Making dollars by turning on a dime

By Carla Waldemar

ll ['ARK Dremel saw it coming. Actually, it tapped him IVlon the shoulder-twice.

His first premonition of choppy waters soon to churn the industry was when he found himself a victim of downsizing from his managerial position at Sutherland's, in Kansas, where he'd worked 23 years. Setting out on his own-this time, on the other side of the counter as a home remodeler-he grew to sense a growing hunch that hard times were ahead for this breed of builder. too.

So, answering an opportune want ad seeking a general manager at Mossman Lumber, a small yard in Louisburg, Ks., proved a bonus for both parties. Second-generation owners Julie and Bob Rand "liked what I brought to the table," recounts Mark with an easy Kansas twang, "and I was attracted by a yard that was family-owned, not corporate."

A yard, launched in 1963, that had done right for itself in this small town, not far south of Kansas City. One that delivered to seven counties and to the big city itself-but, as Mark was quick to observe, one that needed to reinvent itself to maintain traction in the hard times blowine their direction.

Mossman, like many a yard across the country, had focused almost entirely on the pro builder. Mark perceived the need to change that thrust, and fast: The one thing you don't want is to be the last one around to buy into a new idea.

"I got the ball rolling," he says, soon after his sign-on last September. "I saw a good opportunity to grow," he explains, and the Rands, trusting in his expertise, agreed.

Within the space of three months, the center's 2,500 sq. ft. of floor space was completely redesigned and remerchandised to attract new retail clientele. Within a new, open floor plan, aisles were widened, brightened, cleaned. Endcaps multiplied from four to nine. Items were regrouped to make shopping easier; in fact, shopping baskets were provided. SKUs stayed about the same in number, but, department by department, were more intelligently distributed (with the help of True Value's Plan-o-gram service, available to members via the Web), adding more depth to plumbing, electrical, paint and hardware lines.

Mark paid particular attention to the paint and decorating departments in order to woo women shoppers, who, he's well aware, act as the family's decision-makers in these fields. "We added more eye appeal, made things easier to find"-and thus, in just a matter of months, doubled Mossman's retail trade.

Sure, those folks could just as easily shop at the nearby Lowe's, Depot and Sutherland's-boxes where, Mark laughs, staffers simply "stand and point, like traffic cops." Instead, "we can give our customers the individual attention that the big boxes cannot. Experience is our fort6. The employee who handles our inside ordering," Mark pulls out a quick example, "is a fourth-generation hardware man. Our strength is that kind of expert advice: Whatever people need to help complete a project, we've got the knowledge. And we bend over backwards for our customers.

"Plus," he adds a vital footnote, "our pricing is competitive. We're not the lowest price," he's quick to clarify, "but most d-i-yers don't want the lowest price, they want a fair price. They want value."

Another bonus: "Those retail customers pay in cash, while builders have 30-day accounts."

To further cement the bond with these new retail customers, Mossman offers services like re-keying door locks and cutting keys-up to 30 a day, in fact, which works nicely to drive traffic through the store. The operation also has become an official UPS drop site. In yet another user-friendly move, store hours have been extended weekday evenings, allowing commuters returning from Kansas City to pick up items on their way home. Mark then added three hours to the former noon closing on Saturdays, which already is paying off.

Builders dote on that kind of customer-forward attitude. too. and Mossman continues to serve them better than the next guy. Delivery is free for the pros, Mark says. "Plus, they can pull up right to the door and we load them. At a Depot, they have to park way out, hike across the lot, find what they need (if they can), and push it out the door. The pros know we're here for them: If they need 50 2x4s in a hurry, we'll run 'em out."

To further build loyalty, Mossman refers these pros to retail customers who seek help on their projects. "We believe in relationships like these," Mark explains. "That's what doing business is all about, and people [in the business of sellingl are inclined to forget that." Big mistake.

Mossman doesn't leave awareness of the turnaround to chance. It gets the word out through advertising, with help from True Value, and also uses local radio spots, which always include the store's tagline, "We leave the coffee pot on for you." A simple, friendly message like that, he says, "gets them in the store:"-every retailer's objective. And it's working fine: "We've had lots of positive comments."

But in these grueling times, you can't feed the family on good words alone. Astutely, Mark swings a doubleedged sword. He's been cutting expenses where he can, including easy moves like turning off lights and lowering the thermostat at night: "We reviewed all costs in an attempt to tighten up." As this seasoned operator knows, "In good times, that can fall by the wayside."

Simultaneously, he's monitoring his margins on a weekly, if not daily, basis. "We've looked at everything, with an eye to 'What can we increase?' Not cheat folks, certainly, and still offer value. We've found the best technique is to add a bit to the insignificant, little parts-plumbing and electrical fittings, nails and screws."

