ALLPRO Independent Magazine July/August 2021

Ind epe n de nt July/August 2021

The history & Heart of Allpro distributors

A GO OD T H I NG GROW I NG ALLPRO members share their stories of expansion An ALLPRO® Publication

BAC K IN TH E BLACK Reducing costs and increasing profits

A LLP RO TA LKS JC Licht’s Sharon McGuckin shares her passion for retail and career in coatings

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MI CHAEL BEAUDOI N Executive Vice President ALLPRO Corporation

S P O T L I G H T:

his edition of the ALLPRO Independent features two great distributor members (DFM and PACOA). Each of them has similar stories with our members being family owned and strong advocates in their respective communities. They also have strong relationships with their customers built over years of doing business.

In many cases, those customers are fellow ALLPRO members.

Many people may not remember, but there was a time when distributors made up a significant percentage of the group. Some of them were Inland Sales, Tri-W Distribution, Right-Way, Eastern Slope, GMG, Gainesville Supply and Paint Sundries Supply.

In 1993 many of these distributors resigned ALLPRO and formed their own buying group, United Distributors. Unfortunately, they were not as united as their name would

ALLPRO DISTRIBUTION suggest and the group did not last.

Over a period, ALLPRO replaced some of the geographical voids with a combination of new members and new distributors.

Today, the existing distributor members, DFM, PACOA, Carter’s, YHD, Johnson Wholesale, Bunker Floor, Hadlock’s and Hamilton all serve a very important role by either specializing in servicing unique or select customers, major metropolitan markets, stocking unique product lines or a combination of all three.

Major markets such as New York City, Toronto, San Francisco, and Los Angeles are serviced as much from distribution as they are direct purchases. Retailer needs in metropolitan markets are different given the average size of the store and the volume. Other distributors specialize in servicing key accounts, particular product categories or

markets with specific needs. The volume that they purchase greatly enhances the group though larger VIPs as their purchases are combined with member direct purchases to achieve rebates. In addition, there are many product lines that lend themselves to distributors either due to how the supplier is structured or how freight sensitive the product line is. Distributor members gives the group a competitive advantage by being able to leverage either the direct buy or use a distributor member to supply products. Either option keeps the volume in the group or serves the same purpose. We have programs with most of our distributors where members can purchase from them, and the bill is included on their ALLPRO statement. By utilizing a distributor member, it keeps the group strong. (Continued on p.5)

6 Distributor Spotlight The history & heart of a few of ALLPRO’s distributors

16 Back in the Black Tips for reducing costs and increasing profits

30 Planning Growth Things to consider before branching out

12 ALLPRO Talks Q+A with JC Licht’s Sharon McGuckin

22 A Good Thing Growing ALLPRO members share their stories of expansion

36 Human Resources How TriNet has simplified and supported ALLPRO’s HR systems

40 Mishaps & Mistints Laughing it off 42 Final Coat How well do you know ALLPRO?

July/August 2021 | ALLPRO INDEPENDENT | 3

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INDEPENDENT | ON THE BLOCK

Congratulations to the new additions to our ALLPRO family!

Welcome to our ALLPRO family! Please join us in welcoming HUNTER COATINGS, which has one location in Charlotte, NC; PAINT OUTLETS, which has stores in Rochester Hills and Shelby Township, MI; PREMIER PAINT & WALLPAPER, which has one location in Madison, WI; and PROCK’S PAINT BUCKET, which has stores in Hayden, Sandpoint, and Coeur d’Alene, ID to the ALLPRO family of independent retailers!

SHARE YOUR NEWS! If you are involved in a community event, special project, charity, or are celebrating a milestone, please share your news with Susie Fontana at susanne.fontana@allprocorp.com.

Congratulations to the following members on their recent expansions:

VOLUME 4 ISSUE 4

CANPRO DECORATING PRODUCTS has added PACIFIC PAINT SOOKE in Sooke, BC; COLORAMA PAINT & SUPPLY has added a new location in Vista, CA; HOME DÉCOR GROUP has added two new stores, one in Salem, MA and one in Beverly, MA; PAINTER’S ALLEY has opened their fourth store, located in Stanwood, WA; RICCIARDI BROTHERS will be opening a new location in Middletown, DE; and SPECTRUM PAINT CO. will be opening two new locations, one in Durham, NC and one in Henrico, VA.

ALLPRO Leadership board president Elliot Greenberg Executive Vice President Mike Beaudoin Vice President of Merchandising Scott Morath Marketing Coordinator Susie Fontana

About ALLPRO Independent We are a bimonthly publication dedicated to strengthening the ALLPRO community with relevant stories and news. Your suggestions, opinions, and feedback are encouraged.

How to Reach Us Write to us at ALLPRO Corporation 4946 Joanne Kearney Blvd., Tampa, FL 33619 Or contact us at 813.628.4800 or by email at allpro@allprocorp.com All publishing services provided by Gallon Creative www.galloncreative.com

(Continued from page 3)

In recent years ALLPRO has added its own distribution centers providing a national distribution network. We have made many investments to make your membership more valuable and during the pandemic, it really paid off as we were able to compete for scarce products. The ALLPRO distribution centers will be even more valuable as

we continue to explore ways to use the buying power of 2,000 store fronts to compete at the highest level. This does not conflict with our distributor members as the ALLPRO distribution centers are not intended to replace a full stocking distributor. They are focused on the ALLPRO brand along with key categories such as stains and solvents

that lend themselves to distribution.

They will compliment having the option to purchase from a member distributor.

Whether you are buying direct, using the ALLPRO distribution center or purchasing from a distributor member, keeping the volume in the group will enhance our ability to provide more value for members.

