Moen

What the Company Is Doing

• Moen is offering "something for every professional" through Moen 101 training, a sell-sheet creator, a literature center, and a margin calculator.
• Moen also offers a rewards program known as the "Buy it for the Big Game" promotion. The loyalty program (contractor rewards) of Moen has been n existence since 2016.

How They Are Doing It

• To make contractors have a stronger relationship with its products, Moen offers training to contractors. The training listed on its website and titled Moen 101 contains content arranged in a series of modules and sorted by product category. The training covers innovations relevant to bathroom and kitchen improvement, among other categories of home improvement sections.
• Moen also offers training to contractors on cartridges, valves, accessories, and bath safety. Training covers the installation of home finishing and upgrades.
• Moen is promoting its relationship with contractors using the "Buy it for the Big Game" promotion.
• Moen introduced a contractor rewards loyalty program way back in 2016. The program is a free program that gives enrollees (contractors) points when they purchase specific Moen products. Members are allowed to combine points earned from other participating manufacturers to points earned with Moen to win prizes via a rewards program that is managed by BI Worldwide.

Available Metrics of Success

• There is limited information open to the public on success metrics relative to case studies or examples illustrating how home improvement products companies are strengthening their relationship with contractors.
• Moen successfully announced the winner of its Contractor Rewards' program known as "Buy it for the Big Game" promotion as Leevon DeCourley, in 2018. The winning prize covered two tickets and included a three-night trip to a Super Bowl LII event in February 2018 at Minneapolis.

Sherwin Williams

• Sherwin Williams offers water and wastewater impact award winners for its contractors. This award is for contractors that are using some reliable products that Sherwin Williams offers, such as Sherwin-Williams Fluorokem HS (an ultra-durable, ambient-cured, high-solids fluoropolymer urethane finish).

How They Are Doing It

• Sherwin Williams offers an Impact Award meant to honor contractors working on demanding water and wastewater projects. The award also recognizes those professionals that are committed to protecting assets to enhance public safety in a manner that extends the lives of assets and reduces downtime to guarantee safe, reliable service.
• Sherwin Williams believes that without dedicated engineers, contractors, and asset owners that are focused on protecting assets, homes within various communities could be hit adversely with an unreliable water service as well as significant worries. Some water treatment systems originate from (and include plumbing and connections) individual homes.
• Sherwin Williams award honors extraordinary projects that utilize its coating as well as lining materials (those produced by Sherwin-Williams Protective & Marine).
• Several award submissions get reviewed for selection to earn Sherwin Williams' wastewater impact award. Submissions that get considered include standout projects covering wastewater treatment plants, water towers, among other projects that have shown excellence in utilizing high-performance protective coatings to protect against corrosion and extend the lives of assets. Winners (contractors) get selected for the award from the United States.
• Sherwin-Williams utilizes its Water & Wastewater Impact Award program to identify and to associate (promote itself) with contractors (such as United Coatings & Linings, UCL) installing some of its reliable products. Apart from tank coating, United Coatings UCL has a certification from Energy Star also offers home finishing/improvement installation services related to homes and roofs within the United States.

Available Metrics of Success

• There is limited information open to the public on the success metric of Sherwin Williams water and wastewater impact award to contractors.
• Sherwin-Williams announced winning teams of professional contractors for its Water & Wastewater Impact Award program in 2019. They include the coatings' inspection contractor OmniTech, LLC; SUEZ Advanced Solutions; the engineering firm Hazen and Sawyer, as well as the City of Fort Lauderdale.
• Sherwin-Williams successfully utilized its Water & Wastewater Impact Award program to identify as well as to associate (promote itself) with contractors (such as United Coatings & Linings, UCL) installing some of its reliable products.

Research Strategy

Foundation Contractors

• This type of contractors provide services that are related to the foundation of a construction, which involve basement, drainage, and interior flooring, among others. These services are a reason why foundation contractors are likely to install drainage systems.
• Some examples of foundation contractors that install drainage systems are Ram Jack Foundation, LRE Foundation Repair, and Guardian Foundation Repairs.

Plumbing Contractors

•  Plumbers are also likely to install drainage systems because they usually work with many types of drain pipes. Drainage systems comprise many series of pipes that carry water and remove it from a specific place.
•  Same Day Service and Parks' Plumbing & Sewer Inc. are some examples of plumbing contractors that install drainage systems.

Waterproofing and Drainage Contractors

• Finally, waterproofing and drainage contractors, as their name implies, provide services related to drainage and waterproofing. Hence, they are also likely to install drainage systems.
• Some examples of waterproofing and drainage contractors are A Waterproofing and Drainage Inc. and All Seasons Waterproofing and Drainage Inc. 

