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:

Like to get something for nothing
Like extra value. Importing granite countertops is the best example of this.
Utilize turn-key methods
Understand labor is cheap and have a lot of people working for them – much like Howard Hughes.
Have the ability to purchase in quantity due to access to multiple construction draws/loans.
Are impatient, time is money and interest accrues on a daily basis for them
Live on ego alone
Think on the bottom line, per house and per project/subdivision
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 Blankenship signature
dylan@sourcejuice.com // Dylan Blankenship

Last 5 posts by dylan

Data Seizure from Abroad, is your data protected? - July 22nd, 2008
Incoterms Definitions - the basics to the advanced - July 15th, 2008
Importing a Pet into China via Hong Kong - June 18th, 2008
Contacting a Factory Online; Lessons Learned from the Field - June 15th, 2008
One Man’s Challenge Is Another Man’s Treasure - Home Building Materials, part 3 of 3 and continuing. - May 4th, 2008

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

One Man’s Challenge Is Another Man’s Treasure - Home Building Materials, part 3 of 3 and continuing. | SourceJuice on May 4th, 2008 8:30 pm

[…] Welcome back to SourceJuice and the treasure of knowledge in sourcing for home building materials and products that truly make sourcing from China a golden opportunity for those willing and determined to reap the benefits of going direct to the source. If you haven’t already read the first two parts to this series, go here to #1 and #2. […]

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