July/August 2021 | ALLPRO INDEPENDENT | 5

6 | July/August 2021 | ALLPRO INDEPENDENT

SPOTLIGHT | DISTRIBUTORS

DFM INTERNATIONAL Decades ago in the heart of Montreal, Canada, partners Pierre Marquis and Gino Fillion saw a gap in the Quebec market for a distributor and decided to fill it. They had both been involved in the paint industry, with Pierre owning a store and Gino working as a representative for a big-box dealer, and decided to strike out on their own. “One of the first things we did was create a committee of retailers to collect their ideas,” shares Gino, a move that is indicative of their value to our ALLPRO community. Even in their early days, they understood the value that other perspectives can bring, the need for good old fashioned networking. In the beginning, DFM focused on stocking brushes, rollers, and refills in a 650-square-foot warehouse, filling orders at night to ensure next-day delivery. Within one year, their unyielding work ethic and nocturnal habits paid off, allowing them to move their operation into a building twice the size. Since their debut in 1998, DFM has steadily grown, increasing their inventory in line with the needs of their customers. Today, they have two locations and proudly serve the provinces of Ontario and Quebec, with a new division launched in 2014 aimed at serving Western Canada. They serve over 500 retailers with a product line of over 3,000 items, all of which are aimed at supporting the independent dealer.

The company still has its retailer committee in place, which Gino says helps them maintain their integrity and keep up with market trends, but they are also ALLPRO members, joining our ranks back in 2011 to help further expand their reach and finetune their practices. Their retailers have played an active role in pushing them forward into the digital age, helping to make changes that propel them in the right direction. In turn, they try to provide the same guidance to their customers. “Our ultimate goal is to serve and ensure that we have and find the products our customers are looking for. We try to do that in the short, medium, and long term.” Collaboration is at the heart of their approach, and the more seats at the table the better. “The thing we love most about ALLPRO,” Gino explains, “is having projects that bring us together that we can share.” Having those built-in sounding boards and sharing in their success is what has enabled their steady growth over the last 23 years. Thanks to their philosophy of creating “service and products in the image of [their customers’] reality,” they are currently on track to expand their market share by 10-15% per year.

the constant hurdles in the form of new restrictions and safety concerns by learning to become “more imaginative, reactive, and proactive” citing their proficient teamwork for their agility and resiliency throughout the tumultuous year. But ultimately many of these concerns came to feel insignificant in light of an altogether more profound tragedy felt by DFM and the ALLPRO team as a whole; they are currently on the heels of a tremendous loss. The company’s co-founder, Pierre Marquis, passed away on May 5th, 2020, leaving Gino and their team of 22 with a deeper appreciation for the very real pain of losing a loved one—pain that is all too familiar for millions of people all across the globe right now. Heartbreaking loss has left them with a renewed appreciation for the human aspect of their operation. “This period taught me personally to learn to appreciate the people around me even more—at work and elsewhere.”

Please share in congratulating DFM for their continued success and in mourning the loss of their magnanimous co-founder, Pierre Marquis. He is deeply missed in this community and beyond.

PACOA PACOA define themselves as “the independent distributor serving the independent dealer,” a mission that began nearly a century ago when their founder, Teddy Geismar, first immigrated from Germany to the United States. Working from the trunk of his car, Teddy called on paint dealers in NYC and the Bronx. By 1969, Teddy’s son, Herb, had joined the business, helping to increase their sales territory and diversify product offerings. Together they took their business to the next level with a branded line titled Velvet Touch.

Herb was a motivated salesman with a keen understanding of how to help the independent dealer reach their full potential. It wasn’t long before Herb relocated the mobile business operations to his family home in Long Island and was dedicated to its activity six nights a week. A true family affair, he and the Geismar clan would work together to fill orders, sacrificing sleep to assemble and package paint rollers with the hustling attitude they have

Although there were some great successes, this was a difficult year for many. Despite DIY and home improvement projects trending upward, there were many logistical challenges faced in keeping shelves stocked and operations running smoothly. DFM overcame

July/August 2021 | ALLPRO INDEPENDENT | 7

maintained well into the 21st century. In 1974, Herb made the decision to merge Velvet Touch with Bayside Sales and Paint Applicator Corporation of America (“PACOA”) was born. Herb’s son and PACOA’s current President, Steve, joined the family business three years later. With Steve’s help, they intensified their growth mindset, building their sales force, expanding distribution capacity, and increasing territory with every passing year.

Today, PACOA resides in a 95,000-square-foot distribution center, with plans to increase their warehouse space another 25,000 square feet. They carry over 20,000 items, have a fleet of 21 trucks, and employ 135 people. In 2007, ALLPRO approached PACOA, as we were looking for a two-step distributor to grow with the North East. Joining our ranks “cemented [their] personal and professional relationships with the most successful independent dealers in the marketplace.” Already in possession of the highest fill rate in the industry, infrastructure to support next-day delivery, and a dedicated and knowledgeable workforce, the ALLPRO relationship worked to enhance PACOA’s ability to “learn what is most important to the independent dealers and model [their] service level to those needs” through our annual shows and meetings. “Servicing our independent customers so they can serve their customers is what drives us,” says Steve, explaining the fit between the two organizations. Just like Herb did back in the company’s early days, PACOA continues to educate their customers on how to “increase profitability, helping them sell against large national chains with innovative marketing and understanding the needs of their customers.”

Going beyond supplying to dealers helps PACOA stay relevant in a competitive industry, positioning themselves as a resource to the independent dealer as well as a distributor. “Our culture is that of a family-owned, independent business; that is the driving force behind everything we do. We operate our business the same way our customers do which enables us to react quickly to our customers’ requests.” Steve characterizes this willingness to adapt and evolve alongside their customers’ needs in an everchanging market as a key driver in their success over the years. But ultimately, it’s their ability to identity with the family values of the independent dealer that has allowed them to build such strong and lasting bonds with their customers—a trait that remains paramount in this business and beyond.

As far as PACOA’s future is concerned, things are looking bright.

“We look forward to continuing to build strong relationships with our customers, expand our footprint, and increase our service levels through product growth, technology, and internal organizational progress.”

We’re proud to have PACOA on board and wish them all the best with their upcoming expansion!

8 | July/August 2021 | ALLPRO INDEPENDENT

“ MY FATHER WORKED TIRELESSLY SHOWING [INDEPENDENT DEALERS] HOW TO INCREASE THEIR GROSS MARGIN[S] ON PAINT APPLICATORS, BUILDING RELATIONSHIPS, AND GROWING MARKET SHARE.” STEVE GEISMAR, PACOA

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Praise for Paint Manufacturers We asked ALLPRO members to boast about their favorite brands and share how their suppliers have supported their stores and business growth over the years. The props and verbal pats on the back came easily for our members who value their relationships with reliable paint suppliers.

