ligen ce Playing fast ball

Bv Carla Waldemar

nON'T underestimate Rhode I-flsland. In a state so small you could walk across it before lunch, there are at least seven feisty lumberyards. (And that's only the independents.) So when, from that number, Coventry Lumber's Bruce "Buzz" Gielow is hailed as the state's Lumberperson of the Year, you sit up and listen-that is, if you want to learn a thing or two about how to succeed amidst fiery competition.

Funny thing is, until Buzz joined the company as operations manager six years ago, he didn't know a Doug fir from a Christmas tree. But he did know how to run a forward-looking business, the very skill set its owner, high-school friend Michael Durand, was looking for. And Buzzin tulx was drawn by its steding reputation in the community.

In those six years, business has blossomed by 3OTo,thanks to a host of new protocols and practices, staff development (it's grown from 32 to 80 in those six years), and by focusing attention on the formerly forgotten retail trade. Two years ago, Coventry opened a new facility, with a state-ofthe-art showroom to draw those homeowners, and more recently launched the first, and only, drive-through in the state.

Leaning on technology was the first step. "There was only one PC when I came on boardl now there are 60, between the two locations," says Buzz as an intro to the job cut out for him. "This industry uses only a small percent of the technological tools available to it, and only rarely does an outsider come into the business," importing the know-how.

"When I started here, there was no formalized purchasing system, for instance-so I basically created a purchasing department. a receiving department, and formalized inside sales to support outside sales. Better sourcing, too," he continues, beginning by scrapping old-fangled stationary telephones in favor of cordless models that freed staff to supply quicker, better service. "We also developed a website (www.coventrylumber.com) that acts as a virtual showroom." he notes.

Sure. there was some staff resistance to entering the electronic agethere always is-but Btzz, a consummate communicator, talked them through it. "And once they'd hit a couple of home runs," says the coach, "they moved right up and started batting."

And, thanks to intensive training sessions-the company firmly believes in spending time and money on its employees' education-they started selling more, too. "They'll sell things if they're confident and don't feel they'll look like fools. The way to sell is to have confidence in yourself," he believes. "So, we changed Ithe mindsetl from taking orders to actually selling, through lots of sessions on product knowledge-(We encourage architects to use our conference room for AIA accreditation courses. so we surround ourselves with knowledge from the outside. too.)-but also business knowledge. from accounts receivable to shipping to accounts payable. Their own piece will be more accurate if they understand the business flow. And when you expand the horizons of an individual like this, you build more of a team effort: Everybody becomes skin in the game."

Taking a cue from Henry Ford, quotes Buzz, "We hire character, then teach skills. When someone leaves. we replace him with a better person, better level of service. When times allow, we'll create a job for a good candidate rather than let him slip away. We look for good communications skills, good organizational skills-things like the ability to take special orders correctly."

Enhanced both by new computer and people skills, loyalty is ferocious and turnover has dropped dramatically. And by creating efficiencies in every department,Buzz has been able to free up his own time to create job descriptions and a handbook-both company firsts and high on his list of essentials. "You've got to define people's responsibilities and teach them to do their jobs efficiently. It's the manager's responsibility to explain what's expected of you and define it, let you know what our goals are. People want to make money and a future for themselves, so give them the tools, and it's profitable both for them and for the company. We promote from within, farm-style, and a Succession in Management program spells out the steps on the ladder."

Those are not just pretty words. Coventry's sales manager came up through the ranks-and he's only 40 years old, another trademark of the company. "The oldest person on the executive team is only 52," says Buzz. "Most of our people are in their mid20s, so they don't bring a lot of baggage. Because we're a younger company, with younger people, we're not stuck in the established track of catering to tract builders."

And that's no accident, because Coventry was quick to realize that that's not where the future lies. "We saw the writing on the wall. With that growth slowing down, we're courting the retail and remodeling business. With the economy slowing, people are sitting home, staying where they arebut they want something. a signature piece, something distinctive that makes them stand out from the Joneses-like, maybe a feature window. Or they'll put in the room they've always wanted, or add a deck. Outdoors is big. Decks used to be a $3,500 sale; now they're approaching $20,000. Same with exotic flooring systems, moulding, cabinetry and high-end countertops. Formica?"

Don't make him laugh: "Nevermorel"

To service this new market, Coventry's showroom staff has mushroomed from. well. zero to five seriously service-oriented people, adept at selling special orders, designing takeoffs, and suggesting specialty items.

Buzz brings his marketing savvy to those display areas, explaining,

"Stagnation is bad for sales. We change it around a lot, mix it up so it looks different. There's constant flux, just like at an auto dealership, where they move the cars around to create interest. We have displays on wheels so they can be rearranged, create new dynamics.

"We create an actual shopping experience fostering impulse buying, like at a mall, rather than contractors here for one specific item." To serve these shoppers, Coventry wisely has extended its hours, because, as Btzz knows, "They like to kick the tires. And they need to shop when they want to, not when you want them to."

