etitive ligence Up acreek no longer

By Carla Waldemar

nEL'S True Value Building

.l-fSupply has served Myrtle Creek (a town of 3,600 in Oregon) since the 1950s, but Del's long gone. So is Dick Petterson, who next ran the store for 28 years.

Today it's owned by Jeff Johnson, and by accident. Back in 2001, out of the blue, Dick said to him, "Why don'cha buy the damn place from me?" So he did.

Two weeks later, following his impulse purchase, Jeff had changed careers. Oh, he knew (and loved) the town, all right: He'd grown up here. And he's seen a 2x4 before, in his post as HR manager for a local lumber mill. "This was an opportunity to own my own company, take that next step in life," is the thought that ran through his mind. He also thought, "As an owner, I'd have a little more freedom to come and go."

Wrong. "There's less freedom," he immediately discovered. "If it's your company, you're always here." In fact, he admits in retrospect, "If I'd had all the details, I would have figured I could never make it." But what he didn't know didn't hurt him, so he proceeded to grow sales by 240Vo in the seven years he's owned the place.

To add to the challenge, he took ownership in November 2001-not an auspicious time for a new business venture-and sales were far from brisk. "A blessing in disguise," he now views it. "I came in really green. It was a chance to get my feet on the ground and feel my way."

Three key changes fueled the turnaround. "I knew that the first thing we needed to change was customer service" among the staff of eight he'd inherited. They'd been used to viewing customers as "They'll ask if they need anything" rather than "How can we help you?"

"We had to start reaching out, going above and beyond," Jeff realized. "This is a small town, and we ought to be taking advantage of that here."

It was slow going at the outset. "At first, it's natural to resist change, and they did. But at every single staff meeting, I'd drive it into their brains: 'This is the most important thing to keep in mind: Keep. Customers. Coming. Back."'Little by little, it paid off. "I had patience. Change," Jeff knows, "takes time."

The next change addressed product ("now that we had the service to back it up"). "Inventory had been depleted, so I had to start getting stuff back on the shelves. I was tired of having to say to people, 'Sorry-but I can get it for you next week."'

Jeff doubled inventorv. and added

SKUs. But he'd been dealt a 5O-yearold building "that we'd way, way outgrown." So he set about refixturing the entire space. With advice from True Value-classes, plan-o-grams, etc.Jeff undertook a complete product review. Investing in all new fixtures (which he bought used) to replace antiquated shelving made a "huge difference. We could condense 8 ft. [of inventoryl into 5 ft., so we gained a ton of space. I added more paint, and paint sales went up 6OVo." He also added lawn & garden, hand tools, and fasteners. "We went from l0 to 29 ft. of fasteners; now we don't have to tum anyone away," he states.

The yard was in better shape. Yet Jeff decided to expand building materials, too. "They hadn't kept a big volume on hand. Now, I can take advantage of truckloads, not just pallets. By utilizing the space better, I can also carry bigger quantities of roofing, sheeting and concrete. The bonus is," he adds with a chuckle, "I can achieve higher margins while still offering competitive prices."

The third big change Jeff made was opting for a new computer system. "l was forced into it from day one," he notes. "They'd been using it as a glorified cash register. If someone ordered lumber, they'd have to run out in the yard to see if they had it. Now, all our inventory is in the computer, so I can look at turns on a monthly basis and decide what we need."

Oh, one more little problem to address: Both Lowe's and Home Depot were marching his way. "Turns out, we weren't impacted," he reports, thanks to that stepped-up service and product line. "But I'd been concerned, so I started looking for a niche they didn't concentrate on so I could cover my anticipated losses. I opened an industrial division and hired some outside salespeople to talk to local manufacturers," resulting in accounts with the lumber mill, a septic tank manufacturer, and a boat maker. "I figured we could compete with the big companies by serving them with our customer service. The big guys have a corporate philosophy based on the bottom line and numbers; they forget about customer service."

"We concentrated on the industrial fastener business-they use a ton. Also, air hoses, safety equipment, and even paper towels and toilet paperanything they need. Plus, because we have a full-fledged building supply business next door, we can run and get it. It's been generating phone calls. Now, they're calling us up for paint, too."