“Benjamin Moore has always been our most important resource in the battle against the ‘Big Box’ and national specialty stores such as Sherwin Williams and PPG. In the last two decades, Benjamin Moore has delivered ‘groundbreaking’ products and colorants that have differentiated our offering and created a special value for our customers. When you can deliver incremental value to your customer, you have won a battle with the ability to maintain profit-making margins. That’s why Helm Paint and Texas Paint are single-line dealers that position Benjamin Moore products in a place where we can win distinct market segments. These reasons have made us successful now and will continue to drive our success in the future.” ~ Joe Helm, Helm Paint

“Our primary paint supplier [continues to be] Benjamin Moore. While they have given us various types of support in our continued growth, their most valued commitment has been to stay within the independent channel.

Benjamin Moore's current corporate leadership, as well as their parent company, are dedicated to the success of the independent.” ~ Glen Morosohk, Ricciardi Brothers

“[Our] major manufacturer is Benjamin Moore and they have truly been an integral part of our business and our growth over the last 10 years.

They have been a part of project innovation and also the number one supporter of the independent business and the retail channel that we exist in. They have good pricing, good promotions, and have invested in a solid e-commerce model that they pass along to us and we get job quotes when needed. They are the best at answering calls when you need them, and they have a dedicated sales staff for us. They have just been fantastic!” ~ Josh Johnson, Johnson Paint

“Our main paint manufacturer is Benjamin Moore Paint and I have dealt with them since 1979. They have been a true partner for me in my three career paths [that have spanned] 41 years. Part of a good partnership is understanding each other’s goals and working together to reach those goals and find a place where everyone is happy – a win-win situation. They are, and always have been, so important in my business and I have respect for them, their superior products, and their iconic brand. I’ve always felt

that in any partnership you must be honest; I have been able to be candid with them on ways they need to improve, and they have also done so with me. I think that’s very healthy we all have our flaws but being open and honest about those things makes for a good relationship both ways.

When I need them, they are always there for me and when they ask something of me, I make it happen.

It’s a phenomenal partnership!” ~ Elliot Greenberg, JC Licht

“It all truly comes down to relationships with key people, whether that be with your PPG sales rep or a member of the upper management within the organization.

Having those relationships has helped us tremendously to get what we need, when we need it. The team at PPG have shared their foresight and what the company is doing and how they are doing it which has allowed us to strategically position ourselves with them so we could be successful and continue to grow.” ~ Geoff Dankers - Reno, Truckee and Carson Paint Mart

July/August 2021 | ALLPRO INDEPENDENT | 11

DAILY MIX | ALLPRO TALKS

ALLPRO

TALKS With Sharon McGuckin, JC Licht Sharon McGuckin makes multi-tasking look easy.

The Vice President of Retail for JC Licht, who calls herself “the front of house” for the 44-store paint retailer, manages the company’s customer service model, coordinates marketing, is involved

Allp r o i n dependent : w h at wa s yo u r f i r s t j o b ?

Shar on M c g u c kin: My first job out of

college, I was on the team that opened the first J Crew retail location in NYC. Up until that point, it had been a catalog-only company. It is where I fell in love with retail. It was such an exciting experience; sometimes overwhelming because people were coming from all over the country. We had security at the door and a line around the block every morning when we arrived, but at the end of every day we were euphoric about what we had accomplished.

AI : W h at i nf l u e n c e d y o u t o wo r k i n t he pai nt busi ne ss ?

SM: I am a luxury retailer by trade, so I fell into the business via Farrow and Ball, the British paint manufacturer. I began at their Greenwich, CT, showroom and continued with them when my family relocated to Chicago. In total I was with Farrow and Ball for 12 years and watched them go from having two showrooms to having representation across North America. It was a wonderful entry into the paint business and a perfect merger of my retail experience and the coatings industry.

12 | July/August 2021 | ALLPRO INDEPENDENT

in HR, and also serves as ALLPRO’s Decorating Committee Chairperson. We catch up with this mom of four to find out what led her to the retail paint industry and how ALLPRO has been a key support for JC Licht during the pandemic.

AI: What has been the key to your career success?

SM: I have always given my kids one consistent piece of advice: the hardest worker wins! It doesn’t matter if we are speaking about school, work, sports, relationships, friendships. It might not always feel like it, but in the end, I promise, if you do the real work and don’t cut corners, you will be successful. And be open to new ideas. We are always learning at JC Licht.

AI: At J C Lich t, you r mot t o is ‘ Make it Happen . ’ T ell me s ome of t he t h in gs yo u mad e h appen in you r r et ail s t or es during t h e pan d emic. Wh at ch an ges will yo u keep movin g f orwar d ?

SM: We built a virtual color consultation business that has continued to grow which has taken some pressure off our In-Home services. We also started a color hotline for color questions when we were strictly curbside and people weren’t allowed into the stores to see our color wall. It was so successful we kept it running and have added hours to it. This too takes pressure off the busy paint counter, especially now that we are in our exterior season because we have an expert on the line who can speak to undertone and light. She is a great asset and answers those quick questions for cabinet colors and differences between certain whites.

A I : When did JC Licht become a member of ALLPRO? How has involvement in the group benefited the business?

SM: We joined almost immediately after Elliot purchased JC Licht in 2015. We have benefited in so many ways but none greater than the support we received during the early days of the pandemic. The ability to pick up the phone and call other retailers to ask, ‘how are you handling this situation, are you going curbside, how are you protecting your employees,’ messaging to the public, and making the e-commerce decision was priceless. We were basically on the phone every day checking in and either getting or sharing information with folks from Ricciardi, Hirshfield’s, Aboff’s, Ring’s End, Barrydowne, and Gleco, to name a few. I do not know how we would have survived without the support of ALLPRO members but also the ALLPRO team. They worked night and day to source PPE so that we had some when even the big boxes were out. ALLPRO was our loaded dice against our competitors throughout the crisis.

A I: How does your store utilize the ALLPRO brand?

SM: JC Licht’s biggest unfair advantage is our diversity of product offerings and we use the ALLPRO brand in that mix. We invest heavily in it because it is something our competitors do not offer.

AI: What is your favorite ALLPRO branded product?

