An ALLPRO® Publication JULY / AUGUST 2015
By Joe Poliseo
Who Says History is Dull? Things have been anything but dull at ALLPRO since the last historical summary was prepared in 2009. 2010 saw the addition of nine new vendors added to the approved roster of suppliers, as well as seven new members. As many companies found these economic times difficult, the group also lost seven members to resignation. In spite of the economic challenges, there was still a large net gain in storefronts.
location, housed in our home office in Tampa, FL. The corporate office would be relocated to a facility that had adequate warehouse space for the distribution center to begin operations. It was projected that the new location would serve the Southeast from Florida northward to the Carolinas, and west to
additional Stockholder members voted in at the spring meeting; it was the first net gain in number of members during the last few years.
Member purchases through the group were growing steadily and purchases from the Massachusetts DC were increasing. So much so in fact, that the distribution center offered a “VIP” for the first time to those members who supported the facility. As stated earlier, the ability The ALLPRO Distribution to fulfill orders, especially Center in Massachusetts for ALLPRO brand goods, in was growing at a very between member direct nice but controlled rate, purchases was great. This and exceeded success culminated in the expectations in ALLPRO headquarters profitability in just the 2nd relocating to a new facility full year of its existence. in September of 2011 and This new and beneficial served as the beginning of feature of the group our second successful provided a great deal of distribution center. The new aid in growing the number DC was scheduled to start of ALLPRO brand lines at servicing a limited many member geographic area in the ALLPRO’S Southeast Distribution Center shares a building with our Corporate Headquarters. companies. Support of all Southeast before the end of ALLPRO suppliers continued to 2011. Membership continued to Texas, Oklahoma, and Missouri. strengthen during this period and grow and ALLPRO surpassed Research on the new facility was a major push to the Business 1,500 storefronts for the first time began by 2010’s end. Development Team, soon to be in our history. four strong. ALLPRO’s 2010 BDT 2011 began with a similar pattern Much of the work in the following saw the retirement of Steve in membership. We added some year was dedicated to outlining Meyer and the addition of Tim great new members, but also lost and designing a new accounting Jeffries and Mike Roesch. others due to difficult economic system. The current system was times and outside acquisition. With the continued benefit outdated and it was becoming Three new companies joined, and provided to the membership by clear that with our steady growth, three resigned in the first quarter. the Northeast DC, plans were it would soon be unusable as The tide began to turn in favor of being formed and budgets invoice transaction loads the independents with three (Continued on page 8) outlined to open a second
Why Not Chalk Paint? by Gert Goossens & Natasha du Coco “Shabby Chic” artists - a growing group with the ability to create true pieces of art. Shabby Chic is a form of interior design where furnishings are distressed to achieve an antique appearance.
Many decorative and professional painters have received requests from customers to paint outdated kitchen fixtures, and many times the client's reason is that they received a quote to remodel their cabinets and hyperventilated... Kitchen upgrade bids begin at several thousands of dollars and can exceed the cost of a nice Mercedes or BMW. Not to mention the huge, dusty mess a renovation project creates. Kitchen remodeling isn't cheap, but painting is a great alternative if the overall condition of the kitchen is fair to good. Houses built in the 1980's or 1990's for the most part have solid wood kitchen cabinet doors. They’re usually golden oak and they can look outdated, but removing and trashing them in the local landfill isn't the only option available anymore. There are three sources that a homeowner could turn to for help in completing a kitchen cabinet overhaul. Traditional interior and exterior painters are the first, and they certainly would be able to take on a standard kitchen upgrade project, but most of them won't want to and one of the main reasons is that it is very labor intensive. A second choice is specialized faux-finishers, but their pricing is much higher than the painters. The third choice is
Shabby Chic artists use all kinds of materials, but the majority of them are working with today's chalk painting products. Chalk paints go back thousands of years and have been found all over the world, from Russia all the way to Italy. Chalk painting products can be used for painting furniture of all kinds of styles, from Modern up to the very popular Shabby Chic style. Some people associate this kind of paint with the kind used to make chalkboards, but that is a completely different product and can't be used to finish furniture. More and more homeowners are making the decision to let a local artist refinish their kitchen cabinets. This trend is eating away the market share of traditional painters. We estimate that every month at least 200,000 homeowners nationwide choose artists to refinish their kitchens. These artists could also paint the kitchen walls in matching colors, so the clients grant them the entire painting job. It's a one-
stop service they offer, and it is effecting the independent paint store owners’ bottom line. So, what are contractors and independent paint store owners doing to save these lucrative contracts? In Colorado, ALLPRO member Guiry's, a paint, home décor, and art supplies store founded in 1899, lets contractors enjoy free classes at their stores to get familiar with chalk painting products and learn the unique techniques used to deliver a truly stunning end result. Attendees learn a new art form, and Guiry’s has the added benefit of higher foot traffic in their stores. The experience of using chalk painting products among professional contractors and independent paint store owners is varied; some have used it at home while others have never heard of it. We have been doing our own market research for two years on how contractors think in regard to chalk painting products. We don't want to generalize, but be honest and think about whether or not you share one of these thoughts:
Thought #1: "I've been doing this for 30 years and I don't need to have (Continued on page 6)
Natasha du Coco leads a workshop at ALLPRO member Guiry’s Inc.
