How to Sell...The Deck Project
By Mary Shafer
Most people think of decks as an add-on project, but smart dealers will consider the deck's potential as a foundation… for a concentrated, profitable market niche, that is. Now that the cocooning instinct is in full swing for Boomers and their younger protegés, their minds are on ways to develop full use and enjoyment of all the space at home base. Decks and patios are natural extensions of the "nest," and savvy dealers will understand that volume and profits are directly attached to this spillover from indoors to the yard area.
There are two main profit centers in the deck market, and where you put your emphasis will depend on your business structure and customer base profile. The first is the deck itself, and the second is the accessories you can upsell with the deck sale on an immediate basis. A third revenue stream can be created in after-market maintenance, replacement and upgrade accessories, if your customer base and marketing budget will support it.
Decks for the Diehard DIYer
Effectively selling decks to the dedicated do-it-yourselfer will emphasize less complex designs and materials that are easily installed than those you would sell to professional contractors. Though the customer's interest may lie heavily in low-maintenance materials, it's your job to remind him or her that there is a trade-off in choosing such materials over the traditional wood. They may be surprised to learn that there are significantly fewer available colors for composites and vinyls. Most likely, they are also unaware of the more limited options available in the complexity or uniqueness of design that can be supported by these lower-maintenance choices, since they aren't as versatile as wood where cuts and angle changes are concerned.
Generally, DIYers will have price as a major consideration in their choice of decks, as this is a prime motivator to do the work without hiring a professional. With that in mind, size also becomes necessarily limited, so in recommending accessories, emphasize those that will take up less usable deck space while still providing added function and value. This means multi-level designs with staircases are probably out, along with any type of gazebo, greenhouse or other area hog. The exception will be those decks that are primarily being built as a support to another structure, such as a hot tub, container garden or swimming pool.
Installed Sales Considerations
If your business offers installed sales, these customers have their own set of concerns when it comes to decks. Your mid-level customers will be sensitive to a balance of cost, maintenance and appearance, but their main concern will still be functionality. High-end deck buyers will be more concerned with value as it relates to low maintenance, durability and good looks than they will with actual sticker price, but function is still number one with them. They want what they want and are willing to pay for it, but your challenge is to make sure you can provide the high level of service and material quality they demand.
Because decks are always considered a "luxury" item, regardless of the reasons customers want them, the way you approach the sale is critical. You can't simply assume anything about what the customer wants, because the reasons for buying can vary so widely. The one assumption most dealers and contractors interviewed for this article agreed you can make, however, is that the customer shopping for a deck is relatively uninformed about all the options available in materials and design, as well as accessories, maintenance and pricing levels.
In fact, says Michael Morrow, President of Archadeck contractors in St. Louis, Missouri, of most of his customers, "They're clueless." He chuckles good-naturedly when admitting, "People very seldom have a realistic idea of pricing," or even what kind of deck they really want. This sentiment was echoed often by his contractor peers and dealers, as well, pointing up the one area where the savvy dealer can add value for their customers and profit to their own bottom line: consultative selling.
This type of sales approach has the dealer acting more as an interviewer and problem solver; first determining the challenge or problem faced by the customer, then educating them about as many available options as possible, and finally guiding them toward the best possible solution for their unique needs. It is a method that requires more investment of the dealer's time, both in staying current with new product information and in terms of time invested in each sale, than simple show-and-tell techniques. However, as all marketplaces become increasingly more "commodified" by advances in technology that allow end users greater access to suppliers previously unknown or unavailable, consultative selling will become more prevalent as a way for smaller dealers to differentiate themselves from the big discounters in terms of quality service.
As far as this affects installed sales for decks, there seems to be no pat answer. Again, a dealer's location, established customer base and perceived market strengths appear to determine whether installed sales will be an important item in your service mix.