SM: There are so many. We have given exclusivity to the ALLPRO Warner putty knives and scrapers and we have done really well with them. We brought in the ALLPRO solvents which are a clean, uniform line. But our number one ALLPRO seller is probably the Petoskey plastic sheeting.

have been so generous with their advice and guidance. However, I have also formed some very deep friendships with people in the paint business. It is why I look forward to the ALLPRO conferences so much. It is wonderful to be in one place with people who know exactly what you go through every day and who love their jobs as much as I do.

AI: Any memorable stories from past ALLpro events?

SM: There have been so many fun trips. I love the breakout sessions and the guest speakers. However, the most memorable for me has to be New Orleans. I am a clumsy person by nature and pretty much every member of ALLPRO saw me trip or fall on my face on the cobblestone streets at some point during the New Orleans trip. It became the running joke of the weekend and follows me everywhere.

AI: What are some of your hobbies? What do you like to do in your free time?

SM: I have four children so I haven’t really had time for my own hobbies in the last 30 years. Any free time was spent watching their plays, hockey games, lacrosse games, and marching band competitions. However, I am on the cusp of being an empty nester, so I am starting to look at my own hobbies. For my mental health, I try to work exercise into every day. And I have recently discovered I love yoga. I also do a lot of gardening.

AI: Wh at is you r favor it e pain t colo r?

SM: Yellow, yellow, yellow, yellow all day!

AI : Tell me about the connections or relationships you have created through the paint business.

SM: The paint business has given me the greatest colleagues that

F ast as t F i v e :

T ALKS SK C of fe e or T ea ?

c o f f e e ! a l m o s t e v e r y n i g h t at s o m e p o i n t i s ay ,

‘i

c a n ’ t wa i t f o r m y m o r n i n g c o f f e e ’ a n d i n e v e r

l i n g e r i n b e d i n a n t i c i pat i o n o f m y f i r s t c u p .

N e tfli x or Nov el s ?

netflix, it’s something i can do with the whole fa m i ly . i r e a d s o m u c h f o r w o r k , i a m to o t i r e d to r e a d at n i g h t .

N e u tr als o r b o l d c o lo r s? bold.

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Back in the Black Your To Do List For Reducing Costs & Increasing Profits

Let’s face it, a business’s first priority is to turn a profit. While many independent retailers have top products, are passionate about paint, and exercise plenty of hard work, operating a profitable business can be difficult to do. Whether your store is experiencing a cash crunch, you’re trying to stay afloat, or you’re simply looking to increase sales profits and grow your bottom line, there are always ways to improve.

Check off a few items on the to do list and start trimming costs and turning profits today.

Reduce Cost & Increase Profits TO DO: CUT EXPENSES Review your business expenses and determine which costs you can cut without compromising custom service or quality. List all the expenses the store incurs and see how you can reduce spending.

While some are essential, others are unnecessary but nice to have.

Take inventory of these expenditures and compare their cost to the value they give your store. If you no longer use a service and it’s not important to your business interactions, cancel the monthly fee.

A simple phone call to negotiate better rates is a great place to start.

Request lower monthly fees for credit card processing and telephone and utility bills and consider calling competitors to ensure you’re paying the lowest possible price for internet and web hosting. A reduction in regular monthly expenditures can easily equal more money staying in your account.

Office supplies, equipment, and shipping is another area to trim extra costs. Consider cutting receipt paper and go all-in with electronic receipts and invoices. Review health plans and business insurance to make sure you’re getting the best coverage without paying top dollar. It doesn’t hurt to ask. And if you have the extra space, buy products in bulk. Every little bit adds up.

16 | July/August 2021 | ALLPRO INDEPENDENT

TO DO: REVIEW PRICING STRUCTURE It’s never easy to raise prices, but a small increase in your asking price can make a considerable impact on your gross profit. Review the cost of your products and run the numbers to ensure they’re in line with your competitors, the state of the economy, and the loyalty of your customers and adjust your prices accordingly. Remember, many of your patrons are paying for more than the top-quality product -- they’re paying for your store’s exceptional customer service and product expertise, something which many customers consider invaluable. If you’re hesitant about a price hike, test the increase on a few products before rolling out the higher prices across all products.

TO DO: LEVERAGE VENDOR RELATIONSHIPS Capitalize on great business relationships by renegotiating with your vendors and suppliers and utilizing the benefits of the ALLPRO group. ALLPRO negotiates lower rates, promotions, discounts, and freight with all supplier partners. Attend ALLPRO shows and events, and leverage the personal relationships and additional sales and discounts offered, another perk of being an ALLPRO member.

Check in with vendors to see if there are upcoming sales or if they have other plans that could save your store money. Just like you’re working hard to keep your customers happy, so are your suppliers.

TO DO: STREAMLINE OPERATIONS If you find yourself or some of your employees overworked, wearing several hats, or straight-up doing it all, it might be time to streamline your operations to improve the efficiency of your retail store.

Simplify important tasks, eliminate unnecessary work, and put people in the places they make the most difference. Put new, inexperienced staff beside seasoned pros during busy times so one can learn from the other. One trick is to calculate the average productivity per employee to determine who generates the most sales. Then schedule people or teams into time slots to leverage their skills for top sales and the store will start reaping the rewards.

Another way to reduce costs is to invest in automation. Anything from data entry to inventory management, accounting, payroll, and administrative duties can be moved to a more automated process, freeing your people up to contribute to the store in more meaningful ways.

TO DO: INCORPORATE E-COMMERCE Any store that has moved to online sales knows how important and lucrative - e-commerce is, especially in the midst of a pandemic.

And it should be no surprise that online shopping is sticking around.

A UPS Pulse of the Online Shopper Study found that more than

half of consumers shop online, making it essential for retailers to have a digital presence.

E-commerce provides a faster and more flexible buying option for customers in comparison to in-store shopping. Because of the benefits, your store may appeal to both new and existing consumers who prefer the convenience of shopping online.

TO DO: GET ON SOCIAL MEDIA Like online shopping, social media is here to stay. With savvy new social platforms, you can communicate precise messaging to a unique audience - for free! A business presence on popular sites such as Instagram and Facebook doesn’t cost money, however, advertising and other paid avenues on social media can take your branding, visibility, and business to the next level.

