Case Study: Shed Depot NC Increased Average Sales Price with ShedView

Conquering Complexity

Conquering Complexity

When he signed up for ShedView, Joshua Payne, General Manager for Shed Depot North Carolina, was expecting great results but he was still surprised by the substantial impact ShedView had on his average sales price, margins, and sales process.

One of Payne’s primary business goals is to make buying custom sheds easier for customers. He sees high customer demand for high-end custom sheds but finds that the more options they offer to customers, the more difficult the sales process becomes for both the customers and his sales team.

“Lots of variables can cause paralysis by analysis. When you offer lots of choices, customers often take longer to make a decision.” Payne said. A major challenge he has noticed is that increased custom options can also make it “harder for customers to visualize the buildings they are buying.”

The complexity of Shed Depot NC’s buildings also increases the time required to create quotes and answer customers’ questions. For example, before ShedView the Shed Depot NC sales team would use a sketching software to create diagrams of the sheds customers wanted to order. Creating those designs would often take an hour or more per shed.

Now customers use ShedView’s 3D visual models to design their own sheds online, saving substantial time and effort for Shed Depot NC’s sales team. “ShedView allows customers to kick every tire from their homes without taking our time. Customers come to us really educated and we just help refine a few details,” said Payne.

“The best part is, that we don’t sacrifice customer service when using ShedView. Customers really enjoy using ShedView and are very happy with our customer service.”

Increase Average Sales Price and Margins

Payne expected ShedView to make the buying process easier for his customers and team. But he was pleasantly surprised by the increased his average sales price and profit margins of sales that went through ShedView.

“Sales that come through ShedView have a higher average sales price and margin. Our average retail price per square foot has increased by about 10% and I would estimate our margins through ShedView are up about 3-5%,” Payne said.

Payne believes there are several aspects of the ShedView service that have contributed to the increased average sales price. First, customers buy more accessories when they can visualize the final product. Second, options that can confuse the sales process without a visual configurator, are easy to add and understand when designing in the ShedView configurator. Third, customers who use ShedView rarely try to negotiate the price; they accept the quote offered by the configurator without attempting to haggle.

Payne was most surprised how much more often ShedView customers purchase structural options like drip edge, tar paper, insulated floors, and radiant barriers through ShedView. Payne said his sales team often avoids introducing those types of options to the sales process because they worry it will complicate the sale. But with ShedView, customers add those options themselves.

Looking Ahead: Larger Territory Per Location

For the future, Payne plans to continue adding more options. “We are looking at providing options we avoided in the past because we feared complicating the sales process. ShedView allows us to add those options.”

Shed Depot NC also plans to expand their service area without adding additional physical offices. “We believe with ShedView we can cover a larger area of customers without needing lots or offices.”

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