August, 2005

Scherer Bros. Extends Marketing Services to Builders

The philosophy at Scherer Brothers Lumber Company begins with the premise that it is a business first and a lumber business second.

By Noelle Creamer

The philosophy at Scherer Brothers Lumber Company begins with the premise that it is a business first and a lumber business second. With this as the backdrop, Greg Scherer began building a marketing department for Scherer Brothers in the late 1980s—which they say is a first in their local industry.

Today, the Marketing Services group at Scherer Brothers not only handles all marketing and communications for the company, but it also selectively offers marketing services to its customers.

Scherer Brothers serves the Twin Cities in Minnesota with five full service yards and window, cabinet, and truss operations. The company employs over 700 and is celebrating its 75th anniversary this year.

Tom Myrick is the marketing director and leader of the team of marketing/advertising experts on staff at Scherer Brothers. Tom began applying his journalism/communications background at Scherer Brothers in 1988 doing layout and design work on a Macintosh FE30. By the mid-1990s, the marketing staff had grown to three.

Myrick explains, "We realized, back then, that builders had two choices. They could rely on real estate agents with limited resources to do their marketing for them, or they could pay through the nose to have ad agencies (who probably didn’t understand the industry) work on branding and image. Neither was a good option for builders.

"We got out in front on this. We offered our customers brochures and ads at first, and then added more and more services over the years,” Myrick says. Projects for builders ranged from advice about printing costs to business cards to billboards and business plans.

"We offer a lower-cost alternative to ad agencies. We have expertise not only in marketing and advertising, but we also understand the industry. We know the target audience. It’s a great value for builders and it’s an easy way for them to get their marketing initiatives (big or small) underway,” says Myrick.

The builders who have used Scherer Brothers’ marketing services are across the spectrum—remodelers who need their first set of business cards to multi-million dollar builders who have a weak link in their marketing plan that needs addressing. "None of our local full-service competitors had anything like this,” points out Myrick.

Due to the great and growing demands of Scherer Brothers’ five yards, three manufacturing entities, and installed products division for builders and consumers, the marketing department now limits the number of builders they work with. Myrick says, "We have to strike a balance between internal customers and external customers. Offering marketing services in certain circumstances is still very effective for us, but our first priority is supporting our own multi-million dollar divisions.”

Part of the department’s work includes co-op programs, such as with Scherer Brothers’ FarNorth™ window brand. Customers earn credit through purchases and use co-op marketing funds. Builders start to see the value in marketing beginning with affordable projects like these.

Myrick’s department represents a broad skill set. They do website work, layout/design, print ads, trade shows, digital video production, and more. "Scherer Brothers has been very good about making sure we have the right tools for the job,” says Myrick. They use the fastest G5 Macintosh computers available, and maintain dozens of websites from their own in-house Macintosh Web-server. "The equipment is great, but you’ve still got to have the right people with the right talents,” asserts Myrick. He adds that account management, communication, and leadership skills are also essential for team members.

Having an internal marketing department also gives Scherer Brothers an edge in promoting its own manufactured products and services. "Because we’re internal, we’re a lot more nimble and responsive than an external ad agency,” explains Myrick.

While Myrick says his department may look like another expense for Scherer Brothers, its real value is significant - but difficult to measure. He says, "We operate on the premise that if we offer services (like marketing) that help our customers grow, the company will profit as the customers do. Unfortunately, our customers don’t always measure how many new customers they gain through marketing, but we do know that investing in long-term successful relationships with builders is valuable to the company in the long run.”

Myrick and his team feel a great responsibility to foster excellent communication within the company. "We are at the center of a lot of communications in this complex company of more than 700 people. Last year, we developed a set of communication guidelines and standards for meetings and e-mails to help everyone communicate more effectively. It’s a small thing, but it’s a start. The real improvement comes when excellence in communication is everyone’s priority.”

Myrick explains, "It’s not just about sharing information. It’s also about taking the time out from tasks to tell good, compelling stories to one another.” He says both communication and marketing share this same storytelling theme.

Scherer Brothers has earned a reputation for creating services that make customers’ lives easier and businesses more profitable. Leveraging their internal marketing department is one way Scherer Brothers responds to what customers need. "Most of our customers don’t have marketing skills, but they still have to sell what they build. The faster they sell it, the quicker we get paid. It’s pretty much a win/win. If anything, the need for sophisticated marketing services is growing along with the speed and complexity of our industry,” says Myrick.