Pure genius. The company's industrial supply facet has skyrocketed in revenue from zero to $l.l million in four years and now accounts for close to 307o of total revenue.

The rest is divided 35/65 between contractors and d-i-yers. Again, where Del's excels is service. "They'll call and ask for same-day delivery of a house package, and, lots of times, we can. We figure, our prices are the same as everyone else's, so we're going to go the extra mile."

Which takes great employees to do all that hiking. Staff count now has grown to 16, with new hires made "on personality-someone who goes the extra mile for the customer. Product knowledge will come...."

Ask Jeff why his crew likes working here, and he answers, "It's an easygoing, friendly atmosphere- lots of latitude. I don't micromanage. Also, we pay a decent wage, and insurance is almost fully paid. It drains the bottom line quickly," Jeff knows, "but it's a huge thing we can do to retain good employees."

Yes, even in a bleak economy. "Sure, it's slowing down, but we're doing okay," he allows. "The bigger problem was that spring rain stayed around so long. When nobody was coming in, it makes you constantly revisit, 'Are we doing something wrong?"'

Hang on. "When the sun finally appeared, people came out of the woodwork. But that slow time had made us look for efficiencies, and that's a good thing."

Another reason to take pride: Jeff was selected one of this year's Young Retailers of the Year by the North American Retail Hardware Association and also Man of the Year by the town's Chamber of Commerce.

But that's just formalizing what everybody already knew. "If anything, I'm too involved in the communityeven before the store," he laughs. "I grew up here; it's where my heart is, and I enjoy helping out, especially kids. It's something that's important for business, too-to get your name out definitely helps. Yet I'd been doing this long before I bought the business."

- A former award-winning LBM trade magafine editor, Carla Waldemar writes frequently on the industry. Contact her at cwaldemar@ comcast.net.

R:rlrrrrs

Miller's Lumber & Truss is the new name of Lumbermen's Baker City, Or., yard, after its purchase by Wayne Ryder and Steve Colkitt, owners of Miller's Home Center & Lumber,La Grande, Or. ...

Foothill Lumber, Glendale, Ca., has applied to expand by replacing two smaller structures with a new three-story building and 166 spaces of subterranean parking

Crown Ace Hardware has opened its 16th unit-a 13,796-sq. ft. store with 5,616-sq. ft. garden center in The Marketplace at Liberty Station, San Diego, Ca. (Mel Black, store mgr.) ...

Orchard Supply Hardware applied to move into a vacant grocery store building in Alameda, Ca.

Lowe' Cos. is opening a new store Aug. 26 in E. Santa Clarita, Ca., and unveiled stores July 29 in N. Peoria, Az.,and Madera, Ca.

I"owe's got the go-ahead to build in San Bernardino, Ca.; expects to break ground this fall on a 117,000-sq. ft. store with 31,600sq. ft. garden center in Eugene, Or.; has delayed construction in Hollister, Ca., and received planning commission approval to build a 138,000-sq. ft. store on 12.5 acres in Rocklin. Ca.. but the decision was appealed because of environmental concerns by the Loomis Town Council

Home Depot is opening a new store Aug. 14 in Pahrump, Nv. (Justin Keedy, store mgr.), and unveiled stores June 26 in Carson City, Nv., and Covington, Wa. (Bill Haytack, mgr.)

Home Depot has submitted plans to build a 88,000-sq. ft. store with 28000-sq. ft. garden center in LaVerne, Ca.; has proposed a 102,513-sq. ft. store in El Dorado Hills, Ca.; is reconsidering its plans to build in Oakley and Atwater, Ca.; received a city council ruling that permits construction of a 105O00-sq.ft.home center in Spokane, Wa., and will open next year in Auburn, Ca. ...

Habitat for Humanlry opened new ReStore discount LBM outlets Au'g.2 in Sandpoint, Id. (William Kopiecki, store mgr.), and July 19 in Temecula, Ca. (Mike Ohrberg, mgr.), and next month will relocate its 15000-sq. ft. ReStore in Grand Junction, Co., to a 28,400-sq. ft. building

Central Valley Builders Supply, St. Helena, Co., is a founding member of the Green Suppliers' Council, a nationwide network of dealers working to promote and facilitate green building in residential construction ...

