{"id":7052,"date":"2005-09-20T13:44:31","date_gmt":"2005-09-20T13:44:31","guid":{"rendered":"https:\/\/zonda-develop.go-vip.net\/prosales\/article\/personal-touch_o-2"},"modified":"2025-06-27T02:07:05","modified_gmt":"2025-06-27T02:07:05","slug":"personal-touch_o","status":"publish","type":"post","link":"https:\/\/zonda-develop.go-vip.net\/prosales\/products\/personal-touch_o\/","title":{"rendered":"Personal Touch"},"content":{"rendered":"<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">  <p class=\"wp-block-paragraph\"> <\/p> <\/div><div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\"><p class=\"wp-block-paragraph\"> There are plenty of places around Charlottesville, Va., where Randy Rinehart can buy building materials for the four to six houses his company, Rinehart Custom Homes, constructs annually. But for the past 35 years, his supplier of choice has been Better Living, a local pro dealer whose operations include two retail locations, a millwork shop, and a components plant. \u201cThe owner [of Better Living, Richard Nunley] sold me my first lot in 1970,\u201d recalls Rinehart, whose homes currently range in price from $600,000 to $1.3 million. He likes the fact that Better Living gives back to the community through a foundation its owners established in 1988. \u201cAnd I know that every dollar I spend there stays in the community.\u201d<\/p><p class=\"wp-block-paragraph\"> On the other hand, Rinehart does no business with another local lumberyard because \u201cthey&#8217;ve never approached me.\u201d Lowe&#8217;s is out of the question because \u201cit doesn&#8217;t have an outside salesperson and can&#8217;t deliver to the needs we have.\u201d And while he considers the salesperson at his area Stock Building Supply a friend, Rinehart has stuck with Better Living\u2014which generated $25 million in revenue last year and has a product mix that includes kitchens, baths, and even furniture\u2014because \u201cprice isn&#8217;t always a driving factor.\u201d<\/p><p class=\"wp-block-paragraph\"> <media media-type=\"image\"> <media-caption>  Figure 1   <b>Nailing Down Service<\/b> <\/media-caption> <media-producer><\/media-producer> <\/media> When deciding where to buy construction materials, custom home builders say they place a premium on long-standing relationships with suppliers, propped up by three legs: service, product knowledge, and delivery. The good news for you is that most custom builders hold pro dealers&#8217; operations in high regard in all three of these areas. An exclusive PROSALES survey of 502 custom builders across the country (see \u201cAbout the Survey,\u201d below) found that nearly 70 percent of those polled rated their local building material dealer \u201cgood\u201d or \u201cextremely good\u201d at delivery, and nearly two-thirds gave the same high rating to local dealers for knowledge and overall service (see Figure 1, right).<\/p><p class=\"wp-block-paragraph\"> However, custom builders still might use several lumberyards or building supply outlets for commodities like framing lumber and dry-wall, and they are just as likely to diversify their sourcing for finishing and d\u00e9cor items. Participants in the study identified pro dealers as their primary sources of supply in 13 of 35 product categories, including doors, windows, lumber, house-wrap, and wood and fiber-cement siding. The builders identified specialty dealers and distributors as the most-used source in 12 categories, including appliances, bath fixtures, carpeting, lighting, and tile (see Figure 2, page 58).<\/p><p class=\"wp-block-paragraph\"> To supplement this nationwide research, PROSALES interviewed a dozen custom builders in 11 states, most of whom say they keep their sourcing options open to accommodate the tastes of their discriminating clientele and consultants. More than three-quarters of the survey&#8217;s respondents say that home buyers play a \u201cmajor role\u201d in selecting products for their projects; nearly three-fifths of those polled say architects and designers are major influencers. It is, perhaps, unsurprising then that pro dealers with showrooms have a decided leg up in their efforts to attract business from custom builders and their buyers.