Home April 2018 Real Issues. Real Answers. margins vs. market share

Real Issues. Real Answers. margins vs. market share

Real Issues. Real Answers. margins vs. market share

“Genuine relationships and superior service levels usually win out over the long haul. Salespeople who can deliver nothing more than price are generally not a long-term solution.”

“We make it easy for the customer to do business with us. We do the simple things well, like returning phone calls, getting back to them with pricing, finishing estimates when we say we will. Our employees are friendly and go out of their way to help customers. We say ‘thank you’ often. It is amazing how many businesses have a ‘thank me’ attitude. These practices may not increase market share today, but tomorrow, next month, and next year those customers will remember us.”

“Partnering with the right type of customers who understand the relationship of price, service and education for the trades. Also, it’s important to confirm that we’re selling higher margin products as well as the commodity products. We preach margin to our team, and incentive compensation is based on margin dollars sold.”

“Good relationships with both buyers and sellers. “Excellent customer service and quality products. People appreciate being taken care of and they know ‘cheaper’ and ‘knock-off’ products when they see them. They’ll pay a little more for quality and knowledgeable service.”

“In today’s market, everyone is basically buying from same vendors at same cost, so the one thing to set yourself apart from competition is service and knowledge of products. With that being said, you should be able to also increase your margins based on your service.”

“You must have the resources to reach customers throughout the whole company. Not just sales, pricing or service, but all three.”

“Through effective negotiations with suppliers and improved efficiencies.”

“By growing sales and margins, and carefully monitoring overhead expenses.”

“Our company stands behind its customer service and strongly believes that by continuing to be the leader in this category, we can increase both margins and market share. Too many times, you hear from the field that we got a better price but the delays in service is killing us. So I believe the answer lies in both fair price and service/delivery times that customers can count on.”

“By having value added services that the competition does not have. i.e. providing installation, servicing product, having technical resources and increased product knowledge.”

“This is a very difficult balancing act that comes down to a company’s ability to present its value proposition to potential new customers that will allow them to maintain/grow margins while growing their market share.”

“Our main objective in any new customer encounter is to emphasize our 60-plus years of service. We know we have a great product and it is priced higher than most of our competitors’ products. Therefore, we advise our customers that they are not just buying a product but also our experience, guarantee and reputation.”

“Setting standards for the sales team. We continually talk about quality, speed, and price. Since we cannot do all three without some trade-offs, which one is the trade? If the job’s worth doing, do it right and do what you say, the rest will take care of itself.”

“I think it is difficult, as many things are at play. It’s tough enough to just keep up with the work of updating pricing constantly and, in running markets, this can quickly screw up margins.”

“A continued emphasis on offering the highest value in the marketplace is paramount. Prompt response to customer needs. When offering materials, stop acting as if everything is the commodity. Instead, add your service, quality and experience to the recipe, and give your customers the finished product that tops any of your competitors. Customers will willingly pay more for trustworthy, fast, accurate, knowledgeable, quality, friendly service.”

“You need to make sure your staff knows what customer profile to go after (‘low-margin/slow-pay need not apply’). Company leadership has to clearly communicate customer type and desired results.”

“We need to find ways to continue to add value to our customers, whether that is installed sales, design services or something else, we are going to have to work hard to separate ourselves from the competition.”

“Hiring the right people. Small market locations face a growing shortage of motivated, qualified individuals who want to be part of a business development plan. Due to the higher cost of living and relatively low wages paid in small markets or destination locations, hiring the right person for the job seems to be the hardest hurdle to make. You are only as good as your weakest link. In outside sales (which is what grows market share) you can’t afford to have a rookie leading the charge.”

“We grow our market share by outservicing our competition, carrying a better grade of wood, and offering consistent pricing and discounts to the customer. We obtain and maintain acceptable margins through consistent pricing, leveraged purchasing and capitalizing on all payment discounts.”

“By adding or offering value added items or services, concentrating on quality and not quantity or price. If you are going to offer the same item at a lower price as your competition, you probably won’t gain a customer, and you’re not adding to the bottom line. Know your market and what your customers use. If you can find an item that will work as well or better and you can demonstrate the value, then you typically will maintain or increase margin, and possibly gain a customer.”

“Offer superior customer service to everyone. That includes the contractor spending $250k a year as well as the customer walking in needing an extension cord.”

“Deliver the best value proposition which is all about having the right people and developing the assortment of products and services that your target customer base needs.”

“The same old story, pay attention to your existing customer base and provide added services. Many of your existing customers will grow in size in today’s strong market. When you are doing everything correctly and come to realize you now can add to your customer base while maintaining your current levels of service, zero in on a select few prospective clients with 100% conviction. Believe me, when this happens new customers will come to you.”

“Very difficult question. Our approach is that by giving the customer excellent customer service and prompt lead times, coupled with accurate tallies and accurate billing, we will forge loyalty. Fast problem resolution should cement the relationship further.”

“Be picky about who you sell. We look for fast growing companies with strong management and who pay their bills well. There aren’t a lot of those, but if you can sell most of them you will get lots of profitable growth. We hunt with a rifle with a sniper scope, not a shotgun.”

“We are small, by design. Growing our market share has no appeal to us if our margins must suffer. We are extremely selective when choosing projects. If we can’t deliver it on time, make a profitable return, or if it stretches our capabilities to the max, we’ll pass on the job.”

“As gross margins are impacted by cost of goods sold, it is important to take purchase discounts whenever possible, keep a sharp eye on inventory and mitigate shrinkage, and of course increase consumption by selling more.”

“Value-added sales; being a resource and having a vested interest in the success of your clients; expanding product mix.”

“By being really good at what you do, having a top-notch sales force, and taking advantage of mergers and acquisitions in your market.”

“I believe that relationships above all are the key to growing market share, whether on existing or new customers. Great relationships combined with excellent customer service, on-time deliveries, broad product lines, and experienced sales team maintain margins.”

“Purchase timing is important. You make money when you buy. Maintaining relationships with old accounts allows you to go after new business with lower margins and work to grow those margins.”

“It will be very hard in these market conditions. I think the best way to increase your market share is to be involved in the community and with any builder groups in your area.”

“It all comes down to people. Since the competition and us all pull from the same pool, we have to offer higher wages and better benefits. That investment in better people helps us deliver better service. The result is more market share and the ability to charge more. Plus, offering the right product selection, and selling existing customers a higher margin mix, gets you both market share and margin.”

“Capitalize on referrals, prove the value that you bring without lowering margins.”

“We believe our level of customer service and the quality of our materials is superior to those of our competitors, which will enable us to grow our market share without conceding lower margins.”

“Be better than the competition. Offer more of what the customer wants, whether you’re selling roofing, siding, windows, doors, paint, flooring, lighting, etc. What kind of shape is your ‘showroom’ in? Do you look professional? What does the entry to your store look like? Do you have a decent cup of coffee? These details make the difference.”

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