Wnor:slrrns/tlrurlcrun:ns

Belco Forest Products, after consolidating in Shelton, Wa., has sold its 36,000-sq. ft. former headquarters and 7-acre distribution yard in Tacoma, Wa., to Parr Lumber Co., Hillsboro, Or.

Sunset Forest Products, Beaverton, Or., has been acquired by Greg Nielsen and Jeff Kappler

Stimson Lumber Co., Portland, Or., has acquired Regulus Stud Mills,St. Maries,Id., and renamed the facility St. Maries Lumber

International Wood Products, Clackamas, Or., has opened a new distribution center in Tumwater, Wa., to cover Northern Washington markets; staffers include Mike Bryan, Bob Gruhlke, Dave Lund, Ron Schierman, Brad Welvaert, Tanya Keel, and Theresa Rowe ...

Portac, Tacoma, 'Wa., has agreed to sell its sawmill in Beaver. Wa., and planer and dry kilns in Forks, Wa., to Interfor, Vancouver, B.C.; the deal is expected to close Sept. 30

Bolkin Lumber is opening a sales office in Portland. Or.

Capital Lumber, Phoenix, Az., opened a new distribution center in NW Houston, Tx. (Vic Viorde, exWeyerhaeuser, division mgr.; Chris Abel, sales mgr.)

Patrick Lumber Co. agreed to lease a new 6p00-sq. ft. office in Portland, Or.

Stimson Lumber, Hauser, Id., suffered a July 9 fire that damaged an administration office

Pope & Talbot, Portland, Or., has sold its Fort St. James, B.C., sawmill and related forest licenses to Conifex, Vancouver, B.C., a month after Conifex backed out of a deal to buy Domtar's forest products business ...

Weyerhaeuser Co., Federal Way, Wa., is accepting bids until Sept. 4 for its hardwood sawmill in Delta. 8.C....

Modern Machinery, Missoula, Mt., is now selling and servicing Precision Husky sawmill equipment at its 13 branches in Mt..Id.. Wa.. Or.. and Ca. ...

All-Coast Forest Products has received FSC chain-of-custody certification for its DCs in Chino and Cloverdale, Ca.; Englewood, Co., and Salt Lake City, Ut.

OrePac is now distributing JeldWen's Custom Carved interior doors from Sacramento, Ca. ...

Bear Forest Products, Riverside, Ca., is distributing Truemarc Ltd.'s new PVC decking in Southern California and Arizona ...

Louisiana- Pacffic's LP SmartSide Precision Series and Foundation siding has been qualified to meet new California fire codes for use in Wildland Urban Interface zones...

Housing starts rose 9.l%o in June to a seasonally adjusted annual rate of 1.07 million ... single family starts slid 5.3Vo to a yearly rate of 647,000, but multi-family jumped thanks to a 42.5Vo bump in the Northeast ... permits increased lI.6Vo to 1.09 million units.

Li,ttirtg.s urt' oliut .srtbtttitltl rttttrtllt.s irt utlvtrttt t' -1/rlrr.l.t t'cllfr' tlutt's Lttttl tttLliott.t ttitlt.sltrtrtsrtr bclitrc nttrkitt.t, ])l(ttt\ Io (ttlutd.

Auousr

Los Angeles Hardrvood Lumbernralr's Clrrb - .{ug. l'1. gcnclrLl rnccttng. Stcr cn's StcaLhotrse. Citl ol (l()nlrnefcc. Ca.: (616t -+r5-8.i56.

Orgill - Aug. lJ-16. full nrrtrkct. C'hicrrgo.ll.: it)111t 75-1-88-50

International Wooclu'orking l"air - ,\ug. 20-2-3, Cicorgirt \Vorltl Congless Ccttter. Allat)1a. (ia.l (-10-1) 693 83jl.

Illack Ilart IIoo-Hoo Cluh - '\ug. 22. trap shoot. Harwood N'lill. Ilntnscotrrb. Ca.. ( 707 ) 16l 37(X).

