One Man’s Challenge Is Another Man’s Treasure - Home Building Materials, part 2 of 3

SourceJuice continues its quest in bringing you more of the world's best import treasure maps. If you haven't read the first part of the series One Man’s Challenge Is Another Man’s Treasure - Home Building Materials, part 1 of 3, please do so before continuing onto part 2.

To find the gold, one must know the pirate. Before we sail the seven seas and complete the series, let's get to know our customer a little more intimately. Meet the Captain Blackbeards of the construction industry: real estate tycoons and builders.

Just because you can lower the bottom line, doesn't mean you will get the sale. Its all about knowing your customer. Real estate developers and builders are a rare breed; they:

1. Like to get something for nothing


2. Like extra value. Importing granite countertops is the best example of this.


3. Utilize turn-key methods


4. Understand labor is cheap and have a lot of people working for them – much like Howard Hughes.


5. Have the ability to purchase in quantity due to access to multiple construction draws/loans.


6. Are impatient, time is money and interest accrues on a daily basis for them


7. Live on ego alone


8. Think on the bottom line, per house and per project/subdivision


9. Will always check your price against your competitors

How does this affect your sales pitch?

• Push cost savings up front. That is why you are going to China right?


• Massage their ego. Give them something to talk about with their colleagues. It is as much about selling cost savings as it is about the image gained by "doing business in China".


• Give the 60 day to arrival timeline early into the sale. Pick items that meet your 60 day production and logistics schedule. If the builder is already in the framing stage with rough-in inspections complete –don't expect to sell sheetrock. Ask about new or up and coming projects. Builders are always building.


• Put together packages, an easy turn-key solutions are best. Builders are running multiple projects at one time and rarely want to have to micromanage just to save a few dollars.


• Certain kinds of labor are expensive in the US. Pick labor intensive products to manufacture overseas.

Stay tuned in this series for the continuation of "challenge" items on builders' budgets.


dylan@sourcejuice.com // Dylan Blankenship