A look at the long-standing partnership between Gerber Plumbing
Transcription
A look at the long-standing partnership between Gerber Plumbing
APRIL 2009 VOL. 64, NO. 4 News of Plumbing • Heating • Cooling • Industrial Piping Distribution We’ll see you at K• BIS! F.W. Webb to distribute Acadia system in Northeast B anGor , m aIne — energy-minded homeowners and businesses in the northeast now have easier access to the acadia: combined heating and cooling System from hallowell International with the new distribution partnership with F.W. Webb company, the largest distributor of hvac products (Turn to ‘Revolutionary’... page 41.) Cregger Co. opens, acquires new locations KITCHEN/BATH INDUSTRY SHOW & CONFERENCE colUmBIa, S.c. — cregger company announced several new recent branch openings, and made an acquisition. a new 17,000-square-foot branch in Showrooms at plumbing wholesalers bear little resemblance to the rather utilitarian approach they took years ago. Today’s showrooms are often luxurious, with a vast selection of product on hand, along with working displays, TV and video monitors, children’s playrooms, lighting, appliances and much more. Decorative manufacturers will be showcasing their wares May 1-3 at the World Congress Center in Atlanta. Brunswick, Ga., distributes both plumbing and hvac equipment and supplies. local industry veterans Scott Gainous (branch manager) and Greg Yancey (out(Turn to New locations... page 66.) Loyalty at work A look at the long-standing partnership between Gerber Plumbing Fixtures, Coburn’s BY MARY JO MARTIN Editorial director I n any relationship — whether it be business or personal — loyalty is among the most desired traits anyone could want in a partner. By definition, loyalty implies a sense of duty or of devoted attachment to something or someone. It ranks right up there with characteristics such as honesty and integrity. But while loyalty might be simple to define and proclaim, it is not always easy to live it on a daily basis. Up and down the phcp channel, companies boast of their loyalty to their trading partners. The relationship between coburn Supply company and (Turn to Coburn’s, Gerber... page 42.) IN STYLE IN STOCK IN NO TIME At The Distribution Point, we are dedicated in providing wholesalers with the industry’s leading faucet and fixture brands. We are where you can find collections that are top of the line and hard to find. Whether it’s favorites like American Standard and Toto or a famous brand that delivers a BOLD LOOK, you can find what you need under our roof. CHICAGO FAUCETS So, if you’re still wondering where to go for your wholesale needs, give us a call today or visit our website. We look forward to serving you! ® Phone: 866-837-2550 &AXs4HE$ISTRIBUTION0OINTCOM 6ISIT4HE$ISTRIBUTION0OINTCOMTOVIEWOURLATESTSPECIALSANDOFFERS See contact information on page 70 The perfect industrial fit. Matco-Norca’s industrial products are made to industry specifications in order to meet all your requirements. Our extensive inventory makes us your most reliable source, and our longstanding global partnerships ensure consistent quality and availability. You’ll find we’re the perfect fit for high volume, high pressure industrial applications. Call Matco-Norca to learn how we can fit into your business. Global sourcing. National compliance. Local service. Brewster NY P: 800-431-2082 F: 800-640-2252 Houston TX P: 800-935-5456 F: 800-683-4247 La Palma CA P: 866-532-8306 F: 866-532-8307 Americus GA P: 800-433-7526 F: 800-533-5134 www.matco-norca.com • [email protected] See contact information on page 70 SMALLER EASIER BETTER UP TO 21-SEER WISER Fujitsu, the WISER choice in comfort. W ARRANTY INDOOR AIR SIZE Our ductless miniHave peace of mind with a 2-year parts warranty and a 6-year compressor warranty. QUALITY Air that’s clean and free of pollutants. Our electronic plasma filtration absorbs odors and collects dust, cigarette smoke and pollen. splits are packed with features but are up to 39% smaller than prior models. Cool spaces without compromising aesthetics. T H E E FFICIENCY R410A Save your customers Used in all our money! Fujitsu’s new systems are up to 110% more efficient than prior models. P O S S I B I L I T I E S A R E For more information visit fujitsugeneral.com See contact information on page 70 I N F I N I T E systems, this environmentally friendly refrigerant prevents the depletion of the ozone layer. See contact information on page 70 6• •THE WHOLESALER® — APRIL 2009 IN THIS ISSUE The Front Page It’s Kitchen/Bath Industry Show time again, and this year participants will flock to Atlanta for the latest in faucets, sinks, tubs, toilets and all manner of new, innovative and decorative products for every K/B job. In the News See contact information on page 70 ASA to descend on Washington . . . . .10 ceco maintains quality . . . . . . . . . .12 Distribution Point bases success on strong relationships . . . . . . . . . .16 Symmons enlarges premium line . . .22 torrington hosts collections seminar for the trades . . . . . . . . . . . . . . . . . .24 PeRc tackles drainline transport . . .32 Ground-loop systems = tax break . . .62 Grundfos issues scam alert . . . . . . . .65 Geothermal to aid recovery . . . . . . .66 lochinvar gets tV gig . . . . . . . . . . . .67 Peter Schor’s kitchen/bath product showcase . . . . . . . . . . . . . . . . .53 – 55 Beschloss Beat Ironbound Supply Morris Beschloss interviews Howard Kent, president of Ironbound Supply of Newark, N.J. Kent describes Ironbound’s strategy