IN THEIR WORDS…ANSWERS BY MARC KARON
Why did you start the business?
“We enjoy the customers, vendors and the challenges of the business. It was not our intention to exit the business or industry when we sold to TransCom in 1998. Soon after that, we realized that we had made a mistake and began to strategize how to get the businesses back. Our efforts were rewarded in 2002. We wanted to reclaim our businesses because we believed that with the correct business model we could be successful.”
What’s been your toughest business decision?
“It is hard to choose between two difficult decisions. The first was the decision to put our entire personal assets at risk to buy back the companies even though they were losing money at the time. The second toughest decision is ongoing. As less expensive product from China continues to proliferate, we have been very careful not to support these products. Maintaining a brand marketing strategy is often challenging, but has been very rewarding.”
What was your worst business decision?
“The worst decision we made was to sell our businesses to TransCom.”
What was your best business decision?
“Although I defined it as one of the toughest decisions, buying back our business from the bankruptcy court was also the best decision we’ve made. In addition, a very positive decision was to incorporate all inside and outside salespeople, along with branch managers, in all decision-making regarding vendors and market strategies. This group of decision makers, which we call the ‘Leadgroup,’ has made many positive suggestions and decisions. Our success with this proves that involvement breeds commitment.”
What is the best way to maintain a competitive edge?
“The best way to maintain a competitive edge is to employ the very best people. This strategy may seem risky since payroll expense likely will exceed those of your competitors. However, this is still a people business. The best people are more productive, make fewer errors and develop the greatest customer loyalties. In addition to having the best people, you need to link your company brand with the most successful product brands in our industry.”
What is your five-year vision?
“There are two major challenges for us in the next five years. First, the consolidation of major fleets and their alignment with OEs, marketing groups or large national distributors will create margin pressure and reduce addressable business for independent distributors. Our business model stresses growth in new products and new markets to address the losses listed above. In addition, our company is developing a succession plan with key employees who will continue the business.”
