2.1   Why Does It Matter?

If you're reading this, the chances are that you work in the building materials supply industry - and probably in a builders merchant. Let's take this opportunity to understand the nature of our business.

You're a middle man. You earn your living by selling things that other people manufacture. So why should people buy things from you? Here are a few of the reasons :

1. Geographical convenience
2. Because of your bulk purchasing power, you can actually offer them a better price than the manufacturer will
3. They aren't aware they can go direct to the supplier
4. They don't have the expertise required and need help sourcing and specifying materials
5. They don't want the hassle of having to deal with lots of suppliers - but want the convenience of someone who looks after them

Number one may hold true for yard sales - but it needn't be true for direct to site business. Just because you're the only merchant in town doesn't mean the customer will give you all his big orders. Remember - this reason is going to work against you as often as it will for you. Your customers do out of town jobs too.

Numbers two and three are certainly reasons for a customer to use a merchant - but no reason for them to use you. The same holds for the competition.

In numbers four amd five we see where you can distinguish yoursef. In expertise and service are the reasons that a builder will want to buy his materials through you, rather than anyone else.

The merchant trade may seem similar to the retail trade - but it is actually more like a service industry. You earn your bread and butter not because you can supply goods - but because you provide a service that the customer needs.

2.2   The Opportunity

It's easy enough to do business when things are going well. You have a laugh with the customer (well... some of them), you make money and everyone's happy - anyone can do that. What really counts is how you handle it when things go wrong. Your customer needs to know that if the worst happens, you'll be fighting on their side. Everyone has had the experience of being dropped in it by a supplier who just doesn't care.

This means that problems can be an opportunity to win your customer - even if they don't get exactly what they want. If they know that you're willing to put yourself out to support them when the brown stuff starts flying - then they'll trust you with their business.

3.1   Taking the Flack

When things go wrong the natural human reaction is to want to blame and get angry. Not only do you have to recognize and temper that reaction in yourself - but you have to accept that this is how your customer feels too.

So when he (or she.. or they... or it...) phones up (or even worse comes in) and lets of steam - try and stay calm and professional. Very often, if you let them blow off steam they'll feel better - and be ready to face whatever needs to be done to sort the mess out.

3.2   The Science of Applied Pressure

The customer expects you to take responsibility for resolving the problem. You are his supplier and this is part of what he pays you for.

In the same way, you are the customer of your supplier. You have the right (indeed the duty) to expect and demand the same level of service from your supplier that you are giving to your customer.

This is part of the purpose of the assessment earlier. As clearly as possible work out what responsibilities lie with which party. The answer to this question is vital - because it determines how you act.

If it is straightforwardly a mistake on the part of the supplier (you ordered correctly but they delivered the wrong item) then you can apply the appropriate pressure to their sales office and representative. You need to guage how much force you can apply (the politeness-anger balance) before you actually demotivate people from helping you.

If the customer made the mistake then you need to politely but formly explain the position. "In actual fact Alan, you did order white primed. I've left a message with the rep though - and we'll see if there's anything they can do about it."

If it's your fault then sometimes you just have to put your hands up and admit the mistake. The customer may not be pleased, and it's likely to cost some money - but in the long run they appreciate honesty.

Sometimes it's not so clear though - the customer with the bricks for example. Whenever someone orders from a catalogue without seeing a sample there is a risk they will come a different shade. If you forgot, in the rush, to explain this to the customer - is the liability his or yours?

In this sort of situation there are various things you can try and do. Speak to the rep, even though they're not obliged to they might take them back. Explain the rules to the customer - he might accept a portion of the blame. What about a discount - will he accept thea bit cheaper? Some days you'll win, and some days you'll lose.

4.1   Create Realistic Expectations

Make sure you create realistic expectations. Let your customers know how long goods will take to arrive, and explain any potential problems you're aware of. This way when they happen - your customer has had a chance to prepare themself (and is less likely to blame you).

A classic one is our example of the bricks - if the colour can vary from the catalogue, then you need to let your customer know.

Also don't oversell. If you promise things that don't arrive, or create an expectation you can't deliver, then your customer is right to feel let down.

4.2   Clearly Define Liabilities

Define where liabilities lie as clearly as possible. If they can't change the order after it's been placed, tell them that.

Many customers also assume they can return things they don't like. If this isn't the case then warn them about potential restocking charges.

Where things are out of your control and in the hands of the supplier it's worth letting the customer know this. Then the customer knows what is their responsibility (to properly specify and confirm details), what's yours (to order and liaise with the supplier), and what is the manufacturers responsibility (to produce the goods on time and to the specification).

If the responsibilities are clearly apportioned, when things start to go wrong the customer will know which things it's realistic to expect you to resolve - and which things have to be sorted by the maker.

4.3   The Paper Trail

The more details of the transaction you can keep available the better. (Note that hidden in a box somewhere is not the same as accessible). Better yet is to give the customer a copy of the final order. That way they are deemed to accept the details of the order as they are on your version. This can be a great help when trying to resolve discrepancies - as well as giving you more opportunities to pick up on mistakes.

Keeping track of conversations with suppliers gives you greater leverage when dealing with them. Taking the name of people you speak to is vital - a promise without a name is virtually valueless, because there is no-one to hold accountable.

4.4   Communicate Well During Problems

As a customer - there's little more frustrating than not knowing what is happening, or even if anyone takes your problems seriously.

The more you communicate with your customers the more they'll feel looked after. If the delay is with your supplier this is your opportunity to make that clear.