July/August 2021 | ALLPRO INDEPENDENT | 17

Use social media to engage with existing customers and draw a new crowd. Host contests, offer product and service expertise, elicit feedback from your audience, even generate sales directly via social platforms. Social commerce allows you to sell products within social media networks so it’s easy to engage Facebook and Instagram users and turn scrolling into sales. The sky’s the limit when it comes to growing your brand and your bottom line via a social space.

TO DO: REMOVE AND REDUCE INVENTORY Unprofitable products could be getting in the way of your store turning a better profit. Examine which merchandise grosses the lowest profit margin and determine if the products should be removed from your stores or shelved until they can be marketed for better sales.

Controlling stock is a beneficial way to streamline business and boost cash flow. Not only will you have more space for the products that garner top dollar, you’ll have less funds tied up in slow-moving products and less losses due to expired inventory.

TO DO: STAY UP TO DATE WITH INDUSTRY CHANGES Be on the cutting edge of everything paint related. Keep tabs on the latest and greatest in colors and applications by following trending social media accounts, reading industry magazines, and researching market trends.

TO DO: BENCHMARK AGAINST YOUR INDUSTRY While comparison is usually the thief of joy, in retail it can be the key to cutting costs. Analyze your store’s metrics against others in the industry. If you can identify areas you’re spending more on, consider why and see if you can lower these expenditures to industry norms.

TO DO: OFFER INCENTIVES TO STAFF Ask your employees for help with reducing expenses and reward them if they find ways to cut costs. Existing employees who feel valued are more motivated to stay on task and turn profits.

18 | July/August 2021 | ALLPRO INDEPENDENT

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22 | July/August 2021 | ALLPRO INDEPENDENT

Mallory Paint’s Jim Mallory and Juan Rios

A Good Thing Growing Growth is a good thing. A flower blooms. A toddler takes their first steps. And businesses branch out. Many ALLPRO members have multiplied their operations, adding to their stores, and developing their business. And with each additional store comes various stories, words of wisdom, and cautionary tales from along the way. We connected with a few of our members to find out about their experiences with expansion.

SLOW AND STEADY GROWTH: DAGES PAINT COMPANY When Anne Dages became the third generation of Dages Paint Company in 1994, she was committed to not just continuing the family business but taking it to the next level.

With a business degree from the University of Dayton and a couple years in franchise development for both a regional and national chain under her belt, Anne had all the tools in her toolkit to expand when the time was right or the opportunity arose.

“I joined with the goal of growing,” Dages says. “[I wasn’t] really sure how that would look, whether we could grow with one store, or if we would need to expand. I was not opposed to expansion, but by the time I joined my father, he didn’t want to take that on.”

While the company wasn’t in the business of big or multi-store expansions, they did have experience growing and developing the start-up at a steady rate.

Anne’s grandfather started Dages Paint Company in 1930 during the height of the Great Depression, selling paint from the trunk of his car. As his business grew, he moved his operation into a house where he sold paint out of the living room and did office

work in the kitchen. This space was soon too small, prompting him to establish his first “official” store. Dages Paint Company outgrew this location and in 1939, moved into a larger building.

When Dages’ father joined the family business in the early 1950s, the father and son team built a store large enough to house their growing business.

In 2016, with Dages at the helm of the business, opportunity came knocking and it was her turn to grow the business. Not only did she remodel the original store and add Benjamin Moore paint, but she purchased two Hikes Point Paint & Wallpaper stores.

“There was another independent [retailer] locally who was always very supportive of me,” Dages details. “We never really saw each other as competitors. We saw more of the big boxes in the national chain as competitors, so we worked together as independents. He always kind of joked and said, ‘Oh, when I retire, are you going to buy this from me?’ And I said, ‘Yes.’ And then not really putting a timeframe on that, he called me and said, ‘Hey, I’m ready to retire, do you want to buy?’ It was such a great opportunity for me because he had a very well-established business.”

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According to Dages, she knew from past experiences in franchise development that it was easier to take over an existing successful business than it was to start a new one.

“I was very fortunate in that I was able to keep the majority of my key employees from the stores that I had bought,” she says. “And I worked very hard with the previous owner to set it up so it would work. So that way when I purchased, there weren’t customers who saw a big change. They saw the same people they had seen in the same stores. They just weren’t used to seeing me so I was kind of the only thing that changed.”

In that respect, Dages says her own role really didn’t change either -

she was just operating on a larger scale.

“My expansion wasn’t that scary,” Dages reveals. “I was doing the same thing I had been doing for so long, in a city that I knew.

And we had many, many shared customers and I was known in the industry. It wasn’t like starting over.”

With her kids now in college, Dages says her expansion days are over, but adds, “never say never.”

“I don’t plan on opening any more stores,” she details. “But if my children come in as the next generation, I would encourage them to expand it, because this has been a very good thing for us.”

EXPERT IN EXPANSIONS: JC LICHT With more than 44 company-owned stores in the Chicagoland area, JC Licht is an expert in expansions. According to Vice President of Retail, Sharon McGuckin, the independent paint retailer runs like a well-oiled machine when it comes to acquisitions and new store openings because everyone on the team is responsible for a piece of the puzzle and knows what is expected of them.

“We do not reinvent the wheel every time,” explains McGuckin, referring to JC Licht’s expansion process. “We wrote a playbook and we stick to it. Six weeks out, we know exactly what should have been taken care of and who is responsible for it. There are always going to be some unexpected bumps, but you have to anticipate them and act quickly.”

Purcell’s Paint and Wallpaper

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McGuckin stresses that store growth for the veteran retailer wasn’t always this smooth. In fact, when she first started at JC Licht, minutiae but essential details easily fell through the cracks.

“It’s really important that your people own their pieces because it’s overwhelming,” she says, explaining that she’s in charge of new store signage and marketing but that other team members are delegated with tasks that fall under their umbrella of expertise.

The business was first started by Jacob Licht in 1907 and is now owned and operated by Elliot Greenberg, whose vision for the future includes strengthening the can-do, service-oriented company culture, reinvesting in the business and its employees, and continuing

Dages Hikes Point Paint & Wallpaper

to expand products and locations. Currently, JC Licht has their sights set on opening new locations in summer and fall 2021, however supply chain issues due to COVID-19 have made things complicated. Despite the challenges, the team veered off course and found resources to meet their deadline.

