Targeting Consumers Despite a definite focus and reliance on the pro side of the ledger, dealers that want to grow or at least retain a measure of retail sales rarely sit by and wait for it to walk in the door. Palmer Lumber’s 5,000-square-foot expansion of its retail space and $70,000 annual investment in newspaper advertising and local home show participation helps reel in retail customers. “That has brought in extensive walk-in business,” says Pruitt of the expansion, which also led to a discovery among cash customers. “They found out we’re [price] competitive, as well.”
A vast difference in price, or at least promoting the perception of it, has been the wedge The Home Depot and Lowe’s have used to take retail business away from pro yards. But rather than buy into it, Kotter shops the two big boxes down the road from his store on a biweekly basis, then compares prices. “They can squash the best yard in the beginning, but over time, they need to show a profit and can’t sell below cost,” he says. “We’re still higher on a few things, but maybe 25 percent lower on lumber and building materials,” which both pros and loyal consumers quickly discover on their own.
More outwardly, Stone Lumber recently remodeled its exterior façade, updated its landscaping, and installed an electronic sign out front, while also adding more delivery trucks and equipment and upgrading its Web site with an “Ask the Experts” page and links to brand-name product manufacturers. “We’re not digging a gopher hole, saying ‘Woe is me,’” says Kotter. “Arson destroyed our business in 1994, and rebuilding from that was a stiffer hill than any big-box competition.” —Rich Binsacca is a contributing editor for PROSALES.
Tips for Targeting Retail
