Hello Shed Fans.
Today I thought I would share a little success story with you.
I had a great discussion with a new distributor located in NSW. He has been in business for 21 years selling and buildings sheds. When I asked him what has made him so successful in this industry? He said, nobody has ever asked him that question before, not even his previous shed providers.. I thought, how strange..?
He told me about the struggles of competing with low cost, non conforming shed suppliers over the years, how he lost his business partner due to a divorce, and how these development drove him to find his niche in the shed market. About ten years ago, he hired a business consultant that analysed his business model and performance. The findings the consultant delivered changed everything. The consultant showed him how much effort and cost goes into each shed kit quotation. Kit sales were around 10-15% of the total monthly quotations sent out. Pricing custom homes showed even poorer results as he was a home builder by trade. What he thought was his core businesses (building homes and selling sheds) wasn’t his core business at all. Most of his profit was a result of turn-key shed construction; including concrete, installation, plumbing and electrical. His closing rate was above 50% for turn-key shed solutions. So his business stopped selling shed kits and custom homes altogether and focused on the money, and he’s never looked back. Today, he and his new partner manage three crews and a permanent staff of ten and the company has enough margin in the jobs to where they haven’t had a need pass on any of the latest steel price increases to their customers, and they currently have six months of work scheduled.
We later discussed how younger generations don’t understand that they can make more money and have a better career and lifestyle in sheds, over more competitive industries like home building, electrical or plumbing. Maybe there simply isn’t enough information about becoming a shed builder out there?
At HiTen we provide every shed industry player with the opportunity to make their own niche. No other shed company can provide the design functionality or technological support that HiTen provides.
This month we began integrating HiTen’s shed design and order management software with multiple supplier’s ERP systems. This means when an order is sent from your HiTen account, it goes straight into the manufacturer’s order entry system, and then into the roll forming machines. Mistakes caused by human intervention in the ordering processes are eliminated.
Are you ready to give HiTen a go..?
What’s your niche?
Kind regards,
Chris Lynch
