(BRK.A), (BRK.B)
Off to a terrific revenue jump in 2016, Berkshire Hathaway’s paint, color and coatings brand Benjamin Moore has something additional to crow about, as the company has been ranked highest in customer satisfaction with both interior paints and exterior stains by J.D. Power.
According to the 2016 Paint Satisfaction Study, Benjamin Moore achieved the highest numerical scores over all other brands among interior paints (836) and exterior stains (814) on a 1,000-point scale.
“Benjamin Moore is proud to be recognized as the highest-ranking in customer satisfaction for our paints and stains,” said Mike Searles, President and CEO of Benjamin Moore. “We are committed to developing the most innovative, best-performing coatings that meet the needs of customers, contractors and designers, and this honor not only indicates the superiority of our products in the marketplace, but also demonstrates that only Benjamin Moore can make the impossible possible.”
J.D. Power measures customer satisfaction in the interior and exterior paint and stain market across six factors: application, design guides, durability, price, product offerings and warranty/guarantee. Benjamin Moore scored highest in the application, durability and product offerings factors within the interior paint brand segment of the study. Additionally, the brand achieved the highest score in all six study factors within the exterior stain brand segment.
The study is based on 16,128 responses measuring experiences and perceptions of customers who purchased and applied interior paint and exterior stain in the previous 12 months. Customers were surveyed from January through February 2016.
Benjamin Moore’s Strong Growth
2015 was a good year for Benjamin Moore, with the company having its best results in a decade.
The company is off to a strong start for 2016, with its best first quarter in five years.
The key drivers of the growth is a commitment to new distribution outlets.
Benjamin Moore added 265 new outlets in 2015, with a net gain after store closing and changes in brands of 79 locations.
The growth is a combination of operating conversions as existing paint dealers switch to the Benjamin Moore brand, and dealers branching out and opening new outlets.
The company emphasizes that its network of independent dealers is at the heart of customer satisfaction, as people receive a high level of service.
At the 2016 Berkshire Hathaway annual meeting, Dan Calkins, Benjamin Moore’s Executive Vice-President of Sales, noted that Benjamin Moore dealers give excellent customer service “because their livelihoods depend on it.”
Benjamin Moore has made a conscious decision to not sell its products at big box stores, such as Home Depot and Lowe’s.
The company is constantly innovating its product line, and will have a new product launch in November.
© 2016 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.