When Todd Johnson first started installing irrigation systems 20 years ago, he called a number of suppliers in Ham Lake, Minn., looking for a place to purchase the irrigation products he would need for his business.
"I spoke with various suppliers and some of them didn’t give me the information I needed, while others insisted I attend design school first before buying irrigation products so I would know how to install irrigation systems properly," explained Johnson, owner, D & T Landscape and Irrigation.
Johnson was most impressed with the latter of the two suppliers. "This supplier had its act together," Johnson said. "The education its employees offered me was invaluable."
Purchasing irrigation products is not just about buying and selling. Contractors want to rely on their suppliers for education, product knowledge and technical and business training, along with adequate and available supply and consistent and accurate ordering, billing and shipping procedures.
ONE TRUE THING. Generally, Russell Smith, president, Qualitiscape Services, Fort Worth, Texas, purchases his irrigation products from one major supplier he relies upon for product availability.
"We buy most of our products from one distributor," Smith said. "Each year we negotiate with prospective suppliers of wholesale goods to ensure we’re getting the best available price. We utilize a secondary source who has outlets near our trade area to increase efficiencies for our technicians in the field. By buying in sufficient quantity, we can get the best prices for these supplies."
While price is always important to contractors because they have to remain competitive when charging their customers, the numbers written on the price tags aren’t high on contractors’ priority lists when shopping for products.
In a survey conducted by Ewing Irrigation, Phoenix, Ariz., customers measured product availability and ample product stock as the No. 1 benefit their distributors can offer them, pointed out Cliff Woodberry, vice president, administration. A technically knowledgeable staff was No. 2 on the list, followed by service accuracy, billing accuracy and, friendly and helpful service. Price didn’t appear on the list until No. 6, according to Woodberry.
"We look for distributors who are sensitive and in tune with the state of the industry," related Smith. "We look at the service level the distributors are able to provide and whether or not they are willing and able to refer potential customers our way."
PURCHASING |
PRODUCTS ONLINE
Another distributor service emerging in the year 2000 is 24-hour ordering via the Internet. Ewing Irrigation started selling irrigation products over the Internet two years ago, and last year its online component was updated with an inventory and sales system. Through this system, customers can place product orders 24 hours a day, seven days a week. "Our customers like Internet ordering because of the control they have using it," said Cliff Woodberry, vice president, administration, Ewing Irrigation, Phoenix, Ariz. "What they order online is what they get. There is never a mix up because someone taking the order got it wrong. Ordering online also gives customers the opportunity to buy products at their most convenient time, whether that time is during lunch or at 3 a.m." While Woodberry said not all customers will embrace this method of ordering products in the next five years, they will eventually have to rely on it in the future. Bob Hobar, marketing manager, Irrigation Supply, Warrensville Heights, Ohio, said he feels the same way. Irrigation Supply started a web site four years ago. At first, drawing traffic to the site was difficult. Manufacturers weren’t linking to Hobar’s site because some said they felt that providing him additional exposure wasn’t fair to the distributors who weren’t online, and some threatened to refuse selling him products if he sold them online. Today, the situation is becoming easier as the Internet becomes more popular. "Now we run monthly specials online to keep people returning to our web site," Hobar explained. "The Internet is certainly creating a buying fad in the industry. In the future, purchasing products online will hopefully be considered more of a reality than a fad. As long as we keep the site interesting and provide incentive, customers will continue to buy products from us online." |
Like Smith, Johnson also purchases products from just one distributor whom he relies on for product availability and service. "I believe in building a working relationship with my distributor," Johnson remarked. "I buy my products directly from my distributor and my distributor takes care of me by offering me customer leads."
Despite the fact that many contractors still rely on building supplier relationships and buying directly from that one supplier, distributors said the trend is changing among their customers.
"A contractor typically buys from at least two or three suppliers, depending on how dense the contractor’s area is," said Bob Marsan, president, Marsan Turf & Irrigation, San Dimas, Calif. "Some people do buy everything from one place, but, usually, contractors will have a couple of main distributors and then a few back up distributors.
"Sometimes this decision is just based on geographic factors," Marsan continued. "If contractors are traveling 30 minutes to their job sites, they may have two or three normal distributorship locations near their main offices and then a fourth or fifth supplier located near distant jobs in case products are needed more immediately for these jobs."
Selecting the right supplier – no matter how many of them contractors buy from – is different for the professional irrigation contractor and the start-up irrigation contractor, said Bob Hobar, marketing manager, Irrigation Supply, Warrensville Heights, Ohio.
