June, 2004

John Greeter: Real Life Survivor

Forget the reality series. This is a true survivor tale. Here are the life lessons of an industry veteran-and a few nuggets of advice to kick around.

By Amy C. Cosper

It is no small task to get John Greeter, a president and a CEO, to open up about his accomplishments. He credits those around him and those before him and takes little credit for the success of his building and construction company, Greeter Building Center Inc. in Monteagle, Tenn.

Greeter's gracious spirit and slight impishness make him one heck of a story teller. And boy does he have some stories. He counts Sen. Bill Frist (R-Tennessee) among his friends. He's dined with presidents, senators and, well, the political powerhouses most of us will never know.

He may break bread with some big brand personalities, but Greeter is a gentle spirit. In fact, listening to Greeter speak is slightly disarming in this age of prickly and pedantic CEOs.

While he may not be your run-of-the-mill CEO, John Greeter is very much an engaged and involved CEO and president of a building and construction company. He has no sense of entitlement whatsoever. There is nothing fancy about Greeter's perspective or the way he manages his company.

"I watch my business carefully. I know the prices of everything in this store," he says. In fact, Greeter prefers to roll up his sleeves and work side-by-side with his employees rather than hoist himself on the proverbial pedestal. Because of this, Greeter has an in-the-trenches perspective and an intimate knowledge of the business he runs. He acknowledges this is a biggie.

"Knowing your business is the key to success. I know everything about my business and I know what I know because I'm there-working," notes Greeter. Have no doubt, John Greeter is in his store seven days a week, from 7 am to 7 pm. "And after church on Sundays," he adds.

Drama in Real Life.

To say that Greeter is a survivor is a bit of an understatement. He has survived events so Shakespearean, it is amazing that he keeps doing what he's doing. He has twice come back from near collapse after two separate fires leveled his building and construction businesses. And add this to the litany of drama: He has survived Soprano-styled embezzlement and heartbreaking family tragedy.

"We had two fires. One fire in 1969 and one in 1981. The fire in 1981 caused complete destruction," Greeter explains. But he rebuilt, regrouped and started over. "I know my employees were depending on me."

His company, Greeter Building Center Inc., employs 10 people, including Greeter and his wife. Greeter is the sole proprietor, CEO and president. He has one location and he's been doing what he's doing for 40 years. Over the course of the last four decades, Greeter has grown his business to a bustling $2.5 million enterprise. He boasts a loyal customer base and loyal employees.

And he's built it with some serious elbow grease. "I don't play golf. I don't like to fish. I still go to meetings. I like to know my profits and I am familiar with my losses.

"We hit $3 million in revenues in 2000," says Greeter, who believes the building market in his region may be flattening. "It's been a good run for the last 12 years-a real boom time for this industry."

It is not surprising that like so many building and construction companies, Greeter has observed more cautious buyers lately. "Recently-over the past couple of months-we've had more inquiries about prices and I've noticed more and more builders working on odd jobs. For a long period of time, we had people inquire about inventory, not just prices," he says.

Quietly, Greeter explains a market shift that continues to challenge his business.

"The biggest challenges," notes Greeter, "are the big boxes [Lowe's, Home Depot] that come into town. They mark prices down and really, they buy a lot of business and there's not much you can do. Right now, our contractor base is far more concerned with prices rather than service." The contractor segment represents the largest percentage of Greeter's business, at 60 percent, with retail customers accounting for 30 percent and commercial customers the balance.

Survival skills.

It's not just the big boxes creating challenges for Greeter. It's the cost of doing business and keeping good employees. Greeter pays his employees well and provides health and hospitalization insurance, which keeps his employee attrition low, but his expenses high. "I pay my people well. If there's one thing I have to emphasize about staying in business, it's the importance of hiring and keeping good people. That's where it all starts," he says.

And it's not just keeping and finding good employees, it's the intense competition for these folks. "We've got a Nissan plant within 25 miles. They pay their workers $20 an hour, plus fringe benefits. So, they get who they want. There's a real competition for the labor force. You've got to have the right people. This is a critical issue and the expenses are just unreal," Greeter explains, emphatically.

To understand Greeter's approach, he offers his credo to those who want to stay competitive:

• Hire good employees. That's the key-and it's Greeter's secret weapon. "You are only as good as the people who work for you."
• Keep good records and know your business. "I can't stress how important this is."
• As an owner, be a part of your business. Know what is going on. Know your bottom line. No one else is going to do it for you.
• Stay in good health. There are people depending on you.

Greeter adds that in order to run an efficient business, make sure your employees are well equipped for the job.

"There is not a single day I walk into work and have to tell my employees what to do. They know exactly what needs to get done and they do it because I've empowered them and trained them on what the expectations are."

Despite looming economic worries that face all business people, Greeter says his business set records in the first quarter of this year. "Really, there is a market for the small retail merchant. My niche is good because it's a solid mix of customers-consumers and contractors." And, he adds, he's geographically isolated, which gives him an edge.

Of course, the fact that Greeting Building Center stocks 15,000 items certainly gives it some horsepower. "Keeping an inventory keeps customers happy and coming back." But, despite his tidy niche and Godzilla-sized inventory, Greeter says that this April his sales volumes are down. "April will be under sales volume of the first three months of this year. The market is changing," observes Greeter. "Our contractor base is looking at the cheapest prices of plywood. There's simply a slowdown in the building market."

Pushing forward.

No worries, though, says Greeter. He will continue to tackle the challenges. And has no plans to walk away just yet. He's come too far.

When asked about technology and software, Greeter gushes. It's easy to see that he is a closet technophile. He embraces technology and says he will continue to look at technology for new efficiencies and benefits to his business. "We've had a computer since the last fire. I track my inventory. And we use the Internet. We've had a website for the last six years. We link to different suppliers. And we get calls because of it [the web site]," he says. "And, we have email and a fax machine. I read all the magazines to stay informed about new advances in technology."

Beyond his website (www.greeter.com), Greeter relies on word of mouth-as well as that 15,000-item inventory to build his brand.

"I don't advertise. I've never really had any results. And I don't do ACE pamphlets or newspaper advertising. It has never helped me that much. I am not convinced that my money is well spent in advertising," he explains. Still, Greeter plans to launch a couple of spots on the local TV networks. "To see how it works."

Now that he is 68 years old, John Greeter reflects on his company, which has been so much a part of his life. "You know, I started out going to school to become a dentist. I spent two years studying dentistry. I decided that what I really wanted was to own a business so I could live and do what I wanted to and that is what I've done."

And what about retiring? If he doesn't play golf or fish, what will he do?

"Well, I reckon I'll get a real job," he says.