Risky business

By Car.la Waldemar

rated with installers and the margins are thin-so we stepped away from spending money on people and equipment and now look to Guardian as a subcontractor. Instead, we really push our framing company and have become an installer of retail and commercial framing.

"You need to marry installing with your products, because if you don't add value, there's a very short life expectancy. Sure, it's hard to market that service Iinstalling framing] right now, while the economy is tight and tradesmen are working for less money. But, while we might not be making much on it at present, when the tumaround comes, we'll have a leg up. We're showing builders that we're economical and reliable. We're having a big installation push," he underscores the mantra, but with eyes wide open.

The whole concept is a moving target. "We're re-evaluating installing insulation," Tim notes. "We weren't doing it well, so we're pulling back to massage and rethink it."

ffENRY Poor Lumber Co., Lafayllette, In., has been selling sticks since 1917, but that's almost a sideline these days. (Don't get me wrong-it remains a strong underpinning upon which the company's burgeoning niche markets have been built.)

fhe wider picture is spelled out in I its loso-"More than a lumber .o-puny;-a message driven home by the snappy tagline: "If we haven't got it, you don't need it." Aside from maybe an aromatherapy massage or cappuccino grande, there's plenty to back up the swagger.

Jim Andrew, who bought the company in the 1980s, was born with an entrepreneurial gene, keen to testdrive new ideas. His son, Jay, who joined the company in 2003 as v.p.sales & operations, boasts the same DNA. And bringing Tim Werth, an accountant by trade, on board as c.f.o. clinched the forward motion.

*2OO4 was when changes really started to take place," Tim says. "We re-evaluated our products and services." That's a euphemism for turning the company on its ear.

For instance, Jim had launched a rental service back when no one else was doing it. Today, "it's not impor- tant anymore, so we got out and on to other ways to move forward," Tim explains.

Jim was also the first to start a paneling operation in the area, and it's still going gangbusters, as we'll explain later. He's been extremely active in bringing new products to market, everything from floor coverings to cabinetry. The cabinetry is now showcased in the firm's new HomeWorks operation, anchoring (astutely) a shopping center and manned by a staff of 24 who provide the touchyfeelies a homeowner craves, guiding their napkin sketches to fruition, and shepherding builders' customers through the maze of choices.

Buy a carpet, a cabinet-heck, roofing or siding-and Henry Poor will gladly install it, too. "Installing is where we need to be," Tim asserts. "lt goes with our forward vision. We're willing to take risks. We think of it as the future, and we're very committed."

No rose-colored glasses, however. The path hasn't always been smooth.

"We started out installing insulation and got our share of black eyes, bumps and bruises," Tim recounts.

"We'd hired pieceworkers on our payroll, but today our area is highly satu-

Meanwhile, back at the ranch: "Three other things are interesting us," Tim recounts the team's multitasking efforts. "We've been doing custom millwork since the '80s, and we're still the only such mill in our marketplace."

But don't expect windows and doors: "We concentrate on high-end, high-margin custom items, such as recent projects like a wine rack and a mahogany-and-teak entertainment center. We really enjoy this, but we really need to get better at marketing this service," the c.f.o. allows.

"Also, in 2O04 we became the only sales distributors of a cabinet lineCardell-although we had always sold craft-made cabinets." The method in this particular madness goes like this: "Not only do we sell to production builders"-and Indiana is home to many-"but with these, we can now go outside our usual market zone and as far as Indianapolis."

The idea is twofold, he says. "To spread the credit and geographical risk around and also to build relationships and eventually also bring lumber in to them, after we've established our expertise and core competencies. We're looking past the downturn, to when building permits pick back up. Plus," he adds, "this [high end, customl market doesn't feel the crunch."

Being nimble is a big part what

(Please turn to page 28) maintains Henry Poor's success. "Fluidity will make or break an organization, and we're fluid, we can reactwhich is our advantage over the 84 Lumbers," Tim says. "This company was extremely custom builder-oriented at first, then became very production builder-focused. Now, in line with the changing times, we've been trying to remarket ourselves as 'your custom and remodeling source."'

Easier to say than do, Tim knows, for builders are not a fickle bunch. To build credibility, Jay Andrew has become a board member of the local builders' association. "He sits across the table from people who'd previously used our competitors," says Tim. "It's the way to start a dialogue. 'We want always to be second,' we say, and that's exactly the right thing for us-though it's hard to beat into the heads of our salesmen. 'Your time will come,' we tell them. As soon as a competitor falters, the builder will call us-and we'll take market share."

To forge even stronger bonds, the company believes in spending to achieve returns. Tim elaborates, "We've put great working displays into our showroom-kiosks for