Reference no: EM131459335

Question: On May 4, 2007, the Green Acres Bed & Breakfast at 122 W. Iowa in Greensburg, Kansas, was destroyed by an F5 tornado. To innkeepers Janice and John Haney, this wasn't just the loss of a business, but also of their home. The brick, split-level house was built in 1926 by a high school shop teacher. It was tidy, charming, and filled with period detail and Janice's hand-made quilts. "We had never had any intentions of ever building a new house, we were just very happy with the house we had," Janice said. As inviting as the home was, Janice admits that it was drafty and in need of some energyefficient upgrades. "This was an opportunity for us to want to do something bigger and better and a once-in-a-lifetime opportunity to make it as green as possible," she said. The Haneys did not decide to rebuild right in town, instead choosing to build a larger, more energy-efficient home on some family land about eight miles out of town. For the most part, Janice left the construction to contractors and kept the decorating for herself. Farrell Allison lived right off Route 54 in a beautiful 100-yearold Victorian with stained glass and elaborate woodwork artfully restored by Allison and his wife. It was a lifelong labor of love, but when the tornado seriously damaged the home and plans were announced to reroute a new highway right through the Allisons' backyard, it was time to move on.

Never one to shy from a challenge, Allison hit the books and set out to build the greenest house in Greensburg. His new home is truly state-of-the-art, even for the new Greensburg. Unlike the Haneys, Allison, a soil consultant, is acting as his own contractor, sourcing his own materials, hiring crews and subcontractors and, of course, managing the budget. "Contractors are a different breed," says Allison. "I had one, the heating and air guy say, ‘You know you are really particular!' and I said, ‘I'm payin' the bills, I'm the one who's gonna be living in this house, you're not, and this is the way we're gonna build it.' " Allison has become such an expert in green building that contractors and even government agencies such as the USDA's Rural Development arm have come to him for advice on building green. Mike Boyles, owner of Calmarc Construction, had been building homes in the Wichita, Kansas, area for years, but when the tornado destroyed 700 houses in Greensburg, he knew exactly what he had to do. He went home. "We couldn't be here by ourselves," says Boyles, speaking about B&B Lumber, their regular lumber vendor in Wichita. Even before the tornado, Greensburg residents had a tough time getting contractors, repair services, and supplies. After the tornado, it was impossible to source materials locally, especially the environmentally friendly products Greensburg residents are demanding.

Calmarc's ability to serve these customers relies on the existing relationships with vendors like B&B. Randy Mude, a sales representative with B&B, doesn't mind going the extra mile. "Every stick you move and every piece of plywood you sell is a benefit to your company," says Mude, adding that if the tragedy hadn't happened, he'd probably be doing the same volume of work with Calmarc in Wichita. "If we give Mike and the homeowners out here some extra attention and time, we have to [do it] to make things right." Mude even takes their Greensburg clients to his own home to get ideas and see what some of the products will look like. In turn, Mude gets the opportunity to learn about and try new green materials, which he hopes someday to sell to larger developers. While the town provides residents with a list of reliable contractors, most are not from the area and don't understand the needs of the people the way Boyles does. "They didn't ask for this, and we have to understand that," he says. Those who choose to build back green are constantly researching and bringing questions and ideas to Boyles and Mude. Boyles often incorporates pieces from the old homes into the new homes he builds, and spends a lot of extra time working with his Greensburg clients, adding, "if this was a different place and I didn't know the people, it wouldn't be worth it." When it comes to buyers and sellers, regardless of whether you're talking business-to-consumer or business-to-business, the same principles apply; caveat emptor, buyer beware! The Haneys, like most homeowners, put their trust and dollars in an outside contractor and luckily for them, their new home came out beautifully. Sadly, not all Greensburg residents have been .

1. How are the Haneys, Allison, and Boyles similar in terms of their consumer behavior? How are they different?

2. Would you consider Allison a regular consumer or a B2B buyer?

3. Why is it important that Calmarc maintain a good buyer-seller relationship with B&B? What does Calmarc get out of it and what's in it for B&B?

4. Write a report on the advantages and disadvantages of working with customers who want to act as their own contractors.