Bob Denome, customer consultant for Wolohan Lumber in Saginaw, Michigan, says they used to offer installed sales up until this year, when they decided they didn't bring enough value to customers to justify continuing this service. Instead, they have substituted a Contractor Referral Board on their sales floor, where they encourage their contractor customers to post their offerings so they can be considered for referrals from Wolohan for homeowners who request such information. Wolohan sells mostly to contractors, a service provided in the rear of the store, with a front-end operation catering to homeowners, DIY customers and smaller contractors.
John Keller, president of Sequoia Supply of Warminster, Pennsylvania, takes a different approach. Sequoia is primarily a retail lumberyard specializing in selling deck packages to contractors, with a smaller segment of sales to homeowners, at roughly a 60/40 ratio. Sequoia offers installed sales through a separate company he owns, but not through his dealership itself. He feels that keeping installation separate allows him and his staff to concentrate on providing a high level of service without being distracted by the demands of the installation business. This arrangement also eliminates the potentially sticky problem of being perceived as competing with his contractor customers.
Profit Tier I – The Deck Itself
Current trends in decking materials are running away from traditional cedar and redwood toward the more durable, lower maintenance composites such as Trex and CertainTeed, Epic and Timbertech, as well as vinyl products. Contractors and dealers alike agreed that most of the supporting structures are still being built with standard pressure-treated lumber, both for its cost effectiveness and versatility, but that concerns about toxicity from arsenic content inherent in the treating process are beginning to scare customers away from wanting it on the deck or rails where regular skin contact is made. The decking itself is taking a definite turn toward engineered materials, at least for mid-range priced jobs. Economy packages still lean toward traditional wood products for their entire construction, while high-end projects are often being done with premium imported hardwoods such as Brazilian mahogany or ipé.
Christopher Dean, owner of I'll Deck You, a contracting firm based in Wyncote, Pennsylvania (a Philadelphia suburb), says he steers even his lower-end customers away from using traditional cedar for decks. Its relative softness makes it vulnerable to breakdown by the sun's ultraviolet rays, leading to furring, cracking and an unusually high tendency to attract and harbor dirt. Dean recommends all framing be done with pressure-treated, and says 80 percent of his decks are done that way. He seals the PT to prevent fiber breakdown and to counter any worries about toxicity, which he says he has only encountered concerning picnic or pool areas. Then he helps customers choose the decking material that best suits their needs and budget.
For premium jobs, Dean's material of choice is mahogany, which he favors for both its beauty and durability. This fine, long grain hardwood offers the attractive workability of being knot-free, and won't crack or split with regular proper maintenance. He also will recommend ipé for his customers on the Jersey shore, as its oily, long grain makes it particularly resistant to the kind of airborne saltwater and weather punishment peculiar to oceanfront properties.
At the moment, vinyl seems to be the least known quantity in the materials equation. Dean, whose work consists solely of custom-designed decks, predicts the demise of traditional wood products for deck use within the next five years, He says his shore customers are already using vinyl almost exclusively.
Jeff Lauchman, one of Dean's fellow deck building peers, owns Keyway Builders in nearby Quakertown, Pennsylvania. He disagrees with Dean's assessment, predicting that vinyl use for residential decks will drop off within two to three years, due to its tendency to support mold, making it slippery and dangerous as well as unattractive. Lauchman also believes there will be a shake-out of the profusion of vinyl products currently crowding the commercial market, leaving only the strongest players to supply commercial vinyl projects.
As for typical designs and configurations, trends are running away from the traditional square or rectangle platforms to multi-level octagons, or other shapes with shaved or rounded corners. "Pretty much anything," according to Lauchman, "As long as it's not square." Average sizes reported fall between 350 and 500 sq. ft., with the most common being roughly 16' x 20' in area. Most decks now include some kind of railing treatment, whether simply to define the area or to provide handrail support for stairways.
Railings seem to be the most often-requested upgrade to a standard deck, and vinyl came up time and again as a material of choice for rails, due to its widening color range, low maintenance and pleasing tactile qualities. Vinyl also offers the most design versatility and the widest range of matching accessories such as post tops, trims and contour selections. The concept of such accessories leads us to our second level of revenue generation.
