Where Business Meets Business: Turn to B2B to Unlock New Revenue Streams

One of the best ways to diversify your audience and differentiate your business is through business-to-business (B2B) sales. When you think of B2B, you probably picture outside sales teams making cold calls, and while that method is successful for many, retailers are finding success beyond traditional outside sales teams. Whether you’re looking to build B2B from the ground up or just evolve existing B2B programs, these four best practices can steer your strategies to success.  

Build Relationships

When it comes to building any area of your operation, developing positive relationships is key, but even more so in the B2B segment, as busy pros often want and need those extra touchpoints and involvement.

As the third-generation owner of Hardware Sales based in Bellingham, Washington, Ty McClellan’s operation is unique in that 70% of the business comes from online sales. Of the 30% of business done in the store, 70% is B2B business.

Hardware Sales launched its B2B segment in the logging industry, selling cables, chokers and other related products, and then branched into hardware B2B and moved to retail from there. In all segments of the business, relationships have been key to success, but nurturing those connections has been crucial to the B2B side. 

“Face to face in relationships is everything,” McClellan says. “Customers having your salesman’s cell number in their pocket and knowing they can rely on that relationship is huge.”

As a lumberyard with contractors and homebuilders making up a large part of its customer base, Valley Ace Hardware in Westcliffe, Colorado, has always had B2B as a part of its DNA.

“Focusing on B2B isn’t a new initiative, it’s how we’ve continuously operated. In fact, about half of our business today is B2B,” says Sarah Handy, who co-owns Valley Ace Hardware with her husband Jeremy Handy. “That’s not just a number; it reflects how deeply embedded we are in supporting local builders, contractors and businesses. Our motivation has always been simple: when our business customers succeed, our whole community grows stronger.”

Jay Donnelly, owner of Flanagan Paint & Supply with five locations in the St. Louis Metro area, says B2B makes up nearly 80% of his operation’s audience and is focused on contractor sales, which has grown thanks to purposeful engagement with those pro audiences.

“When I got into this business, the first thing my dad taught me was to make friends with customers, so I don’t know anything else,” Donnelly says. “We push our team and our salespeople to lean into friendships and be 100% relationship driven to align with our best-in-class product and offerings. Our biggest competitors don’t want friendships because they want to be able to replace their people overnight. But building relationships, that’s our strength.”

Offer Convenience and Efficiency

Along with strong relationships, pros, contractors and other B2B audiences require efficiency in their businesses to be successful and demand that from retail partners.

At Hardware Sales, McClellan says the industrial sales team put several systems in place to provide an extra layer of convenience for B2B customers, including a software program where each customer can access the quantity they buy on a regular basis, the current price and what is in stock. When the outside sales team visits customers on-site, the customer can place orders directly with the salesperson.

Hardware Sales also has a fulfillment program—vendor maintained inventory (VMI)—in place where it will keep products stocked at B2B customer locations, from a warehouse to a shop to a long-term job site, McClellan says. The team works with each B2B customer on what products to stock in the VMI and establishes maximum and minimum numbers for each product.

Inventory in the VMI is not billed until inventory items are removed. The VMI is inventoried by an assigned Hardware Sales sales team member once or twice a week, depending on the need, and inventory is replenished based on use from the previous visit.

This program allows employees of these B2B customers to grab what they need after morning meetings and head right to the job site rather than having to come into the store, saving time and improving their bottom lines. The VMI program keeps staff on the job, reduces travel to and from the supplier and limits tasks, touches, steps and delays that distract from a customer’s job site needs, McClellan says.

“If pros are in my store shopping, I love that, but that’s not efficient or profitable for them,” McClellan says. “The more efficient we can be to provide the inventory they need, the better we can serve customers. When they are away from the job, it costs them money. We build those relationships and let them know how we can make them more efficient.”

For Valley Ace Hardware’s B2B customers, quality service and convenience aren’t just nice to have—they’re essential. Handy says the operation’s B2B program is built around making customers feel valued at every step, with each business account paired with a dedicated team member who acts as a partner, not just a salesperson.

“For example, with our custom homebuilders, we don’t just supply materials. We sit down with them early in the process, help plan bids and map out a project timeline so everything runs smoothly,” Handy says. “Our B2B audience ranges from custom builders and contractors to property managers and local businesses, all of whom rely on us to anticipate their needs and deliver solutions that make their work easier.”

Go Above and Beyond

As those pro relationships grow and evolve, being able to go the extra mile can mean a lot in keeping those relationships strong. 

When customers ask for an item that Hardware Sales doesn’t carry, the outside sales team works with the inside sales team to procure it.

“We might not know what it is or where to find it, but we always take the opportunity to go above and beyond,” McClellan says. “Recently, a customer wanted three truckloads of certified weed-free straw. We didn’t say, ‘No, we don’t have it,’ but instead said, ‘Let’s go find it.’ Being that resource and having a team that doesn’t get scared and will dig underneath those rocks to find whatever customers need can go a long way.”

Every day, Handy and the team at Valley Ace Hardware prove to customers that they exist to go above and beyond to serve customers by offering competitive pricing, maintaining strong inventory and making their success the operation’s success.

“We don’t just sell products; we stand beside our builders and contractors, even meeting with their clients to explain the value of the materials being used,” Handy says. “And we stay connected long after the project is complete, ensuring homeowners are just as confident in those products as the builder who installed them. That level of dedication is what sets us apart.”

That willingness to go the extra mile is also how the operation attracts new business—their reputation for service precedes them. New customers often come because they’ve heard that Valley Ace is not just a hardware and building supply company but a trusted partner committed to helping them deliver quality and peace of mind.

