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 - Brophy's Choice

With new home construction at a near standstill, your life as a sales manager of Brophy Lumber could hardly be more stressful. You find yourself reminiscing about "the good ol'days" (i.e. 2004), when each new month meant a new all-time company sales record. Unfortunately, those warm fuzzy memories are quickly being crushed in today's building environment.

Bubba Brophy, the owner of the company (who happens to also be your father), remembers those days too. While he is willing to cut you a little slack-after all, you are his son, and you did help build Brophy Lumber into your market's leading pro yard-you suspect that his patience is beginning to run thin. Plus, with sales way down, your largely commission-based reps aren't happy; their attitudes range from mild discontent to full-blown desperation.

You know the market will turn around. But you don't know when. In the meantime, it's your job to generate sufficient revenues to get Brophy Lumber through this dry spell. While your business is down, you believe that opportunities exist. Now the tough part: deciding which new initiative is right for Brophy Lumber.

After studying the market, talking with customers, and combing the trade press for trends, you see three options:

1) According to reports in NAHB's "Nation's Building News" e-newsletter, green building is one of the few positive niches in residential construction. While there is growing interest among your customers-driven largely by homeowner curiosity-you're unsure whether "green building" will have the mainstream appeal to drive Brophy Lumber foward.

2)With growing concerns about construction defect lawsuits caused by shody workmanship, several of your builders are struggling to find subs to install insulation, windows, garage doors, and closet shelving. You've read that installed sales is a growing trend, and can be a profitable opportunity when done correctly-but to do it profitably will require serious effort.

3) While new construction suffers from peaks and valleys, residential remodeling continues to grow. You have always focused on new construction though, paying little if any attention to remodelers, but now those pickup truck-size sales are looking pretty good.

The three best growth opportunities seem to be green building, installed sales, and selling to remodelers. You have to choose just one of the above, convince your dad of the need for change, and lead a change-averse staff into uncharted territory.

What would you do?

 

	Grow Green
	New home building is what your people know. If "green building" is the one area of residential construction that's moving, then that's the obvious choice. Learn what it would take to own this position, and then do it.
	Install It
	The shortage of skilled workers isn't going to get any better, and your builder customers are looking for reliable solutions. Take your role as trusted supplier to the next level and cash in on this lucrative opportunity.
	Remodelers
	Remodeling is big business, and it keeps getting bigger. Remodelers may require more attention than builders, and their individual orders may not be as large, but the steady, growing demand makes them the best choice.
	Just Wait
	Rushing into unfamiliar territory could be worse than waiting out the current slump. Don't start something that you're not sure you can finish; remember, you have limited resources. Change isn't always the answer.

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