<\/p><p class=\"wp-block-paragraph\"> In other areas, the survey uncovered some unexpected ambivalence among custom builders about relying on suppliers&#8217; turnkey installation. Around 80 percent of those polled said they don&#8217;t use pro dealers&#8217; installation services, but nearly half said they are likely to do so in the future, a response that no doubt reflects current labor volatility. \u201cWhenever we can get a supplier to install, we do because that&#8217;s one less person you have to deal with, and there&#8217;s less finger-pointing,\u201d says Lucy Katz, co-owner of Austin, Texas\u2013based Katz Builders, which annually builds 20 homes that generate an estimated $4.5 million in revenue. Andy Rosenthal, owner of Potomac, Md.\u2013based Rosenthal Homes, says he favors one local kitchen and bath dealer because it offers the Cavico cabinet line his clients like and because it installs. \u201cWhen I can get someone to install kitchens, it saves me money.\u201d<\/p><p class=\"wp-block-paragraph\"> <b>Trump Cards<\/b> The benefits of cost savings, though, go just so far, as most custom builders say they avoid big boxes like The Home Depot or Lowe&#8217;s except for hardware, tools, and the odd 2&#215;4. \u201cI&#8217;ve seen them trying to go after builders more,\u201d says Flay Dalrymple, who owns Dalco Custom Builders in Fair Play, S.C., which builds between 12 and 20 homes annually and last year generated $6 million in sales, \u201cbut they have a basic problem with service.\u201d<\/p><p class=\"wp-block-paragraph\"> <media media-type=\"image\"> <media-caption>  Figure 2   <b>Purchasing Patterns<\/b> <\/media-caption> <media-producer><\/media-producer> <\/media> Most custom builders, and 71 percent of those polled, insist that service usually trumps price when they select one supplier over another. But price is never out of the equation entirely, and almost half of those polled rated pro dealers&#8217; prices as only average (a \u201c3\u201d on a 1-to-5 scale, with 1 being \u201cextremely poor\u201d and 5 being \u201cextremely good\u201d). More than 45 percent want lumberyards to lower their prices and 31 percent would like to see more volume discounts (see Figure 3, page 60).<\/p><p class=\"wp-block-paragraph\"> Chris Perry owns Riverside Builders in Satellite Beach, Fla., and he&#8217;s followed the same salesperson from dealer to dealer for two decades, from that seller&#8217;s first job at Wickes Lumber to his current post at Cox Lumber. But Perry, whose company builds eight to 12 homes annually that start at $750,000, says he still price-shops other suppliers \u201cto keep [Cox] honest.\u201d Riverside Builders recently moved its window purchases from a specialty dealer to 84 Lumber because 84 now carries the BetterBilt brand Riverside prefers and \u201cits pricing is competitive,\u201d Perry says.<\/p><p class=\"wp-block-paragraph\"> Jay Grant, whose Grant Homes in Mendham, N.J., annually builds between 10 and 15 homes that generate $5 million in revenue, says he gives a major portion of his purchases to Fox Lumber in nearby Clinton, N.J., partly because \u201ctheir prices generally beat competitors&#8217;, and they offer me extended terms [at least 60 days], and I can still deduct 2 percent off of the invoice.\u201d<\/p><\/div> <!--nextpage--><div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">  <p class=\"wp-block-paragraph\"> <\/p> <\/div><div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\"><p class=\"wp-block-paragraph\"> But while pricing is an incentive for builders to go with one supplier over another, it rarely becomes the cement that bonds dealers or distributors to custom builders who, time and again, say they turn to suppliers they are comfortable with. \u201cWhat I&#8217;m looking for in a supplier is open communications, integrity, follow-through, and attention to our particular account,\u201d says Stephen Hann, owner of Houston-based Stephen K. Hann Custom Builders. \u201cI guess it&#8217;s all about [a dealer&#8217;s] personal touch. The more they conform to our delivery process and minimize misunderstandings, the more valuable they are to us.\u201d<\/p><p class=\"wp-block-paragraph\"> <media media-type=\"image\"> <media-caption>  Figure 3   <b>Areas for Improvement<\/b> <\/media-caption> <media-producer><\/media-producer> <\/media> That personal touch manifests itself in many ways. David Prutting, who owns Prutting and Co. Custom Builders in New Canaan, Conn., has been an avid patron of local pro dealer Ring&#8217;s End Lumber for 25 years. \u201cI trust them to do the resource screening for me,\u201d he explains. Prutting also appreciates that Darien, Conn.