Flooring companies often experience wild swings in revenue. One month you don’t have enough installers and the next your people are sitting on buckets.
Is it possible to construct a “flooring factory” where we can dial in demand and match it with our ability to supply?
In other words, your sales machine delivers sufficient end user and bid work that keeps your operations teams busy without stretching beyond their capacity?
Lead Generation is is one of the core competencies you need for success
It remains an elusive goal for most flooring companies of any size. A major factor is most companies act like the old craft or cottage industries.
Selling and installing floors is a craft It took a lifetime to master and become a cradle to grave salesperson.
If you think about it, it’s not a bad model. After all, 70-80% of your revenues come from existing customers. More work from these customers comes from ensuring their flooring project is delivered on time and within budget. Consistently.
Revenue then, is not delivered by sales, it is delivered by execution excellence.
The craft model has two drawbacks
- Ability to scale (growth)
- Predictability (consistency)
Overcoming these limitations means moving from a craft model to a factory model. This industrialization relies on a number of principles. In this blog we will focus on just one.
The disciplines of execution and relationship development are separated.
Execution delivers revenue from existing customers via flawless delivery
Relationship development creates growth and predictable business by bringing new relationships and projects to the execution machine. Once those initial projects are delivered to the execution machine, the relationship developer has no role in the delivery of the project.
Here are the benefits
- Freed from the work of managing and administering projects, the relationship developer can flex their hunting muscles and drive more campaigns and sales opportunities. Their day goes from only spending 6% of their time prospecting (see our commercial benchmark report) to 50%+
- They fill the pipeline with new customers.
- The pipeline is sufficiently healthy it delivers consistent workload to the execution part of our factory.
- Those new relationships are turned into annuity relationships by the execution teams.
Look, you won’t have many hunters who have that relationship and business development capability. But you might have one or two.
Start a pilot with one. Build an execution team around them (the roles would include Project Manager, Estimator, Admin).
This would comprise your revenue factory where pure sales (relationship developers) deliver growth and predictability and execution excellence delivers annuity revenue.
Want to discuss more? Please reach out to learn how we can help you build your revenue factory