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How to Spec, Sell Built-to-Order Products
One-off product sales offer more margin, lower inventory costs and higher customer satisfaction.
CDGi uses 3D renderings (top) for many of its build-to-order projects to minimize challenges on the job. The finished result (bottom) can come remarkably close to a rendering. Click here for full-size image.
While custom-built home entertainment products have been around for decades, the custom installation industry helped sprout the build-to-order (BTO) business model for certain manufacturers.
For integrators, the ability to spec one-off products offers:
Leon Speakers is one manufacturer that actively solicits one-offs, often turning around a BTO order in just four to six days once the specs are set.
According to president Noah Kaplan, the No. 1 lesson for success with BTO sales is to "actively engage the customer to discover their passion for the sale. It may be the sound, or it may be the opportunity to have the speaker fit perfectly into their space and match their décor spot-on. Careful listening to what excites the customer (or his wife) can easily double or triple a $1,000 sale and create a customer who sings your praises to their friends, family and associates."
"Our dealers have found BTO products to be a lifesaver in this market," adds Kaplan. "The added profitability has been a godsend, and the fact that these sales come with a zero-dollar inventory is beautiful."
Joaquin Rivera, director of sales for residential products for Stewart Filmscreen, says BTO products send a client's pride-of-ownership "through the roof. They know you've given them the best solution for the application … customized for the product to perform its best within the environment it has been designed for."
Carey Schafer, vice president of engineering at Cinema Design Group Inc. (CDGi), says BTO products represent "a whole new ballgame for the customer. Often the entire family is involved - and the designer, decorator and architect. The project takes on a high level of impact for the family because it is uniquely theirs."
The ability to provide BTO products can be a great way to save a sale, says Brent Howard, president and founder of TruAudio. The company began building to order to help avoid losing a big sale that required very specific speakers. Howard says he wants his clients to apply the same philosophy.
"When they realize the client wants something we don't offer, we want them to explain that TruAudio custom-builds," he says. "Our dealers have loved that."
Integrators who sell custom-designed products need to be more attentive, according to Rivera. "Ask good questions, listen well and have a well-prepared demonstration. Get creative and get the customer involved," he says. "Once you engage them in conversation, BTO customers tend to have strong opinions about style and design. Find out what their tastes are."
For integrators, the ability to spec one-off products offers:
- Extreme flexibility when designing a system
- Greater customer satisfaction by giving them exactly what they want
- Additional margin versus standard products
- Lower inventory costs
Leon Speakers is one manufacturer that actively solicits one-offs, often turning around a BTO order in just four to six days once the specs are set.
According to president Noah Kaplan, the No. 1 lesson for success with BTO sales is to "actively engage the customer to discover their passion for the sale. It may be the sound, or it may be the opportunity to have the speaker fit perfectly into their space and match their décor spot-on. Careful listening to what excites the customer (or his wife) can easily double or triple a $1,000 sale and create a customer who sings your praises to their friends, family and associates."
"Our dealers have found BTO products to be a lifesaver in this market," adds Kaplan. "The added profitability has been a godsend, and the fact that these sales come with a zero-dollar inventory is beautiful."
Joaquin Rivera, director of sales for residential products for Stewart Filmscreen, says BTO products send a client's pride-of-ownership "through the roof. They know you've given them the best solution for the application … customized for the product to perform its best within the environment it has been designed for."
Carey Schafer, vice president of engineering at Cinema Design Group Inc. (CDGi), says BTO products represent "a whole new ballgame for the customer. Often the entire family is involved - and the designer, decorator and architect. The project takes on a high level of impact for the family because it is uniquely theirs."
Selling BTO Products
The ability to provide BTO products can be a great way to save a sale, says Brent Howard, president and founder of TruAudio. The company began building to order to help avoid losing a big sale that required very specific speakers. Howard says he wants his clients to apply the same philosophy.
"When they realize the client wants something we don't offer, we want them to explain that TruAudio custom-builds," he says. "Our dealers have loved that."
Integrators who sell custom-designed products need to be more attentive, according to Rivera. "Ask good questions, listen well and have a well-prepared demonstration. Get creative and get the customer involved," he says. "Once you engage them in conversation, BTO customers tend to have strong opinions about style and design. Find out what their tastes are."
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Article Topics
News · Business Resources · Stewart Filmscreen · Leon Speakers · Cinema Design Group · Truaudio · Built-to-order ·About the Author
Richard Frank is president of Frank Marketing Associates in Dana Point, Calif. He can be contacted at rf@frankmarketing.com.
2 Comments (displayed in order by date/time)
My old friend Richard Frank addresses an important issue in this article. He does, however, neglect to mention Triad Speakers, which builds 90% of it’s speakers to order; not just “special order” products. In addition, Triad offers custom sizes and custom colors on nearly every product. This is actually the core of our business. Another point is the companies that actually build to order are the American companies that don’t receive their products in containers from China.
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I missed this article and glad that I found it. I feel this is one of the important elements that many of the CEDIA dealers have forgotten. When we began this industry many of the products and services we provided were custom, different and not provided by many others. I feel we’ve forgotten this aspect and the desire to create and continue this niche. I’ve had the good fortune of learning how to sell luxury products from one of the best, Brian Barr from CAT. When I combined these lessons with the services you’ve shown from CDGi recently on two projects it meant my firm winning the project against the competition. It’s proved to us that there is a commitment and direction we need to take our business and services so we stay above, ahead and in front of the standard wannabe dealers and box house.