Georgia discounter establishes unique market niche

A T LAST there's a building frl products retailer who admits he is not trying to compete with Lowe's, although he wants to position his operation as a unique entity.

"We want to give BSS more name recognition while alerting consumers to the bargains and savings passed along to them," says a spokesman at Building Surplus and Salvage (BSS), North Augusta, Ga.

This is being partially accomplished through the use of an animated, computer generated television commercial that has the BSS logo exploding into photos of a bargain product with prices.

"Unlike the big boys, who rely heavily on full page newspaPer ads and inserts, BSS concentrates on radio and tv advertising. A broadcast campaign has been cost effective because BSS customers live as far as 70 miles away," he explains. "People recognize the incredible bargains as soon as the ad is run and the response is immediate."

Story at a Glance

How a dirt floor warehouse de veloped a multi-million dollar business. .. cash and czlny operation specialbes in seconds... ctrstornerc come ftom 70 miles away.

Building Surplus and Salvage is a multi-million dollar business which its owners, Shorty and TommY Mixon, started when they were offered a good deal on siding and roofing seven years ago. The brothers, who were builders at the time, bought the materials at a reduced cost and decided to sell them at a profit.

News of a local roofing supply outlet, with unusually low Prices, spread quickly. Homeowners, repairmen, and remodelers flocked to the store, many inquiring about addi' tional building supplies.

SltPLlClTY of operation plus low overhead has helped Building Surplus and Salvage maintain low prices 0n overruns, closeouts and seconds in building materials. The operation, close t0 the Georgia-South Carolina border, attracts customers from a 70 mile range.

The Mixons realized that there were a number of suppliers who were anxious to get rid of exoess stock that had accumulated from overruns, closeouts, bankruptcy, or due to minor flaws in the materials.

Hardwarc Speciallssue

BSS was offering those suppliers a chance to recoup some of their losses by selling their excess stock at cost or less.

"We would buy as many as 50 trailer truckloads of an item, in order to get a good deal and pass it along to our customers," said Shorty Mixon. Having the money and storage area necessary to take advantage of those good deals has enabled the concept to work for them.

Their reputation and enthusiasm for grabbing up surplus building materials, has prompted many suppliers from across the United States to offer BSS great deals on first quality materials as well. And as an extra convenience to their cus- tomers, BSS has started stocking new hardware, electrical and plumbing supplies.

What started out as one warehouse with a dirt floor has expanded into six acres of sheds. warehouses. an ollice and a workshop for buitding cabinets and door units. They now stock windows, doors, paneling, lumber, vinyl flooring, fencing, siding, and cement mix, among other things.

"We have everything you need to build a house," said Tommy Mixon, "including the kitchen sink." However, he added, " we don't deliver, it's a cash and carry buSiness."

That simplicity, combined with low overhead costs, has helped to contribute to the BSS success story. And, although they do receive some total house orders, its primary customers are the do-it-yourselfers and the home remodelers. And, they come from miles away.

"We cater to the homeowner and we'll buy anything if we think we can sell it," says Tommy Mixon. "A little refinishing can make second quality material look first quality," he explained. "If people can save a dollar, and get the job done, what difference does it make?"

"The industry changes so fast, and we can change with it," Tommy says. "But, when we started this seven years ago, we didn't expect it to be as successful as it is now."