All Rhoades lead to success

By Carla Waldemar

Holden and Blue Hill stores, and in the meantime, opened Rhoades Building Products in Ellsworth. Today, they're all united under the same Rhoades Building Supply brand and overseen by president Steve Veilleux, who formerly ran the Ellsworth site.

f ET'S see... who gets the movie role? Here's the backI-lstory to this romantic fable: California guy gets his MBA, works on Wall Street for a dozen years, then retums to San Francisco as an investment banker, where he meets the girl of his dreams. He marries, has a darling baby, then fulfills his bride's heartfelt wish to live happily ever afterwhere??-in her home state of Maine. Ah, the power of love.

Fade from the happy couple holding hands among the pines to harsh reality-gotta put bread on the family table-and the date movie morphs into an instructional docu-drama on how to start your own business and achieve the American Dream.

Meet our hero, Chris Rhoades, who made the move to Maine in 2003 and now owns five-count 'em-five successful building supply centers. With opportunities openended, he could have bought into an Internet start-up, an insurance agency, a chain of Starbucks, or what-have-you, but, eyes wide open, he chose to be a lumber dealer.

Why? Research, common sense, and strong principles combined to guide him. "I looked at all kinds of businesses to find good, longtime fundamentals. We'll never lose the professional builder, I determined, and they will always need a sound team ofexperts offering quick, accurate delivery of quality products. Home Depot is the business model for the d-i-yer, but builders need someone local, someone who understands them, as the population grows."

Chris's focused strategy is to grow by acquisition. He figures it this way: "Buy an established operation instead of adding to the already-strong competition, then update and expand those operations with new products and the needed expertise."

In 2004, he plunged in by purchasing the two Milbridge and Machias locations of H.F. Pinkham, a well-respected company that had never changed hands before. He did the same in November 2007, acquiring Granville Lumber's

Steve is a major factor in Rhoades' success, as Chris is the first to point out. This key appointment figured foremost in his acquisitions strategy. He, as c.e.o. and founder, doesn't know much about 2x4s and insulation, and it doesn't make a difference. What really matters is hiring someone who does, and that was no accident. "Before investing in the acquisition, I did the research," Chris explains. "I found the ideal company, and the price was right, but I knew I needed a president before we put the deal together."

Steve knew the industry and could hit the ground running, while Chris scanned the stratosphere. "I do the 30,000-ft. strategy," he explains, "finding the talent and rhe financing. I looked at Granville for two years before buying, but at that time, the price didn't make sense. Later, they came in with a much more attractive offer, so we negotiated a deal.

"I've been looking for companies that 'fit,"' he says. "Milbridge and Mathias are 30 minutes apart on the freeway, and Ellsworth and the Granville stores are also half an hour apart-so, five locations with one headquarters, in Holden," makes sense.

The underlying strategy is this: "The bigger you get, the more efficient you can get," Chris instructs, juicing up his MBA learnings with real-time examples that result in important savings, such as buying power. "To key vendors, with products like windows and roofing, five stores make me a much more attractive customer."

And adding SKUS to the smaller acquisitions made those operations, in turn, more attractive to their own customers. Installing a company-wide computer system also has produced savings in time, money and accuracy, underscored by the ability to fill orders based on company-wide inventory. "Plus, the ability to consolidate several sets of management results in significant savings, too," he adds.

Adapting staff to an acquisition (Rhoades currently employs 70) is seldom a walk in the park, and Chris knows that. Existing employees are given the benefit of a doubt, but inevitably, some deadwood needed to be culled to achieve the c.e.o.'s vision of what's vital for success-or make that, survival-in this uneasy age.

"My philosophy," he states, "is this: Everybody has the same products, so the only competitive advantage you have is your people. So I'm continually involved in attracting and upgrading talent, to find the best 'athletes' to compete on our team-the ones with knowledge and friendliness, who engage customers' loyalty and [thus] increase our market share."

"I filter and identify people," Chris continues. "I look for great attitude, then find them a role. And I look not only in the industry, but maybe find the best salesman at an auto dealership or a production manager who's sitting next to me on a plane. I'm looking for people skills. intelligence. a scrvice ethic, a team player."

"It all comes down to affitude," he underscores. To back that. "We're constantly involvcd in staff training, whether through vendors. in-house mentors or association classes."

These people stick around, he says, "because this is a place where you want to have fun. This isn't boot camp for building materials; it's a fun, exciting place to be. I'm generous in paying for talent, too. And," he adds in almost a whoop of jubilation, "we embody youth! (l'm in my early 40s.) People who want to invest in growth and visionl"

Rhoades' 8()/20 customcr mix is drifting even more toward the pros, and that's also by design. Outside salespeople visit jobsites, scan lists of building permits and such. Beyond those obvious sources, insists Chris, "It's all about relationships, and that's what we do best. It's all about thc people. Our sales staff boasts l0 to 20 years in the business, so they know how to help a customer fiom plans to takeofts. suggest new and alternative product, and stand behind our products." Oh. and hand out Red Sox tickets now and then.

Looking to expand commercial accounts, Rhoades now boasts three dedicated salespeople, including one individual who used to work for the competition but approached Chris about ajob.

Beyond that, Chris himself is fbremost in fbrging commercial opportunities. "I like to get familiar with the owners-form a personal relationship, make them familiar with how we do business and how we can add value to their operation. An owner-to-owner relationship resonates." he knows.

He has also been tapped by thc -governor to serve on the state's Economic Council, a task forcc charged with investigating what Maine can do to attract new businesses. He's happy tct volunteer his time because he believes in his adopted statc.

"Maine's economy doesn't ride the waves of boom and bust. Certainly, there's been a recent turndown-no state is immune-and, as a company. we've downsized some and are lookin-e at cost-cutting within the overall market. But on the other hand, we've just hired two key people to upgrade our talent. These times present an opportunity to attract good people. Times are challenging, but we're still having fun."

More acquisitions'/ "For the best f it, you wait fbr them to come to you. But," he's quick to add. "we're always looking."

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55f HAVE to cover what my cusItomers are looking for, don't l?"

This is the question asked by the victimized seller. What do I mean by victimized? Many sellers spend their lives being servants and victims, while the master seller forges his own way and earns four times that of the average seller.

The most competitive time to sell our customers is when they decide they need something. No one (salesperson) has anticipated the customer's need and satisfied it; therefore, they are forced to put out an inquiry for what they need.

Master sellers have done a great job of discovering their customers' needs through prospecting. They already know what their customers use and promote into that need on every call.

"Hello, Mr. Customer, what do you need today?" is not a sales-call opener, it is a service-call opener used by the majority of sellers.

"Hello, Mr. Customer, the last time we talked you told me that 2x4 straight l6's was something you use on a consistent basis. We just bought a block of 2x4 heavy l6'that we have