\u2013based Ring&#8217;s End conducts an annual trade show where he can see new products and materials.<\/p><p class=\"wp-block-paragraph\"> When rumors surfaced a few years ago that the federal government was buying large quantities of panels to ship to Iraq, Dennis Dixon, who owns Dixon Builders in Flagstaff, Ariz., recalls getting a call from the owner of Hunt Lumber, a local yard Dixon has patronized for 21 years. \u201cHe asked me what my OSB needs would be for the next year\u201d so Hunt Lumber could buy enough to set aside sufficient amounts for Dixon&#8217;s company, which does three projects a year that produce $2.7 million to $3.1 million in sales. Dixon says he&#8217;s received similar calls from Hunt Lumber when there have been shortages of PVC pipe, roofing, and rebar. \u201cHis salespeople are watching out for me.\u201d<\/p><p class=\"wp-block-paragraph\"> Katz Builders purchases windows from a local specialty dealer, Grand Openings, because it carries the Kolbe &#038; Kolbe brand and because its salesperson, Steve Lobe, \u201cunderstands construction and how windows go in,\u201d says Katz. \u201cWhen there&#8217;s a challenge for us, Grand Openings is on the spot. It&#8217;s almost like an insurance policy.\u201d<\/p><p class=\"wp-block-paragraph\"> <b>Precious Resources<\/b> Suppliers that consistently deliver what they promise are worth their weight in gold. And those that install what they sell can provide an added value that custom builders are beginning to accept, some out of necessity. Take Kitty Hawk, N.C.\u2013based Stormont &#038; Co., which specializes in building waterfront homes on the Outer Banks of North Carolina. \u201cLike many coastal communities, it&#8217;s just going [crazy], so the towns here don&#8217;t have enough labor,\u201d says owner Dave Stormont, who can&#8217;t afford production delays when homes he builds often need to be ready before summer renters descend. For a decade, he&#8217;s bought materials from one local pro dealer, Kellogg Supply, which offers turnkey service for cabinets and flooring. But Stormont also uses several other cabinet suppliers to make sure he&#8217;s offering home buyers enough variety and to be confident that the cabinets are installed in a timely fashion.<\/p><p class=\"wp-block-paragraph\"> On a scale of 1 to 10, where 1 is \u201cnot at all important\u201d and 10 is \u201cextremely important,\u201d far more custom builders rated \u201ctimely delivery\u201d a 9 or 10 than they did any other factor that determines which supplier they buy from (see Figure 4, below left). In contrast, installed sales received a 9 or 10 score from only 32 of the 502 builders polled (6 percent), and ranked lower on builders&#8217;list of reasons for selecting suppliers than, say, after-sales support or special-order capabilities. But with nearly half of those polled saying they&#8217;re worried about being able to locate qualified subcontactors, that glaring market reality may drive custom builders to find suppliers that will install what they sell.<\/p><p class=\"wp-block-paragraph\"> <media media-type=\"image\"> <media-caption>  Figure 4   <b>Importance of Criteria in Selecting a Supplier<\/b> <\/media-caption> <media-producer><\/media-producer> <\/media> Certain categories\u2014such as mirrors, millwork, insulation, and shelving\u2014lend themselves to a turnkey approach, based on the number of custom builders polled who use their suppliers&#8217; installed sales programs for these products. All three of Hann Builders&#8217; roofing suppliers install, says Irenka Douglas, Hann&#8217;s purchasing manager. And Rosenthal Homes uses Pennsylvania-based custom cabinet supplier Rojan that installs, even though it sometimes requires a 16-week lead time. Perry notes that Riverside Builders prefers turnkey suppliers for products that come with warranties, like windows.<\/p><p class=\"wp-block-paragraph\"> What Dalco&#8217;s Dalrymple says he looks for in a turnkey supplier is \u201cprofessionalism, before and after the sale.