of providing prompt service and specialty items to become a trusted supplier . . .36 Columns RIcH ScHMItt: Keep a clear head and thrive in tough economy . . . . . . . . . . . . . . . . . . . . .8 teRRy BRocK: A great attitude goes far . . . .28 DAN HoloHAN: Now that’s service! . . . . . . .46 PeteR ScHoR: K/BIS advice . . . . . . . . . . . . .57 MoRRIS BeScHloSS: Predictions verified . . . .50 Next Month Watch for the Wholesaler’s 2009 PVF Hall of Fame! See contact information on page 70 See contact information on page 70 8• • THE WHOLESALER® — APRIL 2009 SMART MANAGEMENT Making the best out of a difficult business climate B efore i get into the column, i want to discuss the attitudes that i am encountering within our industry as i talk with people at many levels. There are people who are viewing the glass as 3/4 empty and others who are viewing it as 1/4 full. Some are bemoaning the business they no longer have and others have set about adjusting to the new reality of the world. if i were betting, i would bet on the ones who are determined to survive and make money in the 1/4-full market. Many people are moping around like Eeyore from Winnie the Pooh. They have lost their personal energy and will probably infect the rest of their team. Make no mistake, doom and gloom is highly contagious to the rest of the team. Part of the formula for making the best of the situation is a clear understanding of your situation. Last month i discussed the importance of first-hand customer/market contact as one part in gaining a clear vision of your situation. When your vision is blurry, based on second and third-hand reports, it can lead to all sorts of inaccurate perceptions and bad decisions. in a flourishing market, you can recover from a lot of mistakes based on the volume. in a tough market, you don’t have as much business to cushion you from a hard fall. The next area of clarity should be operating with clear management reports. in our industry, there are a remarkable number of wholesalers who manage their companies with very little data and even less information. (in my book the difference between data and information relates to the actions it supports.) Data is often the raw material used to create information but it requires additional work and energy to convert that data into useable decision-producing information. Just like steel, many tons of iron ore and other raw materials data as well as other data that can be analyzed further. in many cases, there is a lot of raw data but it is not being “mined” and converted into anything useful. in my view, this is due to: • Programmers have mastered the process of capturing data but do not know what information is needed to run a business. This is understandable since their training and skills are probably technical in nature and might not be In a flourishing market, you can recover from a lot of mistakes based on the volume. In a tough market, you don’t have as much business to cushion you from a hard fall. go into the production of a single ton of steel. You can create very little with the basic raw ore but you can make many things with the resultant steel. Most of the information systems of the last decade capture and store massive amounts of data but very few actually help transform that data into actionable information. Many of the systems created long ago, and still in use today, were designed when hard disk space was very expensive and sold at a very high premium. These systems often captured only the absolute minimum data required for accounting and basic business management. More current systems capture the accounting and operating strong in business management and analysis. Frankly, it’s management’s job to determine the company’s information needs and get the programmers to provide the needed information. • Managers and other system users don’t know what to request from their programmers or system provider. Often the creation of new reports and data views requires a detailed understanding of the request and the system’s complex data structure. Sometimes the managers must describe their needs in such excruciating detail that they surrender long before there is useable output from the process. They might also fear their request will involve a huge programming bill, so they don’t ask for what they really need. • Lack of focus by the system providers. System providers invest their programming efforts broadly so they can attract the broadest group of customers. investing in specific industries or segments of industries is riskier and has a smaller potential return so the software remains somewhat generalized. it is far easier to sell a pile of lumber and nails than build a complete house. Many systems provide a great “kit,” plenty of lumber/nails and some even provide the tools to process the data, but the actual information produced is often left up to the user. Though many users will have similar needs, they expect each of their users to reinvent the reports and extracts needed to run the users’ businesses. • The sheer quantity of data makes analysis difficult. While the latest version of Excel can handle much larger quantities of data than ever before, it is still not particularly good at the process without substantial effort. The skills required often approach those of a programmer. in other words, this is not within the skill-set of the average administrative person or manager in the company. (You don’t learn this kind of BY RICH SCHMITT Management specialist stuff in the three-hour Excel