Window Industry Recovery in Motion – What Type Will We See?
Aug 10th, 2009 | By DWM Mag | Category: Plavecsky's PonderingsGreat news! Most economists are calling for an end to the recession this quarter. Some are predicting what they call a “V-shaped” recovery (a quick and sharp rebound), while others are calling for a “W-shaped recovery,” with a second downturn in the near future brought on by what they say are inevitable tax hikes. However, the majority of economists are saying that it will look more like a “U-shaped” recovery, exhibiting below-trend growth until late 2010.From talking to window manufacturers and dealers, it definitely seems like the replacement window industry is experiencing its own recovery, picking up nicely, especially for those that are aggressively marketing their company. Some companies tend to look at marketing as a luxury, and set marketing budgets as a percentage of overall sales. These companies are mostly operationally oriented. They view marketing almost as an operational expense and it must be cut along with everything else in order to preserve the bottom line. However, the more successful companies spend more on marketing during times when sales numbers need a boost. These companies are strategically marketing oriented. They recognize that investment in both strategic and operational marketing drives sales. They understand that in challenging economic times, investment in marketing is not a luxury – it is a necessity!
Recently, I was golfing with a vinyl window sales manager, and he admitted that late last year, his company was about to go under. I asked him how they managed to pull out of the nosedive. He said that the turning point came when he finally received approval to hire two additional full time salespeople. He hired two salespeople who were let go from other companies who were cutting payrolls. This addition to his sales team along with an investment in an updated marketing campaign resulted in a swift sales rebound. His company is now on track for a record sales year!
With economic recovery looming on the horizon, the fall selling season can be the turning point for marketing oriented window manufacturers willing to invest in a focused and aggressive approach. The key buying factors are likely to be thermal efficiency, aesthetics, ergonomics, security and warranty. Thermal efficiency is now more important than ever before! Why? Congress is looking at legislation aimed at reducing global warming. The impact upon the consumer will be increased energy bills. When the economy rebounds, demand for oil will also rebound and this will also drive up the cost of energy. The effects of alternative energy sources are further down the road, so one cannot expect energy costs to benefit from these initiatives for years to come. The end result will be higher energy costs and the need for the most energy-efficient windows. Sales tactics should involve communicating this to potential buyers while offering solutions in the form of energy-efficient windows with low-E glass, warm-edge technology, gas-fills, dual or tri-pane construction and thermally efficient frames. With the right glass, these offerings will easily qualify for the 30-30 tax credit, giving the salesperson even more to talk about.
Many homeowners have now acknowledged the fact that they must remain happy with their existing home as opposed to buying up, so they are fixing up their current home until real estate values recover. These prospective window customers will also find window design (aesthetics) and security to be important in addition to ergonomics (ease of operation), sustainability and warranty. Homeowners are increasingly attracted to longer term and transferable warranties. When the real estate and financial markets recover, a transferable window warranty can become a key selling point when it comes to making a well maintained existing home more attractive to a prospective home buyer than a new build.
There are many reasons to buy new windows, and incentives are now in place to make it advantageous to buy them now. Making a great window is only half the battle. Convincing prospective buyers that your window is great and that they must buy it now is even more important. With the right marketing approach, the savvy window manufacturer can now start thinking about a “J-type” recovery!