Advertising plays a new role, too. "We feature products of the month through fliers, mass mailings, and our website to get the word out. We get discounts from our suppliers and pass them along to the consumer."

And, because everybody's after a bigger slice of pie-or, at least, not going hungry-Coventry considers not only those seven active independents as competitors, but also specialized sales rooms. So, another innovation: "We now advertise in the Yellow Pages under more than one headingnot only 'Lumberyards,' for instance, but also 'Kitchens' and 'Decks."'

Speaking of competition, what's the word on the nearby boxes?

"Home Depot is one of our best friends," Buzz guffaws. "Because it's open longer hours, people go there to browse and decide on what they want, then say, 'Okay, now let's go to Coventry.' The Depot's staff even directs them to us!"

Nice work if you can get it.... Yet, especially when swimming in these chilly economic waters, it's no time to coast along. "Our biggest challenge is financial growth," Buzz realizes, "the cash-flow crunch. You've got to watch that you don't get caught up through receivables, and remember, cash is best. Try to get more cash orders, like money for special orders upfront,"-which calls for a bit of diplomacy -"tweaking without being insulting. And for contractors, we're being more stringent in awarding accounts.

"Financially, there are three things you can control: receivables, inventory and expenses. and of these. inventory is the easiest to control." It took some re-educating, he notes. "They had been in the habit of looking at price rather than cost."

Coventry Lumber has run a successful operation since 1969 BG (Before Gielow). Under his watch over the last six years, it's moved into the big leagues. Keep your eye on the pennant.

Rnlrrrls

Ace Hardware is remodeling a 16,000-sq. ft. facility in Burien, Wa., for a late summer opening (Bob Mitchell, owner) ...

N ewhall Hardware. Newhall. Ca., is liquidating after 60 years

Clark's Ace Hardware is the new name of the Lincoln Avenue Ace Hardware in Napa, Ca., with its sale after 32 years from Lyle Schafer to Dick Clark, owner of Zeller's Ace Hardware, Napa

Ace Hardware is closing its 21month-old location in north Modesto, Ca.; employees may transfer to sister stores in Modesto, Ceres and Tracy ...

Parr Lumber, Hillsboro, Or., opened a 10,000-sq. ft. Parr Cabinet Outlet in Peoria. Az.: Mike Harris, mgr. ...

Pacffica Lumber, Pacifica, Ca., is now offering tool and equipment rentals ...

Lowe's Cos. opened new stores March 4 in S. San Francisco, Ca., and Feb. 19 in Porterville. Ca.. and expects to unveil a new location in E. Aurora, Co., late this year

Lowe's is awaiting approval to build a 111,196-sq. ft. store on 10.7 acres in Sonora, Ca.; has applied to build on property in Eugene, Or., it acquired from Safeway for $6 milion; has broken ground for a 170O00-sq. ft store in San Bernardino, Ca.; applied to build a 156,000-sq. ft. store on 11.4 acres in Santa Rosa, Ca., formerly studied by Home Depot, and dropped plans to build in a proposed mall in Elk Grove, outside Sacramento, Ca.

Home Depot's plan to build in Dixon, Ca., was opposed by the local Chamber of Commerce; is still deciding whether to build a day laborers center at its store in Baldwin Park, Ca., and has finalized an agreement to lease a store on land owned by the Coquille Indian Tribe in North Bend. Or.

Home Depot is cutting 500 jobs-about IIVo of its workforce-at its headquarters in Atlanta, Ga.; affected departments include human resources and information technology ...

Wrorrsnns/trrurlcrunrns

RY Timber, Livingston, Mt., has restarted its mill after two weeks of market-related down time ...

Eagle Roofing Products, Rialto, Ca., has added Great Plains and Midwest sales regions, respectively headed by Colorado rep Gary Manlove and St. Louis. Mo.-based Jeff Ohley

Timber Products, Springfield, Or., is producing domestically sourced poplar-core plywood at its recently upgraded plant in Corinth, Ms....

Opware Solutions, Beaverton, Or., is supplying business optimization software to GeorgiaPacific's 19 southern pine lumber mills...

CorrectDeck maker C orrect Building Products is now exclusive distributor of the RainEscape deck drainage system ...

Postsaver USA barrier protective system has been listed as BP-1 in the American Wood Protection Association's Book of Standards" recognizing the products' ability to protect wood used in ground contact; the company also earned the listing ESR-1834 from the International Code Council ...

Arch Treatment Technolo gie s' Wolmanized L3 Outdoor wood has been been accepted by the American Wood Protection Asso- ciation for listing in the 2008 AWPA Book of Standards; it will be shown as PTI, referring to its three carbon-based ingredients: propiconazole, tebuconazole, and imidacloprid...

