Green Spring Training

(Originally published in the March 2012 issues of Merchant Magazine and Building Products Digest.)

March is my favorite month.  Why?  Spring is in the air, at least in some parts of the country.  And baseball is just around the corner.  And now, some market research has come out demonstrating that green building is poised to lead this industry out of the doldrums.  Things aren’t back to normal, or back to a new and different normal, not just yet.  But if you’ve been working to bring your retail or wholesale operation into the green big leagues, this could be your breakout season. 

The study from McGraw Hill reports some interesting numbers that should inspire optimism.  The share of new single family homes built to a LEED or equivalent standard reached 17% and rising to about a third of the market in five years.  Builders report that marketing green homes is easier and the majority of customers are willing to pay a little more.  Among builders who are doing some green projects, 39% report that green work is having a positive impact on their bottom line, compared to 90% of builders who are fully dedicated to green.  There were similar results for green remodelers.

I want to focus on one takeaway from this.  The reason dedicated green builders and green remodelers report better results – and are looking forward to better prospects, too, I might add – is because they are focused.  They have the knowledge and skills, and therefore the credibility.  They know what they’re doing and they believe in it.  These are the companies driving green forward and these are the companies getting the bigger share of the projects.  If you’re looking to grow your green business, these are the pros you want on your team.

Given the strength of this trend, making green building an increasing focus of your own business is an obvious forward thinking strategy.  Equally important is building strong relationships with the leading green builders and remodelers in your market area.  This may seem obvious, too, but to build productive relationships these four key points are worth repeating.

First, be prepared to walk your talk.  No amount of schmoozing will win customer loyalty in this arena without expertise and knowledge to back it up.  Don’t rely on manufacturers and product knowledge to see you through.  Go the extra mile and develop internal expertise in LEED or other residential green building programs.

Second, go to them.  Don’t expect them to come to you.  Visit them at their office, their job site, green building association meetings, trade shows and conferences.  Most regions have a USGBC chapter or equivalent – join it.

Third, bring value to the relationship, right away.  If you can help them win a new project, introduce them to a talented new sub, point them to an innovative new solution, they will come to see you as vital part of their business ecosystem.  When this happens, they will start bringing value to you.

Fourth, dig deeper and find expert builders, remodelers, retrofitters with specialisations that make sense for you and your region.  Energy retrofitting, rainwater harvesting, green roofs, and solar are all hot areas – maybe they’re ripe for building new relationships, too.  Develop the right product categories they need, host in-store events, and develop referral programs.

At the end of the day, it’s the customer relationships that sustain any business, especially during lean times.  This industry is adopting green building at an accelerating pace and demand is showing signs of picking up.  It’s the leading builders and remodelers who are winning an increasing share of the business.  By getting together you can build a solid team and make this a winning year.