- Mar 28, 2011
- Reaction score
Prices are basically the same, so you need to compete on service. The small players are just better at this than the big dogs.Ya it stuck me odd as well. Although the Lowe's side was big footprint and bigger markets, in a lot of departments the two lines were essentially competing with each other.
In the smaller markets, you need a solid relationship with the trades and have a credit/payment system that can accommodate their cash flow. I don't know about Lowe's but I know HD has struggled with this. Around here, Rona seems to have a decent presence on jobsites although not as prominent as Home Hardware Building Centres. In other small markets, they are also up against TimberMart which, in a lot of cases, are built on long-standing local private lumber yards.
For Home Depot or Lowes, I am not sure what percentage of their business that contractor services represents, but my guess is that for the other yards, it makes up a much higher percentage. In bigger markets like the GTA, there are still many players that have that same playbook but more or less cater to this market 100% (i.e. Central Fairbank, Cooksville Lumber, Hanford Lumber, Royal, Tamarack, etc.). So in those markets, the competition for the big box in the contractor market is fierce.