etitive lig en ce Echoing success

By Carla Waldemar

f-THRIS Beilhartz was pretty confi\,,dent when he made the decision to purchase a lumberyard l0 years ago. Okay, a little nervous, too.

He was 25 and one year out of college, where he'd studied business. He always knew he wanted to go into business, just not the family business: playing nice with a bunch of contractors and weekend waniors? Not every young entrepreneur's dream-cometrue.

Chris had helped out in his father's hardware store in a neighboring town throughout his school years, but mixing paint and counting out nails were never high on his list of career choices: Time to flee to something more glamorous, like selling spofts cars, or sports coats.

Maybe the paint fumes addled his thinking, for when push came to shove, he found it was hard to leave. "I'd come to love what we did, dealing with people on a daily basis. 'Hey, this is pretty nice: Stick to it!"'he counseled his inner rebel. And bought a tiny store in nearby Echo Bay, Ontario, Canada. (The family business would only slice a small pie even thinner, he figured: "no opportunities for growth.")

"I was confident I could run the business," he says in retrospect, "but it was still unnerving. I inherited a staff of six experienced people, many of whom were twice my age."

Cut to the chase: In the 10 years of his ownership, sales at Echo Bay Home Hardware have rocketed787o.

First order of business was a complete turn-around. The 3,000-sq. ft. store served only pros, with a miniscule retail area in front for an almost nonexistent walk-in trade. Chris projected a complete home center-onestop shopping for retail customers and the contractor base alike. He tore out a little-used window shop in the rear, enabling him to convert the entire space into a 10,000-sq. ft. showroom.

In order to beat the nearby competition (including big boxes in Sault St. Marie, l5 minutes away, where six lively independent yards also flourished), he expanded and added product lines to capture the whole project-and then some. New brands, new signage, new diversity: housewares, sporting goods, expanded electrical and plumbing, and more drew the d-i-yers and pumped up sales of lumber packages to pros as well.

During that first year, Chris drove profits from $1.8 million to $3.2 million. "We became a destination retailer," he notes. "And by adding more departments, like housewares and Christmas gifts, we could stay busier when home-building stops in winter, so we could keep pretty steady year- round and avoid layoffs."

No need for fancy ads. In a community like Echo Bay, all it takes is good word of mouth. "In a small town," he says, "that's huge. Everybody knows everybody. Plus, we're located directly on the Trans Canada Highway, with a lot of traffic."

His staff of six-"great people, happy to carry on with a young boss," says the young boss-"were good with customers. They loved the change of focus, because now they could give advice, could actually help people with their projects. Of course," he adds, "there was a learning curve with whole new product lines and a new computer system."

Staff education has always been of prime importance for Chris, however. Today the crew numbers 18. "We have monthly staff meetings at which one person presents the ins and outs of a new product," backed by supplier huddles and a monthly SBTV (Success Building through Television) video on anything from products to customer service." Chris has installed a TV in the lunchroom to make in-service training a piece of cake (or sandwich, as the case may be).

Margins rose accordingly. "My philosophy is, don't be the lowestpriced. Be competitive, of course, but not a discount store. I'm selling myself on quality of products and great service-giving advice the boxes cannot. We talk to someone face-toface, backed by lots of expertise."

Speaking of expertise, Chris has added Installed Sales to the company's dance card. While other yards remain leery of angering their contractor-customers by appearing to cut into their business, Chris has actively sought to partner with them, and, he reports, "It works great! They love it! Customers had been telling me, 'Chris, I've heard horror stories, but I trust you. I just want to write one check. Can you do something for us?'

"I take care of the payment, delivery, selling the job, and all the paperwork, while the contractors have the opportunity to do the work they love but not the paperwork, the administration, the going out in the evening after dinner to figure out bids," Chris says. "I'm not favoring one guy over another; it's equal opportunity among qualified people. It's strengthened my relationships with these contractors-no friction."

"We also install garages," he adds, "a big part of our business in Sault St. Marie. We've established a reputation as the local leader."

Because he knows the importance of keeping fresh and clean and ahead of the competition, tn 20O7 Chris remodeled the home center once again. "We tore off the front of the store and added an awning, to look more like a country store. Plus, under it we can store barbecue grills and lawn mowers," he adds. "It looks pretty sharp. With it, we added a garden center" to further diversify Echo Bay's multiple niches. "Plus, we greatly increased out kitchen department with new display areas and hired a full-time designer- and itjust took off!" he reports.

Echo Bay is currently experiencing the same economic travails as the rest of the globe, of course. "Last year was a really good building year-the best ever," says Chris. "We sold a lot of house packages and cottages. Today, it's mostly remodeling, but that segment remains strong.

"When times are tough, you buckle down and do what you have to. Lean times give you the opportunity to look at where you can save. But," he insists, "we've had no layoffs: my mode of operation from day one. Lots of stores hire on extra part-time people in summer and then let them go when the season slows down, but I'm just the opposite: In slow times, we do the remerchandising work we have to do. Full-timers are key to retain," he feels, "because they're loyal and they know your products. In a small town, you've got to focus on that kind of friendly service."

Chris is quick to point to a key component of Echo Bay's success: "My wife! Her support. We work side-byside, day in and day out. I tell people that working with your spouse is the greatest thing....and also the worst thing. You've got the same goals, but also a [potentially] stressful relationship. If it's a bad day at work, you might bring it home with you...."

Well, you could always open a second store to add to the mix and never lack for conversation. And that's exactly what's next up (though not necessarily why). "I just completed a buy-out of my father's original store in my hometown," Chris proudly announces.

