So, you’re considering a new supplemental or primary source of income.
What if you find yourself currently jobless and prospects are lean? Maybe you’ve retired after a long career but discovered you weren’t ready for retirement.
Or do you just hate your job and have wondered what it would be like to work for yourself, be the boss?
This situation has found many searching for a new opportunity in portable building sales selling directly to the public. For the sake of this article let’s just say “shed sales.”
“The fact of the matter is, since the nomads first settled into villages, people have accumulated stuff and, as a result, have needed a place to put that stuff. Thus, was born the storage shed,” wrote Megan Headley in the June 2015 Shed Builder Magazine.
According to Future Market Insights, the global shed sales market held a forecasted revenue of $ 6.8 billion in 2022 and is likely to cross $11.95 billion by the end of 2032.
In this article I would like to share insights from 20 years of sales experience in the shed industry that might help you answer the question “Are shed sales the right opportunity for me?”
The focus is on dealers who sell sheds and like products exclusively as a primary source of income.
The other dealers I refer to as “supplemental income” dealers, meaning they have a primary business unrelated to sheds. Feed stores, car lots, repair shops, and others fall into this category.
Honestly, prior to my introduction to shed sales, I would’ve never considered it. I had a solid sales resume with other industry leaders prior to moving to Texas in 1999.
My first two years in Austin, I chased the get rich, retire early opportunities that the rapidly growing tech sector was dangling at candidates like me. I spent the next two years with two pre-IPO startups who paid next to nothing while offering unvetted stock options and stories of Google and Yahoo millionaires who got in early.
Both companies sold off long before my stock options matured leaving them worthless and me jobless.
My career in shed sales began when I answered a “seeking dealer manager” ad in 2003. I spent a couple of years with the company, putting up some of the best sales numbers company wide.
Although the system of micromanagement was not a fit for me, I was surprised at how much I seemed to like the industry. I had even brought my newly retired dad aboard to run his own sales lot.
After my exit, and at my suggestion, dad transitioned his lot to sell for the Derksen Portable Buildings company, which started in 2005 with a focus on quality and value. Eventually, I joined my dad at A Place for Your Stuff selling sheds and carports.
It was then I remembered I enjoyed this kind of sales and why.
In previous Shed Builder Magazine articles, I’ve written about my journey as a shed salesman and what to look for when finding the right location for a shed sales operation.
This is an addendum to those as well as my ideas on creating and running a successful shed sales business. So, let’s get started.
LOCATION, LOCATION, LOCATION
We have all heard this adage at some time. It remains a top factor in the success of a shed business.
Whether you own a property you think will work or you are tasked with finding a location to open your sales lot, the location is key. As I stated in a July 2023 article, regardless of looking to buy or lease property, keep in mind some key factors.
Can people easily find you? You will go broke thinking if you build it, they will come. You need real-time exposure.
I prefer to be near town and not in town on a highway with lots of traffic flow. If there are several towns in a specific area, look for a space of equal distance between them.
If you draw a 50-mile circle around your location, how many towns does that cover and how many potential buyers?
You will want enough lot space for a good amount of inventory and room enough to get them on and off your lot. Remember you are going to be dealing with semi-trucks and 50-foot trailers in many cases.
Whose product will you be selling and where are your nearest competitors? Have you researched and shopped any of them?
A good manufacturer will protect a dealer’s territory, meaning that they will not open more than one dealer in a specific market. You may be able to negotiate exclusive territory with your vendor.
At a minimum, they should not actively seek additional dealers within 30 miles of your location.
If your manufacturer offers 50-mile free delivery on lot inventory, then it makes sense to ask to be exclusive within that area.
How do their products’ quality, reputation, and pricing compare? What about delivery and turnaround times? Factory warranty? Rent to own terms?
Does the company have a dealer rep and how will they support your sales efforts? How are you paid for your commissions? Commission rates should not be your biggest priority in working with a manufacturer.
Here is what manufacturers look for when seeking dealers: How much are you willing to work to sell their products? How many days a week and hours a day? How is your lot set up? Is there anything slowing the traffic by your lot?
Traffic lights, stop signs, turn lanes, and easy access are things companies look for as they slow traffic allowing customers to see signage and products.
The more road frontage the better. Department stores have huge windows on the street to get attention and draw customers into the store.
The road is your storefront window.
YOU HAVE YOUR LOT AND A PRODUCT TO SELL, NOW WHAT?
Make your display inventory count. Tell your rep you want a variety of styles, sizes, options, and colors for your lot inventory, it is also your showroom.
