Mark Pearsall, vice president for sales and marketing, shares his perspective on building trends, where he sees green building headed, and Truitt and White’s importance in the local building community.
What are some of the general building trends you saw in 2004 you think will go into 2005?
What we’re seeing are people renovating existing properties rather than moving up and out. People tend to get settled in a home, a neighborhood, and a community that they’re comfortable with. Rather than moving up to gain the additional space, say, for a growing family, and giving up their familiarity with their area and having to re-establish themselves in a new community, they’re tending to renovate and make bigger with what they have.
To the homeowner’s credit, they’re thinking more of what they’re trying to create, using some of the more competent and qualified builders in the area; better, more durable materials, and materials that add to the comfort level of their home that add value to their property.
Speaking of materials, what materials and products were big sellers for you this year?
What we saw and are seeing is more focus on engineered wood products. We’ve seen people turn to more durable products, like cementitious siding; higher-end and pre-finished and pre-primed wood siding and trim products; and higher-end window and door systems.
Builders and consumers both appreciate materials that add value and quality to the home. People are using composite decking systems that add not only beauty and value but offer lower maintenance. Low-VOC interior finishes, which add to a home’s indoor air quality value are also gaining in popularity
These choices are being communicated through what builders are doing and how they are reacting and coming in and asking for these products. From our direct relationship with builders we’ve found them more interested about new products coming into the marketplace so they can better differentiate themselves and their practices to the consumer market. And we’re certainly seeing an increased interest in educational opportunities in both the pro builder and remodeler segment.
So, who’s educating who on product purchase? Are consumers approaching builders with product choices or are builders suggesting products to consumers?
I think that the better builders are taking the lead and learning what’s out there and available to offer their customers. Builders that are being prompted by consumers to investigate products are on the slow side of the business. Those that aren’t keeping themselves abreast of what’s available won’t be as successful.
On a similar note, I think the more prepared manufacturers, distributors, and retailers represent their products and brands at the architectural and designer level. When an architect is working with a consumer and the question gets raised, the builders can then get educated through this chain as well.
How does Truitt and White stock a new item for builders then? What’s your criteria?
We have several criteria. One of which is responding to a customer’s request. We have a full-time buying department that responds to feedback from the sales staff on what products are popular and where inquires are coming from. Based on this we’ll make a decision to try a new product if it has value to us.
We have eight outside salespeople and an architectural rep so we make a real practice of getting out and visiting with builders. In their normal sales calls they’ll make a point of showing off the new product to builders.
If there is a list of items we’re considering bringing in, we’ll give that list to outside sales reps and they’ll present and discuss it with their builders to see if there’s a practical use for it and if it works equally well or better than a product we’re already carrying. We’ll gather that feedback and make a decision whether to carry the product.
Inventory is a complicated process of knowing what to bring in: you have to commit money, training—not only to customers but to your salespeople—you have to commit space to it, then you have to make sure you can get a commitment from the manufacturer or wholesaler to a long-term position. You can’t get your customers using the product then discover you can’t get it anymore.
Two words: Box stores. How will you continue to compete and differentiate from them?
Foremost, our business is geared toward the professional builder. Clearly builders can buy from the big boxes, but what they’re getting from us is more trade experience and professional support—in both our store and lumberyard—you won’t get that offered consistently in the big boxes. We also offer a variety of well thought-out builder support services intended to make our customers’ work easier and more profitable.
We’re not for everybody and were generally not the kind of resource for builders who prefer the big box environment. If all a potential customer cares about is the cheapest product or pricing, we’re not for them.
We have a system that’s built around consistent service. Every day, all day long. We can provide that value and be competitive in our marketplace. I’m constantly reminding our entire customer service team that when a first-time customer comes into our business, they have to walk out seeing and feeling the difference between us and the big boxes.
Any plans on expanding in 2005?
Our growth plans are based on what has made us successful—offering strong customer service, intelligent product choices, competitive prices, and the right kinds of service that make sense to the pro builder market. We expect to grow in those areas where we can add value for our customers.
Where did you see green building grow in 2004 and where is it heading?
It’s a steady growth. But sometimes it’s hard to judge how much of that growth is based on staple products in the industry that have been modified by their manufacturer to become green. You would have sold the product anyway but now it’s a more environmentally responsible product. Everyone can count that as growth.
We continue to promote and live green building as a business principal. We certainly involve ourselves with green building practices, education, client retention, and inventory mix as much as possible.
In our area we’ve seen green building blossom in the past two years—and we expect two years from now it’ll be five-fold what it is today.
Though, there are challenges. Clearly you want to make sure that the people manufacturing green products can hit the marketplaces they’re trying to hit, and we can support the people who are not only the early adopters in the market who can also sustain the building industry in our community as well
We need to bring those people on board. Were absolutely working on this for 2005.
We also need to get builders on board that have been active and successful for many years, and move them more toward a green building base in their practices and business models. If our customers are successful, we will be successful.
There are more products being introduced every day into our market to further the green momentum.
We’re going to continue with our educational commitment, using not only product people to support the energy, but industry people who can speak to the builders and show them how they can change their business and adapt to a more green business model while continuing to be successful and profitable.
And to reach these builders, we need to be creative. For example, we’ll take a project list of products and suggest all the green products that are available fit the green building criteria as an alternative to the more traditional building materials they’ve been using.
I think the trend will continue to what we saw in 2004. I don’t think its going to grow as rapidly as it has in past years. But it will remain steady. The better business people are going to win. I think some of the weaker operators who don’t embrace the changing market or don’t understand or take the time to build solid professional relationships could see their business suffer.
Our commitment to be the best supplier to our customers requires us to always look for more and better ways to improve our service, be incredibly responsive to their needs, and never take any aspect of our relationship for granted.
As far as Truitt and White, we’re going to continue to do the things that we have been doing all these years to be the best resource for the Bay Area’s builders.
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