Relationships build the business

wasn't another up-and-coming yard for miles, he took it over.

In just 20 years, the outfit has added three more locations-Alexandria, 20 miles north ("where half of our deliveries were going, anyway") and now its headquarters; Parkers Prairie, north another 20 miles along Highway 29, and Brandon, 15 miles westward.

Do it Best, their co-op, helped a bit with layout and projections, but the biggest boon to multiple locations came in-bulk ordering, sure-an even bigger factor: minimizing inventory, says Paul's son, Brian Klinek, today Hilltop's general manager, who heads an organization of 33 employees (treated like family) and 18 trucks (treated like employees).

fNNoverrve BUTLDERS was launched in 2005 in outstate lMinn.rotu and, from the get-go, left scores of same-old, same-old contractors in the dust.

Revenues for 2010 were $15 million, garnered on mega-projects such as Lakewood Terrace, a $5 million multi-family condominium project, and Grand Arbor, another huge complex focused on senior living-both in Alexandria, Innovative Builders' home base.

How'd you like to be the supplier of choice for such an outfit? To find out which lucky stiff got the business, I called Innovative Builders' c.e.o. Hilltop Lumber, he fired back. And luck didn't enter the picture, either. "They've got the best customer service. Their estimating is accurate, and they deliver on their promise," the boss relates, adding, "and still they came in lower than a couple of other bidders."

Next, I got ahold of Hilltop to see what's the deal-and the one-word answer is "relationships." We'll get to that in a minute, along with a peek at some other pretty spectacular services it offers. First, the backstory:

Hilltop was launched in 1988, when Paul Klinek and his brother, who operated a contracting crew, realized that the pie would get slivered pretty thinly when their sons entered the family business. So, start a second crew, or try something different? A nearby lumberyard was sitting empty in Glenwood, Mn. When Paul's research indicated that there

Ask Brian why he chose to remain in the family business and it's like asking some prince if he'd rather become king or sell insurance: You're to the manner born. As a kid, Brian's dad awoke him every Saturday morning with the non-negotiable message, "Get up. We're going to work." By the time he hit eleven, he was behind a wheel, and when, at 18, he headed to college in Fargo, he majored in business and construction management.

He returned to the Glenwood store in 2000, and in 2003 moved to the Alexandria operation, where he now heads the company. No monumental changes, just a few tweaks of operational systems under his watch.

Hilltop's business is 857o pro-a mix of custom homes, remodels and additions, and commercial work-all of which remain fairly robust during our national economic slump, for there's still plenty of call in this area of recreational lakes for summer cabins, retirement homes, and the commercial buildings to support them. But, of course, there's also competition: a nearby Menards and seven independent yards within 20 miles.

What keeps Hilltop ahead of the pack? "What builders like about us is, we carry more inventory; we carry almost any product. And we have two draftsmen on staff, who can deliver on a timely basis," Brian states. Plus, material delivery is not only same-day, but usually same-hour. "Maybe it starts to rain and they have to switch to inside work. Our salespeople will deliver a box of nails or whatever they need."

Why? Because they're pals.

"Relationships," Brian underscores, "are the biggest key. These builders are more than just customers, they're friends. These guys get together outside of work for golf and hunting. They'll meet for lunch on the weekend. Right now, in the middle of winter, they're planning a fishing trip."

So, how do you come up with salespeople like that? By example, Brian indicates. "They watch our long-timers of 20, 30 years-good, personable people-and they fall into the same good habits, get to know their customers' likes and dislikes."

Because Hilltop doesn't install, it's happy to recommend these contractors to homeowners, matching skills to needs. "I know it's a clich6," Brian demurs, "but, it's the people you have that keeps us competitive. You can walk into any of our locations, at any time, and the staff will always be positive and upbeat."

Another leg up: Hilltop's Idea House-the largest in the Midwest. "We were lucky to have high ceilings, so we built house displays: four different buildings, actually, to showcase different sidings: vinyl, wood, steel and fiberglass, with different styles and different colors. We work with Marvin to include their windows and doors, and everything's working: You can open windows. Folks like that, to be able to touch and feel. And our people are able to go through the various choices, all the pros and cons. We stick with good vendors, who keep us informed on new products and updates."

Wait, there's more. Hilltop's Home Design Center, staffed by two professionals, offers a full flooring department: laminate, wood, tile, vinyl, carpet-and two lines of cabinets. Green products? Not so much. They haven't taken off here in this byway of the Upper Midwest, but

Hilltop has gone through the paces to become green-certified, so when the times comes-and it will-it'll be positioned to take the lead.

Hilltop also operates a robust rental service. "It had always been in the back of my mind," explains Brian, "so when a nearby rental store went out of business, we picked up the inventory and the client base and retained two employees. We serve everyone from the d-i-yer who wants lawn and garden equipment to a heavy skid loader for the pro."

Hilltop allocates its advertising dollars to two outlets: booths in home shows and radio ads that call attention to new products and introduce its drafting department, "so people will think of us first. give us an opportunity."

It also hosts an annual customer appreciation dinner with live entertainment, to which customers' spouses and employees are invited, too. Each winter, it also provides contractor classes in evervthins from new shelving products to lien laws. "We want to give our contractors those tools. We figure, if they're protected, we' re protected."

Simple job security, because Brian plans to be here for a long, long time. "I get to deal with a lot of different people, and contractors are a great group of guys: never a dull moment. Alwavs somethins fun."

Carla Waldemar cwaldemar@comcast.net

By Michael Strong