Be mindful of the best sellers and make sure they’re in stock on your lot. If you’re new, ask your dealer rep; they should be tracking this.
Sales at A Place for Your Stuff run almost even with onsite inventory sales and factory orders.
Rent-to-own and cash sales often run about even, so get to know RTO and how to sell it.
Big clear signage, banners, and weird inflatable air dancers all help to get noticed.
What’s in a name? Well, lots! When it comes to deciding on a name for your business consider some important details.
Does my dealership name convey what we do? My dad came up with A Place for Your Stuff, and at first, I was lukewarm about it but have grown to love it. It simply states what we offer.
When I ask customers how I can help them today I often get a chuckle then, “I need a place for my stuff, man.”
Better yet is to put your product in the name itself. When deciding on a name for our carport business I came up with CarportME as the name.
Another consideration is how your name works with your website address. CarportME.com is our online address. It is easy to remember and advertise.
I NOW HAVE A LOCATION, A PRODUCT TO SELL, AND A NAME, WHAT’S NEXT?
You have done a great job finding the best lot location, name, and vendor.
You’re almost ready to open but what about a sales office? You are going to need a space that is attractive and comfortable to sell your product.
This is important because a buyer who is relaxed and comfortable is more likely to decide to buy at that moment. Provide a tidy office with space for point-of-sale items like brochures, giveaways, industry awards, etc., as well as space to sit comfortably once back in the office.
It doesn’t hurt to offer cold drinks or coffee to buyers. In fact, offering any kind of value unsolicited puts you in a position to accept something back, like a sale.
This is another reason why I have a mug full of nice pens with our logo and info on my desk. You wouldn’t believe how many customers will comment on a nice pen when signing an invoice. When I tell them, “Please keep the pen,” they seem to be thrilled.
Someone who has accepted a gift or added service from you is less likely to keep shopping, bringing you closer to closing a sale at that moment.
Time for some training from your manufacturer. You will come to understand the more informed you are about what you are selling the more sales you will have.
Let your rep know you are open to training. This doesn’t necessarily mean sales training. I have met with reps who haven’t the first clue about selling but will talk for hours about it regardless.
I am talking about technical training. How is the product made, where is it made, who makes it? What are the advantages of their product over the competition? Is there a story in the materials used?
For example, letting buyers know details such as the siding used has a 50-year warranty by its manufacturer not to decay or split. Maybe the metal roof has a lifetime warranty from the company that makes it.
Trust me, your potential buyers will ask every question under the sun at one point or another. The more answers you can provide the more trust and rapport you will build.
Do not bluff! If you don’t know something let them know it is a great question and you want to get the correct information and follow up with them.
The second you get caught in a bluff or a lie, everything else you have done to create trust is out the window. I sell sheds that can cost over $30,000 in some cases. Those sales are driven by trust, and you aren’t the first or last place they are considering.
Earlier, I mentioned rent to own, so let’s look more into that. A sure way to lose trust and an easy sale is not knowing how to present rent to own. The sooner you embrace selling sheds on a lease, the faster you can double your sales in many cases.
Here is why salespeople fear rent to own: They don’t understand it. Let’s look at what rent to own truly is and what it is not.
First, it is not a purchase. Because it is not a purchase, steer clear of saying words like buying, interest, APR, or financing—all of which refer to purchasing something on credit.
One thing you might tell people is renting is a great way to get what you need now when you need it.
RTO is leasing/renting and that’s it! “Would you like to purchase or lease your new shed,” is the question to ask.
A typical shed lease of three years might have a 60/40 split, meaning that each month your lease payment is divided taking 60 percent and applying it toward the principal (cash price) as if it was on layaway and the remaining 40 percent of the monthly payment goes to the leaseholder who owns the shed and rents it to you (if that seems like a lot, remember they take all the risks).
Our customers love that there is no credit check needed to qualify. Another feature is the ability of the customer to cancel the lease at any month and have the shed picked up at no further cost.
If you wish to pay the unpaid balance early, you simply add up the payments left, and you owe 60 percent of that number.
As soon as your customer thinks of renting as a purchase at 40 percent interest, you have lost them. I will explain it this way. “Have you ever rented a storage space or an apartment?” Most folks have or can relate.
Next ask, “Did you own it after three years, or did they just raise the rent?” Here when you lease through the term or pay off early, the landlord applies 60 percent of what you paid toward you owning that shed.
How much did your off-site storage landlord apply when they gave you their storage unit? Nothing. They still own it.
