March, 2005

Contractor Events Bolster Contractor Loyalty for Mid-Cape Lumber

By Mary Shafer

Cape Cod contractors are a busy bunch, and it can be hard to gain and hold their attention. Doug Bohannon, president of South Dennis, Mass.–based Mid-Cape Lumber, seems to have found the secret to success in relationship- and loyalty-building through an ongoing program of contractor events and education efforts. In addition to the usual comp tickets to sporting events and in-store manufacturer showcases and floor demos, Mid-Cape offers a diverse range of informational and "thanks for your business” events throughout the year. The most recent topic in their ongoing series of informational breakfast and dinner meetings was the change in coastal building code regulations in the Northeast. With the increasing frequency of severe weather, particularly hurricanes, the insurance industry has been successful in driving more stringent building codes for this area, which has been ranked as a high-wind risk zone. The mini-seminar enlightened builders on the ramifications of this modification where it concerns building materials and techniques.

During the summer, Mid-Cape sponsors its annual "Contractor Week.” Various vendors set up displays at each of their four locations, and revolve through these locations as the week goes on, assuring the best coverage of Mid-Cape’s market. This popular event is as much a customer appreciation effort as an informative one, with raffles, vendor giveaways, and a barbecue lunch for attendees.

Another "thank you” event that has been successful for Mid-Cape is their annual fishing tournament. Beginning about five weeks before the event, the dealer begins promoting contractor registration for the limited-participant contest. They use flyers and displays at their contractor sales counter, while road sales reps and delivery drivers promote the trip to motivate registration. The event is also touted in their print newsletter, The Blueprint, as well as on their online contractor calendar. A week or so before the actual event, they hold a drawing to determine the lucky participants. Vendors sponsor the cost of each boat, and contribute prizes such as products and event tickets. During the event, 50/50 raffles are held, with prizes being split between the winners and a favorite charity.

Bohannon says there can be some stickiness since certain contractors enjoy the event so much they want to send more of their crews year after year. He likes to include new customers, too. He’s found that, when a conflict arises because there aren’t enough berths for everyone who wants to participate, he just explains in a low-key manner to the older customer that he needs to "spread the wealth,” so to speak, and is usually met with a businessperson’s understanding. The tournament garnered 56 participants last year, and this year, Mid-Cape will be launching their first golf tournament. They anticipate 80 to 90 participants between contractors and Mid-Cape reps.

Hardcore educational offerings create better-educated customers, and make it easier to do business at Mid-Cape. At their Complete Home Concepts showroom, home buyers may walk through mocked-up home areas including kitchen & bath, siding, roofing, decking, decorative hardware, art glass and a complete line of Anderson windows. Mid-Cape encourages its contractors to send prospective homebuyers through for a "touch-and-feel” experience before committing to any designs.

A meeting facility in the back of the building is fully outfitted for learning with built-in projection equipment, white boards and seating for 35 people. This is where Mid-Cape holds its Builder University courses.

Mid-Cape’s Builder University offers AIA-certified courses sponsored by vendors. AIA regulations don’t allow product promotions in course content, but vendor reps are on hand to speak with attendees after class to make their pitches. Recent examples include a presentation on how light helps maintain psychological balance in home, work, and shopping spaces, sponsored by Velux, and an environmental practices overview sponsored by PPG. The business end of the industry is getting more attention as regulations get tougher and accountability requirements stricter. Other subjects include the local Chamber of Commerce’s "The Business of Building” classes, covering zoning and regulations, financing, contract negotiation and worker’s compensation for the small business owner.

Mid-Cape also realized the potential for early loyalty building by reaching out to the still-in-school crowd. They teamed up with Cape Cod Community College to offer several accredited courses through their Builder University.

The space is used as an extension classroom on foundational courses such as blueprint reading.

Mid-Cape also offers contractor support services through their credit department. Contractors can come in for training to access their account information via the dealer’s firewall-protected intranet. This allows contractors to bill as they go, and the resulting cash flow also benefits the dealer, who finds they have better success with on-time payment. "Customers who get paid regularly are more likely to pay us on time,” says Bohannon, "so we make the effort to make it easy for them. A more educated contractor is more confident, and a better businessperson all around.”

He cautions that dealers should have realistic expectations, and be willing to see these kinds of events as having ongoing, long-term benefit that’s not necessarily measurable in terms of dollar-for-dollar ROI. "Seminar-type events may actually result in immediate converted sales, but a lot of it plays out over time. There may not be an immediate return after an event. Relationships are made, networking starts to happen, and the main result is long-term credibility.” He estimates Mid-Cape’s total event investment between one and two percent of gross annual sales.

Mid-Cape always experiences a lot of vendor event participation, but to assure maximum customer participation, Bohannon advises "paying attention to what is going to be valuable for your specific audience.” Know your customers, their needs and interests, and include information, products and activities that are going to be valuable for everyone attending.

He also emphasizes the importance of detailed planning. Remember that the event, though focused on long-term benefit for your company, must be about the contractors, and should therefore be designed for their maximum benefit. Try to bring together the right mix of vendors and builder decision-makers, so the experience is relevant and valuable to both.