“The Showroom” at Sierra Plumbing Supply pursues the American Dream.
Current status
Today
the business employs 10 people, of which three are showroom sales
consultants. Showroom sales constitute
35% of total company sales. Customer
sales break out as follows: 40%
builder/remodeler; 50% consumer; and 10% plumber. For a small community there are four other
plumbing wholesale competitors. Only one
of these has a plumbing showroom.
Showroom sales per sq. ft. of display space are in the $375 area. Not terrific — but certainly
respectable. I’m aware of showrooms that
enjoy twice this and more. What are your
sales per sq. ft. of showroom space? (To
figure this, divide your annual showroom sales by the total display
space.) If you’re in the $600 per sq. ft.
area or more, you can stick your chest out and know you’re well above
average.
A brand new showroom building was completed in 2007 and 2,360 sq. ft. of “The
Showroom” was opened. Grass Valley is
located in Nevada county, which has a population of approximately 75,000 and is
located about 45 miles from Sacramento, the state capital.
Showroom décor
The
showroom was built in a country/woodsy style in keeping with the environment
where it is located. The building was
built as “green” as possible with T24 energy efficient recessed lighting, a
tankless water heater, hardy plank siding and vinyl windows. It was also built to urban wild fire
standards. (Yes, California is famous
for its wild fires, so taking all the necessary precautions is very smart.) The
flooring throughout the showroom is a good-looking Somerset maple
hardwood. Display slat board was used to
match the country style.
Products are displayed in like product groups.
There are no vignettes. There are
several working displays. All products are well accessorized and no “holes”
exist. Every product is neatly labeled with the manufacturer name, model
number, description and the Sierra Plumbing Supply price. Most of you know that I don’t agree with this
strategy, but Jason said they do it to eliminate the mystery of not showing
this information and that in his opinion this is what the customer wants. I just don’t like giving out all of this
hard-earned and learned information which makes it easy to go down the street
to a competitor or get on the Internet.
But “different strokes for different folks”!
Marketing strategy
The
company prides itself in having the best inventory of decorative plumbing
products in their area and offering a “one-stop shopping” experience. The sales team gives the same hustle and
enthusiasm to selling a washer to fix a faucet as they do for selling a full
house order. Hey, you never know when
that homeowner who bought a washer and was thrilled with your service will be
back in, looking for products for a brand new home.
Jason told me that when he was in the surplus business he learned that you can
make as much money in how you buy as in how you sell. Consequently, he continues to look for bargains
and opportunities. It’s certainly one
way to compete with the larger wholesalers and big boxes.
The showroom displays a nice mix of traditional wholesale products and
decorative plumbing products. Being located
in a woodsy environment, the showroom features a lot of very traditional and
antique-looking products, such as clawfoot tubs and the “old-time” looking
fillers and accessories. They sell
shower door systems, bathroom lighting, bath furniture and even a couple of
lines of kitchen appliances (even though Jason admits that these are not the
most attractive GP margin items).
Showroom operations
The
company utilizes an integrated Point of Sale (POS) computer system that ties
the showroom into the warehouse, counter and office. It helps them track quotes; call customers
the day that the product is received; and allows all employees to know what’s
happening with every order.
Sales consultants use a quote take-off form that lists all the products that
might go into a kitchen and/or bath project.
Plus, there is a job binder for all customers. Again, this is valuable
to all employees.
The showroom hours are 8-5 Monday through Friday and 9-4 on Saturdays. Appointments are encouraged. The company distributes a bi-weekly
“Pipeline” newsletter that talks about products, specials, events,
etc.
Jason owns the building. When it was redone in 2007 he paid particular
attention to the outside look of the building and landscaping.
Most of the training is done in-house by manufacturers reps, but the showroom
staff also attends different manufacturing training
schools.
The company is involved in a number of community charitable efforts and donates
product to schools, churches, Habitat for Humanity and local youth
organizations. Grass Valley is well
known for winning high school football teams and the company has done
charitable things for them also. It’s a great way to get your name out there —
especially in a small community like theirs.
Sales consultants work together as a team. They are paid an hourly wage,
participate in manufacturer spiffs and receive company bonuses when monthly
sales and profit goals are met.
“The Showroom” is advertised on local radio, in local newspapers, color flyers
and on the company Web site. They have
supplied product to several “Street of Dreams” homes and the company has been
voted by the public as the best plumbing supply company in the area. However, Jason stated that “word of mouth
from happy customers is their number one source of new
business.”
Jason said he believes that “The Showroom” and Sierra Plumbing Supply is the
very best in his marketing area because he has the best employees — from sales
staff to delivery driver — and customers appreciate the friendliness and
quality of service they receive.
Most of my consulting work has been with larger and more tenured
businesses. It’s been a pleasure to see
“The American Dream” being exercised by a gutsy entrepreneur and his nine
dedicated employees. Congratulations to
this fine business!
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