Mastering professional trade group partnerships

BY PETER SCHOR

Showroom columnist

As most of you know, over the last 22 years I have spoken on baths, plumbing and kitchens products and designs at 800 professional trade group national and regional conventions and local chapter meetings. I have also served on panel discussions for these trade groups. I have asked them what they expect of you, the plumbing wholesaler showroom, in the working relationship.

The information below is highly accurate. In these tough economic times, showrooms must do things differently to come up with better results than they realized in 2007.

Three commandments of winning showrooms

Since we have so many new people in our showrooms, let’s go back to “the foundation” of today’s successful showrooms:

• Qualifying clients
• Who sent the client in? 
• Who is buying the products? 

Today, any of the above trades listed can be the buyer. All of the other trades can give positive affirmation to the buying decisions. In my March 2005 showroom column, I talked about the fourth successful key in showrooms -- “controlling the process” to save precious time and have a higher rate of closing sales. If you would like this “profound” article used by the top 20% producing showrooms in the U.S., please send me an e-mail stating “4th Successful Key” and I will send you a pdf article.

In every single professional trade segment, there are good and bad members. Please throw away your judgments if you want to be successful in working relationships. Yes, there is a difference between a professional interior designer and an interior decorator, just like a good and bad plumber.

If you are aiming for high-end luxury bath buyers, many hire professional interior designers, whom today are design/build. In other words, they buy bath/plumbing products and subcontract the plumbing contractors.

The plumbing contractor is the first  priority of most plumbing wholesalers throughout the U.S. If you read about Penco Supply’s Elegant Designs (my consulting/coaching client) in the February 2008 issue of The Wholesaler, you’ll remember that Penco Supply and their showroom are very loyal to their plumbers.

Does the plumbing contractor always buy the product? No. Here is a very provocative question: If one of the professional trades or the consumers themselves arranged to specify and buy the plumbing/bath products from another showroom and subcontract the plumber, what % of your plumbing contractors will at least direct the sale your way?

If I told you from study, you would be angry at me. It is like, if I cannot have the sale, why should my supplier benefit from it. Of course, it would be at a higher price in a “price market matrix” than the plumber. Perhaps maybe a small % applied to the plumber’s open account would be a good incentive.

There are also many other associations and groups that are a part of an industry specialized segment. A good example is the NEWH (National Executive Women in Hospitality). This is a powerful group that many get involved in the selection of bath/plumbing products for hotels, resorts, timeshare, spas and more. Smart showrooms keep the real estate local industry informed on their showrooms. They help sell “bath dreams” in resale homes through you and your plumbers.

The top leaders of every trade group have confirmed that what I am going to tell you is what is necessary to have successful partnerships and better sales results. The bottom line of what you need to know is: Do not expect success by joining and participating in Design Homes to reach maximum success. The results come from establishing individual personal relationships and participating in their monthly events.

Here are some good collective tips, secrets and rule of thumbs regarding success with the professional trade groups -- collectively and individually:

• Joining the association -- Join as an Industry Foundation Partner (manufacturer/distributor), go on their website and click on their chapter map and go to your nearest chapter. The local chapter will come up and usually will have their own website. It will list chapter board executives, events and much more.
• Attendance and participation -- Again, do not expect to get business from the group collectively or individually unless you attend the monthly meetings and participate in their other events. It will take establishing personal relationships to have real success. It is just as easy to make good personal friends and clients at the monthly trade group meetings as in your own neighborhood.
• Design Homes -- Also known as Parade of Homes, Street of Dreams, or many other names. Contributing plumbing and bath products, whether it a reduced cost to free, will not alone buy you into the group. It takes one-on-one personal relationships. I also ask you, like any advertising/marketing investment, to ask a lot of questions before you invest in their project. Questions like: How many people will go through this/these design homes? Where and how many times will our company/manufacturers be acknowledged? Get creative on ways you can participate besides the goods.
• Table tops & display areas -- At their monthly meetings and other events, most of the trade groups have 8-foot table tops and display areas for Industry Foundation Partners (product sellers). The cost can range from $50 to $250 depending on the size of the chapter and the monthly turn-outs. Showroom promotional pieces, manufacturer literature and some small knock-dead faucets will work well. There are several times during a trade group monthly evening event where members will visit your table top. The table top is a great way to find out at a monthly event which trades do bathrooms and kitchens, such as interior designers.
• Quick tip and secret: If there are ceu ncidq-approved programs (most day programs are) on baths, kitchens and other related areas, they do not allow table tops and displays within the room. You can have the table top or display right outside the room in the hallway. They have many breaks and will tell attendees to support the Industry Foundation Partners exhibiting.  
• Open houses at your showroom --  Most of the events I have experienced at plumbing wholesaler showrooms have missed the mark. Professional trades will not give up their time for food and beverage only, or for a weak event that you honestly would not attend yourself, if you did not work for your company. Sponsor an approved bath seminar /course or an event of true value followed by an open house showroom theme where they can see, touch and feel the products in your showroom after the seminar.  On the promotional piece and invitation, state the event and note that there will be an Open House at your showroom with a 6:30 p.m. prompt brief presentation on “How to Make Money with abc Supply’s Showroom in 2008!” If the trade cannot attend the bath course, they will surely attend a presentation on how to make money with your showroom. You would be amazed how many professional trades in your market do not know how to participate or work with your showroom. Many of these trades have taken the role of design/build/buy and sub-contract plumbing contractors.
• The plumbing contractor participation -- When I am conducting bath seminars for the trades, I am asked “How does the plumbing contractor participate?”  I have always advocated that the plumber share 10% of the profit, either through the plumbing wholesaler showroom, or through the professional trade buyer. This is prefaced by explaining that most middle to upscale luxury homes or remodeling projects today have the plumbing finished goods bid separated from the labor in advance. If this is done, the plumber is entitled to make a 10% profit for overseeing the proper installation. Once explained, most of the trades are in agreement. If the project was already bid with labor and the finished goods in a lump bid, the plumber has either been taught by me or other plumbing contractor educators to back out the profit they are losing on the allowance for the clients to buy their fixtures from others. In this scenario, the plumber should not be compensated --although who would refuse to make profit both ways. I am sure you wondered why the consumer fixture allowance is very low.
• Trade group conferences and expos --  Many trade groups have a once or twice a year event where they have one to three days of educational programs coupled with an exhibitor expo These are great vehicles to show your wares. It is also a great place to network with the other local home suppliers who serve the trades. For example, lighting, appliances, windows, doors, tile, surface materials, and much more.