#1: Performance/Productivity

• A survey of contractors that investigated how they select which brands of tools to purchase found that performance and productivity were the most important factors, which was indicated by 44% of respondents.
• Performance and productivity were defined as "tools that deliver the best results" and "trust".
• According to John O'Hara, partner of EMA Contractor Specialty Group, contractors are primarily concerned with the results the tool provides and if it actually can do what it says it can do.
• This survey examined electricians and electrical contractors. It can be logically assumed that these types of contractors are regularly be involved in things like home improvement/remodeling.
• Another survey, (this one was done for residential contractors specifically) analyzed their purchase criteria importance. Durability ranked number one with 73% of respondents agreeing.

#2: Familiarity/Past Experience

• In the same survey discussed above, more than 35% of contractors said that familiarity and past experiences influenced which brands they choose. This was the second highest-rated consideration when choosing a tool brand to purchase.
• Other studies have shown there is a lot of brand loyalty among contractors in general. For instance, a survey of 1,100 contractors in 2016 found that across contractors in the following categories: windows and doors, trim and molding, roofing, decking, and siding, between 40% and 60% of contractors were in a dealer loyalty program and between 45% and 70% are in a manufacturer's loyalty program.
• This same survey concluded that "if the [contractor] was in just one manufacturer loyalty program involving a product category, that program's brand was likely to get 62% of the contractor's total spend in that category."

#3: Price

• In a survey of residential contractors, price was the second most important criteria, with 69% of respondents agreeing. (The first was durability, which has been included in #1 above).
• When it comes to buying building materials, one survey found that price was a key purchase criteria, and was found to be even more important than brand name/brand value. However, the opposite was true for tools. It was noted that price was especially important when it came to purchasing building materials due to the fact that contractors often have to compete with other contractors in attempts to offer clients the best prices. Whereas with tools, the durability and performance of the tool were considered to be more important than price.

#5: Availability

• In the same survey noted in #3 above, availability at their preferred retailer was the third most important criteria listed, with 64% of respondents agreeing.
• Another survey found that the availability of a product played a key role when it came to brand substitution (or, choosing an alternative brand than usual). The key reason for this is because contractors often find themselves having to purchase equipment or materials in the middle of a project that they need immediately and are therefore limited to what is available nearby.

#6: Manufacturer Warranty

• In the same survey noted in #3 above, manufacturer warranties tied for third place as the most important criteria considered, with 64% of respondents agreeing.
• One contractor with 30-years of experience says that he is loyal to tool brands made in the U.S. because they have a lifetime warranty.  
• Milgard has been recognized by the BUILDER Magazine Brand Survey as the brand most used by Western U.S. builders for windows. Milgard's marketing director states that the full lifetime warranty they offer on their windows is a key reason why the brand is so popular with builders and contractors.

PROOF THAT CONSUMERS HOME IMPROVEMENT PRODUCTS TEND TO PREFER RECOMMENDED BRANDS

• Industry speakers at the HIRI 2017 Insights Conference in Chicago shared some insights regarding the home improvement industry, including that consumer satisfaction is significantly higher when they get product recommendations from pro customers (contractors or professionals), family, and friends.
• About 75% of homeowners prefer personalized experiences with home improvement products, including personalized recommendations & suggestions, and 25% are between very and extremely interested in such experiences. As such, due to their detailed knowledge of a product's features, consumers would prefer contractor recommendations when choosing a home improvement brand. They might also prefer product recommendations from the home improvement store as they might have customer data with which to suggest the most satisfying product.
• A key differentiator between top-performing home improvement retailers is the "consistency of their staff to consistently and thoroughly explain product features."
• For example, Ace Hardware implemented the use of a solution that "uncovers hidden consumer behavioral patterns that predict consumer demand on a store and SKU level. Then, the patterns are translated into actionable recommendations that allow customers to fine-tune their assortment and improve store execution."
• The company did this while trying to drive the sales in its brick-and-mortar stores and improve store execution.
• Ace Hardware ran product recommendations twice every month and achieved a 2.1% store growth within the same period.
• The home improvement company also noticed that the products that received recommendations doubled or tripled their sales in most cases when compared to previous periods.
• Top home improvement company Home Depot is now seeking to add personalized product recommendations to its website's homepage in order to drive sales.

RESEARCH STRATEGY

#1: Finding Skilled Workers

•  80% of contractors surveyed said they have difficulty finding skilled craft workers. A survey of residential roofing contractors also found this to be the top challenge in the industry, with 68% of contractors agreeing.

