An MSN Exclusive Distributor Feature
4 Distributors Tell MSN How They...
Handled Effects Of The Recession
By Rick Mullen, MSN Associate Editor
(Reprinted from the May/June 2010
issue of Maintenance Sales News)
The janitorial/sanitary distributorship industry has seen its share of upheavals in recent times, including those brought about by consolidation, offshore competition and a serious recession. Maintenance Sales News Magazine recently spoke with executives from four distributorships who offered insights into how their respective companies have dealt with the serious issues of the day while remaining prosperous.
Finkel Supply, Inc.
Finkel Supply, Inc., of Wood Dale, IL, located in the Chicago Metro area, offers a wide variety of jan/san products, including trash cans and liners, floor and carpet care items, chemicals, health care and safety supplies, brooms and brushes, paper items, toilet tissue and more.
A Certified Female Business Enterprise (FBE) owned by Muriel Finkel, who is also the company’s president, Finkel Supply offers many other products in categories such as tape and packaging, material handling, office supplies and plastic bags, to name a few.
The company’s primary service region is the Chicago Metro area and parts of Iowa, Michigan, Wisconsin and Indiana.
Finkel founded the business in 1987 in the basement of her home, with the garage serving as a warehouse.
“I had been selling for another distributor that went out of business,” Finkel said. “All I knew was sales and I had a wonderful customer base of about 100 people.”
The plan was that when Finkel’s husband, Steve, retired from the Cook County Sheriff’s Department in 1997, the couple would move the business out of their residence.
“My husband had so much faith in me. Although he was not officially a part of Finkel Supply, he was always there backing me and supporting me,” Finkel said.
Like so many things in life, things don’t always go as planned and after just two years in business; the distributorship had outgrown the family garage and basement.
“In two years, I was already out of the basement and into my first warehouse, and within four years I was in my second warehouse,” Finkel said. “By the time Steve’s retirement came along, I was in my fifth warehouse and I had employees working for the company.
“It was like a rolling stone — it really took on a life of its own. I have a devout faith in God and I really believe He opened doors for the company. We grew with wonderful vendors and wonderful customers. Officially, I don’t have any partners, but my vendors, customers, bank, employees and husband are all partners.”
As recessionary times have gripped the nation for the past couple of years, Finkel reported the company “has been holding its own.” Indeed, Finkel Supply has received vendor awards during this time for meeting certain criteria in sales.
“We are keeping our head above water and we are so grateful. We don’t take any of it for granted,” Finkel said. “My feeling is when the well goes dry, you dig a new well and you just don’t go into a corner and die of thirst.
“We have managed by tightening our belt while not having to let anyone go during these difficult times. We are very happy that we haven’t had to put anybody ‘out there.’ I think that our customers are aware of this, and it makes them feel good that we don’t consider our employees as just a number that can be discarded.”
One of the ways Finkel Supply has adjusted to offset some of the negative impact of the recession is by offering new product lines and emphasizing the variety of its products.
“We have been very fortunate in that our vendors supply us with leads,” Finkel said. “When our sales people take these leads and meet with prospective customers, they are able to say, ‘OK, today you are buying toilet paper, but here are the other janitorial products we offer. Here are the shipping supplies, office supplies, plastic bags, plastic foam, tape, etc., that we offer.’ We are able to be a complete supplier for them.”
Finkel Supply has also helped customers remain competitive during these recessionary times by working with them on payment and pricing.
“We treat customers the way we would want to be treated. They are human and they are going through a very difficult time,” Finkel said. “Like the Phoenix rising from the ashes, we are all going to come out of this together and this is the whole key — we want to come out of this together.
“We have an underlying principle that whoever we are talking to at a particular moment is our most important customer, whether it is a shop with one employee or a major corporation with many locations.”
Another foundational principle that Finkel Supply adheres to is running an honest, transparent operation.
“Our customers trust us. They know we are not out to ‘get’ them. What they see is what they get,” Finkel said. “It is too competitive of a market now for companies to not have integrity, stand behind their products and say who they really are. There is a lot of talk about transparency in the government, but there has to be a transparency in business as well.
