As we finalize our business plans for 2011, the following items should to be considered:
- New construction growth this past year fell short of initial forecasts, and 2011 projections for this segment are more conservative than we all hoped.
- The replacement market has been more active than new construction in 2010, however there is some uncertainty associated with tax credit opportunities being extended into next year.
- Competition for business at the manufacturing level, and also at the local distributor and builder level, is as tough as it has ever been.
Of the factors listed above, what can we control or have the most influence over? It is how we position ourselves versus our key competitors. During the past few years, companies have made many adjustments in their business models to best match the current economic conditions in their markets. In many cases, the changes that have been made have been significant and will impact how we will compete next year. Right now is an excellent time to take inventory of where you stack up versus your key competitors.
Customer Service - It is important to understand how you can gain a competitive edge in this area. Focus on what services you provide before and after the sale. For example, your company may provide strong after sales support with company field technicians, or might offer a final walkthrough or tune-up on all new home packages. Or, your toughest competitor may be doing something you need to consider, perhaps offering installation services. Itemizing the services you provide helps build value into the price. And, being easy to do business with, especially when it comes to resolving potential problems, makes it tough for a customer to change.
Relationships - More than ever, maintaining existing relationships and developing new ones means winning the order. Stay close to your customers; find ways to stay connected even if they don't offer much in business opportunity right now. Communicate new product and program information, and make sure they know what additional product options can be considered in their business. Expect your best competitors to be doing the same thing, trying to convince the market they have all the answers. Don't forget to use all your resources, as you will need to make a convincing argument for your company.
Price / Value - We all know price is a primary factor in a purchase decision, especially in this economy. Still, people need to believe they are getting a good value. This often requires an excellent attention to detail during the selling process. Do you truly know and understand the products your competitors can offer today? Make sure you have the most current information on your competition. Also, don't forget to utilize your selling tools. Make sure hand samples and showroom displays are up to date and properly represent your ability to provide a solution for the customer and their needs.
If you don't have one, this is a great time of year to develop a profile of your competitors. Know what they offer in products and services. Understand their strengths and weaknesses. One suggestion would be to assign members of your sales team one key competitor, and have that person take ownership of all the information on that company. This should make for some interesting discussion during your next sales meeting. It may even help you close more business.