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Byrne Paint’s Formula for Success by Susie Fontana Martin Byrne Jr. believes that hard work, flexibility, family, and solid business relationships are responsible for Byrne Paint’s first 64 years of success. I recently had the pleasure of speaking with Marty Jr. of Byrne Paint Company in Toledo, OH. Marty gave me the history of Byrne Paint and some insight into their success. Byrne Paint was founded by Marty Jr.’s great-grandfather, Charles Byrne, in 1951. Charles was a traveling paintbrush salesman who traveled by train with large tote bags. Charles’ sister-in-law was the Benjamin Moore office manager at the time, and Benjamin Moore asked him to open a store in Toledo, OH. Charles opened and ran that store successfully for about four years until his passing, when his wife and son Charlie took over and continued his success. Today, third-generation family members are now running Byrne Paint under Martin Byrne Sr. “We’re a family owned and operated business. Our main focus and source of pride is our dedicated service to our customers,” says Marty Jr. “Naturally, we have family employees, but it’s interesting to note that we have had only four non-family employees over the years.” Marty Jr. calls himself the “black sheep” of the Byrne clan because he doesn’t have a huge family of his own yet. He says he loves every one of the 70-odd hours he works each week, and that working for the family business is something he always wanted to do. “I was always at the store when I was younger – sometimes because I was suspended from school. I would help with deliveries and the grunt work,” he recalls. “Getting suspended sometimes was a virtue!”
Marty Jr. graduated from high school in 2002 when Byrne Paint joined ALLPRO. He began working on the engineering side of bridge building, and worked many rewarding hours there. “My Dad needed me at the store, so I came on board to help out,” Marty remembers. “When I first started at the store I knew about mixing colors and the drywall side of the business from my childhood, so I picked things right up. I waited on the
“I was always at the store when I was younger – sometimes because I was suspended from school”
customers who came in and talked to them about colors. Sometimes I’d make deliveries and I did the grunt work. I helped out where I was needed. Working for the family business is nice because everyone is flexible; family comes first and others will cover for you if something comes up.” Marty Jr. has no official job title per se, but makes outside sales calls, does inside sales, completes warranty work, makes spray repairs, and even puts in product orders. Sometimes he helps his father, Marty Sr., with the accounting, but he prefers the hands-on side of the business where he can interact with the customers. “Everyone helps out and does what needs to be done; there are no delineated jobs, we just do it all. I specialize on the equipment side of the business; everyone has something that they’re really good at, and we try to divide 3
things up that way to better serve our clients.” Clearly this system is working well for Byrne Paint. Byrne Paint’s customer base is primarily comprised of general and painting contractors located in northwest Ohio. “We still have the one store, and it has grown and expanded to serve our customer base, which is about 95% contractor and 5% retail,” says Marty Jr. “At Byrne we don’t advertise to the retail markets due to the box stores, since each one of them has four locations in this area. Instead, we make sales calls to the contractors in our area. We feel this is better because it’s more of a personalized experience for our customers.” Marty explained that they cater to everything that a service contractor would need. From drywall mud to spray finishing and spray equipment repair, and anything else a contractor would need in the paint industry, Byrne Paint provides it all. “We do contractor-type showings in the store and at job sites to highlight new products so contractors can see at their site how new products will work for them. It’s one thing for me to tell you how a product will work,” Marty instructs. “It’s another thing entirely for me to show you how to apply that new product to your job site and let the product show you why you should buy it.” Marty says that Byrne Paint does not advertise in the conventional sense. “We have a website and we’re starting to use Facebook more. We don’t do commercials. We make a lot of contributions to local churches and high schools. We support and donate to football and other local teams and put our name on their