\u201d He notes that his company pulled some business from one long-time materials supplier in Livonia, Ga., when the quality of its installed work slipped. Dalrymple believes that suppliers that specialize in one or two products tend to be more reliable installers than those that sell multiple lines. He points to Dalco&#8217;s current window supplier, Atlanta-based Window Concepts, which he says \u201cprovides great installation service, especially after the job is completed.\u201d<\/p><p class=\"wp-block-paragraph\"> <b>High Standards<\/b> Custom builders are understandably careful about installations because their work is generally held to higher standards than production builders&#8217; by home buyers who often have considerable say over what products get purchased. Home buyers are more savvy about products, colors, and styles because of their exposure to home improvement shows on TV, home-decorating magazines, and online information on just about anything that goes into a home&#8217;s construction. Rosenthal says that one of his customers recently requested a cable rail system with glass panels, which cost $48,000 for the railing alone. He also recently used a millwork source in Montana, Artisan Doors &#038; Millwork, for a $3 million custom home project that called for 60 clear-alder wood doors costing $800 apiece.<\/p><p class=\"wp-block-paragraph\"> Custom builders must be able to draw from a deeper reservoir of suppliers to meet the ever-growing demands of their clientele and their designers. \u201cThe architect is often the primary control point,\u201d observes Ralph Dratch, director of business development for Koral Builders, a Southampton, N.Y.\u2013based custom builder that produces 10 to 12 homes each year that sell for between $1.5 million and $4 million. Perry says that he sometimes chooses suppliers based on the branded products they stock because brand-conscious baby boomers \u201care our main clients\u201d and they&#8217;re even asking for building products by name.<\/p><\/div> <!--nextpage--><div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">  <p class=\"wp-block-paragraph\"> <\/p> <\/div><div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\"><p class=\"wp-block-paragraph\"> \u201cWhen the customer takes part in the purchase, it becomes a subtle combination of price, showroom facility, and service,\u201d says Hann&#8217;s Douglas. The survey found that 70 percent of custom builders polled send their buyers to suppliers&#8217; showrooms, either on their own or accompanied by the builder&#8217;s employees (see Figure 5, below). Dalrymple says Dalco often determines where it buys products by which dealer or distributor has a showroom that&#8217;s nearest to where the client resides. Dratch at Koral Builders notes that his clients and their designers either pick out products on their own from the myriad supplier-affiliated showrooms in New York City, or he sends them to specialty distributors like Blackman Plumbing Supply, which has nine area showrooms.<\/p><p class=\"wp-block-paragraph\"> <b>Changing Times<\/b> Yet many custom builders\u2014and some with extreme prejudice\u2014resist buying from or sending clients to warehouse home centers. In only five categories\u2014tools and fasteners, lighting, locksets, caulks and adhesives, and shelving and storage\u2014did at least 20 percent of the builders polled indicate they purchase at home centers.<\/p><p class=\"wp-block-paragraph\"> <media media-type=\"image\"> <media-caption>  Figure 5   <b>Showroom Spotlight<\/b> <\/media-caption> <media-producer><\/media-producer> <\/media> \u201cOur company loved Pella windows, but when Pella went factory-direct to Lowe&#8217;s we stopped buying them,\u201d says Dalrymple. The main objections most builders have with The Home Depot and Lowe&#8217;s are that it takes forever to purchase products in their stores and their field service levels are unacceptable. Dratch says his company&#8217;s owner, Bill Koral, ordered Andersen windows through The Home Depot, \u201cand it was a mess. The salesperson wasn&#8217;t knowledgeable and the order wasn&#8217;t delivered complete.\u201d Dixon, the Arizona-based builder, says two of his employees do installed sales for the local Home Depot \u201cand they can&#8217;t believe the screwups between what gets ordered and what gets shipped.