January, 2005

A Bright Idea at Parksite Group

Chicago-based wholesaler opens the door to appliances and lights come on

By Craig A. Shutt

The Batavia, Ill.-based wholesaler Parksite Group has a solid reputation for creating strong builder-oriented programs for its dealer clients, for products such as DuPont’s Tyvek and Corian. But appliances have long been a one-step product line, and the formula Parksite tried in a 2004 pilot test worked so well that it formed a new division, Parksite Appliance Solutions, in January 2005.

Frigidaire’s Electrolux will be the group’s only line, explains Tom Cool, vice president and head of the Tampa, Fla.-based Parksite Surfaces division. "The idea really dropped into our laps, and the timing was good for us.

We were able to take advantage of our customer base, a good product and some hired expertise.”

The catalyst was Keith McLoughlin. President and CEO of Electrolux Home Products North America, McLoughlin worked with Parksite at DuPont’s Tyvek division before he left for Frigidaire. The appliance maker had disbanded its builder division a number of years ago to focus on consumer lines. Now it was well-established on the retail side and interested in regaining a foothold with builders.

McLoughlin approached Parksite with the idea of taking on the line, set the company up as an Authorized Contract Wholesaler, then worked closely with them to create a strategy. "We like working with one manufacturer and sharing market and sales plans, and developing the line with them,” says Cool.

Parksite’s managers figured they could gain an advantage over national competitors such as General Electric and Whirlpool by offering localized service to their extensive network of builder contacts. "We can provide service and products on a custom basis, instead of going through centralized service centers, as the other companies do,” he explains. "That lets us service the builders in the way they want to work.”

Builders create different appliance packages based on their own distinctive approach to the market and the homes’ values, says Cool. These selections require virtually customized options to create the best advantage for each builder.

"We don’t just sell products, we create programs so builders can make money off of the way we sell to them,” he says. "It sounds easy to sell a refrigerator or an oven, but it’s more complicated than it appears. But we knew our capabilities in understanding our builder customers gave us an opportunity, and the Frigidaire Electrolux product was coming on strong. It was a good product at a good price.”

The company hired a product manager with 20 years' experience in appliances, Dave Acker, to oversee and direct the program.

"We couldn’t have done it without outside expertise to guide us,” says Cool. "Dave understood the products, and our salespeople understood the customers.”

The program rolled out in early 2004 in Florida, and was added in Chicago, where Parksite had operated a small appliance division in the late 1990s. "It used a different business model and never proved profitable for us,” says Cool.

But this second attempt proved so successful that Parksite established a stand-alone appliance division that will operate in Florida, Chicago, and Baltimore/Washington, D.C. The division will continue to focus on Frigidaire appliances, selling only to the builder and offering specialized services, including home-site delivery. One of Parksite Surfaces's sales managers, Troy Underwood, was promoted to head the division. "We think there is absolutely a lot of opportunity to be found in this category,” says Cool. "We’ve got good products, and we can customize our services at the local level to serve the builder’s individual needs. It’s a great opportunity, one we thought was big enough to create a division that can focus on it.”

Craig S. Shutt is a freelance writer based in Chicago, Ill.