Making a dent in the siding market. (American Remodeling Inc.) (company profile)

MAKING A DENT IN THE SIDING MARKET

Unlike many salesmen, AMRE has been able to get through the front door. And through its steadfast direct mail and direct response TV advertisements, the home remodeling company is respected as much for its marketing techniques as for its products.

There has been an unappealing stereotype of siding salesmen for the near 40 years of the product's existence. These consumer conceptions have been continually fueled by various sources. Many remember actors Danny DeVito and Richard Dreyfus in the movie "Tin Men," where the surly characters used unscrupulous tactics to sell a less than adequate product -- including making empty promises of featuring a newly sided house in Life magazine for the "lucky" first buyer on the block.

These stereotypes have been more than overcome by an entrepreneurial group of "tin men" -- named after their goods. Instead of ensuing the arduous tradition of peddling their wares door-to-door, they have taken sales one large step further -- nationwide. In order to sell their exterior siding and, more recently, kitchen cabinet refacing, AMRE executives have used their concentrated knowledge of the importance of lead generation for prospecting and sales.

An unrelenting direct mail and direct response TV advertising agenda has been used to strategically develop a well-respected, nationwide company, which is generating more than 300,000 inquiries each year, processing 1,500 leads each day, monopolizing more than 600 follow-up salespeople and making a dent in the home improvement market.

While the products are high-ticket items -- siding averages $6,500 and kitchen cabinet refacing typically costs $4,500 -- almost 30,000 units were sold in 1989. Roughly two out of every three prospects agree to an appointment for a free in-home estimate, says Peter Spaulder, vice president of marketing. About 25 percent of those prospects who listen to sales presentations agree to buy. With credit rejections and change of heart, AMRE's closing rate approaches 20 percent.

Starting Small, Growing Quickly

American Remodeling Inc. -- now known as AMRE -- was established in Austin, Texas in 1980 by Steven D. Bedowitz. While the fundamentals of exterior siding were new to Bedowitz, sales and marketing techniques were not. His resume points to a successful career in sales. Former jobs include newspaper and grocery delivery person; salesman of baby furniture, ladies ready-to-wear clothing, insurance and homes, and owner of an Austin advertising agency, respectively. …

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