Gontractorst Nirvana

\f,/oNonnrNc IF ANYoNe out there has a word of advice

Y Y for the man? Usually this column tells the story of a company that's found a new niche, a money-saving gambit, a different way of doing business that's keeping it afloat in these turbulent economic waters. Orv Johnson, general manager of Hendricks Farmers Lumber, has a problem that's a little more unique: He's way too busy.

Orv is selling packages for eight to 12 new homes a year (plus, plus, plus). And he's doing it in a town ofready? -720 people. Nor does the town of Hendricks boast a giant industry-simply the hospital, a golf cart distributor, a pretty lake or two. Yet he turns away advertising reps, because why in the world would he want to lure more customers, he asks them. He can't keep up with the ones he has.

What is this-the magical kingdom of Oz? No, sir' Hendricks is a rural, farm-based community on the western border of Minnesota. Hike a mile, and you're standing in South Dakota. Brookings, S.D., and Marshall, Mn.-the only sizeable spots on this stretch of the prairie-are 30 minutes away. Orv sells to them, too, but they've each got their own lumberyards. So do the tinier towns closer by"but we're friendly," Orv says of his competitor-dealers doing business there. "I respect them. If someone's in need of something, we even trade materials."

Orv was born and raised in Hendricks, but he's not the owner of the company and never will be. Nobody is; well, actually, ownership is divided among 50 or so shareholders. Back in 1915 when the yard was founded, people bought shares at $50 each-400 of them-to raise the necessary $20000 so the company could purchase four cars of lumber to open its doors and get the operation up and running. It's been doing gangbusters ever since. Orv reports to a board of directors who, wisely, give him free rein. "I run the whole company," he allows.

Farmers are among his best customers-"a lot of agricultural business, livestock equipment. And the farm economy is really good," Orv reports. "Lots of them are also building new houses." So are vacationers who cherish the surrounding lakes, resulting in "a lot more d-i-y business in summer," he reports: "remodeling, plus lawn and garden, plants, fertllizer." They come to Hendricks Farmers Lumber because of word-of-mouth, "after talking to friends they trust," he says, backed by the ease of one-stop shopping.

Hendricks' operation is unique in another key facet: not only one-stop shopping for building materials but also for the potential homeowners who're doing the actual building. "We do a lot of generaling. We can be everything from A to Z for them. They can choose to deal only with me and not a lot of subs," explains Orv, who then oversees the entire project as he hires and schedules and supervises for at least 75Vo of homeowner-wannabe clients, building houses that range in price from $150,000 to $400,000. However, he's quick to add, "If homeowners just want only the materials, that's okay, too-however they want to work it."

But most would just as soon turn it all over to the pros Orv hooks them up with-a function that is a lot more complicated that it sounds, says the man who should know. "The biggest thing is for me to get a feel for what a customer wants in his home and their personalities. Then I'll find them a contractor they can get along with. People don't realize how important that is, to have the right match; otherwise, is can be disastrous," he well knows.

Of course, those pros make mighty loyal customers, themselves. The reason is clear: "The biggest thing is, we get them work. They don't even have to advertise-just rely on the people coming in the store. This year," Orv says, "they're already booked solid. We've got a good thing going...."

It sets even better. The contractor is never out there on a financial limb, looking at a bill for materials and waiting to be paid so he, in turn, can pay it. Instead, Hendricks bills everything directly to the end-user, the homeowner himself-which also cuts down on all those in-house "over 30 days" dunning notices.

TOOLS are among the heavily promoted products.

Hendricks also treats its pros (who account for 60Va of its customer count) to the other perks you might expect: free delivery and events, such as the annual December DeWalt Tool promo (complete with eats and drink) and spring's Sawdust Day customer-appreciation event, in which vendors participate. Those sales reps are also on hand to get staff (eight full-timers plus two part-time people) up to speed on new products Hendricks carries.

In fact, Hendricks first upped its product line back in

1992, when it opened a hardware store in a property it purchased down the street. Then, a year ago, the company built a 4,000-sq. ft. addition to its main location and moved the hardware to this more-convenient venue. "It had kind of discouraged customers to be sent down the block," he says. "It's easier for them if we offer everything under one roof'-and that "everything" segues from decks to windows and doors, tools, siding and a whole lot more, suited to the "fine Victorian homes and picturesque estates" Hendricks showcases on its website. "Plus, the consolidation better utilizes our staff."

So, what about the big recession? "We haven't noticed it," he says in the understatement of the month. They didn't have time to stew over it, being way too busy. Still are. And that creates its own dilemma-mieht it be time to expand?

"We've thought about it," Orv ruminates. "We could go out, look for new, young contractors and try to bring 'em in to handle the business. But what if things slow down? Then they wouldn't have any work. So I guess we'll continue as is," he indicates. "If we tell people in December that we can'l start their new house until August-if we're upfront about it-they're usually patient; they're usually willing to wait."

Carla Waldemar cwaldemar@comcast.net

By fames Olsen