“We have the transparency. People know who we are. We are genuine. We treat people the way we would want to be treated. We treat a customer as if he or she is our most important asset. Until we complete an order, deliver it and everybody is happy, the job is not done.”
All Finkel employees, regardless of their primary responsibilities, are well versed in what it takes to offer the best in customer service.
“Everyone here is a customer service person,” Finkel said. “I own this business, but when I answer the phone, I take care of the customer just like anyone else would. I try and help.”
The company’s customer service attitude extends to the road, as delivery drivers are also quick and able to help meet customers’ needs. Finkel Supply boasts a veteran delivery staff. All of the company’s delivery people have been on the job for more than five years.
Deliveries are typically made on a next-day basis. The delivery operation is an example of the kind of teamwork that is required by the company to maintain a high level of service.
The team effort many times begins with customer service reps gaining information about a delivery to pass onto drivers. For example, a customer service rep will give the driver details about a particular location of a delivery.
“All of our customer service reps know to ask certain questions. For instance, if it is a downtown delivery in Chicago, we are likely not going to send a big truck,” Finkel said. “We know to ask if there is a dock to help us determine the type of truck or van that needs to be used for the delivery. Our delivery people appreciate the information. We are all working together.”
The team effort also involves warehouse personnel who, along with drivers, check and double check orders before they go out the door.
“We try to keep mistakes inside the company, which is very important,” Finkel said. “Perhaps the most important thing is getting back to the customer with a follow-up, with confirmation and with honesty.
“We might have to tell a customer, ‘No, you are not going to get it tomorrow. I’m so sorry, but the weather is keeping us from making the delivery. Will Friday be OK?’ I think it is important to communicate with the customer.”
As a bonus, the company’s vehicles also act as effective marketing tools.
“We have four trucks and three vans and they are kind of like billboards or the Yellow Pages,” Finkel said.
Displayed on the vehicles is the company’s name, address, the Web site and some of the main products the company offers.
“It is amazing how many people call after they see one of our trucks or vans pass by,” Finkel said.
Finkel Supply’s customer service efforts also include training customers in facility care techniques, what products to use to best get the job done and how to use the products in the most efficient manner.
Finkel Supply works closely with its vendors in providing training, both to its staff and also to customers.
“Whenever a vendor has a new product, we conduct what we call a ‘dog and pony show’ with our sales reps,” Finkel said. “We also involve as many people from our warehouse and office as we can.”
Finkel Supply also seeks vendors who are willing to help train customers. Oftentimes, vendor reps will accompany Finkel sales people to a customer’s location to help conduct training.
The distributorship is also willing and able to conduct training seminars for customers upon request.
“We like seminars and we want to conduct them,” Finkel said. “Five or 10 years ago, customers were much more willing to make time for training seminars. Now, many customers are so short-handed that they don’t have the time that they once had.”
The company’s Web site, www.finkelsupply.com, has also been a successful enhancement to customer service.
“We have a wonderful Web site, which is informational only. We don’t take orders on our Web site,” Finkel said. “We try to make everything very user-friendly on the Web site. We try to make it as easy as possible for customers to contact us. We also have a catalog that we send to customers that is informational as well.”
When it comes to spotting trends in the jan/san field, Finkel said she has noticed the economy has had a negative impact in the “green” arena.
Finkel explained that before the economy went south, the movement toward environmentally friendly products and practices was gaining momentum. However, the green movement has stalled somewhat as the recession has left many businesses in the company’s service area thinking price more than green.
“I think customers will eventually go back to thinking green, but now the focus is more on pricing,” Finkel said. “We are finding that new customers are really pinching pennies.”
Another trend that has evolved because of the down economy is that of customers and vendors being reluctant to carry inventory, Finkel said.
