All My Sons

By Carla Waldemar

r[tHINK BIG" was the game plan from the beginI ning. When the young couple took over as secondgeneration owners of a small-town lumber and home center in the late '70s, they renamed it Wilson & Sons Building Supply-never mind that their boys were only 12 and two.

The blueprint for the future worked. Whether by nature or nurture, Tim and Dan Wilson both opted to stick with the family business. Don't tell the old man, but Dan admits to entertaining other thoughts for a moment or two while studying everything from chemistry to computer science in his college days. Yet, when he graduated in 2000, he headed back to Russell Springs, Ky. "It kept calling me," he says.

Can't say we blame him. The tiny hamlet of 3,500 anchors Lake Cumberland, a man-made lake with close to a zillion man-made summer and retirement homes springing up as fast as Wilson could sell them lumber. "It's a little microcosm of growth here," Dan reports with a takeyour-time Kentucky drawl.

Time to expand, he figured. The old guard among Wilson's 15 employees weren't so sure that was a good idea ("We've always done it this way, so why change?"), but Dan led the rally, cajoling, "We can build a new store, debt-free: Time to try something new."

The new operation, erected behind the old place, which was razed to create more parking space, expanded a former floor plan from 2,000 to 10,000 sq. ft. In the year since it opened, it boasts nearly 30% higher gross revenue and a couple more margin points.

House Hassan distributors helped guide the way with suggestions for a more functional floor plan, a demographic study to define its customer base, and ideas for new merchandising. "Sales went up dramatically," Dan is delighted to report. "They told us that if we added X more feet of floor space, we could expect X more dollars of revenue, and, a year later, it's come true," he jubilates. "We added lawn and garden, some automotive, and expanded every department. We now have 32 feet of fasteners and bolts alone."

And a cleaner, brighter, more open look. With a shiny, new store, Wilson could add the d-i-y trade to its alreadystrong cadre of pro customers. "We couldn't attract them in the cramped, old space. This gives people the opportunity to self-shop, while before we had to shop for them. They still stop in for lumber, but now we can get them to purchase the high-margin items, too," Dan explains. He clearly likes that train of thought.

Wilson expanded its staff to handle the uptick in customer count, adding a yard man and an inside person to serve them. That was the easy part. Transforming the veteran crew to new ways of doing business was "difficult," Dan admits freely. "Not a gentle transition, especially while we were under construction. It was a big change for everybody, and harder on the older guys. Now, however, they see the definite improvements."

For a while, though, there was "some gnashing of teeth," he reports. New building, new product lines, and now what? Computers! Uh, oh. But after the initial learning curve, the staff cannot imagine life back in the stone age without them; the move to modern technology has earned its keep in tracking sales and accounts receivable alone.

The new space fosters enhanced customer service, too. Dan plans to initiate a series of contractor breakfasts with his vendors' assistance. When asked what these pros treasure about doing business here, Dan leads off with, "We've always been priced competitively, and even more since we added the "priced right every day" plan in the new storethough pros aren't as price-sensitive as the town's walk-in trade, he says.

"Instead, the pros want good customer service and delivery on time. We'll go the extra mile for them," he pledges. "For our top lOVo of contractors, we don't hardly say no." Dan made good his boast earlier this morning, when he spent hours helping a contractor fill out his insurance claims after all his tools were stolen. "We iust trv to do the right thing," the young man reemphasizes. "When I overhear a contractor griping about another yard, it makes you wonder why that owner doesn't fix things. ."

With this loyal base, Wilson doesn't feel a need to toss money out the window on advertising. "Word of mouth from existing customers is the best way to bring in new business," Dan swears. "It's a small town, so word spreads fast."

Nonetheless, nowadays that word is bolstered by distributing six circulars a year, and Dan considers them as good as gold. "It's been a big driver of business," he reports.

...& Sons It Is

Brothers Tim and Dan split the store's responsibilities straight down the middle. Tim purchases the lumber and other commodities, Dan handles the hardware. Tim does accounts payable, Dan figures the receivables. "Tim is more easygoing, more of a 'people' person," in the eyes of Dan, who doesn't do too badly in the people department himself. (He got married just days before this interview.) Both agree on a rosy future. "We're doing millwork, windows and doors and will expand that, and we're starting to sell more engineered lumber. In this little town, we're five years behind the big cities, but we're starting to see it pick up."

With these boys at the helm, it looks like continued growth is in the cards. Might have to rename the place "& Grandsons" one of these days.

- A former award-winning LBM trade magazine editor, Carla Waldemar writes Jrequently on the building material industry.Contact her at cwaldemar@ mn.rr.com,

They bring in the walk-in trade Wilson's now courting. Homeowners are more demanding, Dan was quick to discover. "They're often doing their own general contracting, so they spend a lot more time being concerned, such as if a special order hasn't come in on time. They need more hand-holding. But we give them that kind of service, the kind they'll never find at the boxes. Pros aren't as concerned with price," he continues. "They just want things on time and in the right destination. And they're more loyal. Treat 'em right and they'll stick with you."