At this point, your customer is no longer thinking about 40 percent as interest for purchasing but as a 60 percent contribution when renting.
Unlike a purchase with interest, you can stop leasing at any time if you don’t need it or can’t pay for it. The lease company comes and picks it up at no further cost.
Everyone has a sales style or lack thereof. Having no style even conveys a message to the buyer.
The shed company I got my start in was family-owned and had huge success and growth early on and a serious lack of competition. A great product with few competitors will sell itself and this one did for many years.
When their competition grew to meet the demands of the market their approach to dealer training did not. My success in the field was mainly due to recognizing this and applying better techniques to train my dealers.
My territory’s sales increased greatly, but I was let go for bucking the system (and earning large over-quota bonuses left unpaid).
Many companies have different approaches to training salespeople. Some suggest lying in wait for someone to come to your lot and then rush them with brochures and a big smile. Introduce yourself, a solid handshake, and steer them right into the shed.
My old company told dealers they needed to spend a minimum of 15 minutes taking the customer around the shed inside and out making note of all the features. They called this the “features and benefits part of the presentation.”
I call this the car dealer approach, and guess what? No one likes it. They would tell dealers not to talk about or display the price of the shed. Why? Because that is your opportunity to get them inside the sales office. Sit them down and revisit those features and benefits all the while asking them address, phone number, and social security number while filling out the sales order.
Place the sales order in front of them while pointing a pen to their chest and say, “Hey, all I need is a signature right here will that be cash, check, or credit?” and shut up until they take that pen. Someone is going to win, someone is going to lose, which one will it be?
This was the training I was to give to my dealers. There have been salespeople throughout history who have made fortunes mastering motivational sales techniques like these. My advice: Don’t do it.
You worked hard to open your lot, and this is what your vendor is offering for sales advice? Find a new supplier.
Here’s what changed my sales game completely: Honesty. If you believe in the products you are selling and that you are there to help your customer make a decision that is right for their needs that will truly benefit them, there is no stronger selling position than that.
Really helping people feels great and conveys in your selling approach.
Your confidence and honest approach will help to lead customers to make their decisions. The moment you bring them to that point, sit back and see how excited they become to check this assignment off their list.
I give folks plenty of space and time to look around and talk privately. Once I approach them, it’s with a good attitude and most often a question like, “Hi folks, what are we working on today?”
This one introduction lets the buyer know that we’re on the same team working together to meet their needs. It also allows them to tell you exactly why they are there.
Knowing the why helps you to qualify their interest and focus your approach. This one question will often let me know if they’re just lookers killing time, need something right now, or are shopping dealers.
It also helps me get a sense of the situation and respect their time by staying on the same page, and not talking about details they have no concern over. Some buyers want to go fast and get right to it and others like to be courted and tell you all about themselves. If you can, you should let them.
While you are listening, make good use of the time getting a brochure and price sheet ready or creating a 3D view of what the shed might look like in their yard.
Once they start to imagine owning it you are almost there. Ask questions like, “What is your timeframe for owning your Derksen building?” It is a soft question that says a lot when answered and tells you their sense of urgency.
Sometimes the answer is “yesterday,” to which I reply, good then let’s help you get that done.
Stay away from too much small talk and personal issues, especially politics. If they have a picture of a dog on their shirt it’s okay to say, “Are you a dog lover?” If you love dogs, you might say “Me, too!” but stay focused on moving everything forward to completing the sale.
Respect their time making it about them and not you. After that, it is okay to ask, “Would you like to go ahead and get started right now?” Your approach doesn’t need to be any more aggressive than that.
Don’t be upset if you did everything right and they still did not buy right then. You may be the first place they went, and they want to see other brands. This is where your honest approach, your belief and knowledge in your product as well as your professional attitude will make an impression that carries out the door.
Build the foundation from start to finish to create a positive experience. The car salesman approach that I wrote about earlier may get you a sale this time, but the value approach will bring you repeat and referral customers.
The shed dealers that make a six-figure income get there because of repeat and referred customers. A Place for Your Stuff has been a leader in shed sales in Texas since 2005 using the tips I have shared here, and we are still going strong while watching competitors struggle and close.
Since opening our shed lot, we found other revenue streams that have been profitable additions such as carports, steel frame buildings, and playscapes.
In 2018 we introduced Tiny House Texas utilizing the Derksen shells to create homes, vacation and hunting cabins, shops, pool houses, she sheds, and more, all part of what has become Winterteam Enterprises.
Our initial investment was small compared to the returns and joy I get from running my own business.
So, where will your journey as a shed salesperson begin?
