Upselling in the building supply industry goes far beyond simply suggesting higher-priced items. When done strategically, upselling related construction supplies can enhance customer satisfaction, streamline the building process for contractors, and drive significant revenue growth. This case study highlights how one distributor successfully implemented upselling techniques that not only increased average order values but also strengthened long-term client relationships.
Client Background
A mid-sized building materials distributor located in the Midwest had a strong client base of general contractors, remodelers, and custom home builders. While their core offerings — such as lumber, drywall, and concrete products — were consistently in demand, the company realized they were missing opportunities to sell complementary items that contractors often needed during projects.
The distributor wanted to test structured upselling strategies with an aim to:
Increase revenue per order
Improve customer convenience
Strengthen brand loyalty by becoming a one-stop supplier
Strategic Approach to Upselling
- Sales Team Training on Product Knowledge
Sales reps were trained to better understand product pairings — for example, upselling joint compound, fasteners, and corner beads with drywall orders. This helped them suggest add-ons confidently and appropriately.
- Bundled Offer Creation
The distributor created predefined product bundles for typical use cases (e.g., “Drywall Starter Kit,” “Roofing Essentials Kit”) with slight discounts, encouraging customers to buy all necessary items together.
- CRM Integration and Purchase History Analysis
Using their CRM system, they identified patterns in repeat customer purchases. When a contractor consistently ordered insulation, the system prompted reps to recommend vapor barriers or sealants in the same order.
- Checkout Recommendations in the Online Portal
Their e-commerce portal began showcasing “frequently bought together” suggestions, such as adhesives with tile, or rebar with poured concrete, just before checkout.
- Personalized Follow-ups
Account managers used reminders and checklists during follow-ups to ask, “Do you have everything for the next phase of your project?” prompting customers to consider additional needs.
Results
Increased Average Order Value
Within six months, the average order value grew by 17%, largely driven by bundled sales and better-trained reps who added value without being pushy.
Higher Customer Satisfaction
Contractors reported improved job site readiness and fewer delays due to forgotten supplies. This resulted in stronger trust and repeat orders.
Reduced Delivery Costs
By consolidating more products into single orders, delivery efficiency improved, cutting logistical costs by 9% per order.
Enhanced Customer Retention
Clients began viewing the distributor as more than a vendor — they became a resource for complete project support. Customer churn decreased significantly over the next year.
Key Takeaways
Upselling must focus on convenience and relevance, not just increasing revenue.
Training and CRM tools are key to recognizing opportunities and personalizing suggestions.
Bundled solutions make it easier for buyers to make quick decisions while feeling supported.
This case proves that thoughtful, customer-centric upselling is not just a sales tactic — it’s a strategic growth lever that benefits both distributors and contractors in the construction industry.
