Builders and Contractors Weigh In on Dealer vs. Brand Loyalty for Exterior Building Products

Principia previously presented our readers with data regarding the frequency of brand switching from the perspective of LBM Dealers, as well as the frequency of switching reported by builders and contractors.

Continuing with this series on brand loyalty, recent insights gathered from our builder and contractor respondents and their consideration for brand versus dealer loyalty when purchasing exterior building products.

We asked these pros a hypothetical question, framed as the following:

If your preferred dealer stopped carrying your preferred brand of [PRODUCT], would you stay with your preferred dealer and switch to another brand, or switch to a new dealer that carries your preferred brand?

Here are the results:

Overall, building material purchasers report slightly more loyalty to their dealers than to the brands they prefer. The trend is more pronounced for insulation and roofing. In contrast, just over half (53%) of siding & exterior trim purchasers reported they would switch to a new dealer for the ability to procure their preferred brand. Results for windows and doors largely reflect the industry average.

The data suggests there are potential consequences for material suppliers who lose or resign their dealer partner positions. Material suppliers should consider the ramifications of losing share when making decisions on their dealer partner strategies, from both a geographic coverage and volume perspective.