(Originally published in the January 2012 issues of Merchant Magazine and Building Products Digest.)
It’s January, a time when we’re all staring
into the headlights of an oncoming new year bearing down and wondering how it’s
all going to turn out. Perhaps you’ve had
the same premonitions I’ve had about 2012.
Clearly, there are going to be some rough patches. It’s an election year and the electorate
seems in a bad mood. The economy seems
in a bad mood, too, with high unemployment, rising foreclosures, and little
building activity.
Some dealers will do well and some won’t –
it’s going to be a mixed bag. So what
can you do to put yourself in the former category? It all depends, of course. Do you serve mostly pros or consumers? Are you are a chain or a locally-owned
indy? There is no one size fits all
strategy. I’ve said it before and I’ll
say it again, green dealers seem more buoyant, more resilient. But I think this year’s going to take a
little more effort. What’s my advice for
taking your green strategy to the next level?
Two things: energy efficiency and
community.
First and foremost, make energy efficiency
job one. If you’re a dealer in this
channel this needs to be top of mind for everything you do. I’m talking about the whole picture –
operations, products, merchandising. If
you can find a way to pay for it, do a lighting retrofit, install solar panels,
insulate every building you’re heating. This is going to reduce your operating
expenses and demonstrate your leadership.
Stock products that will save money for
your customers: insulation products that
meet LEED or other green building program criteria, triple-glazed windows,
insulated doors, LED lighting. Finally,
do your homework on rebates and other incentives and plaster the information
everywhere. Label products that are
energy efficient and can reduce bills. Stocking
the right products and merchandising them effectively will help maximize your
sales.
(Besides, if you don’t who will, BestBuy? Yes, apparently. They’re piloting a new home energy retail
concept.)
Secondly, do everything you can to get
closer to your community – customers and other stakeholders, too. Whether you’re primarily serving pros or
consumers, be energetic in learning about your customers’ needs and finding
ways to serve them. Who is building
houses? Who is remodeling? What are homeowners doing on their own? Host events in your store that bring your
buyers and customers together and get them talking. Walk the aisles and the yard with your
customers and listen carefully to their feedback. If you’re getting this information from
manufacturer reps you are listening to the wrong people.
Don’t be afraid to leave the comfy confines
or your store, either. Attend local USGBC meetings. If your community has a
“shop local” campaign or a business alliance, such as a chapter of BusinessAlliance for Local Living Economies, for example, join it. And don’t forget other groups who are active
in your community. Forging these links
may make all the difference this year.
It will keep you from stocking useless inventory and will identify the
products and materials your customers need.
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