Review of the Summit: Product Diversification

In our continuing review of the last Home Improvement Summit, the next topic that was covered was product diversification.

In these times of economic uncertainty, diversifying your product line is more important than ever because most home improvement companies cannot rely on just their traditional sources of income.

The first presenter was Chris Ripley, who has been involved in the Home Improvement industry for eleven years (eight as a manufacturer). With dealers from coast to coast covering 26 states, Chris has a birds eye view of consumer trends.  As a member of the Society of Industry Leaders, private equity firms and hedge fund managers have relied on Chris’s insight to plan multi-million dollar trading strategies in the remodeling field.  Chris owns Smarter Coating a Boston based coatings firm.

Chris defines diversity in a product line as: The opportunity to increase your sale or decrease/eliminate your drop by adding product lines to the sale.

When a recession happens:

  • Customers believe that they deserve a deal
  • Average tickets grow as consumers perceive recovery
  • The perception of deal moves from “lowest price” to “most for the money” even if that means spending more

Because of these factors, the need to get a deal is higher then ever, so you offer your customers the opportunity to get more for their money. Here are some ways to accomplish this:

  • Use products as you would a drop at the end of the close
  • Only add products that can be installed by the same crew at the same time as the primary product
  • Partner with manufactures that will train your crews to be able to multitask with different product types

In the example of his large multi-product firm, Smarter Coating:

  • Residential coating is the main product
  • Price objections are an opportunity to add products
  • Close rates are above 40%, the average cost of an additional product  added, or “drop” = 10%
  • Adding these additional products offers more marketing opportunities to that customer and their neighborhood
  • Developed a program with a turn-key product
  • Program has current net sales of $175,000

If you have any questions feel free to contact Chris Ripley directly.

In the next edition of this review we will continue to cover product diversification.

I learned an abundance from your canvassing training. Thank you so much for helping us revise our methodology!

Lynann Everett, Interactive Marketing Manager
RbA of Northeast PA

Dave Yoho Associates’ consultants are the sharpest in the industry, and are incredible communicators, very engaging, and always inspiring. Their industry insight is unmatched, as is their creativity.

Todd Miller, President
Isaiah Industries

Our remodeling business had annual sales of under $9 million when we became contract clients of Dave Yoho Associates. Due to their training and systems, our revenue soared – – we are headed for over $35 million this year.

Vince Nardo, President
Reborn Cabinets

When it comes to consulting advice for the home improvement industry, Dave Yoho Associates has no equal. We have worked with them for over 15 years and we are ecstatic about the results!

Daniel Green, Sr. Vice President

I’ve been a client of Dave Yoho Associates since opening my business six years ago. In that time, their training program and sales methods have helped us build a successful organization. Their system is the best I’ve seen so far in any industry!

Ken Sherman, Owner
Brookstone Windows & Doors

We found Dave Yoho Associates extremely professional and knowledgeable in evaluating our current business model and recommending specific solutions that will improve our efficiency and profit.

Wasyl Bodnar, President
Ventana Design, Sales, and Manufacturing

Dave Yoho Associates are the leaders in business consulting and sales training for the industry. We utilized their services to grow from a small business to averaging over $10 million annually.

Wendy Patterson, Co-Owner
Patterson Homes & Construction

We are grateful to have Dave Yoho Associates work with our entire team. I firmly believe the improved performance of our event marketing team is directly tied to your coaching over the last couple of years.

Scott Barr, Steward
Southwest Exteriors

Immediately after your training, I ran my first solo appointment and got the order for $16,088! I beat out a reputable local remodeling company whose bid was $4000 less and was referred to by the customer as a slightly ‘better’ product.

Sara Zarndt-Brickey, Operations
Re-Bath of Illinois

Dave Yoho Associates produced amazing results for us! Every percentage point of improvement in our lead issue rate translated to an additional $500,000 in business.

Brian Leader, Founder
Improveit! Home Remodeling


Get a FREE 30 Minute Consultation A FREE GIFT
Call Us Now