sports flyers,” Marty explains. According to Marty, this community involvement is what sets Byrne apart from the big boxes. “People. That’s what we are about. We don’t try to sell you, we form friendships with you and teach you. Many of our contractor clients are our good friends. It’s more of a personal relationship. We tailor our service to our contractors, but it’s not a “business” type of relationship, it is one of mutual trust and respect.” In fact, instead of spending advertising money on television commercials, they celebrate their appreciation for their contractors throughout the year. They hand out free shirts and sweatshirts frequently throughout the year. All of their contractor clients are invited to share deep fried turkey and duck at a Christmas celebration in their honor. Marty Jr., who lives about a block away from the store in the art district of Toledo, has been known to participate in the Art Walk, where he exhibits “projects” such as drywall faux finishing. People anticipate his art and stop by frequently to see what Marty will create next. This innovative, inexpensive form of advertising appeals to consumers who again, can see the product in use before buying it. Marty explains that employees at Byrne Paint further their knowledge by taking online classes and reading, and then passing what they learn on to other employees. They go to the websites of major industry suppliers and get certifications or take courses on such things as coatings inspection. Marty says he has a well-used library at home and also another one at the store. “The website www.paintinfo.com has a tremendous amount of up-todate information, and it is tied in with the Master Painters
Institute, so you know it’s a quality educational resource,” explains Marty. When asked about the benefits of ALLPRO membership, Marty Jr. says, “We have the buying power of the big guys; at the shows we’re able to meet personally with all of our suppliers. They learn who you are and vice versa. You have the power to negotiate better deals when buying more than the show deals offer. Plus, ALLPRO has great private label products made by our supplier partners. They’re the everyday sundries that the contractors need most, and they’re priced better, which in turn helps our bottom line. We regularly read the ALLPRO bulletin board on the website for the valuable information that other members post. It’s a great way to see what other store owners are working on. We collaborate with fellow members at the shows and during the meetings too.” Marty Jr.’s advice for newer companies is simple. “Get out and meet people. Advertising helps and it will bring people in, but you have to get out there and work with contractors in the trenches. When you show them you are interested in helping them, and get yourself out there, you earn their trust and you learn the ropes. Be a painter or dry-waller or work with coatings. Know everything about your products and how to use them. Then you can truly explain what you’re selling your customers by showing them,” he advises. As far as plans for the future, Marty Jr. hopes that Byrne Paint will maintain its successful forward momentum. He says that they’ve thought about the pros and cons of expanding, and he realizes that there isn’t a huge market right now. 4
“We’re centrally located, and that’s an advantage. We’re always trying to find new startup contractors and this is a great location for that.” Marty admits that more property and space in the store would enable them to stock more products, such as board, etc. He says they are growing and want to continue taking care of their current customers as well as future ones. “Eventually we’ll need to hire people for deliveries, instore duties, and to make sales calls. That would will help us to get out to the job sites with our customers more and mingle in the community. I like being able to be in the store conversing with people as well as being in the field,” says Marty. It’s a strategy that has worked well to create balance and keep everyone fresh. Creative advertising, community involvement, client appreciation and mutually respectful relationships keep Byrne Paint in the forefront of their customers’ minds. Up-to-date product knowledge and hands-on work in the trenches at client job sites has given them a competitive edge over the competition. Add it all up, and it’s hard to argue with Byrne Paint’s 64 year formula for success.
The Byrne Paint family, pictured left to right: Steve Byrne, Charlie Byrne, Martin Byrne Sr., Martin Byrne Jr. Pictured in the smaller photo is Charles Byrne Sr.