"This will be a learning curve for me, to juggle two stores," he acknowledges. "I'm a hands-on manager, but I'll need to be more of a manager that puts policies and procedures into place and then trust other managers to implement them."

Hey, it'll keep a person from getting set in his wayseven ifhe's only 35.

- Aformer award-winning LBM trade magazine editor, Carla Waldemar writes frequently on the industry. Contact her at cwaLdemar@ c omcctst.net.

GORFORATE GREDENTIALS:

Certification: SFl, PEFC, CSA certified tso 14001

We are Built Green members.

R:rlrrrrs

Newcorner Building Supplies is out of business after 105 years, with the closure of stores in Greenfield and Mooresville, In. ...

Hughes Lumber,Tulsa, Ok., has acquired 100-year-old Fairland Lumber, Fairland, Ok., as its 7th location ...

Smitty's Building Supply is closing its Hq. yard in Alexandria, Va.o by Dec. 1 and consolidating in Manassas, Va.; earlier this year, the firm reorganized under Chapter 11 bankruptcy protection

OC Cluss Lumber closed its 3yoar-old yard in White Sulphur Springs, W.V., Sept. 22, consolidating operations in Beckley, W.V., then a week later shuttered its Buckhannon, WV., yard, consolidating at it Fairmont branch ...

CNC Lumber & Supplies, Dysart,Ia., opened Sept. 17 on the former site of Farmer's Lumber, which closed earlier this year (mgr. Mike Wilkerson, ex-ProBuilA

Proctor Lumber Co.. California. Mo., is liquidating its inventory after 95 years, with the pending retirement of third-seneration owner Eldred Proctor,-who joined the family business in 1961

Lewis' True Value,Middle Smithfield, Pa., moved from a 4p00-sq. ft. storefront to a 10,200-sq. ft. former nursey, nearly doubling its inventory; owners Dave and Pam Lewis plan to add aTS-acre lumberyard in back by spring

Baikema Ace Hardware, Naperville, Il., closed its Montgom-ery, Il., store, reducing the chain to nine locations

Gaylord Ace Hardware, Gaylord, Mi., reopened Oct.7 after a circuit court judge struck down a restraining order secured by its primary lender that forced the store to close for five days

S-Tenn LLC paid $1.05 million for a 12,800-sq. ft., near-vacant strip center in Jackson, Wi., to open an Ace Harb,vars store ...

Watson Ace Hardware, Lake Mills, Wi., was opened Sept. 29 by Brian Watson ...

Rylee's Ace Hardware anticipates moving in April to a new 33,000-sq. ft. location in Fulton Heights (Grand Rapids), Mi.; its existing building and Fix-it Shop are up for sale or lease

Sorners Hardware, Montpelier, Vt., has closed after 70 years; adjacent Aubuchon Hardware will expand into its space

Kin-Ko Ace Hardware closed its Romeoville, Il., location Oct. 31. reducing the chain to six stores

Ace is opening a l2,127-sq. ft. store in Cordova, Tn. ...

Lowe's opened new stores Oct. 23 in Glenville, N.Y.; Exeter Township and Philadelphia, Pa., and Oct. 9 in Granite City,Il.

Lowe 's closed its under-per- forming Midtown store in Milwaukee, Wi., Sept. 20 after four years ... the chain expects new store openings in 4th quarter 2009 in Deltona, Fl., and Chalmette, La., and in lst quarter 2010 in Abingdon, Va.

Habitat for Humanlry opened ReStore discount LBM outlets Sept. 26 in Durham, N.C., and San Angelo, Tx., and is relocating its Parkersburg, W,V., store ...

Wnor:smrns/illrurlcrunrns

Shuqualak Lumber Co. indefinitely idled its Shuqualak, Ms., sawmill due to a weather-caused log shortage ...

Coastal Forest Products, Beford, N.H., is investing $10 million to acquire, retrofit and reopen by January Chapman Forest

Products' shuttered lumber and plywood plant in Chapman,Al.

Boise Cascade will indefinitelv idle its plywood and veneer plarit in Oakdale, La., starting Dec. I due to market conditions; it hopes to restart the mill in the spring ...

Weaber Inc.'s hardwood mill in Irbanon, Pa., will lay off 93 of its 402 workers due to the housing downturn,effective Dec. 18

Anderson Forest Products, Tomkinsville, Ky., is looking to buy a 226,000-sq. ft. vacant building to install additional equipment, tripling its production area

Wolf Distributing Co.,York, Pa., is leasing a 100O00-sq. ft. DC in the Atlanta, Ga., area, to serve Ga., Fl., westem S.C., eastern Al., and eastern Tn., and will now stock PVC and composite decking and railing at Allentown, Pa.

M & M Lumber, Houston, Tx., sustained a Sept. 29 fire in its office; no injuries reported

An thony Timbe rl an ds temporarily cut production at its Bearden, Ar., sawmill to one day a week

PlasTnex moved its offices and plastic lumber manufacturing operations to a larger 43,000-sq. ft. facility in Copley, Oh. ...

Osmose's MicroPro and NatureWood wood preservative technologies have earned Green Approved Product Certification from the National Association of Home Builders Research Center

Osmose has been granted a preliminary injunction limiting competitor Viance's marketing campaign against micronized copper wood preservatives

Anniversari es: ,Gffird's Lumber, Fredericktown, Mo., 80th Moynihan Lumber, North Reading, Ma.,50th...

Housing starts in September inched up 0.5Vo to 590,000 to a seasonally-adjusted annual rate of 590,000 ... single-family starts rose 3 .9Vo to a 501,000 annual pace ... permits fell 1 .27o to a 573,000 rate ... regionally, home (Please turn to page 35)