Interview Transcript

This is a snippet of the transcript, sign up to read more.

Got it. I'm trying to simplify things to understand the economics. So, if the entire project was, say, $100, how much would go towards the materials you were selling, and how much would go to the installer?

It varied depending on the product and quantity, but generally, a third of the project's total cost was product-related, which would go to the manufacturer. The remaining two-thirds covered installation and processing. This includes paying the measure tech, the installers, and everyone else involved in the project.

This is a snippet of the transcript, sign up to read more.

Why?

I think it was about control. They were cutting out a middleman that wasn't really necessary. When they built newer offices, they would construct offices that were 25,000 square feet with warehouse capabilities. Similar to how they opened offices previously, they had a template they would replicate in different areas. They found that having a warehouse attached worked well. This allowed their crews and operations department to be part of the marketing and sales ecosystem. For windows, because they are custom-made to the nearest quarter inch, shipping them to a [Distributor's] warehouse became less efficient. Having them come directly to the company provided more control and efficiency.

This is a snippet of the transcript, sign up to read more.

If I understand correctly, for roof tiles, for example, given that they are standard in size and shape, it makes sense to source them from a distributor. But if you're designing a house and there are items like windows that are custom-made, it's better to send the order to the manufacturer to get them manufactured to the inch.

When you're talking about new construction, the windows don't have to be custom-made. You can build the house to fit windows that are mass-produced. For new construction, it actually makes more sense to go through a distributor than the business model for remodeling. In remodeling, the windows are put in, but once you take them out, the opening size changes. There is settling and other factors. It goes from a stock size window that can be mass-produced and stored in distributors and warehouses. When you replace it, you can use stock windows, but most companies do not because it requires a lot of extra finishing touches.

This is a snippet of the transcript, sign up to read more.

Sign up to test our content quality with a free sample of 50+ interviews