“Up until a couple of years ago, we kept certain products in stock for a customer, whether we had immediate orders for that product or not,” Finkel said. “We knew the customer would eventually use the product, or if they didn’t, someone else would. This is something we are not doing as much. In addition, manufacturers are not manufacturing extra product. As a result, we are seeing a lot more back orders now from our vendors, and, because of that, we are forced to back order as well.
“Oftentimes, because we know our products so well, we can offer customers a new or substitute product that will meet their needs.”
Finkel said she owes the success of her company to her many “partners,” her faith in God and the company’s commitment to integrity and doing the right thing.
Success has also allowed Finkel to give to Amyloidosis Support Groups, which she founded. Finkel is the current president. Amyloidosis Support Groups supplies support and awareness for amyloidosis patients, care givers and those who have lost someone to the disease.
Amyloidosis is a rare blood disease that develops when amyloid proteins inexplicably build up in organs or tissue, including the heart, liver, kidneys, spleen, gastrointestinal tract and nervous system. Most often, amyloid protein comes from cells in the bone marrow. There is currently no cure for the disease. Visitors to the Finkel Supply Web site can link to www.amyloidosissupport.com for more information.
“I am fortunate to be able to give to Amyloidosis Support Groups, which is really important to me,” Finkel said. “I think everyone should give back if they have a chance — just give back to something or someone. It makes a person feel good and when you feel good, you sell better, and that is important.”
Contact: Finkel Supply, P.O. Box 604,
Wood Dale, IL 60191.
Phone: 847-350-7540;
Fax: 847-350-0577.
E-mail: sales@finkelsupply.com.
Web site: www.finkelsupply.com.
Burns Supply Company
Burns Supply Company, of Holly Hill, FL, located in the Daytona Beach area, is a full-service jan/san house that has been serving the area for nearly four decades.
“My father, the late Patrick Burns, founded the company about 37 years ago,” said owner and President Mike Burns. “Our primary service area is within a 50-mile radius of Holly Hill, including some business in Orlando, FL.”
Burns Supply’s product lineup includes bathroom tissue and dispensers, brooms, brushes, cleaning chemicals, first aid and safety items, facility maintenance supplies, floor and carpet care items and equipment, floor pads and sponges and hand sanitizers.
The company also offers laundry products, matting, hand wipers and rags, mops and buckets, recycling containers, paper products and dispensers, window cleaning items and more.
“We also carry auto detail items, and we have a equipment repair service, which is in a separate building,” Burns said.
Burns Supply’s customer base includes churches, motels, local municipalities, schools and hospitals. Burns reports that business has been good despite the down economy.
“It is a lot harder than it used to be to make a profit,” Burns said. “Nonetheless, our volume of sales has increased 15 to 20 percent each year for the past 5 or 6 years. We are seeing more competition from some larger companies active in our area, but that is life and you just have to live with it and roll with the punches.”
The old adage, which has become almost cliché, of “thinking outside the box” could aptly describe how Burns Supply has successfully navigated the recession.
“We have actually hired more people, put more delivery trucks on the road and carried more inventory, which is probably the exact opposite of what conventional wisdom says we should have done during a recession,” Burns said. “It is working for us as we are able to get product out more quickly. We usually can accomplish same day or next-day deliveries. In addition, we probably have 95 to 97 percent of the products we offer in stock.”
Burns Supply has helped customers through the tough economy by working with them on the accounts receivable end, especially with its contractor customers.
“Contractors are probably having the toughest time right now,” Burns said. “I’ve carried quite a few of them on the books. Hopefully, when times get a little better, they will remember me.”
Burns Supply cares deeply about its customers and considers its dedication to top-notch customer service as a defining factor in separating itself from the competition.
“We bend over backward to meet our customers’ needs,” he said. “I think it is very important to listen to what they say and to try and help them in their hour of need. Dedication to this principle has helped build lasting relationships. Often, it is like we are dealing with friends rather than customers. I think people respect us for that.”
Burns Supply’s large inventory and variety of products has enhanced its customer service efforts by giving customers a “one-stop-shop” location.