"For contractors who are looking at bids put out by architects and specifiers, there is usually a list of preferred products the architect suggests the contractor use," Hobar explained. "For the small business owner who is installing systems on small residential properties, the criteria for selecting the right product is different.
"Maybe the supplier or product is familiar to the contractor," Hobar continued. "Maybe the contractor’s father bought products from a certain supplier for years. Maybe the location is convenient for the contractor. In the past, contractors bought from one distributor and only one. Now with the avenues for finding product information online and through other avenues, more people are coming in and doing more comparison shopping. Customers are looking to get the most out of their investment of dollars and time."
MONEY TRAIN. Most suppliers provide their customers with training and education provided by their staff members or manufacturers they work with.
Hobar will sit start-up irrigation contractors down with his staff for two to three hours for a beginning tutorial, handing out some free pamphlets and information to get them started. These sessions are usually conducted during the off-season in Ohio – December through March.
"We sell a multitude of products, so we first try to give a generic overview of the industry so contractors can have the ability to choose what they want to purchase," Hobar said. "We want them to buy from us, but we want them to be educated first. In addition to training, we make sure our staff can help them along during the purchasing process."
In addition to product and irrigation installation and troubleshooting training, suppliers also offer business training, teaching contractors how to market themselves and develop quotes and bids. "We put together a number of business development seminars," Woodberry said. "We’re not only concerned with contractors knowing the technical end of things, but we like to provide them with information that can help them grow their landscape businesses."
This training, Woodberry explained, is free for customers. Ewing Irrigation will attach a price tag to certain seminars as a way to draw more attendance, but in addition to training, contractors usually walk out of a paid session with an incentive product. "If we charge admission, we try to give contractors more in return," Woodberry said. "For example, if we charge $40 for a seminar, contractors will probably walk out of there with education and a $65 controller."
Some distributors also offer contractors design services. The contractor pays the supplier for the design and buys the equipment from them for the installation, Hobar explained. Then a discount is applied to the equipment purchased, so the design ends up being considerably discounted or free. This service is especially important to contractors who are not full-time irrigation contractors but who install irrigation systems as a division of a landscape company.
Most training and educational services suppliers offer contractors are available to any type of contractor and are readily used. Still, some contractors suggest suppliers need to advance their training seminars to meet more contractor needs.
"We take advantage of educational programs offered by our distributors," Smith said. "Generally, we are satisfied with them, but we would like to see our distributors take training a step further and create trade schools for irrigation technicians and installers."
LEADING YOU ON. Another popular service suppliers offer contractors is help generating customer leads.
Johnson takes advantage of a subscription-based program his supplier offers where he receives a list of all of the new homes being built in the area over a certain price range that may require an irrigation system. He also has the opportunity to access a construction bulletin listing all of the commercial construction projects in the area, and he can go through this bulletin and pick out all of the projects that include an irrigation system.
Hobar also has a board hanging in his office that contractors are welcome to put their business cards on. Homeowners come into his store looking for contractors who can install irrigation systems into their yards. The service is a win-win situation for the distributor and the contractor.
"If we give contractors a lead that pans out, they will usually reward us by giving us their business," Hobar said.
Other distributors, who know their name and reputation are on the line when they forward contractor names to homeowners, are very cautious about who they recommend for irrigation services.
"I only give leads to my best customers," Marsan said. "If a homeowner calls me and tells me the lead I gave them never panned out, I won’t recommend that contractor for a job again. I give leads to the contractors who I know will make me look good, too."
Irrigation Supply also provides contractors with the opportunity to market their services by volunteering to staff the contractors’ booth at local trade shows. Hobar said this lets contractors interact directly with the potential customers, and all his staff gives up is time spent at the trade show booth.
Another possibility for contractors to generate leads through their irrigation product supplier is getting involved with Yellow Page advertisements the manufacturer places nationwide.
"Manufacturers take out ads in Yellow Pages across the United States," Hobar explained. "We are listed regionally under those ads. And contractors can be listed under the distributor names, as well, for a 60 to 80 percent discount. Contractors get a reduced rate because of the national ad campaign the manufacturer is involved with. This gives the contractor exposure under a well-recognized brand of irrigation product. We usually supply manufacturers with a list of contractors who may be interested in a service like this."
The author is Associate Editor of Lawn & Landscape magazine.
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