ALLPRO
®
Company Profiles
ALLPRO has had the good fortune to continue to add the highest quality companies in the industry to the group. We are pleased to profile some of our newest member partners.
A & E PAINTS 1999 when Benjamin Moore purchased it. J. C. Licht then grew to 38 stores at its peak. EPCO was started in 1936 by Elmer Puls in Evanston, IL and grew to 17 locations. EPCO joined forces with J. C. Licht in 2009.
• Founded: 2008 • Location: Port Charlotte, FL • Website: www.AandEPaints.com • Current President: Darrell Young • ALLPRO Contact: Darrell Young, Mary Young, and Austin Young
KATALYST CORPORATION • Founded: 2007
• # Full-Time Employees: 8
• Location: Beech Grove, IN
• A & E Paints is a family owned and operated paint store located in Port Charlotte, FL. We carry a full line of Benjamin Moore, PPG, and Porter products. Additionally, we offer airless spray equipment repair and servicing. We strive to go above and beyond in all aspects of our business in order to satisfy all of our customer’s needs.
• Website: www.katalysticd.com • Current President: Kevin O’Malley • ALLPRO Contact: Kevin O’Malley, Kenny Westell, and Mark Wentzel • # Full-Time Employees: 6
• A & E Paints opened for business in Port Charlotte, FL in June, 2008. We are a local, family owned and operated paint store that services both the DIY homeowner and the busy contractor. We have grown exponentially since opening and have aspirations of opening several more locations.
• # Part-Time Employees: 2 • Katalyst is an industrial coatings distributor located in Beech Grove, IN, a suburb of Indianapolis. Our primary focus is providing industrial and high performance coatings for both shop and field applications, along with related application tools and equipment. We serve architectural, commercial, OEM, industrial, and military customers. With a combined 135 years of experience, including our NACE certified coatings inspectors, we work as a team to develop solutions for our customers.
J. C. LICHT, LLC • Founded: 1907 • Location: Carol Stream, IL
• Frustrated by the inability to give customers the type of products and service that they deserved while in the corporate setting, Kenny and Kevin struck out on their own in the summer of 2007 to create a supply source specifically for the commercial and industrial customer. Kevin had been a Regional Manager and Kenny had been the Industrial Sales Representative for a large paint manufacturer. Like many ALLPRO members, they recognized that customers were looking for effort, service, and specialty problem solving products rather than just the lowest price. Although the economy wasn’t the best for a fledgling business, the formula for success was right and the sales came. Growth has been steady from the beginning and plans include the launch of an e-commerce store this summer.
• Website: www.jclicht.com • Current President: Elliot Greenberg • ALLPRO Contact: Pete Kramer • # Full-Time Employees: 200 • J. C. Licht, LLC operates 31 locations in Chicago and its nearby suburbs. We are focused on providing superior service to contractors, designers, and homeowners. We have a large outside sales force and commercial center that delivers product throughout Chicagoland. • Purchased by Elliot Greenberg and David Cohen in January 2015, J. C. Licht is the combination of two separate paint and sundry powerhouses, J. C. Licht and EPCO. We have deep roots throughout Chicago and its surrounding suburbs. J. C. Licht was started in 1907 by Jacob Christopher Licht, and it remained family owned and operated until
• Company Slogan “We’re Your Last Layer of Defense!” 5
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‘layering paint’ explained to me." You’ll be surprised how many professional painters we’ve met that think that way, and we understand their concerns. The thing is, modern chalk painting products react differently than traditional flat paints. Standard paints are developed to be applied with a minimum of strokes, need to last for several years, and won't be touched again, while chalk painting products are meant to be layered onto surfaces that will be used frequently. Chalk painting products provide different artistic capabilities. For a Shabby Chic project we apply the chalk-finish paint and keep working it for several minutes; it's almost like molding clay until you're satisfied with the shape. Once it dries, which happens rather quickly, a second layer of a different color is applied. This can be done with many different colors to provide a truly unique end-result. After the colors are applied the surface is distressed by rubbing it with a wet cloth or scrub sponge. Using this wet distress technique, we are able to avoid excess dust flying through the air and the endresults are gorgeous. Finally, we wax the surface with a clear or colored wax, and apply a special finish that penetrates the wood to protect it like a varnish.
products because you can "mold" the paint in several ways to create a unique finish, which will please even the most discerning customer.