“We generally have something for everybody. For example, we carry about six lines of chemicals,” Burns said. “In addition, we stock more parts at our equipment center than most distributorships.”
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Burns Supply also offers green products, which are becoming more accepted among the customer base.
“Historically, customers have looked for the best product to do the job, and not necessarily focused on just products deemed good for the environment,” Burns said. “I think people are beginning to realize that green is here to stay and are becoming more willing to move in that direction.”
When it comes to training customers, Burns Supply relies on its vendors to train its sales staff and also to help train customers.
“If a customer desires training, we set it up with a manufacturer to come and conduct a training session. They often have a little more expertise in a particular area than we have,” Burns said.
Burns Supply also conducts its own seminars on such topics as marble care and wood finishing.
“We have a classroom in a nearby location where we conduct seminars,” Burns said.
When it comes to the company’s relationships with vendors, a little exclusivity can go a long way, Burns said.
“Some manufacturers have changed in that they seem to be thinking more about the end-users and bypassing distributors is some cases,” Burns said. “The loyalty between manufacturers and distributors seems to have eroded quite a bit in recent times. It used to be that a distributor would have a defined area in which to operate. It is not that way anymore.”
Burns Supply’s road to success has been one of building solid, long-term relationships with its customers based on offering the best in customer service in conjunction with high quality products.
Contact: Burns Janitor Supply,
342 Second St., Holly Hill, FL 32117.
Phone: 386-252-8114;
Fax: 386-252-3302.
Web site: www.burnsjantorsupply.com.
Webb Chemical & Paper Co., Inc.
Webb Chemical & Paper Co., Inc., of Shelby, NC, is a full-service jan/san house. The company’s offerings include paper products, janitorial supplies, foodservice items, chemicals, floor and carpet care products and equipment, packaging, safety items and hand cleaners.
While the company offers complete lines of environmentally friendly products, there has only been minimal demand for green products among its customer base.
“I started the company in September 1976 with an answering service and a truck driver,” said Huey Webb, president and owner of the company. “We now have 15 outside sales people. The Lord has been good to us.”
Despite the down economy, the company has continued to do well.
“We are not complaining,” Webb said. “It could be a lot worse. The economy is not as good as it once was, but we are surviving.”
As much as 40 percent of Webb Chemical & Paper’s customer base is in the health care field, including nursing homes, assisted living facilities and hospitals. Another important segment of the company’s customer base is industrial plants.
“We have three or four hospitals that we serve, but most of our health care business is with assisted living centers and nursing homes, of which we have over 100,” Webb said.
Webb’s success story was born in adversity when the company he was working for let him go back in 1976.
“That company unintentionally did me the biggest favor of my life when it terminated me,” Webb remembered.
Webb pondered his situation for a couple of weeks trying to decide what to do. He considered applying for a job with another distributorship, among other options.
“My wife, Freida, and I were sitting on the couch watching the Ed Sullivan Show on a Sunday night. It would have been two weeks that Monday morning since I was terminated,” Webb said. “I looked over at my wife and said, ‘I have built the last territory I am going to build for another company. I’m going in business for myself.’
“She looked at me and said, ‘Well, I hope we don’t go hungry.’ I said, ‘I do, too.’”
That Monday morning, Webb called on his old customers and told them he was going to start his own distributorship.
“I asked for their help and 95 percent of them told me they would do business with me,” Webb said. “The next week I bought a truck and hired a driver. I leased an old service station building the Texaco company had closed that had 500 square feet for a warehouse. I am proud to say the warehouse we built two years ago has 6,000 square feet of office space and 50,000 square feet of warehouse space.”
For the first three years, Webb’s wife continued to work at her regular job while keeping the books for the new distributorship at night. After three years, the business had grown to the point where Webb deemed it necessary to hire someone to man the office full time.
“Freida told me we couldn’t afford to hire anyone, so she quit her job and came to work for the company and she has been a very big asset to the business,” Webb said. “She is the vice president/secretary of the company.”
