Connecting with Home Builders and Renovators

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Connecting with Home Builders and Renovators

• Getting innovative products to market by

David Foster Director of Environmental
Affairs Canadian Home Builders Association June
4, 2008
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A number of segments

• Large-scale production builder/developers.
• Small and mid-sized production builders.
• Custom niche builders.
• Professional renovators.

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A multitude of channels

• Direct to builder/renovator.
• Via supplier/retailer.
• Via electrical contractor.
• Via design professional.
• Through participation in a green labeling
  program.
• Through participation in HBAs.

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Key issues requirements

• Clearly define the benefits and costs.
• Address installation requirements and trades
  support.
• Provide effective, efficient technical and
  warranty support.
• Provide the builder/renovator with tools to
  support customer service staff.
• In short see beyond the sale.

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Large-scale builders

• Many/most operate design centres.
• Design centre product selection process varies
  some direct, some indirect.
• You need to get your product into the design
  centre, need to connect with the builder to make
  this happen.
• You need to make sure design staff are equipped
  to sell your products benefits effectively.

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Large-scale builders

• Challenges and Opportunities

• Entry-level homes based on entry-level products
  cost issues.
• Many builders assemble packages and require full
  spectrum of solutions.
• Price/margin will always be an issue.
• Expect to cost-share on display and samples.
• Expect smart builders to ask for staff
  training/orientation.
• Green an emerging trend, gaining momentum.

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Small/mid-sized builders

• More likely to work with a local supplier.
• Often set allowance for lighting and send
  customer to the supplier.
• May not specify supplier, but leave the customer
  free to source anywhere.
• Alternately, may install builder grade fixtures
  and assume the buyer will switch out later.

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Small/mid-sized builders

• Challenges and Opportunities

• May not have effective selling environment.
• Suppliers will often be key players.
• You have to convince both builder and supplier
  its worth it.
• If they are green you have an obvious
  advantage.

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Custom niche builders

• May not participate in lighting decisions,
  providing allowance or opting for customer
  supplied.
• Higher-end custom builders often work
  with/through a design professional.
• Green niche builders offer a more natural
  target market.

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Custom niche builders

• Challenges and Opportunities

• Some may avoid lighting selection altogether.
• For many, price is less an issue, décor and
  performance are key.
• Have to connect them with a supplier.
• Builder more involved in product selection, has
  greater influence on customer.
• Again, if they are green there is an advantage.

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Professional renovators

• Similar situation to customer builders.
• Scope of projects varies tremendously, but most
  require lighting solutions.
• Most renovators are not directly involved in
  lighting selection, use supplier, designer or
  owner-supplied fixtures.
• Emerging Green renovator segment may create
  opportunities.

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Professional renovators

• Challenges and Opportunities

• May not want to be involved in lighting
  decisions.
• Cost less of an issue, quality matters.
• Timely sourcing, seamless supply key issues.
• They need to be able to sell the concept to the
  homeowner.
• Green becoming more important.

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Green label programs

• Get involved this is the most obvious entry
  point for energy efficient fixtures .
• Where pick lists are in place, get your product
  category listed.
• Program builders are prime target market.
• Best programs publish product catalogues and
  lists, and provide educational opportunities.

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Home Builders Associations

• Opportunities to connect with builders and
  renovators at all three levels.
• Local Associations offer variety of services
  technical sessions, presentations, etc.
• Many provincial Associations are involved with
  green programs.
• Nationally, the CHBA Manufacturers Council
  represents major product and material companies.

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Summing up

• Green building and renovation well established
  and gaining momentum.
• Innovations also need to be solutions.
• Your product is one piece of the puzzle.
• ENERGY STAR a significant asset in getting the
  industrys attention trusted and understood.

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David Foster 613.230.3060 foster_at_chba.ca