Builders’ merchants and their suppliers have an interdependent relationship, with collaboration the key ingredient to success. Jen Stainton, National Account Manager at Visqueen discusses this relationship and the huge benefits that can be shared if suppliers work together with their merchants.
The supplier-outlet relationship is an elemental part of any industry; the shop needs the factory to supply products and the factory needs a place to sell. Depending upon the sector, this may be all that is necessary or only the bare minimum.
However, the construction materials sector facilitates what can be a deep and very complementary relationship. This becomes clear when looking at the role a merchant branch serves for their local construction community — merchants aren’t just retailing outlets for bricks but also serve as a local base of knowledge and guidance, educating their customers on the right products for their projects, how best to install them and serving an essential role in the building supply chain.
Yet performing this role demands much of staff. With some merchant branches stocking a huge variety of products from piping to insulation to electricals, this represents a huge amount of knowledge merchants must get to grips with if they wish to become that source of guidance and build trust with their customers.
Additionally, merchants need to have knowledge of what products are going to be in demand to remain successful, requiring the possession of local market knowledge or being able to drive demand themselves through marketing or education. But this kind of data isn’t easy to come by and marketing requires resources that many merchants, especially small independents, simply don’t have access to.
A model for mutual growth
All suppliers should want their merchant customers to do well because this is an industry where mutual support leads to mutual growth and success to a higher degree than most others. Yet the majority of merchant-supplier relationships are on a simple transactional basis and don’t capitalise on the benefits of the inherently interconnected construction supply chain.
By providing a value-added service both supplier and merchant can grow together and there are models of this service that can achieve this.
It is this vision that has driven Visqueen’s approach to merchants and, used across the UK, is exemplified by three Jewson branches in Scotland. As a model it allows merchants to specialise in a particular product area; damp protection, gas protection, masonry or waterproofing or any combination. By becoming a ‘Specialist Centre’ a merchant branch gains certain benefits such as; reduced rates, lead time and dedicated technical and marketing support.
Merchants can also benefit from training in relevant product areas, both in branch and at a dedicated training academy where merchant staff can get hands-on experience installing the very products they sell.
Glasgow — becoming a hub
The Glasgow branch of Jewson has most of its business in the civils sector, serving large projects and housebuilders with a focus on drainage, pipework and waterproofing products. Recently becoming a Damp Protection Centre Pro, the branch is located near the centre of the city and thus operates with a lot of competition from other merchants. However, the ‘Pro’ designation denotes a deeper commitment from both the branch and Visqueen to supply project level quantities of product and provide increased marketing support and lead generation.
“The most useful kind of support we can get is lead generation and awareness. With so many other merchants to contend with, simply raising awareness of the fact we stock certain products is a huge help,” explained John Nicol, Jewson Glasgow Branch Manager. “Also, by being known as a specialist in waterproofing locally, we get business sent to us from other Jewson branches nearby which has helped improve our sales.”
When developing these types of relationships, it is important to recognise the incredibly diverse range of situations merchant branches operate in and build the relationship appropriately. Whilst the ‘Pro’ model is appropriate for Glasgow, one size certainly doesn’t fit all.
Dalkeith — the right fit
Jewson Dalkeith, for instance, is an example of a smaller branch that serves the independent, small and medium builders and contractors in the Dalkeith and Edinburgh area.
“Waterproofing products are something customers often don’t consider that they need and usually have to order in,” said Allan Cormack, former Sales Consultant at Dalkeith and now Branch Manager at Jewson Edinburgh Turnhouse. “Having the products physically in store and in a high-impact stand helps remind people of the need to install waterproofing measures and has definitely helped us boost sales.”
As a smaller branch that serves a wider range of customers Jewson Dalkeith needs to maintain a wider range of stock. In this case, the standard specialist centre model was the best fit as it ensured the branch’s ability to meet its customers’ needs across a wide range of product areas.
Aberdeen — growing expertise
Marketing support and favourable rates aren’t the only ingredients to achieving mutual growth — training plays another fundamental role in establishing a merchant’s success. The team at Jewson Aberdeen recently received training in water and damp proofing products after becoming a Damp Protection Centre ‘Pro’. Much like its sister branch in Glasgow, the majority of its business is in civils and large projects in northern Scotland.
Stuart McKenzie, Branch Manager at Jewson Aberdeen, said; “The training the staff received has given them a great deal of confidence to sell the products well and to feel that they know what they are talking about. Customers notice this and feel they can trust us to give them advice with their projects in terms of products.”
Collaboration and success
It is clear that the opportunity for mutual growth lies in the nurturing and developing the relationship between suppliers and merchants. The fundamental ingredient to success is collaboration, providing merchants with what they need to play their essential role in the supply chain of building materials as best they can. Once suppliers and merchants truly embrace this principle, great things can be achieved to the benefit of both.