• In the same survey, 33% of contractors expect that it will continue to be hard to hire, while 48% of contractors also stated that they feel it will be more difficult to hire such individuals over time while only 1% felt it would become easier.
• A 2017 survey of residential restoration contractors found that recruiting and retaining high-quality workers was the top business challenge (82%).
• Hourly craft positions represent the majority of the contracting workforce. According to the Associated General Contractors of America, "shortages pose a significant risk to future economic growth."

#2: Cost Management

• A 2017 survey of residential restoration contractors found that managing margins and profitability was the second top business challenge (71%), while cash flow challenges ranked in fourth place (50%) and the increasing costs associated with doing business came in fifth place (46%).
• Increasing costs of building materials was found to be the second-highest perceived industry challenge among residential roofing contractors, with 57% of respondents agreeing. Insurance and healthcare costs came in fourth with 35%, and cash flow/financing came in seventh place with 13%.
• Additionally, the roofing contractor survey found that 74% of contractors felt labor costs have gone up in the past year.
• Cost management is important to contractors as "cost and money are strictly related to the project and have a major influence on it during its whole lifecycle."
• Many homeowners surveyed (46%) said they aren't confident in their ability to plan a budget that is enough to complete their project, while another 46% were only somewhat confident, suggesting that these customers may often rely heavily on contractors when it comes to cost management.

#3: Managing Thier Online Presence and Lead Generation

• Online presence is important for residential contractors as 51% of customers conduct research using online articles prior to beginning a home improvement project. This same survey found that homeowners spend around 1-5 hours researching before submitting a lead to a contractor, and 28% said they spend more than 10 hours researching.
• A contractor's web presence also serves as way for them to communicate to prospective customers, which is important when it comes to generating leads because many homeowners have said that poor communication with the contractor would prevent them from hiring.
• A contractor's online presence can serve as a well to help inform and educate consumers about their project, especially when it comes to things that customers struggle with, such as financing options. Homeowners often use the internet to get quotes from contractors and look for ways to finance their project.
• Jason Polka, CEO of Modernize, the company that conducted the survey mentioned above, noted that contractors can use their websites to help educate homeowners about financial options. Unclear pricing was a factor that would prevent a homeowner from hiring a contractor among 20% of survey respondents.
• Price quotes and online ratings and reviews were noted as the second and third most important factor among homeowners when it comes to selecting a contractor, with 23% and 17% respectively.

#4: Competing in the Market

• A 2017 survey of residential restoration contractors found that differentiating their company was the third top business challenge (54%).
• According to president of Joe Hall Roofing, Brett Hall, increasing competition is the most important business challenge. He further notes that small contracting companies often have lower overhead but are capable of attracting consumers by making a "mirage" using their online presence.
• Timothy Hershey of Thoroughbred Contractors noted that experienced contractors who manage their business well are under threat from low-balling new entrants who produce lower quality work. Of the more experienced companies, he notes: "They know that there is a definitive difference between price and value, and have to fight tooth and nail every day to want to provide that value."

Types of Services Offered

• A general contractor takes total control of a construction or renovation project, from project plan assessment to overseeing physical labor.
• While the overall services offered by a general contractor vary from job to job, they typically perform the following duties:
• Provision of all materials needed for the project;
• Supply of labor needed for the project;
•  Furnishing their own equipment, tools, and vehicles;
•  Hiring subcontractors for certain parts of a project where more detail is required;
• Overseeing the timeliness and quality of all work done;
•  Monitoring schedules, cash flow, and payments;
• Keeping accurate records of all aspects of a project;
• Ensuring adherence to safety measures at all times.
• Some general contractors may install major home systems by themselves. However, they usually subcontract these tasks to home improvement professionals, while they focus on supervision and quality assurance.
• Common tasks that are usually subcontracted include heating, plumbing, electrical systems, furniture installation, flooring, landscaping, carpentry, and painting.

Business Model (How They Make Money)

• General contractors deal directly with the homeowner. When a homeowner signs a contract, he or she is typically expected to pay a deposit. These deposits are usually a percentage of the total job cost. In California, for instance, the maximum permissible deposit is either $1,000 or 10% of the overall job cost, depending on which is smaller.
• After initial deposits, a payment plan is made "based on a defined amount of work being completed."
• Also, general contractors mark up everything they pay to make a homeowner's job happen. The mark up applies to materials and labor costs.