While the Webbs never had children of their own, the couple’s nephew, Sales Manager Derek Webb, began working for the company at age 14.
“He came to work here when he was in junior high school,” Webb said. “Derek worked during summer school vacation and vacation days when he was in junior high, high school and throughout four years of college. When he graduated from college, he came back and has been here for 20 years. He is heir-apparent to the company.”
Webb Chemical & Paper’s primary service area is within a 200-mile radius of Shelby. The company’s delivery operation includes 8 trucks of its own to service customers within the 200-mile radius. Trucks typically serve some customers once a week, while others close to Shelby receive deliveries twice a week. Orders outside the 200-mile radius are shipped by common carrier.
“We are a service-oriented company,” Webb said. “If you are a purchasing agent and you look long and hard enough, you will likely be able to find a product at a cheaper price than what we offer, but you won’t beat our service. We built this company from the ground up and we did it with service at a competitive price.
“Our reputation for honesty, fairness and personalized service is the best advertisement the company could have, as far as I am concerned. We are well known in the industry within 200 miles of Shelby. I am not bragging — that is just a fact.”
The company’s Web site, www.webbchemicalandpaper.com, is also a customer service enhancement, supplying information about the company and its products and services.
An important value-added aspect of the company’s customer service is its ability and flexibility when it comes to training for customers.
“We call it in-house service,” Webb said. “At a customer's request, we will send someone to his or her facility to train the maintenance staff.
“We owe our success to hard work, while offering the best in customer service along with quality products at a competitive price.”
Contact:
Webb Chemical & Paper Co., Inc.,
2500 W. Dixon Blvd., Shelby, NC 28150.
Phone: 800-872-0098;
Fax: 704-482-7359.
Web site: www.webbchemicalandpaper.com.
Myers Supply & Chemical
Myers Supply & Chemical, of Hot Springs, AR, with a second location in Little Rock, AR, is a full-service jan/san distributorship that has a special emphasis on environmentally friendly systems and training, in addition to customer service.
Jimmy Myers founded the company in 1955 in Hot Springs. His son, Tex Myers, and daughter-in-law, Judy Myers, took the reins of the company in 1977. Running the company today is Vice President Ryan Myers, Tex Myers’ son, who has been at the helm since 1995.
While the nation’s economy has been hobbling along, business at Myers Supply & Chemical has been “very steady,” Ryan Myers said.
“We have had pretty good growth overall. Last year we had one of the most profitable years in a long time,” Myers said. “So far this year, we are tracking ahead of last year.”
Myers Supply & Chemical’s offerings include green cleaning products, chemicals, paper and plastic products, laundry and warewash supplies, stone care supplies, floor pads, window cleaning equipment, matting, odor control, touch free items and more.
“We continually focus on service and training,” Myers said. “We work with the U.S. Green Building Council (USGBC). LEED (Leadership in Energy & Environmental Design) projects and green cleaning are definitely growing in popularity among our customer base. On the industrial side, we work with companies to help with ISO 14001:2004 standards.”
ISO 14001:2004 outlines requirements for environmental management systems for organizations seeking to operate in an environmentally sustainable manner.
“We are certified as a training center for the Cleaning Management Institute. We do basic and advanced certification in six different areas: floor care, carpet care, restroom cleaning, floor service, green cleaning and basic cleaning chemistry,” Myers said. “We also have several people on staff who are I.C.E. (ISSA Certification Experts) certified to assist companies that are seeking CIMS (ISSA Cleaning Industry Management Standard) certification.”
CIMS is a consensus-based management standard that outlines the primary characteristics of a successful, quality cleaning organization.
Myers reported that the customer base for environmentally friendly products and programs is growing across the board, but especially in the industrial and manufacturing segments.
Myers also boasts a couple of important cultural and historical entities for which the company has aided in establishing environmentally friendly facilities.
“We take care of the William J. Clinton Presidential Library in Little Rock,” Myers said. “We wrote all of the green cleaning policies for the Clinton Library and helped it become the first Green Platinum Certified existing building in the state. We are also helping the Dwight D. Eisenhower Presidential Library and Museum in Abilene, KS, with its green cleaning program.”