According to McGuckin, one very critical part of their process includes everyone getting together and contributing to the end goal. “The weekend before an opening, it is all hands on deck. There are always things that don’t get done so everyone including the CFO and his team shows up in jeans with a toolkit.”

And while opening a new store is nothing new to these seasoned pros, McGuckin says that it’s important not to put the expansion as the priority if it hinders the success of existing stores, staff, and patrons.

“It’s okay to pause,” McGuckin advises. “We have taken pauses along the way. There were times we felt we were going too fast and if we didn’t slow down, we would damage our culture. It’s very important that we ‘make it happen’ for our employees and customers every day.

If a new store opening is going to negatively impact that by pulling resources away from existing locations, we pause until we are ready.

Living our core values is more important than adding a new location.”

The team understands both the risks and rewards involved in expansion and is always prepared to modify operations for current and future developments.

“We always have a post op meeting around a month after opening,” details McGuckin. “We discuss what we may need to change or what maybe didn’t go so smoothly and how we could have done better.”

THE ROLLERCOASTER OF RAPID GROWTH: MALLORY PAINT STORE If there was a record for the expansion rate of an independent paint retailer, Mallory Paint Store would definitely be in the running.

Jim Mallory opened the doors to the first location in 2006 with the goal of owning two shops. Fifteen years later, Mallory Paint has well surpassed the initial goal, with 20 stores up and running in Washington State and Idaho.

Mallory is the first person to admit that the quick expansion came as a surprise, especially after struggling to open his second store in the middle of the 2009 recession.

“On top of the recession hitting, it was a lot of work, and a portion of the income, so you’re taking a big hit,” Mallory explains. His perseverance paid off and by 2011, Mallory purchased four existing Benjamin Moore stores.

“That was kind of a milestone game changer,” Mallory says.

“Overnight I went from about six employees to 50. And you can’t micromanage 50 employees, I learned that really fast.”

When operating one or two stores, Mallory was doing it all and had

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his hands in everything - doing the books, working long hours, and overseeing his staff.

“I did not like my job when I was managing 50 employees, and I knew that I either had to grow or I needed to revert backwards,” Mallory admits. “We chose to grow - we were able to put substructure underneath us and layers of management.”

The owner credits his expansion success to both the people and the stores that he has working for him.

“I was lucky that we had some good employees. And it’s really all about employees,” he details, adding that post-recession, two of his stores were also doing well financially. “Those stores helped fund my growth, because you need people, and you need money to be able to grow.”

In 2010, with established employees and retail revenue, Mallory made his biggest goal yet: 20 stores by 2020. “We picked up pace and in April of 2020, we opened our 20th location in Monroe, Washington.”

With such high target goals, Mallory put an expansion procedure in place. “It’s all about the model. All of our stores are very similar,” he explains. “When we open a store, we do all the work ourselves.

My soon-to-be-manager helps me with the work - they’re in charge

East Bay Paint Center

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of it - and it actually gives them some ownership in that store. So, when they’re grinding floors, painting, and everything that you need to do to open a store - installing the shelving - they’re learning, but they’re also taking some pride and ownership of their store.”

With his 20-store goal achieved, Mallory is setting his sights on a new number. “Thirty-six stores by 2026. It’s a very aggressive goal,” he says. To find new store locations that will meet his lofty ambition, Mallory has criteria that he looks for, including building size, neighborhood, and market demand for Benjamin Moore paint.

“My model is basically an alpha-type of location - it’s street front on a busy street,” divulges Mallory. “We’re usually very close to the freeway entrance on ramp or off ramp everywhere we go. We pay top dollar for rent. We try to stay away from the big malls, so I’ll do a small strip mall, or I’ll try to do an individual building. If you do the big malls, you kind of get buried in there and nobody wants to come in and shop.”

Once a new space is secured, Mallory Paint Store’s team follows a very thorough checklist, everything from phone lines to signage.

With all the items checked off the long list of to-dos, Mallory can finally focus on his next feat.

“36x2026 - a yard ahead!”

Expansion Advice From The Experts “One big thing I’ve learned is, you’re better off putting a store on your way to a high demographic market than necessarily putting the store in the high-income market, because a lot of those people pay painters to paint and the painters don’t live there.” - Jim Mallory, Mallory Paint Store

“If you’re opening a store in a new market from scratch, you just really need to have patience with it. It can take a couple years to really establish itself, so you can’t overreact when things start a little slow. But if you’re acquiring a store, I think it’s key to develop really good communication with the existing employees, establish that you’re going to take care of them and not just go in and make drastic changes. I think it’s important to involve everybody in the process.” - Josh Johnson, Johnson Paint Company

“Great employees are a must. And partnering with vendors is something that has helped us. Vendors want to work with companies who are growing and loyal. Also talking with people who have done it. ALLPRO is such a great forum for these points. You can meet key vendors, executives, and experienced dealers large and small willing to share.” - Matthew Rossi, Rossi Paint Stores

“Check your bank account and make sure you can afford to lose money for a few years. Everyone always thinks if you build it they will come – that does not happen. My biggest piece of advice would be that without the proper personnel, just say no. People are what make or break your business.” - Anthony Ward, Farrell-Calhoun

“I am never afraid to ask for anything because all they can do is say no. And most vendors don’t say no if they can make it happen. Tell them you’re expanding stores and they will give you a special - one time buys for expansion.

Even though I was an established vendor at my original store, when I was making a buy for the two new stores, I was able to get those first-time buyer specials.” - Anne Dages, Dages Paint Company

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Planning Growth Things To Consider Before Branching Out

Whether you’ve got your sights set on opening a new store from the ground up, acquiring an already established retail location, or dreaming of a multi-store expansion, the opportunity to grow your business is exciting. But before you make the move to a new neighborhood or market, consider these crucial next steps and set yourself up for success.

MAKE A PLAN

FIGURE OUT FINANCES

Determine the roadmap of your retail business - where you’ve come from, where you’re headed, and where you’d like to eventually end up. A plan and vision for the future will help you to set goals, properly anticipate expenses, and measure your progress.

Cash flow is as important to expansion as fuel is to a car. Consider the costs involved in your existing store: rent, utilities, staff salaries, taxes, product and merchandise, and equipment and furnishings.

