Our Big Box Stores Killing You?

How Contractors Can Compete With The Big Box Stores.

Yes, I here about it all the time how businesses are letting the big nationwide super stores take there market share and put some out of business.

This does not need to happen if you take an proactive attitude and do your homework first.

I like to get everyone to feed off of the big box stores marketing systems and take a small part of this knowledge and put it to work for them.

See, I love marketing so I could spend a lifetime in these types of stores because it’s a paid tuition for me in marketing 101.

I can learn the colors that are working now and I can pull together some great headlines that grab me and call for my immediate attention.

I enjoy just watching people enter into the store and find out why so many went to the right and not the left. Count and see how many picked up the advertising circular as they entered the store or if they brought it with them.

Watch how there employees engage with there clients and how long it took for the first employee to say hello and welcome them into the store. This one is the big one that more then not is passed over the most.

I would say that most of the big box stores have no clue what the difference is between a customer and a client. You can tell just by the interaction.

So how do contractors compete? Well, they don’t. See most of the contractors feel they cant’s compete on price or financing.

They all believe that they can install a better product and also give the client better service. So they are maybe half the way there.

So, all you have left is pricing and financing. Let’s take the pricing issue first. The only reason they beat in price is because of there buying power.

But, let me ask you this question? Who has the larger overhead? We no the answer! Now, if they are selling windows for a cash and carry type sell then yes how do you compete with that? You can’t.

But most of HD and Lowe’s products like windows are installed by an outside contractor. Now you can compete with this type of sale. Most of the time the stores are tacking on 25-35% onto the installation.

Also your product or window is better made then theirs. They have manufactures custom make products just for them to keep the cost down. But, also comes along a lesser made products.

Now, let’s look at the financing. You, as a contractor can set up your own financing program for your clients home improvements. Yes, it may not have all the bells and whistles that HD and Lowe’s have but you can compete with them on certain levels.

So, the main thing is to just make it happen and set up programs that you can offer your clients.

Just by making the above changes can add 50% more sales to your bottom line.

Think about this? Do you think Walmart is not in every Target store in there market every week? Checking on there pricing and in store sales every week. Watching how there employees engage with there clients. You can bet on it!

If you want to compete then do your homework!

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Happy Boxing!

Glen Kohlenberg

Tagged as: Big Box, Contractors, Lowe's, Marketing