Overall, the arrangement is a “win-win situation,” Lummus says. He wanted to solve the callback problem and “Brad’s company had a real good reputation here, especially for doing high-end windows.” Lummus also wanted to take complete responsibility for window jobs to cut down on finger-pointing, disputes, and the chance of losing business as a result.
For his part, Rednour saw the affiliation with Lummus Supply as an opportunity to increase his volume. Lummus Supply’s solid reputation in the area and long history also were an attraction because his company was relatively young.
Builders also want to avoid the background checks and paperwork of dealing with too many subcontractors, he adds. Leaving it to Lummus Supply is simpler. And the pro dealer, unlike most subcontractors, provides its customers with terms. They hold onto their money longer and have the convenience of paying one monthly bill, instead of paying subcontractors every week or two.
By outsourcing window installation, Lummus Supply does give up some of the profits it might otherwise make on the install. Rednour gives Lummus Supply a volume discount of about 15 percent, he says. This is approximately what Lummus says he would make on installations. However, for Lummus Supply, the window installation service has boosted the sale of window products significantly, which the company considers to be more important than direct profits from the installation. “I may not be making my margin on the labor, but installation helps me get that window sale that can be $10,000 where I average 25 to 30 points. I don’t want to miss out on that,” Lummus says.
When it comes to delivering what customers want, both Lummus and Rednour say that scheduling is a critical part of the service builders demand. Product has to be manufactured or ordered, and delivery to the jobsite has to be coordinated with the installation crew because windows that sit around a jobsite for a couple of days tend to get damaged or disappear, Lummus says. Currently, he manages scheduling manually, but he is planning to have a computerized system in place before the end of the year.
Meanwhile, installing the windows they sell using a dedicated, knowledgeable window specialist has solved the callback problem for Lummus. “Our callbacks are less than one-half of 1 percent,” Rednour says, a key benefit that’s passed on to Lummus.
That’s good news for Atlanta-area builders looking to improve their processes. “Having Lummus Supply install the windows helps our framers,” says Tim Chatham of Chathambilt Homes in Alpharetta, Ga., which builds 10 to 15 high-end custom homes annually. “The framers can move on to the next job more quickly, and Lummus installations are done properly. You want the windows set straight and flashed correctly. That’s why I like to use a specialist,” he adds.
Serving home builders like Chatham, Lummus did $100,000 worth of window installations in the first year and he expects that volume to grow rapidly. “The builders want this problem to be mine, not theirs,” he says. “Before too long, he is going to hand me the blueprints and tell me, ‘I’ll see you in six months.’”