class the company offers.) Very small companies can probably still use general purpose tools but medium and large companies need tools that were designed for the purpose so they can effectively handle the quantity of data and do it quickly. • The iT department cannot move beyond fire-fighting. Data mining might be important but there are more pressing things to do with their time. Sometimes the work to keep all the terminals and printers working at the same time is a massive effort. And when branch 2’s communications line is down, data analysis is certainly the “wrong-work” for the iT team. • The iT department has more interesting things to do with their time. Most iT people’s background is rooted in network administration, system administration, hardware maintenance as opposed (Turn to Even if your... page 41.) Presents: Industry events for 2009 APRIL 30-May 3 — Kitchen & Bath Industry Show, Atlanta. www.kbis.com MAY 6-9 — Association of Independent Manufacturers Representatives, Dallas, www.aimr.net 17-21 — Nat’l Assn. of Oil Heat Service Managers Show, Hershey, Pa. www.naohsm.org JUNE 15-16 — North Central Wholesalers Assn., Ypsilanti, Mich. www.asa4.org 28-30 — Southern Wholesalers Association Convention, Hilton Head, S.C. www.southernwholesalers.org SEPTEMBER 11 — WIT Meeting, Denver, Colo. www.wit-co.com OCTOBER 14-17 — American Supply Association Annual Convention, Washington, D.C., ww.asa.net 31-Nov. 3 — Heating Airconditioning & Refrigeration Distributors International Convention, Orlando, Fla., www.hardinet.org ® F ormerly K nown as G erlin,, Inc. Inc. Formerly Known Gerlin, Piping Solutions That Fit TM t5IFHSPXJOHOFFETPGPVSDVTUPNFST t5IFFWFSDIBOHJOHHMPCBMNBSLFUQMBDF t5IFRVBMJUZFYQFDUBUJPOTPGUIFFOEVTFS Offering weld fitting and flange solutions for stainless and alloy piping systems through various brands TM Picor ® Tube Line Stainless Tube Tec weld fittings stainless and alloy pipe flanges stainless and alloy large diameter weld fittings stainless and alloy weld fittings and flanges stainless and alloy Superior Quality. Exceptional Quality. Excellent Quality. Trusted Quality. Best Value. Domestically produced, Picor weld fittings are known for first-class performance in critical applications. Manufactured in a variety of configurations, Picor offers more than just the standard commodities. Custom fittings can be designed to meet or exceed specific needs in process industries such as: Domestically produced, Tube Line stainless and alloy pipe flanges are produced to exceed industry standards. With state-of-the-art machining capabilities various dimensions or tolerances are easily accommodated. From standard to custom orders, excellence is delivered. Domestically produced, Tube Tec large diameter stainless & alloy weld fittings best serve applications such as wastewater, pulp and paper, bio fuels, and grain processing. Globally produced, Brite Line provides customers a value brand of stainless and alloy weld fittings and flanges. These products are manufactured to Core Pipe standards using joint venture facilities or approved global partners. In the competitive global marketplace, Brite Line gives customers the confidence of knowing quality is never compromised. BREWERY QUALITY (BQ) – beverage industry precision tolerances for wall thickness, roundness and finish. Brite Line ® TM CHEM/PHARM – pharmaceutical and chemical industry requirements for inside surfaces to perfectly match up for precise weld penetration. LONG TANGENT/BELLED END – various industries such as pulp and paper, emergency and tanker trucks and other applications requiring special fittings or economical fillet welding techniques. MARINE marine industry requirements for specialized fittings in a variety of materials suited for marine applications. ® 1 7 0 T U B E WAY W AY D R I V E / C A R O L S T R E A M , I L 6 0 1 8 8 / 6 3 0 . 6 9 0 . 7 0 0 0 / W W W W.. C O R E P I P E . C O M See contact information on page 70 ® 10 • •THE WHOLESALER® — APRIL 2009 INDUSTRY NEWS ASA schedules joint Legislative Fly-In for April WASHiNgTON, D.C. — LiFO. Card Check legislation. Family Medical Leave Act. Water infrastructure. Asbestos liability. Copper theft. These are just a few of the high-priority issues on the 2009 legislative agenda for the American Supply Association. ASA has a long-standing government & Public Affairs Committee that has become increasingly active in recent years, putting forth a significant effort with legislators and regulatory agencies to represent the interests of PHCP and PVF wholesale distributors and manufacturers. A keystone to that effort is the joint Legislative Fly-in, where ASA members travel to Washington, D.C. to personally meet face-to-face with congressional representatives, senators and agency officials to promote the association’s legislative agenda. “Chances are at least one of the issues we are addressing is causing any number of our members to lose some sleep,” shared Mike Adelizzi, executive vice president of ASA. “These are issues currently receiving a great deal of attention in Washington, D.C. that have the potential to make a significant impact on all ASA members, as well as companies in related industries. That’s why we’ve partnered with PHCC, HARDi and ACCA. The impact we can make is significant, the effects of which can be far-reaching.” The chairman of ASA’s government & Public Affairs Committee, Don Robertson of the Western Suppliers Association, is encouraged by the new energy ASA members are contributing to legislative