If your existing store is experiencing sales success, use business

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profits and invest them into your expansion. This will save you from loan interest fees or giving a share of your business to an investor. If your business isn’t in the black, create a strategy to drive revenue growth by building up your sales, marketing, and digital capabilities into a more lucrative system.

However, if using revenue to fund your new store or acquisition isn’t an option and you can’t finance the expansion yourself, carefully review the best business loan opportunities and shop around to get the lowest rate of interest.

LOCATION, LOCATION, LOCATION Ask any real estate expert and they’ll tell you that location matters.

Not only is a great and highly visible location key to attracting customers, but a store in an easily accessible area makes supply and distribution smoother.

Before committing to a neighborhood, examine the current market share in the area. How many competing stores are there? Are the

products you carry available at other retailers nearby? Is there a need or a desire for an independent paint retailer?

If the neighborhood you’re eyeing is in a new geographical location, there may be a change in legal requirements that are different from your established store. To deal with discrepancies in business licenses and permits, employ the help of a professional realtor, accountant, or attorney.

STAFFING AND MANAGEMENT STRUCTURE Since your attention will be split with the various responsibilities of running multiple stores, you’ll need to develop a successful management and staffing structure for your expansion.

As an independent retailer, you already know that good people are one of your greatest assets, so leverage your existing and dependable employees and move them into roles with greater responsibility or management positions. If you’re acquiring a store with existing employees, bring them on board and ensure you give

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clear communication so staff knows what to expect, they feel part of the process, and they don’t feel left in the dark.

FORMALIZE PROCESSES With an added location, business can get complicated. Take some time to standardize your current processes and create operational efficiencies that you can use across all stores. These critical steps can take time and effort, but they’ll help you to manage inventory, finances, and personnel.

BRANDING Before you open the doors to a brand-new store, ensure it boasts the same brand image you’ve already built into your existing stores, while tailoring to your new location. Brand recognition can be especially important if consumers correlate your products and services to your company name, logo, tag line, and advertising.

Leverage your reputation and appeal to the local clientele by keeping the branding consistent but personalizing the message to reach your new market.

DUE DILIGENCE If you’re in the market to acquire an already-established store, ensure it’s a good investment. Consider the following questions: Why is the owner selling? Was the store making a profit? Will the existing employees stay on with the store following the sale? Do your due diligence and make sure you’re up to the task of taking over either a successful or struggling business.

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GET EXP ERT ADV I C E As an ALLPRO member, you are part of a family of independent paint retailers who are willing to share their tips, tricks, and words of advice. Many members have experience with acquisitions, opening a new store, or running multi-location businesses. Connect with these colleagues and soak up their expert guidance.

Reviewing what you want in an expansion and ensuring you have things in place when you’re ready to purchase will go a long way toward your store’s financial and business success.

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INDEPENDENT | HUMAN RESOURCES

ALLPRO SHARES THEIR SECRET TO HR SUCCESS We sit down with ALLPRO’s Michael Beaudoin and Aimee Green to find out how TriNet has simplified and supported ALLPRO’s HR systems

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“T H RO U GH [ TRIN ET’ S] TECHN O LO GY, THE RE’S S O MA N Y CHECKS A N D B A LA N CES TO M AKE S UR E THA T Y O U D O EVER Y THIN G PROPE RLY A ND LEGA LLY A N D UN D ER STA N D THAT IN THIS C O UN TRY EVER Y STA TE HA S ITS O W N LAWS . ”

pproximately one year ago, when ALLPRO Corporation’s Executive Vice President Michael Beaudoin was hiring a new employee, he discovered that ALLPRO’s benefits weren’t anything close to what the applicant was getting at a national paint chain.

“I also found that we were having a lot of difficulty getting competitive programs and healthcare programs to our employees who are outside of the Florida area, mainly in Oregon at the time,” Beaudoin explains.

To rectify the situation, Beaudoin went in search of an organization that would deliver on HR services and employee benefits and fit well with the ALLPRO family.

“It was worth the due diligence to do a census with a company called TriNet,” Beaudoin details. “Through that process, we started to learn more about their platform, their technology, and just more that they can offer our employees as well as the costs associated with it.”

TriNet is a professional employer organization (PEO) that provides small and medium-sized businesses with full-service HR solutions - everything from human capital expertise to benefits and payroll, all in real-time technology.

“What we came out with was something that was much better than what we had,” says Beaudoin. “What it gave us was more options. It gave us a more professional platform so when we have a new employee come on, there’s more of a system to indoctrinate them or get them set up.”

While the onboarding and human resource support from TriNet has proven advantageous for ALLPRO, as the number of employees grows, the PEO’s solutions will become even more helpful.

“We used to have 13 employees and now we’re close to 30 employees, and we’ll probably have significantly more in the future,” adds Beaudoin, explaining that as staffing increases and expands to other areas of the United States, so does the complexity of HR. “Through [TriNet’s] technology, there’s so many checks and balances to make sure that you do everything properly and legally and understand that in this country every state has its own laws.”

Aimee Green is responsible for ALLPRO’s human resources and says that TriNet’s services have really leveraged what ALLPRO is able to offer their employees.

“If we have someone living in California who is on the business development team, we have a competitive health plan to offer them out in that market with a network of physicians,” Green explains. “That is really hard to do when you’re a smaller employer and setting it up independently. So that’s been a huge benefit for us.”

While ALLPRO is still in the first quarter of their relationship with TriNet, Beaudoin believes the investment in the PEO is valuable and a service that could also be useful to ALLPRO members and retail stores that are small to medium in size.

“I feel right now it’s well worth it,” he says. “But if we were to grow to 100 employees, it may not be cost effective because it’s

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a per employee cost per month. Right now, it’s the best money spent.”

TriNet’s cloud-based system offers access to premium benefits, risk mitigation, payroll services, and HR experts right from the convenience of a handheld device.

“They have an app that you can get right on your phone, so when you get paid every other Friday, you get an email that says your paycheck’s ready,” explains Green, adding that employees can also request time off via the app.

And even though the organization boasts an expansive technology platform with mobile tools, it doesn’t mean they compromise personal connection for technology.

