Competing With Big Box Stores?

[st8ic]

I'm planning on launching a small building supplies company that sells flooring, decking, roofing, architectural stone, etc. mainly to contractor clients. In short, I'm competing with big big big dogs like Home Depot, Rona, Lowes, and local chains.

Does anybody have any experience in this industry? Wher e can I find good suppliers that are inexpensive enough so I can compete with massive buying power? Thanks!

[Karri]

Don't try to compete directly with big box stores because you can't. They have a lot of buying power and big advertising budgets. Instead, zero in on a specific market and cater to their needs/wants/desires in ways other than price. Have fresh coffee and donuts at the store every Saturday and Sunday morning, build a presence in the community, and create a "community" of your own at the store. When you start thinking that way you should be able to develop a marketing strategy that gives you good returns.

Good luck!
Karri

[psherland]

You may want to look for niche suppliers that either can't provide the quantities the big box stores demand or perhaps are unwilling to meet the big box price/cost goals. Another option would be to specialize in reclaimed building materials. A building materials supplier that I'm familiar with that has done very well is Mountain Lumber in Virginia (www.mountainlumber.com). They retrieve and remill the lumber from old barns and other structures and produce flooring and other wood products that you can't find at a big box.

You may find it interesting to read, Big Box Swindle by Stacy Mitchell to learn how other independent businesses are competing successfully against the big boxes. Since you can't compete on price you'll have to excel in customer service and satisfaction.

Best of luck to you!

Paul

[dotnetter_ohio]

Karri has some great points. I just personally think that even though you cannot compete with price, you can definately compete with service.

Big box stores are notorious right now for bad service and almost a "contempt" for customers. Home Depot and Lowes are not as bad, but with the economy the way it is, people seem to be wanting American products, American jobs and more. I think a successful marketing / strategy, etc. is to focus on #1 service and #2 milk the local nature of your business. Make sure you tell them you are a neighbor, that the money they spend with you will go back into the community instead of lining a corporate fat cat's pocket overseas...

Just my 2 cents.

[SmallMerchant]

I agree, you can only really compete in service. Although, it's popular for people to say "I would gladly pay more for better service", but I don't buy it. Most people like saving money, and we are so dam accustom to crappy service.

The lady at Burger King told my wife she hates making milkshakes after she ordered one. That has nothing to do with this, but I thought it was funny.

Good luck!

[tscheer]

Originally Posted by st8ic

I'm planning on launching a small building supplies company that sells flooring, decking, roofing, architectural stone, etc. mainly to contractor clients. In short, I'm competing with big big big dogs like Home Depot, Rona, Lowes, and local chains.

Does anybody have any experience in this industry? Where can I find good suppliers that are inexpensive enough so I can compete with massive buying power? Thanks!

This is exactly the problem with our country and our economy. These Big Box stores have created such buying power, that it does become very difficult to get started and survive with these types of companies.

Networking is going to be very important for you. You have to just succumb to the fact that unless you plan on losing money, you won't be able to compete in pricing.

Perhaps you can work contracts out with the contractors you deal with... Perhaps offer Free delivery service even though that would be tough with today's gas prices.

I am very happy to hear that you do want to open this type of business up.

99% of people would just give up because they feel there is no hope to compete.

This is really why we created America's Best Companies... To help the small guys fight against the big guys!

I wish you the very best and keep us updated on your status!

[bhartzer]

It's going to be tough to compete with the "big box" retailers. However, where the smaller businesses can do well is in specialization. Carry products that the big box retailers just don't carry. For example, I know a lumber company that does very very well online because they specialize in the exotic woods--something that you cannot get at Lowes and Home Depot.