Lumberyards: Top Factors To Influence Purchasing Direct

Principia recently evaluated how lumberyards compare their direct payment terms to those they receive through two-step distribution. Taking it a step further, we wanted to look at what lumberyards cite as their top motivations for purchasing direct from the manufacturer in addition to payment terms.

Over 500 lumberyards were asked, on a 1 to 5 scale, with 1 meaning no influence and 5 meaning greatly influence, how much influence each of the following six factors had on their decision to purchase direct.

1. Product availability or lead time 
2. Payment terms (discounts, rebates, days to pay, etc.)
3. Upfront price
4. Customer service
5. Less product defects/damage
6. Ease of doing business

Figure 1 is an analysis referred to as a “top 2 box” measure, indicating it looks at the responses that rated scores of either “4-much influence” or “5-greatly influence”. The purpose of this analysis is to combine the two most positive responses to then determine which factors have the most influence in encouraging lumberyards to purchase direct.

Figure 1: Lumberyards Top 2 Box Influences to Purchase Direct

While lumberyards agree they receive better payment terms from their direct partners, payment terms surprisingly provided the least motivation to purchase direct. Instead, upfront price, lead times, and ease of doing business were noted as larger motivators.