29.9        28.9          24.4
Vinyl siding               28.5        29.9          22.5
Tools and fasteners        21.1        26.8           1.0
Shelving/storage systems   19.4        19.6          12.9
Hardwood flooring          14.4        38.3          24.9
Cabinetry                  13.4        39.2          13.4
Laminate                   12.0        44.7          19.6
Paint and stain            11.7        48.8          14.1
Garage doors                9.6        33.7          37.8
Solid surfaces              6.2        47.1          29.2
Faucets                     4.8        50.5          14.4
Fireplaces                  4.5        57.7          18.7
Tile                        4.3        57.4          15.6
Lighting                    4.1        43.8          17.0
Bath fixtures               3.6        52.2          14.4
Appliances                  1.9        62.4           2.6
Carpet                      1.2        49.8          24.9
HVAC equipment              0.7        25.4          63.4
Home theaters               0.5        52.6          26.1
Security systems            0.5        34.9          49.0

                           Warehouse     Manufacturer
Building material          home center   direct         Other

Lumber                     14.1%          1.0%           1.9%
Decking                    16.5           1.7            3.3
Wood siding                 8.1           1.4            5.0
Molding                    14.8           3.1            3.6
Housewrap                  19.4           1.9            4.1
Doors                      18.9           4.5            1.9
Fiber-cement siding        10.3           1.4            8.9
Stairs                      7.2           1.7            8.4
Caulks and adhesives       41.9           1.7            1.4
Patio doors                18.2           5.5            2.6
Windows                    11.2           7.9            1.9
Locksets                   38.5           2.9            3.3
Insulation                 26.8           1.7            3.1
Roofing                    11.5           1.7            3.3
Vinyl siding                7.2           1.9            9.8
Tools and fasteners        44.7           2.6            3.6
Shelving/storage systems   38.3           2.4            7.2
Hardwood flooring          10.0           6.2            6.0
Cabinetry                  13.9          12.7            7.2
Laminate                   13.4           3.8            6.2
Paint and stain            18.7           3.1            3.6
Garage doors               10.5           1.2            6.9
Solid surfaces              7.2           4.1            6.0
Faucets                    23.2           1.7            5.3
Fireplaces                  4.1           4.3           10.5
Tile                       13.9           4.1            4.5
Lighting                   27.0           2.6            5.3
Bath fixtures              22.0           2.4            5.3
Appliances                 16.3           5.7           10.8
Carpet                      9.6           5.7            8.6
HVAC equipment              2.6           0.5            7.2
Home theaters               2.9           1.7           16.0
Security systems            3.3           0.5           11.5

NUMBERS MAY NOT ADD UP TO 100 PERCENT DUE TO ROUNDING AND
NON-RESPONSES.

SOURCE: 2004 PROSALES REMODELING PURCHASING PANEL STUDY

Figure 2

Job Functions Involved in Specifying/
Purchasing Building Products

                                                Percent identified
                                                by respondents as
                                                involved in
                                                specifying/purchasing
                                Job functions   building products *

                          President/owner/CEO   83%
                               Lead carpenter   46%
              General manager/project manager   35%
                           Designer/architect   30%
                Purchasing director/estimator   27%
                           Production manager   25%
                                Subcontractor   22%
                                  Sales staff   12%
Corporate executive/vice president/controller   10%
                                        Other    8%

* UP TO THREE ANSWERS ALLOWED.

SOURCE: 2004 PROSALES REMODELING PURCHASING PANEL STUDY

Note: Table made from bar graph.

Figure 3

Importance of Criteria in
Selecting a Supplier

                                 Percent of respondents indicating
                                 each criterion is important
                      Criteria   (a rating of 9 or 10) *

      Having products in stock   71%
               Timely delivery   68%
    Special order capabilities   66%
             Product selection   63%
    Loyalty/past relationships   59%
      Knowledgeable sales reps   55%
                 Return policy   50%
           After-sales support   39%
   Nationally recognized brand   35%
                         Price   34%
                 Credit policy   29%
       E-commerce capabilities   16%
            Blueprint takeoffs   15%
Regular visits from sales reps   11%
       Sales training services   10%
            Model home support    6%
                       Rebates    6%
               Installed sales    5%

* RESPONDENTS RANKING THE IMPORTANCE OF CRITERIA USING A 10-POINT
RATING SYSTEM (10 = VERY IMPORTANT TO 1 = NOT AT ALL IMPORTANT).

SOURCE: 2004 PROSALES REMODELING PURCHASING PANEL STUDY

Note: Table made from bar graph.

Figure 4

Ways Pro Yards Can Improve
Sales to Remodelers

                                                  Percent of
                                                  respondents
                                                  indicating each
                                                  criterion is
                                       Criteria   valuable *

                                   Lower prices   49%
                     Facilitate online ordering   36%
           Offer before- and after-hours pickup   28%
              Offer a broader range of products   27%
                              Shorten lead time   25%
             Offer higher-end product selection   18%
                 Make sales reps more available   18%
                  Deliver in smaller quantities   17%
          Improve the material ordering process   17%
               Provide consumer sales materials   16%
Offer showroom and/or client meeting facilities   14%
          Offer more special order capabilities   11%
                        Deliver more frequently    8%
            Sell products on an installed basis    1%

* UP TO THREE ANSWERS ALLOWED.

SOURCE: 2004 PROSALES REMODELING PURCHASING PANEL STUDY

Note: Table made from bar graph.

Figure 5

Growth Plans
of Remodelers

2004 compared to 2003

More volume             66%
Less volume              3%
About the same volume   30%

NUMBERS DO NOT ADD UP TO 100 PERCENT DUE
TO ROUNDING AND NON-RESPONSES.

SOURCE: 2004 PROSALES REMODELING PURCHASING PANEL STUDY

Note: Table made from pie chart.