“It is all cloud-based, but there are some great people that work there,” Beaudoin states, explaining that TriNet experts are available 24/7 to work with employees and advocate on their behalf. “They just have more resources than what we can offer without them.”

Next time Beaudoin is faced with a competitive hiring situation, he now has a great employee incentive. “You can go after some of the best talent because your benefits are not an impediment to employment.”

I NT ER ES T E D IN A P R O FESSIO N A L EMP LO Y ER O R G A NIZ A TIO N THA T CA N P R OVID E FU LL-SE RVICE H R S O L U T IO N S TO Y O UR SMA LL O R MED IUM -S IZE D B U S INES S ? GO TO TR IN ET.CO M TO LEA R N M ORE .

CROSSWORD ANSWERS: (PAGE 42) ACROSS: 3. DriplessInc 6. LDMGroup 22. RudyRuettiger 9. Canpro 11. KellyScott

12. Formula 14. ACEDropCloth 15. AnthonyWard 17. Wallauer 21. Poliseo 22. Abrasive

DOWN: 1. BobLangbein 24. Gleco 26. SeymourOfSycamore 27. Miller

2. JasonTaylor 4. JCLicht 5. Quick2Coat 7. MonteCarlo 10. COTY 13. PhoenixTapes

16. Dugans 17. WarnerMfgCo 18. MikeWeber 19. Halbig 20. Shawnee 23. Guirys

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DAILY MIX | SHOP TALK

MISHAPS & MISTINTS: LAUGHING IT OFF Regardless of our skill or our knowledge, we all make mistakes from time to time. Between hectic days and busy minds, a paint store can sometimes feel like the exemplification of Murphy’s Law (whatever can happen, will happen). But whether a mistint or an outright fail, these momentary lapses often provide us with welcomed reprieves of levity from our day-to-day, even if usually only in hindsight!

We’re spilling on your best stories of in-store blunders so we can share together in a bout of much-needed laughter….

“The biggest mishap I’ve had personally is a bucket of lacquer on a 100-degree-Fahrenheit-plus day. I pulled back the pop off lid and boom! Lacquer explosion. I was covered head to toe. I had to take a bit of a lacquer thinner bath that day!”

Gentry Stafford - Spectrum Paints “A contractor placed a paint order with us and requested that it be dropped off at the job site, which was a residential house. Our delivery driver dropped off the paint at the backyard of an incorrect house. The contractor calls the store looking for his delivery. We tell him that it is already at the job site and he informs us that the paint is in fact, not there. Our delivery driver goes back to the house where he dropped off the paint, which was one block away from the correct house and, thankfully, we were able to reclaim our paint and get it delivered to the contractor at the correct house. Oops!”

Bob Langbein - East Bay Paint Center “You know when you start a new job and you really don’t ‘know’ the people you’re going to be working with and how they are going to be to work with? My experience with the guys at the Osage Beach store was interesting. I felt like it was a test. What I knew and how I would handle customers.

My first week I was having a typical busy morning mixing paint and working with customers. When I finally got a break and went to the restroom, I looked in the mirror to find that my face was completely streaked with black tint!!! When I came out of the bathroom the guys were rolling on the floor laughing at me. They let me work all morning like that. I knew then I was working with jokers and that these guys were going to be fun to work with - trust me I got my paybacks on them!”

Diann Goins – Dugan’s Paint

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“I remember one of my employees took a sample out of a competitor's can to color match. He made a draw down and put the sample under our lamp to dry. Without realizing he didn't clamp the lid he grabbed the can, held it out in front of himself and began to shake it. The entire contents of the gallon poured all over him, head to toe, face, ears, hair and all. He was covered, and the bad part was, it was solvent based.”

Joe Tuttolomondo - Southern Paint “About a year and a half ago I had a guy walk in through the paint dept. door and ask if we sold Martin Senour paint. My reply, of course, was, ‘No sir, we are a Benjamin Moore dealer and that is our primary line,’ and then I named our secondary line(s) off to him.

Then, (this is a true story) the gentleman asked if he could taste the Ben Moore paint stating that he could tell a lot about the paint by tasting it. So I asked him if he wanted a packed white or a base and that it was $63.59 a gallon and he could eat all he wanted. He chose the package white. After taking a giant glob on his finger, which more than filled his tongue and turned his entire mouth white, he said to me … no thank you I'll keep looking and walked back out the door.”

Randy Hill – Dugan’s Paint “A few years back we had a deer jump through our showroom window and proceed to walk around the store. Thankfully, it didn’t make any more of a mess and actually walked to the door, pushed it open, and left. We wound up using the security camera footage for a social media post that was our most popular social post to date. A classic lemons into lemonade story.”

Michael Gleason Jr - Gleco

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ACROSS 3. The best kind of faucet and one of the best caulking tools 6. Member across the pond 8. Notre Dame alumnus to see at Nashville ALLPRO show 9. Joined the one hundred-million-dollar club in 2021 11. She’s a board member and competitive equestrian 12. Prescription 14. Work in paint or play Texas hold ‘em, you’d love to be holding a pair from this supplier 15. Triathlete and New Orleans Saints superfan

D OWN 17. Female powerhouses Donna and Debbie; they own a company celebrating its 100th anniversary this year 21. He put in 40 years with ALLPRO 22. Gritty 24. Bambi paid this store a visit 26. Cast your eyes upon additional fig-mulberry 27. They delivered paint in the Pacific Northwest by horse-drawn carriage over 130 years ago

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1. He holds a business degree, was a wildland firefighter, and is an avid angler when not mixing paint or on the back nine 2. Former air traffic controller; recently celebrated 40 years in business; enjoys a 7,000-squarefoot showroom 4. They “make it happen” 5. Modified acrylic sealant 7. The unofficial ALLPRO stock car is a 2002 10. Color of the Year abbreviation 13. They make ALLPRO branded abrasive products fit for the Coyotes, Suns & Mercury

16. This member predates sliced bread; began with paint and glass supply; is under its seventh generation of ownership 17. They may sing Merrie Melodies & Looney Tunes while making great tools 18. He’s a “deadhead,” on the board, a CPA by trade, wears socks with sandals, and carries a backpack everywhere he goes 19. Top finisher in the first annual ALLPRO 5K 20. Our new warehouse is located in this city 23. One of our member experts in art supplies

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