As we start the new year, many manufacturers and distributors have made the adjustments they decided were necessary to survive the tough economic times during the past couple years. Companies have right-sized their workforce, streamlined operations, and cut overall expenses in hopes of remaining competitive and protecting their market share. Forecasts suggest that the recovery, at least for the new housing market, will start during the second half of this year. All of us hope it happens sooner than later.
During the past couple months, I have heard from several individuals that "when the market comes back, it will not be business as usual." This is a very important observation, one that every business owner and salesperson should consider. Your market is different and unique, and you are the one with the best chance to establish a strong understanding of what is needed to sell and service in the "new economy." One thing appears certain, and that is we will not see new construction levels anywhere close to the activity of 4-5 years ago. What can we do to maximize company and personal returns in a reduced market during this transition year? Here are some ideas for consideration:
Strategic Partnerships - How are you leveraging your past success with key accounts to gain long-term commitments? Just as important, are you seeking out high profile customers of your competitors to do the same thing? Business volume may have slowed, however that is no reason to stop calling on the competitor accounts that deserve your attention. When they decide to consider a change, they will call you and give you first look. Many times, the best defense is a good offense.
Trade Responsibility - Do you know and understand your local building requirements, and are you staying up the speed as changes occur? For 2010, there are important changes to Energy Star, as well as new requirements for replacement window installations on older homes. More and more, this type of knowledge separates a company from the pack. When it comes to peace of mind, both builders and consumers will typically pay more for that security.
Market Trends - Both architects and builders can be a great source of helping you identify where the business opportunities will be in the future, so dedicate as much selling time as you can to getting in front of these decision makers. Consumers will also be a good source of feedback. Besides product trends, items like installed sales, easy-to-navigate and informative websites, and product showroom enhancements are likely to be a part of your discussions.
Revenue Bridge - This is a great way to plan and measure how you will achieve your sales goals. Most of us have already established a sales goal for 2010, but do we really understand what is needed to achieve it? The revenue bridge starts with an actual sales number from last year, and then outlines by category how you will achieve incremental growth. What role do new products, new customers, perhaps an expansion into new markets play in achieving your sales goals? Track your progress at the end of each month to stay current and make quick adjustments as needed.
Companies and salespeople that take a proactive approach to change and planning for success will lead the way during the next couple years. Those who don't may regret that they sat around, waiting for the recovery to start.