Is it working? And is it worth it? Mossman's margins have been hoisted an enviable 5Vo.

Foreseeing the future before it blindsides one has worked out so far. How about from now on in, Mark? "Basically, this economy weeds out the weak builders, but the good ones will still be around; right now, they're remodeling.

"My vision for Mossman, down the road, is to increase the physical size of the store, to offer more product selection and depth." To grow services and thus to grow profits. Don't look now, but I think he's gonna make it.

Lrurrrns

ProBuild Holdings will close its lumberyard/truss plant in Racine, Wi., by Sept. 20; the facility was acquired from Big Buck Building Centers 14 months ago

Kibler Lumber, Mt. Orab, Oh., is closing its Flemingsburg, Ky., location this fall, consolidating operations at its other Kentucky yard, in Maysville; inventory, equipment and staff, including mgr. Bill Lamkin, will be moved to Maysville

F oxw orth- Galb r ai th Lumb er may be forced to relocate its Waco, Tx., yard if a local car dealership gains permission to build a new lot on Fox-Gal's current site

Lakeshore Lumber, Ludington, Mi., closed Aug. 21 after 50 years; co-owner Ron Sanders had retired in January, while partner Brent Scott is considering launching a flooring company at a different location

Hines Lumber Co. has closed its River Forest, I1., yard after 99 years

South Lyon Lumber True Value, S. Lyon, Mi., was forced to close Aug. 17 after more than 40 years due to unpaid taxes ...

Herter',s Home Center,Gibbon, Ne., has been placed up for sale and is liquidating its inventory, with the planned retirement of owners Barb and Dale Herter, who founded the business in I97 I

Kent Hardware, Kent, Oh., is liquidating after ll5 years; owner Wayne Demmer continues to operatp Demmer Hardware, Massillon, oh....

Lowe's opened new stores Aug. 2I inE. Lancaster, Pa.; July 31 in Hamburg and Hornell, N.Y.; Marrero, La., and S. Durham,

N.C., and July 30 in Mt. Juliet, Tn., and Summerville (NW Charleston), S.C.

Home Depot opened YOW plumbing warehouses Aug. 10 in Hagerstown, Md., and Baton Rouge,La....

Ace Hardware, Clifton, Oh., has been opened by Bryan Valerius

Wmr:slr:ns/tlrurlcrurrns

Scholl Forest Industries will shut down 6-year-old Scholl Truss & Component Co., Houston, Tx., in October, due to the downturn in multifamily construction ...

Eastex Forest Products, Houston, Tx., is now treating with MCA...

Suncoast Roofers Supply parent SRS Acquisition Corp., McKinney, Tx., has acquired Atlanta South Supply, Fayetteville, Ga., and now operates 24 branches under 7 different names ...

Correct Building Products, Biddeford, Me., received bankruptcy court approval of its timeline to sell its CorrectDeck CX brand and manufacturing operations to Building Materials Corp. of America,Wayne, N.J. ...

Sirnonton Window s, Parkersburg, W.V., has invited back to work 402 hourly employees, laid off since late last year from its manufacturing plants in West Virginia and Illinois; it is also adding 55 new positions

Viance's Ecolife stabilized weather-resistant wood preservative formulation has been certified as a Green Approved Product by the NAHB Research Center

Anthony - D o rnt er's Power Joist line has been Forest Stewardship Council certified and its exclusive sales agent, Anthony Forest Products Co.,El Dorado, Ar., FSC chain-of-custody certified ...

East Teak Fine Hardwoods. Dallas, Tx., has been FSC chainof-custody certified by Scientiftc Certification Systems ...

BlueLinx,Atlanta, Ga., has been dismissed as a defendant in a lawsuit accusing manufacturers and distributors of conspiring to fix prices on OSB and plywood

BlueLinx is now distributing LiteSteel beams in 29 U.S. markets throughout the Southeast, South, Midwest and Plains

Huttig Building Products is expanding distribution of Fiberon decking & railing lines to its DC in Wilkes-Barre, Pa. ; Huttig already stocks the products at Columbus, Oh.; Dallas, Tx., and six western branches Huttig is now distributing Copper Creek Hardware locksets and Supa Doors doors in Florida

Silvaris Corp.has expanded its OSBMarket website to offer online sales of off-grade OSB across the entire continental U.S. and most of Canada...

Anniversaries: L.I . Johnson Lumber Manufacturing Co., Charlotte, Mi, l00th

Housing starts in luly fell l%o to a seasonally adjusted annual rate of 581,000, , depressed by a l3%o drop in multifamily activity ... single-family rose for the fifth straight month, inching up I.lVo to a 490000 annual pace permits l.8Vo to a yearly rate of 560,000. Send

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