C e r t ainTeed's ToughGard-R duct liner has been GreenGuard certified...

Southeastern Forest Products, Cordele, Ga., a division of U.S. Timber, Eagle, Id., has won the company's #l division award for the second year in a row ...

Krauter Solutions, Indianapolis, In.. has re-launched its website at www.krauter-storage.com ...

BuildDirect, Vancouver, B.C., is now exclusive distributor of Formosa Stone Veneer from Vietnam's Vnh-Cuu

Anniversaries: National Hardwood Lumber Association 110th CJ Redwood Lumber Co.. Escondido, Ca., 50th

Housing starts in January inched up 0.8Vo to a seasonally adjusted annual rate of 1.01 million ... single-family starts fell 5.2Vo, while multi-family jumped 22.3Vo regionally, starts dropped 6.2Vo in the West ... permits slid 3.07o to a 1 .08-million annual pace, the lowest level since November 1991. Send hfrce sevice)

Have your recent expansion, promotions or other company changes published in the next issue of The Merchant Magazine.

Just Fax your news to 949{52-0231 or send by email to kdebats@buildingproducls.com.

Listings are often submitted months in advance. Always verifi dates and locations with sponsor before making plans to attend.

Tlnncr

Wood Moulding & Millwork Producers Association - March 10-15, winter meeting, Palm Desert, Ca.; (800) 550-7889.

California Forestry Assn. - March 1l, joint legislative reception with LACN, Sutter Club, Sacramento, Ca.; (916) 444-6592.

North American Wholesale Lumber Association - March 11, regional meeting, Portland, Or.; (800) 527-8258.

Wood Products Council - March 11, green building seminars, San Diego, Ca.; March 12, Costa Mesa, Ca.; March L3, Los Angeles, Ca.; www.woodworks.org.

Wood Technology Clinic & Show - March 12-14, Oregon Convention Center, Portland, Or.: (770) 291-5432.

Los Angeles Hardwood Lumberman's Club - March 13, golf, Black Gold Golf Club, Yorba Linda, Ca.; (626) 445-8556.

Greenprints - March 13-14, Atlanta, Ga.; (404) 8'72-3549.

True Value Co. - March 14-16, spring market, Orange County Convention Center, Orlando, Fl.: (773) 695-5000.

International Home & Housewares Show - March 16-18. McCormick Place, Chicago, Il.; (847) 292-4200.

Western Building Material Association - March 18-19, estimating seminar, Bozeman, Mt.; (360) 943-3054.

Wood Products Council - March l9,"Wood Works for Building Design" seminars,Sacramento, Ca.; March 20, San Francisco, Ca.; www.woodworks.org.

Redwood Region Logging Conference - March 20-22, fairgrounds, Ukiah, Ca.; (707) 443-4091.

North Cascade Hoo-Hoo Club - March 25, past presidents' night, Cranberry Tree Restaurant, Mount Vernon, Wa.; (360) 391-1860.

Phoenix Home & Garden Show - March 28-30, Phoenix Convention Center, Phoenix, Az; (877) 663-6186.

National Lumber & Bldg. Material Dealers Assn. - March 31Aprif 2, legislative confab, Washington, D.C.; (800) 634-8645.

Apntr

Tacoma-Olympia Hoo-Hoo Club - April 1, old-timers night, Tacoma Elks Club, Tacoma, Wa.; (253) 688- I 834.

American Architectural Manufacturers Association - April l2, western region spring meeting, Marriott Ontario Airport Hotel, Ontario, Ca.; (847 ) 303-5664.

Remodeling & Decorating Show - April 11-13, Pasadena Conference Center, Pasadena, Ca.; (818) 557-2950.

Western Red Cedar Lumber Assn. - April 14-17, cedar school, Pacific Palisades Hotel, Vancouver, B.C.; (604) 684-0266.

Lumber Association of California & Nevada - April 17, PAC golf tournament, Black Gold Golf Club, Yorba Linda, Ca.; (9 l 6) 369-750 l

Inland Empire Hoo-Hoo Club - April 18, lst annual Don Gregson Memorial Golf Tournament, San Dimas Canyon Golf Course, San Dimas, Ca.; (714) 526-4496.

North American Wholesale Lumber Association - April20-22, executive conference, Loews Ventan Canyon, Tucson, Az.; (800) 527-8258.

Pacific Coast Wholesale Hardwood Distributors AssociationApril 2O-22, annual meeting, Princeville Resort, Princeville, Hi.; (925\ 245-4320.

Transload Distribution Association - April 21-23, conference, Green Valley Ranch, Henderson, Nv.; (503) 656-4282.

American Hardware Manufacturers Association - April 2124, technology forum, Memphis, Tn; (847) 605-1025.

Wood Machinery Manufacturers of America - April 23-26, conference, Palm Desert, Ca.; (215) 564-3484.