24 Professional Builder August 2019
[EXCLUSIVE RESEARCH]
PRODUCT CHALLENGES
What builders say ...
24.5% Product does not perform
as intended
20.4% Product has a high or
unreliable price
19.6% Late delivery/missed
deadlines
13.9% Product is improperly
installed
13.1% Product is not available
locally
8.6% Customer service is not
available locallyWhat suppliers hear ...
38.4% Product is improperly
installed
20.2% Late delivery/missed
deadlines
14.1% Product does not perform
as intended
12.1% Product has a high or
unreliable price
12.1% Product is not available
locally
3.0% Customer service is not
available locally
Responses underscore the age-old divergence between
builders and suppliers, most notably that builders blame the
product while suppliers point the finger at installation. Builders
also continue to want a good price (or overall value), but
suppliers report that’s not as big an issue for builders compared
with other considerations.
NEW-PRODUCT CONCERNS
Top five concerns among builders about
trying new products or materials
17.6% Potential for callbacks/
warranty costs
14.1% High initial cost of product/
material
13.6% High total installed cost
13.4% Installer lacks necessary
skills/training
12.7% Buyers don’t want/won’t
pay for it
28.6% Other*- INCLUDES LOCAL AVAILABILITY OF PRODUCTS AND INSTALLERS, CODE COMPLIANCE,
AND INSTALLER ACCEPTANCE
Trying a new product or material on a house flies in the face of
new-home building’s risk-averse culture, and builder concerns
reflect a fairly even distribution of the various risks.
ROOM FOR IMPROVEMENT
How a builder’s supply chain partners can improve
(5 = NEEDS MOST IMPROVEMENT)
3.73
Provide advanced notice of price increases
3.62
Alert me about availability issues/lead times
3.45
Timely resolution of product-related problems or mistakes
3.42
Alert me to new products and trends
3.23
Offer training for my sales team and/or trade contractors
3.2
Installation knowledge
3.02
Too much/too little contact
2.85
Knowledge of new-home construction
2.81
Product knowledge
It’s all about “time” for builders, either enough time to adjust
to changes in pricing and lead times or to quickly resolve
issues to stay on schedule. Good news: Supply chain partners
appear to be able to walk the talk about their products and
how to apply them and are right on with how often they make
contact, according to Pro Builder’s survey respondents.WHY CHANGE PRODUCTS?
Top five reasons builders change product specs
30.2% It’s a better price/value
21.2% It performs as intended/
better than the current
specification
9.8% It is requested or preferred
by my homebuyers
9.4% It solves a particular
problem
8.6% It sets me apart from the
competition
20.8% Other**ENCOMPASSES GREATER PROFITABILITY POTENTIAL; BETTER WARRANTY AND SERVICE AFTER THE SALE;
AND IMPROVED APPEARANCE COMPARED WITH THE PREVIOUS SPECIFICATION
Note to suppliers: If you want a home builder to change to
a spec for your product, lead first with either a competitive
(or lower) price or clearly articulate a greater cost-related
value, then follow with how the new product will perform
better than the current spec does. Everything else is usually
secondary and won’t move the needle alone.ICONS: EVELEEN007 AND ARCADY / STOCK.ADOBE.COM5
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