In the world of sales, there are often no right answers. What would you do in this tough sales situation? Make the call below, and see instantly how your judgment compares. Final results will appear in LBM Journal. Be sure to check back next month for a fresh Tough Call.
Tough Call - Tracking the Production Builder
It’s the spring of 2013, and you’re seeing something you wondered if you’d ever see again: a healthy market for your products and services. And that fact has created several
in your market with whom you have to battle for business. And that fact has created several fresh opportunities for you and your company.
remodelers and serious do-it-yourselfers. You focus on serving these customers for a number of reasons—most notably, you’re able to earn reasonable margins on the products you sell them, and they tend to pay promptly. While bad debts are a part of any business, you’ve been fortunate to have had very few write-offs during your 20-plus years in business.
Jim, one of your longtime custom builder customers has decided to help meet strong demand in your market for starter homes with a 32-house development. In the 11 years since launching his company, Jim has impressed you with his business acumen and the quality of his work. Aside from a few late payments during the downturn, he’s been a solid, reliable customer. And as he shared in a meeting with you today, he’s ready to take his business to the next level. “There’s so much pent-up demand in our market for inexpensive homes,” he explained, “I’d be foolish if I didn’t service that niche. Since I’ll be buying much more material, I’ll need to
buy my material from the lowest-cost provider. We’ve done a lot of business together, and I’d prefer to stick with you, but the numbers have to be right. Naturally, since this is a new venture for me, I’ll be getting bids from your competitors as well.”
What would you do?
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