Ilenrode ling & Dccorating Shorvs - '\ug. 22-2-l' Soutlt -l ou tt Erpo Ccntcr. Sandr. Ut.. antl Pltsatlenlt C onlcrencc Ccrltct. [)rsurle nu. C'4.; (,! I El 557-]9-50

.\nrerican .'\rchitectural \Ianuf:rctul'ers Association -'\ug. 27-28. uc'stcrrt rcgion lirll nrectitts. rllal'riott Portlrrrttl Citl ('en1cr. l)ort I alcl. ( )r. I I 8.17 ) -l( )-j--5(r6-1.

Stprrmsrn

National ,\ssociation of \\'omen in Construction - Sept. 3-(r. lunrrLnl corrvctttiort. Flarttingo Holcl. l-ls Veglts. ,\.-1.: (E00) .s5l -1506.

Horizon I)istribution Inc. - Sept. 5-7. rtrlrrual rnirrkcl Yakirtta Conrcrttion ( cntcr. \'akirttit. \\'lr.: (1J00) 5ll-lJ 16"+.

\\'orld Forestrl Center - Sept. tt-10. Worltl lirrcst lnstitrttc eon fercncc. Portlrrntl. Or.: (501 t 226--l-561.

North Anrerican \\'holesale Lunrber Association - Sept. tl-ll. co sponsorctl b1 Orcgolt S(atc L.rnircrsit\. uootl basics coLtrse. Salbu:gcon Suitc:. ('orr rrllis. ()r.: (800) 517-S25fi.

l.unrber Association of (lalil'ornia & Nclada - Sept. 10. lnd (lrorith nlcetin!. Ilod Lion Hotcl. ILccltling. Crr.: 19161 .169

750 I llC \\'ood - Scpl. ll-13, global bttlet's tttissiott. \\'lristlel ConlL'rencc C'entet.. Whistlcr. ll.C'.: (877) -lll-966i

Sierra l)acific Industlies - Sept. Il. opcn lrottsc. Antlcrstln. Ca l (.ii0)178-fi000.

Nlountain St:rtes Luntber & Building Nlaterial l)ealers Association - Sept. 12. Wc'lcrrt Slopc uoll'totu'llanlcllt. Ril'le C'reck Cioll Coursc. Rif-lc. Co.: (-103) 2t)2-t)500.

Hoo-Hoo International - Se pt. 12-17. anntral e \)11\ enlioll Murano Hotcl. Tucttnrl. \\'a.: (E00) 979 9950.

Lunrbcr Association of California & Nevada - Sept. 16. PAC bascbrll night. N'lcAlec Clolisctrnl. Oaklarrd. Ca.l (916) j6()750 L

Willamctte Vallel Hoo'Hoo Club - Se pt. 17. trap shoot. Spoltsnutrr's ('lub. ('r.'srielI. Or.: (5:1I )'18-5-5979

Los Angeles Hard*ood Lunrbernran's Club - Sept. ltt. Sth annulil golf toLlrnalnclll. (losta I\,[esa Cor.rlltrl Cltrb. Costil \4csa" Ca.: ((r261 -l'1-5 8-5-r6'

Jcnsen l)istribution Sen ices - Sept. ltl-20' l'all lnarket. Spoklnc Cottrcrttiot.t Centcr. Spokalc. Wa.: (509) 62'l I i2l.

Ace Ilardlare Corp. - Sept. l9-22. l'ali ntarket, St. Lotris. \lo : (6.10) 99()-7(162.

AP.,\-The l,)ngineered \\'oorl Association - Scpt. 20-23. annurtl irccting & crpO. Ritz Clrltorl L-akc Llrs Veglts. Hetldctson. Nr,: i15.l) 565 66(X).

American,{rchitectural Nlanufacturers .\ssttciation - Sept. 2l-21, l.tll cotrl'crcncc. Hl att Rcgencl Hill CoLrntn Resort & Spt. San Antortto. Tr.: (8-17) -10-l -566-1

Setzer l"orest Products - Sept. 26. 25th ltttnultl soll totll'nitlnelll. Srcftrnrcnto. C'l.l (9 1 6) 4-+l-255-5.

Hardrvood Plywood & Veneer Association - Sept. 2tt-30. lrrll conlcrcttce, Orrrni Sl crirr. lrrrlilrrtapolis. In.: (703 )'1i5-29(X).