Thought #3: "Why would I take on these specialty project workshops? I have enough work!" Yes, you might be busy right now but the market is growing and changing. Specialty projects will help set you apart from the competition. When you look on Pinterest, Facebook and other social networks, you will notice an enormous amount of interest from consumers towards hand painted furniture and cabinets. From Hollywood to the Florida Keys, Martha's Vineyard to Oregon, people love the look of chalk painted pieces. One of the reasons chalk painting products are so popular is that almost everyone can work with them and be happy with the end result. We see a lot of do-ityourselfers who’ve never had any intention of painting their furniture or cabinets take up a brush and try it with great success. Free or reasonably priced workshops where
Thought #2: "Wow! The price of chalk painting products is way above what my clients may be willing to pay!" Yes, the initial cost of chalk painting products in general is higher than a standard flat paint, but in most cases not sanding or priming will save you time and labor costs. You can charge a slightly higher price for these 6
students learn application tips and techniques are booked months in advanced to accommodate the growing demand. Professionals are requesting trainings to accommodate the requests from their customers and are happy to be able to tap into this growing market. Who doesn’t want higher profits? Independent retailers love the fact that by selling these products and offering workshops new clients are visiting their stores. A growing number of traditional paint stores are even adding hand-painted furniture to their product offerings. One of the trends we've noticed is that independent paint stores are going in more of a “boutique” direction, realizing that they need to make it fun for the consumer to visit them. Paint store owners are starting to see that this isn't just a hobby anymore. Natasha du Coco is the artist behind the success of Art du Coco. Visit their website www.artducoco.com to learn more about their innovative products.
hIn Memoriam g We would like to express our condolences to the family of Al Mordy, who recently passed away after a brief illness. Al served as President of Cloverdale Paint, ALLPRO members since 1993 and prominent manufacturers and distributors of industrial, architectural, and retail coating products in Western Canada. Al was a revered and extremely well-liked figure in the Canadian paint and coatings industry, and was active in many of the industry’s associations in both Canada and the U.S. Al was a dear friend and colleague to many and his presence will be sorely missed.
Member Happenings Congratulations to CanPro who added Monarch Paints, Abbotsford Commercial Paints, Partners Paint & Paper, and Alliston Paint and Decorating to its roster of member retailers. ALLPRO continues to steadily grow as the following members have also recently expanded: C.R. Wallauer opened its 11th location in Pelham, NY; Guiry’s, Inc. opened its 9th store in Denver, Co; Harrison Paint Co. opened its 2nd location in Bossier City, LA; Johnson Paint Company added a 7th location in Seco, ME; Miller Paint Company opened its 55th location in Spokane, WA; and Peninsula Paint Company added its 5th location in Bremerton, WA. Kudos to Huffman Paint Co.’s Kevin Jones who was chosen as PDRA’s 2015 Scholarship Award winner. You can enjoy his essay, What a Paint Store Means to Me, in the May issue. PDRA members can nominate up to two candidates each for this $5,000 scholarship, which the PDRA hopes will ease the financial burdens of the rising costs of higher education. Kevin attends Appalachian State University, and is studying business and marketing with a focus on entrepreneurship. Miller Paint Co. was profiled in the May issue of PDRA. Miller’s Marketing Manager, Dan Saunders, recounted the company’s history and touched on their employee share ownership trust (ESOT) program. “Remembering that what you do as an employee has a direct effect on the company is a great motivator,” says Saunders. Since first opening its doors over 125 years ago, Saunders says Miller Paint’s goal has been to, “…create paint specifically formulated for people living in a handful of wet, windy states,” and that Miller doesn’t valueengineer any of its products. Be sure to check out Mark My Words, the monthly column featured in The Paint Dealer magazine written by Tremont Paint’s Mark Lipton. In May’s issue, Mark writes about how economic trends have not always worked in favor of independent retailers. His article, Be a Keystone Cop, discusses the benefits of a manufacturer who realizes that retailers need higher profit margins on paint in order to support their overhead.
