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Industry Trends5 min

Helping Small Builders Compete Against the Giants

Big builder market share has doubled in the last 25 years and now represents about 50 percent of housing starts nationwide – and even 75 percent in some major metro areas. These mega-builders have huge budgets for both land development and marketing. It’s increasingly difficult for small and medium-sized builders to compete, but LP is committed to helping them prosper. 

“It all starts with product performance,” says David Klarich, LP’s Regional Marketing Manager for the upper Midwest. “We have many small and medium-size customers who tell us, ‘When I see the LP stamp on the back, I trust that it’s a great product and know you’ll stand behind it.’”

Gaining Data Insights and Pricing Advantages

Klarich says that LP’s service to smaller customers includes sharing data insights. “We want them to see us as a truecollaborator, not just a manufacturer,” he says. “That’s why we’re constantly sharing industry insights and data with them to help guide their decision-making. It’s also advantageous for them to use more than one LP product. Customers who have had a good experience with are very open to adding our new products like LP WeatherLogic Air & Water Barrier. When a customer purchases more than one LP product for a project, we can offer them pricing opportunities and assistance with sourcing of those products. Right now, we’re also offering first-time user rebates on several new LP products in our portfolio.” 

Valuable Training

Small builders usually have modest training budgets, so LP provides timely on-site training and numerous lunch and learns each year. “Smaller companies benefit greatly when the installation is done right the first time to reduce callbacks and gain installation efficiencies, and we feel that on-site training is of the utmost importance,” says Klarich. LP also hosts a variety of local training events, like the LP® FlameBlock® Fire-Rated Sheathing burn events where both builders and architects were able to see how the product performs with their own eyes. 

Direct Support for Success

This responsive, face-to-face support is helping many small builders stay on the winning path. “Every week you’ll find us out in the field,” says Klarich. “Sometimes we’re meeting at the builder’s office to discuss marketing strategy. Other times we’re providing installation tips and on-site training. We’re here to help smaller builders succeed.” 

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