Better understanding of professional trades

When it comes to plumbing, bath and kitchen fixtures, middle to high-end in your showroom, here are some knowledge and understanding that each group told me to share with you:

• Plumbing contractors -- Understanding their stages of plumbing: roughing, top-out and setting of finished goods, and when they will need in-the-wall valves, 53 wall tubs, and drains. Providing them information on changes of plumbing fixture specs in your showroom, i.e. going from countertop to pedestal lavatories means that they can rough out the trap and H&C stops right the first time. If they have to plumb it twice, it cost them money. Have a clear understanding of what you and them are providing in product so a costly trip to a wholesaler can be eliminated.
• Builder and remodeling contractor -- Understanding that the definition of quality levels and expectations by homeowners and other contractors creates a challenge for all. The consumer is thinking and expecting a Mercedes. Your builder is thinking $250 per square foot with an excellent plumbing fixtures allowance. The other builders are quoting $100, $150 and $200 per square foot, misinterpreting what the client means by quality and luxury. When the consumer comes into your showroom with a low budget and expensive taste, do not nail or bad-mouth the builder. Show the client what price level was budgeted and instruct the consumer to go back to the builder to negotiate by either taking funds from another category or paying the upgrade. The builders’ greatest fear is that you will not have the finished goods when they need them. Most custom builders would pay for the goods to be stored and pay storage fee for tag and hold.
• Interior designers -- Are interesting in receiving specific “tear sheets” for the product they selected so that they can make the picture clear for the consumer to sign off. Many interior designers have partnered with builders, remodelers and architects forming the phenomenon of “Design/Build”. Many interior designers buy bath/plumbing. If not from you than through DPH type showrooms. If an interior designer wants your time and is getting paid per hour by the client to specify only, you must insist that the interior designer sell you in the process or you cannot give up this valuable time in the future.
• Architects -- Are usually interested in size (length, width and height) rather than colors and metal finishes. The leading very high-end luxury custom home architects sometimes would like to know that you have knowledge to guide (if asked) the clients on traditional of contemporary styles/periods that match the exterior of the house to the inside of the bathroom.
• NKBA dealers --  Not all NKBA dealers are in competition with you working through their buying groups, BKBG and SEN. Many will buy the goods from you and others get paid for specs. The art of qualification is extremely important.

I am sure that some of this information has some great value for you. Sit down, read the article again and write out an action plan. Chunk it down so it is not overwhelming and take daily/weekly steps toward better results. If there are some important issues you would like me to address in the monthly column, please feel free to e-mail or fax me.

Next issue will be the K/BIS 2008 Show Issue and will be chocked with “What’s new and hot at K/BIS 2008.” There will also be a nifty section in the new product showcase. A very hot issue for showrooms! I look forward to seeing many of you in Chicago, April 8-10 (www.kbis.com).

Peter Schor, president of Dynamic Results Inc., is an educator, motivational speaker, consultant, coach and writer in our industry and many diverse others. For the past 17 years, he has conducted 100 educational programs yearly, including 34 industry conventions. Schor has great expertise in the field of showrooms and has won many industry awards. He also works with manufacturers on sales, marketing and public relations. Schor can be reached at 1491 Ivy Arbor, Lincoln, CA 95648, phone 916/408-5346, fax 916/408-5899, e-mail pschor@dynamicresultsinc.com or website www.dynamicresultsonline.com.