Accessories make the sale

At the job site, contractors need a variety of accessories and a good distributor to supply them

By -- Industrial Distribution, 5/1/2000

The products contractors buy for a particular job site are as diverse as the types of contractors in the construction industry. But what's consistent is the necessity for accessories to get the job done properly and in the most cost-effective manner.

"Different types of contractors buy different types of ways from distributors," explains Hal Look, vice president of sales and marketing for Orco Construction Supply, based in Livermore, Calif. "A subcontractor is generally buying off of a materials list to do a specific job, while a general contractor may have certain things they're supplying on the job site. Then you have the individual people who work for the subcontractor or the general contractor who a lot of times supply their own tools to do their job."

Power tools, such as drills and saws, are among the more common products purchased by all professional contractors. Likewise, drill bits and blades are popular accessory purchases. Depending upon the contractor, power equipment, adhesives and caulks, and hand tools are top sellers. Grading accessories, as well as concrete accessories, safety supplies and carpenter's tools-such as hammers and nails-also are typical purchases.

Most suppliers of tools for contractors agree that understanding the needs of the customer is key to providing the right tools and accessories for the job. "Each job has a different spin to it on the supply side," points out Dick Beta, management team leader for Acme Construction Supply Co., based in Portland, Oreg. "We provide items that contractors generally forget. Typically, we have to suggest to them that they need a particular item."

Use a trained sales force

Brand preference isn't always an issue with contractor sales. Look points out that consumable items that go into a building, such as nails, caulking and paper, are commodity-type sales. On the other hand, he says, individual workers for general or subcontractors are "probably a little more brand-oriented because they might want a specific carpenter's bag, hammer brand, or power tool."

With construction distributors generally catering to diverse market segments, a trained sales force becomes a critical component in meeting the specific needs of contractors.

"Generally, a contractor comes in and asks for a specific item. But even when they ask for a specific item, we typically start questioning them to find out what they'll be using the tool for to make sure we're supplying the right type of product for the right type of application," Look says. "We need to know what they will be doing with the tool or material and what they're trying to accomplish. Once we have a good understanding of that, we can better match the types of products, accessories, or services that they need for that application."

Beta adds that outside field sales teams complement over-the-counter sales at Acme. The field team, which goes out to the actual job site to talk to contractors, assesses the tools and accessories contractors are going to need. "These outside field sales teams have been schooled to work on the job site and recognize the needs of the 20 or more contractors that could be at any given job site. The needs could range from safety to fastening items," Beta explains. "We view our role as more of a partnership with the contractor to assist them on the job site with the tools and services they are going to need."

The partnership role is an extension of the relationship Acme has with manufacturers in the industry. "We work with them to ensure that we stock the products that contractors are going to need to get through the job," says Beta, adding that the partnership also keeps Acme up-to-date on the latest products and innovations. Manufacturers also play an active role in the training of Acme's sales personnel. We work with our manufacturers to make certain that our sales representatives are well trained and understand the products to the best of their ability," he notes. "Our manufacturers help to ensure that our customers receive the technical expertise, pricing and availability that they have come to expect."

At Orco, Look says product training is held every week on the branch level. There also are monthly regional meetings where vendors provide extensive product training on specific items.

Comprehensive training also ensures that distributors sell the necessary accessories to an item. "Whatever contractors are buying, it generally can't be used without an accessory," Look points out. "A power tool, for instance, cannot be used without a drill blade. So it all goes back to finding out what the application is, what they're using the tool for, and then trying to up-sell them to the appropriate accessories that go along with the item to do the job right."

Beta says the importance of the accessory sale becomes even more apparent when you look at the company's bottom line. He notes Acme's profit isn't from the tools they sell, but rather the accessories that go along with them. "In the power tool business, for instance, we make five times as many dollars selling power tool accessories than we do power tools. Most industrial supply distributors would not invest in accessory items because they consider them nuisance items. They're SKU laden, they're hard to inventory and the transaction rate and line items on them are enormous. But it's a niche for us."

Checklist please

Certain "tools of the trade" are used by distributors to act as reminders for the sale. At Orco, for instance, Look says checklists are key to ensuring that no accessory is forgotten. "Our sales force uses check-off lists that are categorized by trade. For example, if it's a framing contractor, we have a list of materials that typical framing contractors supply and use," he explains. The company is in the process of automating the system so when an item is called up on the computer, it will automatically list all the commonly used accessories that go along with it.

Other contractors use similar checklist methods. Some, for instance, keep reminder cards by the cash register categorized by tool type. The cards list the accessories that should accompany the sale. Still others review fax and telephone orders prior to customer pick-up and highlight items as an indicator to the counter sales person that an accessory should be sold with the item.

Properly supplying contractors with the tools they are going to need for a particular job is paramount to a distributor's success, especially since, as Look points out, there are hundreds of other distributors competing for the same business. In addition, distributors are trying to hold back the attempts of "big boxes" that are vying for a piece of their business.

"They're trying to get into our business, but they don't really cater to the professional," says Look. "There are several things that we do that they don't. One of them is we supply the majority of our business with an open account because it's a business-to-business relationship. Big box stores typically are cash or credit card. Plus, those types of stores are mostly picking up your own materials and carrying them out, whereas we deliver the vast majority of our products directly to the job site," he points out. "Pro contractors want to be serviced by a business. It's really high service that we offer."