January, 2008

Fresh Perspectives

By Rick Schumacher

The start of a new year is an ideal time to take a look at where you’ve been—and where you’re going. With new construction in most markets continuing to sputter along, that annual ritual has never been more important. When the market tightens, unless you happen to occupy an unaffected niche or serve an unusually prosperous market, it’s time to tap into the creativity that has gotten you where your business is today.

The need for fresh perspectives is a principal driver behind LBM Journal’s annual Entrepreneur of the Year awards. Our primary goal is to recognize dealers of all sizes who see opportunity where others may not, and who are willing to “roll the dice” with inventive strategies and tactics. This award does not focus on the most successful, or the most profitable, or the fastest-growing companies. Instead, it celebrates the entrepreneurial spirit that makes the lumber/building material industry so dynamic. This year’s winners, and their categories, are:

• Sales of more than $50 million: Shepley Wood Products, Hyannis, Mass. Tony Shepley, originally a bass player in a rock band, started Shepley Wood Products by selling lumber off the back of a truck. Shepley’s company generated revenues of $80 million-plus in 2007.

• Sales of $10 million to $50 million: Lumber One LLC, Van Buren, Ark. Since launching the company in 2002, owners Steve Gann, Bill Dodson and Dennis Joyce have built Lumber One LLC into a formidable supplier within their market. In 2007, the company logged revenues in excess of $14 million.

• Sales of under $10 million: The Remodeler’s Choice, Minneapolis, Minn. Minneapolis-based Fullerton Lumber Companies launched The Remodeler’s Choice in 2006 to focus on the specific needs of pro remodelers. Veteran remodeling supplier Dave Klun heads up the new division.    

When you read their stories, which begin on page 34, I encourage you to look for things they do differently—then think about how similar practices might play within your market. Better yet, use these stories as a jumping-off point for discussion in your next sales or manager’s meeting. While the next big idea may not emerge immediately, creating an environment that makes improvement possible is the first step.

I’m also excited to introduce a new monthly column in this issue of LBM Journal. With new construction in the midst of a serious “correction” (read: slump), more dealers and manufacturers are focusing on the remodeling market. Since selling to remodelers is dramatically different from selling to builders, our new column delivers insights from both an experienced pro remodeler (Bob Buck, formerly of Buck Bros. Construction) and an experienced remodeling supplier (Dave Klun—see above). The new column, called Dave Klun & Bob Buck On Selling to Remodelers, aims to deliver the knowledge you need to serve this largely underserved market.

P. S. According to Competitive Analysis Systems, a third-party service that tracks such things, LBM Journal begins 2008 as the fastest-growing magazine serving you and your fellow dealers. One reader described our content this way: “Immediately actionable, street-level market intelligence.” Not only is the content different, LBM Journal is the only national magazine devoting at least half of its pages to editorial. It costs more to do it that way, but we think you’re worth it. Thank you for the opportunity to help you grow your business…in 2008 and beyond.