Supplier Happenings ALLPRO supplier partners Dripless, Red Devil, and Tower Sealants were interviewed for PDRA’s article A Good Bead, which ran in the May issue. The article discussed how surface preparation, product quality and application can either make or break a project. The article goes on to differentiate between caulks and sealants, and offers salespeople insight into the mind of the consumer as they prepare to purchase the proper product to ensure that they lay a good bead.
2015 Stockholder Meeting
2017 Spring Show & Sales Meeting
Grand Hyatt Atlanta in Buckhead Atlanta, GA, Nov 4th – 7th
The Diplomat Miami, FL, Mar 8th - 12th
2016 Spring Show & Sales Meeting
2017 Stockholder Meeting
JW Marriott Desert Springs Resort & Spa Palm Desert, CA, Mar 16th – 20th
Hyatt Regency Atlanta Atlanta, GA, Nov 2nd - 4th, 2017
2016 Stockholder Meeting
2018 Spring Show & Sales Meeting
The Westin Michigan Ave. Chicago, IL, Nov 3rd – 6th
Walt Disney World Dolphin Orlando, FL, Mar 8th - 11th, 2018
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continued to increase steadily. Switching to and implementing the use of new accounting software is a significant undertaking for any company and ALLPRO has certainly felt the ups and downs of this process. With an entirely new accounting system in place, overall business continuing to grow, and improved economic situations for many members, ALLPRO’s Board of Directors evaluated the staff composition, focusing on both immediate and future needs. As a result, in February of 2013 ALLPRO created the position of Chief Financial Officer and hired Jonathan Garrett. We were fortunate that Jonathan had a great deal of experience in working with and understanding ALLPRO’s business model. He was previously a staff accountant and later a lead auditor on the ALLPRO account working for Pender Newkirk & Co. (later Warren Averett) ALLPRO’s CPA. Having good working knowledge of ALLPRO’s internal structure, including financial workings and needs, he was able to hit the ground running. Despite some growing pains, we were successful in getting our arms around the rising demands of the business transacted through the ALLPRO office. As this stabilized challenge surfaced. The two ALLPRO DC’s were steadily increasing in transactions, volume, and value to the group. The sales through these fulfillment centers had reached a point where it was practical and necessary to bring in expertise in managing both locations. ALLPRO hired Marty Applebee as our Distribution Manager later in 2013. Marty brought with him 30 years of distribution logistical experience; he works full time at the Tampa facility and remotely with the facility in Massachusetts.
The group has always sought to support its members and vendors alike. The two distribution centers provided a new benefit to the members of ALLPRO. Another benefit was the creation of a pilot program on personnel training for ALLPRO members’ outside sales force. In January of 2014 ALLPRO, along with key suppliers, sponsored the rebirth of “ALLPRO U.” Years ago the group ran a couple of sessions for our member’s employees to promote education on the ALLPRO brand and also some basic selling techniques. These sessions proved beneficial but were very broad in nature. The new approach focused more tightly on the outside sales of coatings, along with specifics on the right sundries to accompany the sale. With the support and expertise of key suppliers, ALLPRO U will continue on an annual basis to help sharpen the skills of the members’ sales teams. We were fortunate to continue adding quality members to the ALLPRO roster and the number of storefronts represented surpassed 1,600 for the first time by the end of 2014. As of this writing, ALLPRO is just a short while away from introducing a brand new corporate business website. A more userfriendly, easy to navigate, and upto-date look and feel will accompany the quicker turnaround of information. The year 2015 has seen the addition of eight new members and five new vendors. A slight restructuring of the Business Development Team has occurred with the retirement of ALLPRO’s long-time Vice President of Business Development, Vic Meier. Our recently completed ALLPRO spring meeting surpassed 1,000 attendees and we expect the numbers to continue to rise at future meetings. Stay tuned as we continue to grow and make ALLPRO history…
Editor/Production Scott Morath
Proofers Julia Thomas Susan Nichols Susanne Fontana Olivia Davis Danielle Hernandez
Contributing Writers Joe Poliseo, Susie Fontana - ALLPRO Gert Goossens & Natasha du Coco Art du Coco
ALLPRO® President Michael Gleason
Exec. Vice President Joe Poliseo
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