(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.
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