Independent appliance dealers often focus solely on consumers or home builders. Diversifying your customer base and creating a business model that serves both homeowners and trade professionals is essential to creating a stable, resilient company that can weather economic shifts.

During economic booms, both retail and builder businesses thrive. But as we’ve recently seen, economic factors can impact those lines of business differently. For example, higher interest rates may slow new home builds but drive an increase in homeowners deciding to remodel their kitchens. A dealer reliant solely on builder business sees sales drop, while a retail dealer feels like business is booming. 

The industry typically categorizes dealers as either “builder” or “retail” dealers, and these annual contracts often shape our business perceptions and goals. But what if you could serve both markets with some strategic adjustments? 

The first step to becoming a balanced hybrid dealer is understanding where your business excels and leveraging those strengths to serve the other audience. 

Customer-Centric Experiences

Retail dealers focus on creating personalized, high-touch customer experiences to build loyalty. How can that be adapted for the builder business? 

• Enhanced Relationship Management: Use CRM tools to track builder-specific preferences, project timelines, and past orders. Treat builders like VIP customers with personalized communication.
• White-Glove Service: Set your business apart by creating a premium, concierge-style experience for a builder’s clients. Offer showroom tours or appliance selection consultations tailored to the builder’s project.

Standardized Processes

Builder-focused operations require well-organized, standardized systems for orders, deliveries, and installations. How can those systems impact your retail business? 

• Streamline Retail Processes: Adopt builder-style workflows for scheduling and delivering appliances to retail customers, ensuring timeliness and fewer errors.
• Consistency and Communication: Use the organized, system-driven approach from the builder side to create consistent, reliable retail customer experiences, from purchase to delivery. And don’t wait until the homeowner calls for an update on their appliances. Be proactive with communication about product orders. 

A thorough evaluation of your current operations will help you identify where you excel so you can make strategic adjustments to the other side of your business. Diversifying your business model to serve consumer and builder markets will help you withstand economic fluctuations and enhance your overall business resilience. This strategic approach creates a balanced business that enables you to maintain operations smoothly, protect your team, and sustain essential cash flow even during economic ebbs and flows.