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More than 80 percent of builders experience completion delays due to installation hold-ups. Installed sales can solve their problems.

Last month we discussed some of the benefits of offering installed sales to your retail customers. However, there are compelling reasons why you should consider marketing the plan to pros in new construction, too. Consider this:

Your salespeople already have forged solid relationships with the prospective customer, the builder. All they need to do is to introduce the new service to customers they’re already servicing and explain the added value the installation service provides them. You also stand to gain because most of these installation projects on new construction are easier for you to sell and install. And estimating is simplified because unit-pricing systems are relatively simple to create.

In today’s extremely competitive market, customers judge suppliers on their ability to provide service and add value to the relationship. If a builder perceives that a building material dealer isn’t adding value for him, the dealer is in jeopardy of losing that business and of being replaced by a more aggressive firm—one that markets and delivers better business solutions. The old methods of competitive bidding are not as practical when selling to builders who seek these services. Instead, more and more builders are willing to pay a little bit extra for workable solutions to their everyday problems. And finding reliable, quality installers and subcontractors is an issue they struggle with daily.

Builders need product, distribution and installation to complete their construction projects. Product and distribution are in ample supply in most markets. But high-quality, reliable installation oftentimes isn’t. Even when it is, juggling numerous subcontractors effectively is a difficult task. And this distasteful situation is intensified when the contractor is attempting to manage multiple projects simultaneously, each containing thousands of individual components. By offering your builder highly-reliable installation services, you’ll not only provide your customer with a valuable add-on service, you’ll also enhance your company’s overall service image by differentiating yourself from the competition.

Installed sales programs provide builders with real, timesaving solutions for their installation problems. In greater numbers builders are establishing relationships with dealers that offer it. In fact, it has become very difficult even to sell some products unless they are offered installed. And this trend shows no signs of reversing itself. In fact, recent studies conducted by the National Association of Home Builders reveal that builders are relying less on their own installation crews and more on subcontractors. They’re throwing down their hammers and saws and picking up computers and other business tools. The average number of subcontractors used to build a house today is greater than just a couple of years ago. Coupled with the fact that over 80 percent of builders are experiencing completion delays because of installation issues, the need for installed sales programs becomes obvious.

A building material dealer’s installed program typically can offer the builder a great number of tangible benefits. The dealer’s staff has a multi-dimensional view of the entire project. These people probably have been involved with the details of the job ever since the builder first in brought his plans. They see and understand the total picture, from start to finish.

Does this give the dealer a selling advantage? You bet it does. For starters, issues can be discussed and solutions provided that subcontractors would never even dream of getting involved with. A dealer also can offer superior communications with his customers. He maintains regular business hours in which a member of a support team is always on hand to answer the telephones and respond to a builder’s needs. Most subcontractors can’t provide this level of service.

A builder must manage large numbers of interdependent processes. Products can’t be installed before their time. Subcontractors can’t perform their tasks until the previous step in the process has been competed. When there is a delay, the builder needs to move back all future processes. Now he’s back to performing juggling acts, calling suppliers and rescheduling deliveries and installation crews—extremely non-productive functions. A single source for various products along with installation services would offer an invaluable service, saving the builder time and aggravations. Now he needs to make only one contact to reschedule several deliveries and installations, and the installing dealer manages the processes.

Installed sales programs benefit everyone in the supply channel. Manufacturers, distributors and dealers all stand to increase their sales. Dealers also enjoy improved margins on labor and material. The program eliminates headaches for builders and saves them time and money; it’s time to give it a serious look.

Also, explore the impact it will have on your contractor business if your competitor offers it and you don’t. Dealers’ installed programs aren’t going away: You’ll have to deal with it one way or the other, either as a participant or on the sidelines.