For Build Direct the key strategy is to provide product prices as low as possible, and they enact these three Differentiating Activities to be different from their competitors and keep the price down, which is one of the most important elements for their Core Customer.
Below are the Build Direct Differentiating Activities
- Pay Up Front – Don’t offer payment terms because good customers should not have to pay for other customers who have defaulted.
- Minimum Order – this is an effective shipping unit – we can deliver our product to our customer at a lower landed price. For example you are not able to buy 40 square metres of flooring, you would need to buy 1 pallet of flooring. This shipping efficiency reduces the end user price.
- No Branded Products – Still meet the customers specs – without the extra costs like licensing or middleman costs.
Take a look at the video where Rob Banks explains the Build Direct Seven Strata of Strategy and Differentiating Activities below.