\u201d<\/p><p class=\"wp-block-paragraph\"> Will custom builders change their tune, though, if The Home Depot decides to follow its recent purchase of Williams Bros. Lumber with acquisitions of other pro dealers? And how will dealers, distributors, and other suppliers react if, as a result, the competitive landscape shifts? Rinehart, the Virginia-based builder, worries that big boxes are already putting local dealers out of business. And the next few years could be a period of adjustment for custom builders, when they&#8217;ll find out if the personal touch they&#8217;re used to receiving from suppliers becomes an embrace or a brush-off. <i>\u2014John Caulfield is a contributing editor for PROSALES.<\/i><\/p><p class=\"wp-block-paragraph\"> SOURCE: PROSALES 2005 CUSTOM HOME BUILDER STUDY<\/p><p class=\"wp-block-paragraph\"> SOURCE: PROSALES 2005 CUSTOM HOME BUILDER STUDY<\/p><p class=\"wp-block-paragraph\"> SOURCE: PROSALES 2005 CUSTOM HOME BUILDER STUDY<\/p><p class=\"wp-block-paragraph\"> SOURCE: PROSALES 2005 CUSTOM HOME BUILDER STUDY<\/p><p class=\"wp-block-paragraph\"> SOURCE: PROSALES 2005 CUSTOM HOME BUILDER STUDY<\/p><p class=\"wp-block-paragraph\"> <b>About the Survey<\/b> The findings of the PROSALES <i>Custom Home Builder Study<\/i> are based on e-mail responses from 502 custom home building professionals who subscribe to BUILDER magazine and CUSTOM HOME magazine, sister publications of PROSALES. Questionnaires were e-mailed to subscribers in June 2005. The online survey was hosted by Specpan, an Indianapolis-based market research company owned by The Farnsworth Group. Specpan compiled the data, and analysts at The Farnsworth Group prepared a report on the survey results. (Note: Custom home builders interviewed for this story were not necessarily participants in the e-mail survey itself.)<\/p><\/div> ","protected":false},"excerpt":{"rendered":"<p>There are plenty of places around Charlottesville, Va., where Randy Rinehart can buy building materials for the four to six houses his company, Rinehart Custom Homes, constructs annually. But for the past 35 years, his supplier of choice has been Better Living, a local pro dealer whose operations include two retail locations, a millwork shop, [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":7053,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"scheduledNewsletterDates":[],"_scheduled_newsletter_id":0,"footnotes":"","jetpack_post_was_ever_published":false,"zonda_content_type_url_append":"_o","zonda_dfp_zone":"","zonda_exclude_recommended_contents":false,"zonda_exclude_most_popular":false,"zonda_exclude_tagged_results":false,"zonda_eyebrow":"","zonda_last_newsletter_date":"2099-12-31T23:59:59.999-05:00","zonda_original_url":"","zonda_pdf_version":0,"zonda_print_headline":"Personal Touch","zonda_promo_abstract":"There are plenty of places around Charlottesville, Va., where Randy Rinehart can buy building materials for the four to six houses his company, Rinehart Custom Homes, constructs annually.","zonda_promo_headline":"","zonda_promo_image":0,"zonda_subheadline":"Custom home builders specialize in meeting the individual needs of buyers, and they expect the same treatment from their suppliers. An exclusive ProSales survey reveals that pro dealers appear to be competing most effectively for this business when they can establish a deep rapport with these builders and, perhaps as importantly, their customers."},"tags":[],"news_item_type":[780],"section_9":[11542],"subject":[263,275,262,109,32,38,172],"organization":[5063,13056],"award":[],"person":[],"product_type_9":[],"content-group":[],"event":[],"location":[1344],"state":[],"brand":[],"jlc-category":[],"year_tax":[],"sponsor":[],"coauthors":[156],"class_list":["post-7052","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","news_item_type-feature","section_9-products","subject-custom-builders","subject-delivering-and-servicing-sales","subject-home-prices","subject-housing-data","subject-lumberyards","subject-products","subject-windows","organization-84-lumber","organization-home-lumber","location-charlottesville-va"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Personal Touch<\/title>\n<meta name=\"description\" content=\"Custom home builders specialize in meeting the individual needs of buyers, and they expect the same treatment from their suppliers. 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