Average Size of Company

• Some home improvement/remodeling businesses are sole proprietorships while others have hundreds or thousands of employees. However, "The vast majority of businesses have fewer than 10 employees."
• According to Construct-Ed, general contractors, including construction managers, typically "earn an average of $43.93 per hour, or $91,370 per year."
• For a one-man company, the income can be about $20,000 yearly, if the contractor works part-time. However, large contractors with multiple crews may earn revenues in the seven-figure range if they complete several large jobs over the year.

Sherwin-Williams

• Sherwin-Willims offer ProDiscounts to contractors, a pricing structure designed for members to save by being eligible for discounts every day, not just on occasional sales or specials. The program includes 15 percent off the list price of painting supplies, 20 percent off on case lot quantities on over 150 popular items, and volume pricing on paints and coatings.
• The company attends major and local trade shows and expos. Examples of major trade show events the company has attended and is scheduled to attend are Design-Build Conference & Expo 2019 in Las Vegas, the National Association of Home Builders' (NAHB) International Builders' Show, and PCA Painting Contractors Expo. Some local trade shows Sherwin-Willims has attended and will attend include Indianapolis Home Show, Jacksonville Home + Patio Show, Fairgrounds Southern Ideal Home Show, Philly Home + Garden Show, and Downtown Raleigh Home Show.
• Sherwin-Williams offers contractor support in its 4,000+ stores across North America. With its contractor support, contractors can get local service and advice, competitive prices, easy credit terms, fast order turnaround, and delivery services.
• Although most of the banner ads offered by Sherwin-Williams are discount promotions for the general public at certain store locations on certain dates, they also have banner ads targeted to contractors, which emphasize on the contractors making a profit.
• Aside from its social media pages for general consumers, Sherwin-Williams also created dedicated pages for contractors and other professionals on Facebook, Instagram, and Twitter. They also publish videos targeted for contractors on YouTube.
• The company also published apps on the App Store and Google PlayStore dedicated to contractors and other professionals. Some of the apps are Sherwin-Williams PRO, ColorSnap Visualizer, SW Kaleidoscope, SW Pro Industrial, Sherwin Williams Oil & Gas, and SW Water & Wastewater.
• The company also publishes a catalog for contractors called Contractor and Facility Maintenance Catalog, though the last edition of the catalog publicly available was published for the year 2017-2018.
• Sherwin-Williams also promote selected contractors by creating contractor profiles for them, featuring their individual stories, through their Business Builders program.
• According to the most recent annual report of Sherwin-Williams, sales to residential repaint contractors "remained the strongest customer end market in the year, with sales increasing by a double-digit percentage," followed by sales to new residential painters, property management contractors, and commercial contractors.

Home Depot

• Home Depot offers exclusive benefits and discounts to contractors and other professionals through their The Home Depot Pro program, which includes project pricing, commercial credit, bulk pricing, shipping & delivery services, premium-brand tool rental, expanded assortment, and mobile coupons. In addition, the program also offers reserved parking for its members, dedicated checkout and order loading, and ordering over the phone or buying online and picking up in-store within two hours.
• The company has attended and is scheduled to attend trade shows, including the following: Atlanta Home Show, Richmond Home Show, Des Moine Home + Garden Show, St. Paul Home & Patio Show, and Minneapolis Home + Remodeling Show.
• Contractors and other professionals have dedicated customer support, in-store purchase support, and commercial & consumer credit customer support. Home Depot's over 2,200 store locations in North America has a Pro Desk where interested contractors can talk to someone about their projects, purchases, and other relevant queries.
• According to the company's CMO, Kevin Hoffman, to address the needs of contractors, who are heavy mobile users, Home Depot keeps contractors in-the-know through mobile notifications. Home Depot sends out content that contractors need, such as product features, specifications, pricing, and available quantity.
• The company also offers contractors and other professionals a loyalty program called Pro Xtra. In this program, members can get the "lowest price on orders $1,500 or more." This program also includes purchase tracking up to two years; Pro Xtra Paint Rewards, a reward system that let professional painters get up to 20 percent discount on paints, stains, primers, and solvents; and Pro Xtra Business Tools, which include Text2Confirm purchase authorization, reloadable gift cards, and Pro Xtra virtual ID.
• Home Depot also has apps available on the App Store and Google PlayStore to help its customers, including contractors, and these are The Home Depot app, Workforce Tools, and Project Color.
• The company helps people find the right contractors for their home-related jobs through its Pro Referral service. With this service, contractors can create a public profile that prospective customers can view as they look for the right person for the job needed to be done. In their Pro Referral profiles, contractors can create a mission statement, specify the niche and categories they specialize in, and publish their portfolio.
• Professional contractors make up only 3 percent of the Home Depot's customers; however, they generate 40 percent of the company's revenue.