REAL ISSUES. REAL ANSWERS: Margins VS. Market Share
The ideal situation is to do both — gain market share while building margins—but that can be easier said than done.
While the rebound in housing and remodeling markets has been less robust than expected, forecasters predict a much sunnier outlook for 2015. That spells a clear opportunity for LBM dealers to grow their businesses. Growth means different things to different dealers. Some define it as gaining market share; others as building the bottom line. The ideal situation is to do both—gain market share while building margins—but that can be easier said than done. This month, hundreds of readers weigh in on the question of… Margins VS. Market Share.
By: Rick Schumacher
A dealer from the mid-Atlantic states suggested this month’s Real Issue. He wrote: “How can we increase market share, whether it be in materials or services (installed sales) in a crowded market, and still maintain a decent profit margin?” It’s a great question, and with well over 200 readers weighing in with their thoughts, there’s little doubt that it’s a timely and relevant topic.
Expert forecasts are one thing; real-world insights from dealers are something else entirely. To get a baseline understanding of how readers see 2015 playing out, we asked the following question. As you’ll see, 89.6% of respondents believe that 2015 will be a better year for their companies than 2014. Of those, 49% anticipate a better-than 10% boost in revenues.