Profit Tier II – Accessorizing
Selling accessories can be an ongoing source of revenue for the savvy dealer. There are two categories of deck accessories: those sold along with the job as built-ins, and aftermarket items. Recommendations for both are best determined through use of a customer profile before the job is designed (see sidebar).
Built-in options might include everything from bench seating, table surfaces and stairways to shelving, cabinet storage and wet or dry bars. Railings, archways, arbors and trellises join planters, fireplaces and awnings in growing popularity. On the wane but still requested are gazebos, patio extensions and overhead fans. Lighting and sound systems are increasingly popular, with offerings including hanging, on-ground and mounted models. Other popular items include hot tubs, reflecting pools, fountains, and enclosed areas such as solariums or small greenhouses.
Items not built in but attractive as later additions might include: casual furniture in wicker, iron, rattan, cedar, redwood or vinyl; umbrellas, flags and area rugs or runners; torches, party lights, hanging and mounted baskets; porch swings and gliders; thermometers, clocks, sundials and hose reels.
Profit Tier III – Followup Services
Cleaning and maintenance services such as power washing, sealing, staining and painting are increasingly requested by customers interested in keeping their decks in good condition. In-house or contracted services like these can be an additional revenue stream, provided you have the staff and organization to keep them running as part of your larger "machine" and not as a distracting sideline. One easy way to set up this service is under a service contract at time of purchase. This makes particular sense, since the reason most customers buy decks is to make the most of their leisure time, so offering this service also emphasizes your value-added consultant status in helping them preserve that free time.
Selling, Merchandising and Marketing
Without exception, the dealers and contractors interviewed said they make a strong point of educating their customers to available options without hard upsell pressure. Denome says Wolohan's success comes in treating customers the way they would like to be treated.
"I don't want someone reaching deep in my pockets, so I try not to reach too deep in theirs," he contends. He also believes deeply in the support function of the sales staff.
"We have a lot of experience on our staff, and we make use of that. If our customers are novices and they want to put up their own deck, we give them our cell phone numbers to call. The most common time for them to experience a need is when they're actually putting it up. For us, customer service is Number One, and we pride ourselves on really working hard at it."
Wolohan also offers a private label credit card plan and easy-term home improvement loans on site to help their customers finance their deck purchases. He reports that 25 percent of their deck packages are sold using the credit card plan. Special Order service is also available to customers who make requests for materials or options not usually sold with standard packages, which can often be the dealmaker. Offering this service requires the effort to maintain a collection of current product catalogs from suppliers.
On the floor, physical merchandising of a deck design is the most often reported successful tactic. Keller's Sequoia Supply is currently in the process of building a new showroom, scheduled to open in July, which will accommodate full-size displays of every package and material they sell. Meanwhile, they make do with smaller sample set-ups in front of their store, These smaller displays are often broken down for use at area home shows, where they are set up, accessorized and filled with sales people to answer the questions of visitors, which can surge over the display deck in numbers exceeding 10,000 on a hot weekend. Keller says the showroom displays will be fully accessorized to appeal to the homeowner, helping the potential buyer to visualize himself on that deck at his own home.
In addition to attending home shows, other marketing tactics that can help build your deck sales include the brand-building that comes with sponsorship of these kinds of local shows, as well as a regular program of newspaper and magazine advertising in your area. Don't overlook the excellent cable television ad values you can get by running a text-only message that "crawls" across the screen beneath the forecaster on The Weather Channel. This service is not available in every area, but is cost-effective in reaching a broad cross-section of viewers.
Also, a website that showcases your deck offerings is an intelligent investment. Think of it as your 24/7 sales associate. You can include as much information as you'd like about the kinds of materials, designs and price points available. Though no substitute for a helpful, informed sales associate on the showroom floor, a website is a real convenience for your customer to do some homework before visiting your store. Check out the sites offered by some of your peers at:
• Wolohan Lumber Company
• Lampert's Lumber and Building Materials (Apple Valley, Minnesota)
• Advanced Building Materials (Sarnia, Ontario, Canada)