Valley Ace Hardware proves it’s dedicated to B2B customers with a fully dedicated B2B team, an entire Pro Desk section within the store complete with its own entrance, pro parking and space for meetings and training. Pro team members are trained specifically in homebuilding and are equipped to offer services like site visits, equipment rentals, blueprint takeoffs and reliable delivery. The outside sales team takes it a step further by focusing on certifications and additional product training, particularly in installation.

“This ensures we’re not just supplying materials but also providing the expertise that helps our business customers work more efficiently and with confidence,” Handy says. “Ultimately, our staffing model reflects our philosophy: B2B deserves its own dedicated attention, and we’ve structured our team and resources to deliver exactly that.”

For over 40 years, Ned Green, owner of Weider’s Paint & Hardware, has been a part of the independent channel, and during his tenure in the industry, he has always worked to find ways to grow and differentiate. His operation has three locations in western New York, with B2B sales making up 25% of sales at one of his locations and 16% of sales companywide.

Green strives to exceed expectations every day, but one instance sticks out to him. A customer came into Weider’s on a Sunday at closing time. Rather than turning him away, Green welcomed him into the store—lights off and all—and he bought 18 cans of spray paint and rented the striping machine. When the customer returned the striping machine the next day, he told Green how impressed he was with the extra level of service Green offered. That customer is now a $100,000-a-year customer.

“It wasn’t an overnight deal, but helping them out and going above and beyond just that one time was the start of a long-term relationship,” Green says.

Donnelly says he has trained his staff to do everything they can to serve customers and avoid saying, “No.”

“I always put myself in the shoes of my customers, and when a vendor tells me no, it can be aggravating and makes me want to move on,” Donnelly says. “A lot of your corporate stores are not going to bend over backwards, so that’s what moves you forward in the business-to-business category.”

Let Your Value Proposition Shine

Building relationships, offering efficiency and going above and beyond are steps any operation can take to grow B2B businesses, but it’s also crucial for retailers to lean into the unique value propositions each offers to B2B audiences.

Green’s B2B program at Weider’s Paint & Hardware is fully tailored to what his local market needs, which includes leaning into smaller manufacturers and property management companies.

“We tend to be something a little different for each of them,” Green says. “We are finding what it is that makes a difference to them, finding that value proposition.”

For Weider’s, success is found in smaller B2B clients and being able to solve problems. Looking at the products it sells to B2B customers, Weider’s can match price close to 70% of the time. From there, it’s that extra layer of service and meeting customers where they are that gets the operation business. Green says he asks the customer about their pain points and looks for ways to make each customer more efficient, whether it is offering delivery, repair or another helpful service.

“If it’s all about price, then that’s going to be problematic, but for us, it’s trying to find a value where they feel comfortable with price,” Green says. “It’s finding that solution, which is what we tend to be good at, to get you in the door. You solve the problem and one thing leads to another and you’ve gained a new customer.”

For McClellan, Hardware Sales’ value proposition is being a one-stop shop. The store has about 80,000 different SKUs in its inventory and is selling through several channels at once—brick-and-mortar, online and B2B.

“If you’re hitting all those lines, then you’re really moving through some volume, and you’re growing your business in the right direction,” McClellan says. “It helps you with profitability, because you’re selling in every sector you possibly can then. And if we can find other sectors where those products fit, then we start getting a lot of overlap in those products and next thing you know, you’re able to buy in mass volumes, getting costs down.”

Punctuality has also been a key differentiator and value proposition for the sales team at Hardware Sales. The team has won numerous jobs just by getting their bids out in a timely fashion—typically within 24 hours.

“Punctuality today is not what it was 20 years ago. Customers are passing on those other companies because they don’t get the bids in on time,” McClellan says. “We strive to be punctual and utilize customers’ time efficiently.”

Offering services has brought in a number of additional B2B customers to Flanagan Paint and the revenue that comes with them, Donnelly says. The operation has been doing pump and spray equipment repair for nearly 40 years and employs an excellent small engine repair employee who has expanded into other areas, namely lawnmowers.

“Now we’re also doing zero-turn mowers and getting additional business from facilities that previously wouldn’t buy paint from us,” Donnelly says. “But now that we’re doing all their yard equipment, they’ve opened the door to us, and now we’re selling them paint.”

Adding value to B2B customers by utilizing technology sets Valley Ace Hardware apart. Beyond benefits like streamlined communication, Handy says the team actively promotes its business partners. The company features them on its website, which has become the community’s go-to directory for trusted local contractors, from plumbers and masons to landscapers and builders.

“That free listing gives them visibility and credibility and many have gained new clients because of it,” Handy says.

Valley Ace Hardware also promotes business customers through in-store TVs, in its quarterly newsletter and on social media. Enhanced exposure is available in Valley’s Pro Directory, where marketing dollars are tied to sales with the company. The sales team will report back the results to B2B customers as an added value for their loyalty.

The key to keeping all of these extras managed is using a customer relationship management tool, Handy says, which allows them to communicate directly with customers based on their business type and makes newsletters and outreach far more relevant. Quarterly newsletters include building trends, economic reports on commodity pricing and invitations to “Builders and Brews” events, which are quarterly gatherings that combine vendor-led product knowledge with networking.

“At the end of the day, our B2B program is about relationships. We succeed when our customers succeed, and that means investing in their businesses as if they were our own,” Handy says. “Whether it’s through personalized service, innovative marketing tools, community events or just showing up when they need us most, our focus is always on adding value and earning their trust. B2B isn’t a side of our business—it’s at the heart of what we do, and it’s what allows us to keep serving and strengthening our community for years to come.”