Can you pls compare it with BUILDDIRECT (BD), an incoming flooring retailer. They say their moat is
1- ecommerce + only dealing with Pros (not home owners) who want to buy, usually in small bulk
2- Cheaper prices like FD, I am not able to come up with an Apple-to-Apple price comparison. Also, both keep limited SKUs as per my information
2- They deal with all types of sectors, which acts as a cushion in bad economies, for example, if the economy is down in new residential construction, then it might be up in commercial. They say HD and FD deal with major homeowners, not with Pros. Idk who to believe, yours or theirs, as you also say that FD deals with Pros. idk who is right?
The CEO is a major game-changer, who turned the company around in the last 2 years based on his 20+ years of flooring business. I only look at the BD of the last 2 years.
I am trying to find how BD can compete with a big fish like FD and how they can both exist in the same space, if the market is so fragmented. BD also acquires small mom-and-pop stores, while FD does not. BD also supplied to mom and pop stores, hence on 1 side they are supplying to them, but also at the same time, these mom and pop stores are competitors.
Hi, thanks for the good questions. BuildDirect was recently brought to my attention by someone else as well. I am not totally familiar with the story, but I did begin taking some notes and working on a write up of the company. I'm not sure when it will be released but I will keep some of your questions in mind.
Concerning your question about HD and FND dealing with pro's, the answer is yes, both work with pro's to varying extents, in fact I have pro accounts with both. Pros make up almost 50% of FND revenue. Both HD and FND offer pro accounts and certain loyalty rewards, although HD has a much more robust loyalty system that includes a lead generation app and discounts and so forth, however, HD's flooring selection is garbage and limited. FND works with both pro's and retail customers and has been working on pro loyalty.
As far as BD competing with FND, I don't know. FND has won as far as im concerned. But BD can certainly build a presence and take market share. There's no reason that there can't be two major players similar to how Lowes and Home Depot dominate their market. If BD aims to consolidate smaller mom and pop shops, there is a long runway for acquisitions in the US and that could be beneficial. If they are B2b and only serve pro's they will likely save on marketing and other operational costs which could contribute to better margins. But at the end of the day, BD will have to face FND which is much larger and more capitalized. There's also a sense in which BD docent need to become as dominant as FND in order for it to be a good investment, It may be able to do well for a while just consolidating the market. I just don't know yet. anyways that's all I know.
Can you pls compare it with BUILDDIRECT (BD), an incoming flooring retailer. They say their moat is
1- ecommerce + only dealing with Pros (not home owners) who want to buy, usually in small bulk
2- Cheaper prices like FD, I am not able to come up with an Apple-to-Apple price comparison. Also, both keep limited SKUs as per my information
2- They deal with all types of sectors, which acts as a cushion in bad economies, for example, if the economy is down in new residential construction, then it might be up in commercial. They say HD and FD deal with major homeowners, not with Pros. Idk who to believe, yours or theirs, as you also say that FD deals with Pros. idk who is right?
The CEO is a major game-changer, who turned the company around in the last 2 years based on his 20+ years of flooring business. I only look at the BD of the last 2 years.
I am trying to find how BD can compete with a big fish like FD and how they can both exist in the same space, if the market is so fragmented. BD also acquires small mom-and-pop stores, while FD does not. BD also supplied to mom and pop stores, hence on 1 side they are supplying to them, but also at the same time, these mom and pop stores are competitors.
Your guidance would be appreciated.
Hi, thanks for the good questions. BuildDirect was recently brought to my attention by someone else as well. I am not totally familiar with the story, but I did begin taking some notes and working on a write up of the company. I'm not sure when it will be released but I will keep some of your questions in mind.
Concerning your question about HD and FND dealing with pro's, the answer is yes, both work with pro's to varying extents, in fact I have pro accounts with both. Pros make up almost 50% of FND revenue. Both HD and FND offer pro accounts and certain loyalty rewards, although HD has a much more robust loyalty system that includes a lead generation app and discounts and so forth, however, HD's flooring selection is garbage and limited. FND works with both pro's and retail customers and has been working on pro loyalty.
As far as BD competing with FND, I don't know. FND has won as far as im concerned. But BD can certainly build a presence and take market share. There's no reason that there can't be two major players similar to how Lowes and Home Depot dominate their market. If BD aims to consolidate smaller mom and pop shops, there is a long runway for acquisitions in the US and that could be beneficial. If they are B2b and only serve pro's they will likely save on marketing and other operational costs which could contribute to better margins. But at the end of the day, BD will have to face FND which is much larger and more capitalized. There's also a sense in which BD docent need to become as dominant as FND in order for it to be a good investment, It may be able to do well for a while just consolidating the market. I just don't know yet. anyways that's all I know.