Our Time Has Come

by Paul A.S. Runyan, Beam Industries

Dealers can breathe vigor into builder business

It seems like everywhere we turned in 2006, we were bombarded with media reports that the “housing bubble” had burst. What really happened is that the housing industry took a deep breath in preparation for a sustained rebound that virtually every economist expects will begin in 2007. Housing starts for November projected to an annual total of more than 1.4 million units. Although considerably lower than a year earlier, it is about the same pace of construction that we saw during most of the 1990s.

Dozens of Beam dealers I’ve met with have told me their business has never been better. The reason: they have redoubled their efforts to grow their market share in new construction.

Suppose you sold systems for 20 percent of 200 homes built in your community last year. If the same builders build only 180 homes this year, but you increase your market share to 30 percent, you will end up selling 14 more systems than you sold last year. Since only about 10 percent of all new homes come with central vacuum systems, there’s ample room to grow your business even in a soft housing market. Consider these approaches:
1. Maintain an outside sales force that specializes in calling on builders.
2. Customize sales literature for each builder you work with. It will assure your product is showcased to the home buyer.
3. Set up a priming program for your builder customer. This creates an added incentive for buyers to complete their systems when selecting options and upgrades for their homes.
4. Join your local Home Builder Association (HBA) and get connected with as many builders as possible. By demonstrating a strong interest in their business, builders will develop an interest in yours.
5. Make sure you have attractive and informative model home displays and participate in local home expos.

Just like you, builders are in a competitive business. Differentiating their homes from the homes of other builders is critical. Central vacuum dealers can help them differentiate and, ultimately, sell more homes for more profit.

There’s no better time than now to get started. You’ll not only build your market share, you’ll reap huge rewards as the housing rebound gains steam.

Paul Runyan is general manager of U.S. Sales for Beam Industries.

Reprinted from Central Vac Professional, January 2007