Robert Rourke of L.E.K. Consulting recently quoted statistics from and commented on a recent survey of more than 500 residential contractors across the United States indicating, despite the difficult and highly competitive construction market, quality remains a high priority in product selection for both the contractor and the project owner. I was not surprised, I cannot imagine a time or circumstance where project owners could be more focused on value and quality for their money.
I know that it is tempting to trim here and cut there when designing a project, we face the same challenges in the design and construction of our products. The truth is however, sacrificing quality materials, components, employee skill level, service, and or communication ALWAYS results in higher overall costs. Am I suggesting that the highest cost, most featured option is necessary for every project or product – absolutely not, but discovery of how, where, why, and how a product may deliver the lowest overall cost is the key.
Ask tough questions, detailed questions of your supply chain, clarify the service level or the material specification, ask for evidence of quality and look for a reference to determine if the product representative is honest and consistent in their service. Today, more than ever, the importance of the non-material content of our doors and window is as important as the material and workmanship. What is non-material content? Detailed confirmation of every order, Manufacturer processing of freight claims on the builders behalf, Rapid processing of Warranty claims, Lean Manufacturing culture, Support of industry groups and Rapid on-site response when required are all examples of cost saving/lowering content that may be standard in the slightly higher cost product, but lower the overall cost of the item.
Focus on contractor affinity, education, product durability and performance are key for A.J., make them a priority for your customer. Challenge your team to create moments with customers where you can share your story of quality and value, I am confident the customers will respond and you will overcome the majority share of the cost objection.
Todd Carlson – President A.J. Manufacturing, Inc.