Indeed, Myers Supply & Chemical goes to market as much more than a “box mover.”
“We focus on a complete system sale where we first perform a needs assessment with the customer to profile his or her biggest areas that require immediate attention,” Myers said. “The second step is a complete facility analysis that includes measuring indoor air quality. We also use Adenosine triphosphate (ATP) swabs to check for biomass on hot spots.
“Our people conduct a complete survey and advise in ways to improve the health of the building. At that point, we are not necessarily selling a product; rather we are selling a system. We really go to market looking at the end goal — what kind of appearance level and how healthy of a building does the customer want. We work within the customer’s budget to determine the best way to get there.
“We focus on customer service. We definitely spoil our customers, and I think that is what has kept us around as long as we have.”
In the computer age, a company’s Web site is often an important cog in an effective customer service program. Such is the case with Myers Supply & Chemical’s Web site, www.go2myerssupply.com. Myers reported that a new interactive online training certification program is in the works.
“Our Web site also features all of our monthly newsletters. We have information on everything from MRSA (methicillin-resistant Staphylococcus) to H1N1 swine flu to C. diff,” Myers said. “Plus, we have links to podcasts and videos from around the industry on many topics.”
C. diff (Clostridium difficile) is a potentially life-threatening bacterium that causes diarrhea and more serious intestinal conditions.
“Also on the Web site is our ‘Quick & Easy Guide to High Performance Cleaning for a Healthy Building Environment,’” Myers said. “This guide takes a person from beginning to end as far as what is needed to implement a cleaning program that would impact indoor air quality and help to combat mold, mildew, bacteria, viruses, cross-contamination — things of that nature.”
To perpetuate the distributorship’s reputation as a leader in education, training and implementing the best and latest cleaning programs, a highly trained and knowledgeable sales staff is crucial.
“We are not living in a time where you can just give custodians a broom and a mop and put them on the job,” Myers said. “Today’s custodial staffs are facing such issues as super-bugs and other types of challenges. Most buildings nowadays must be treated in much the same manner as health care facilities like nursing homes and hospitals.
“People who are not familiar with our industry might be amazed at the amount of education and knowledge it takes to be an effective sales person. It can take 2 1/2 to 3 years to get a beginning sales person up to speed on the wide variety of chemicals and systems that are available.”
The biggest payoff for customers who are the recipients of the expertise Myers Supply & Chemical’s sales staff brings to the table is oftentimes the savings realized in labor costs. When it comes to facility maintenance budgets, labor is typically the largest expense.
“Focusing on price per gallon or price per case is important, but not nearly as important as trimming 10 to 15 percent off a customer’s labor costs,” Myers said.
For customers who request it, Myers Supply & Chemical’s sales staff is also able to help them manage their inventories. The company’s sales people will track inventory levels and place orders for customers when needed.
The distributorship uses its own trucks to make next-day deliveries within a 150-mile radius from both the Hot Springs and Little Rock locations.
The company’s sophisticated scientific approach to serving the needs of its customers is in keeping with what Myers sees as the track the industry is taking as it moves forward.
“The Cleaning Industry Research Institute (CIRI) and other groups are promoting the science of cleaning. For years in this industry, we cleaned for appearance. We then moved to another level and cleaned for health,” Myers said. “In the realm of cleaning for science, we will be showing that not only do we have a sparkling facility, for example, but we have removed biofilm, improved indoor air quality and/or a bathroom contains less bacteria.
“The emphasis on the science of cleaning will legitimize what we are trying to accomplish. I really think in a few years, we are going to see a hybrid of green cleaning and cleaning for science become a standard in the industry.”
Contact: Myers Supply & Chemical,
831 Third St.,
Hot Springs, AR 71913.
Phone: 501-623-7742;
Fax: 501-623-7727.
E-mail: sales@myerssupply.com.
Web site: www.go2myerssupply.com. |
