The Next Level

Large home builders are demanding consistent service from suppliers, but as they expand into new markets and states, pro dealers say that stepping up to comply is now more complicated than ever.

5 MIN READ
From file "053_pss" entitled "BBstudyB.qxd" page 01

From file "053_pss" entitled "BBstudyB.qxd" page 01

Additionally, The Wolf Organization’s 19 yards in four Eastern states are supported by three kitchen cabinet distribution centers whose coverage extends into 17 states. “We have the product lines, the logistics, and the low-price structure in place to encourage the personal relationships that builders want,” says Len Kopec, COO for York, Pa.–based Wolf.

Dealers cement those relationships at the jobsite when they install what they sell. In response, this year Strober is adding insulation to the list of products it will install and, likewise, Kopec says that The Wolf Organization sees “real opportunities” in packaging products like windows, kitchens, framing, and siding into turnkey installation programs.

But Cavanaugh warns that dealers need to be careful about yielding to builder demands that offer unpredictable financial gains. His company has stayed away from selling drywall—a product that builders typically purchase from local or regional suppliers—because “it’s labor-intensive, capital-intensive, and you have to sell a ton of it to make money.” Cavanaugh isn’t too keen, either, on turnkey framing, another service that more builders ask for, because “I struggle to see how that fits into who we are. We might be forced into this by competition in the future, but I don’t see it as a real opportunity for us.”

However, as big builders expand across the country and their product and service needs get even more complex, pro dealers coveting these builders’ business may wind up living by two simple words: give and take.

Figure 7 Expectations for Firms in 2004 Figure 8 National Purchasing by Product Figure 9 Overriding National Agreements Figure 10 National Purchasing Policies

About the Author

Jim Cory

Formerly the editor of REPLACEMENT CONTRACTOR, Jim Cory is a contributing editor to REMODELING who lives in Philadelphia.

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