Streamline Price Increases with CRM in the Building Materials Industry
2020 was a volatile year with unpredictable trends, but that can change with CRM in the building materials industry.
Steel prices continued to increase during the fourth quarter. This increase helps boost the market prices by both lower supply and higher demands.
Additionally, the lockdowns around the world could affect the short supply moving forward because of extended lead time and limited local capacity.
As seen from the graph below, steel prices remained high in Q1 and are expected to increase in the second quarter.
During the previous three months, steel prices have increased by nearly 40%. Increases are becoming even more inevitable and will continue to occur several times a year, especially during these volatile times.
The price continues to skyrocket from the end of 2020 – as a result, contributing to a 0.5% increase of index value from January to February alone.
Main Factors
There are different factors that drove these price increases:
- High costs of input are primarily on Iron and scrap
- Shortage capacity caused by COVID-19 measures with growing demand
- The low availability of local supply led to the stock limitation that turned into a price-panic situation.
What Happens Next?
If you are a building materials manufacturer, price increases will be significantly impacted based on two dominant factors: the efficiency of your time, and buying experience for customers.
A Simple Example
Two companies, company A and B, are making the best product in the market. They have the best materials, the best designs, and the best engineering.
However, if you place their sales next to each other, the differences are apparent.
Company A focuses on sales and finishing the heavy workload in price increase initiatives.
Meanwhile, company B focuses on simplifying the price increase process – to spare more time for their sales in the long run.
What did company A do wrong?
Instead of providing reasonable prices for the clients and creating a time-efficient process for the price increase, their focus was on their amount of work.
As a result, company B can serve its clients faster by automating the process and creating more sales in a matter of months.
Automize tasks such as price increases with a CRM System so you have more time to discuss other topics with your client.
How did they accomplish this? By deploying CRM to their workflow.
The Importance of Deploying CRM in Building Materials Industry
The building materials industry is well-known for its complexity. It comes as no surprise that companies in this field encounter unusual quirks regarding their go-to-market process.
It is an animal that needs to be tamed. This is where CRM comes in.
A well-rounded CRM operates heavily on process automation. It identifies your most optimal performances and naturally follows them in the long run.
No matter how unique your processes are, CRM gives you the freedom to customize its infrastructure to match your preferences.
How CRM Boosts Building Materials Industry
- Increase the level of productivity by promoting efficiency in all major and minor areas of operations.
- Identifies and standardizes the company’s best market practices by utilizing a well-rounded CRM – by pointing out your most effective processes, you can proceed to increase the quality of your team’s performance.
- Provides visibility and complete transparency over a team’s overall performance with accessible dashboards that reflect KPIs.
- Obtain a real-time overview of current market signals.
Reach Out to KVP-Solution
Start your CRM journey with KVP-Solution. With our expertise, our team of professionals will help you achieve digital transformation to be competitive in the building materials industry.
Whether you are a company with 10 or 1500 employees, we facilitate your transition to digital by matching your business needs with our selected offering.
Connect with us for a consultation and trial.