efforts. “By combining our efforts through an association, the unified voice makes a more powerful statement than if each individual company acted on its own,” said Robertson. “The individuals who participated in last year’s fly-in have remained active. Dennis goode from M. Cooper Supply testified before a congressional committee on copper theft. Jeff New from Mid-City Supply Rep. Joe Donnelly, Rex Martin of NIBCO and Jeff New of Mid-City Supply. Mike Adelizzi of ASA, John Mills of WHCI Plumbing and Domenic Messina of Peabody Supply after an issues briefing. Co. and Joe Poehling of First Supply hosted their congressional representatives at their businesses. Hundreds of others have taken an active role in contacting their elected officials on issues that will impact their ability to compete and be successful. Once someone experiences the briefings and the visits that are part of the fly-in program, it becomes evident that one person can make a difference, can have an impact, can speak up and be heard, and that has a lasting effect that changes behavior. We’ve seen it time and time again, and we know participation does make a difference.” The Legislative Fly-in provides a unique opportunity to develop and foster relationships with members of Congress and their staffs. Participants will take part in personal meetings with their elected officials where they can discuss issues and urge these officials to make decisions in the best interests of their businesses and the industry as a whole. ASA will provide participants with complete briefs on all the issues that will be discussed with the elected. Each person will receive an issue packet prepared in advance and briefed on what to expect in the meetings. issues scheduled to be addressed include LiFO repeal, card check legislation, accelerated depreciation, and lead in plumbing products. The agenda includes an issues briefing on Capitol Hill, a welcome dinner with invited speaker Bill Kristol, editor of The Weekly Standard and one of the nation’s leading political analysts and commentators, a breakfast with members of Congress and scheduled appointments on Capitol Hill. Some of ASA’s regional affiliates, including WANE, MWDA and WSA, have a rebate program in place for their members who participate in the Fly-in. Members are encouraged to contact their regional headquarters directly for details. For complete registration information, visit www.asa.net or contact Chris Murin at 312/464-0090, ext. 205 or [email protected]. PEACHTREE CiTY, gA. — The Fashion Bath Plumbing Wholesale Division of Lifetime Brands inc. was acquired by family-owned, privately held USE Bath Fixtures LLC on January 21, 2009. USE is a wholesaler supplier-partner with many purchasing companies, specialty stores, home improvement retailers, bath/lighting showrooms and is specified and placed at most hospitality venues. The USE management team relocated from Long island, N.Y., to Peachtree City, ga. The distribution center, logis- tics, supply-chain and operations were relocated from York, Pa., to a much larger 85,000-square-foot, state-ofthe-art facility in Davenport, iowa. USE also has a location in the Los Angeles area. Mike Velsmid, USE president and owner said, “Our new diversified platform for growth will give our hospitality partners shorter lead times and very competitive prices for premium decorative accessories from our multi-geographical locations.” For details, visit www.usehome.com. George T. Sanders hosts 3rd Annual Field Marketing Summit USE Bath Fixtures acquires Lifetime Brands division WHEAT RiDgE, COLO. — Friday, February 13th was far from superstitious for those attending george T. Sanders’ 3rd annual Field Marketing Summit. instead it was a day filled with looking into the future and of high hopes amidst all the economic turmoil. gTS employees gathered with local representatives from 12 Affiliated Distributor vendors at the Sheraton Denver Tech Center Hotel in greenwood Village, Colo., to plan a year full of exciting new sales goals and events. A-D is a nationally known buying and marketing group that serves independent distributors of plumbing, PVF, HVAC, electrical and general line industrial supplies. george T. Sanders Company has been a member since 2001 and expects to stay an active member in the years to come. it is important to members of A-D to stay involved through events like the Field Shown in back: Derek Bell, VP-sales and marketing and Scott Horner, VP and COO; front row, Thomas Tooley, president and Ted Batchelder, CFO. Marketing Summit because it allows relationships to be built, strengthened and continued between supplier and distributor. it has also been proven to increase sales for both parties and benefit consumers. it is a win-win situation for all, which is why A-D strongly encourages distributors to host this event every year. The Field Marketing Summit is similar to the North American Meeting hosted by A-D every year only on a smaller and more local scale. it is beneficial to have everyone gathered in the same place for an entire day to organize the best course of action for each market. Suppliers meet with gTS branch managers and salespeople for 20 minutes each to discuss plans for the coming year, which may include but are not limited to employee training, end-user training, sales incentives, open houses, counter days, joint sales calls etc. george T. Sanders is excited about the opportunities the Field Marketing Summit will provide as 2009 unfolds, especially with their new stores in Casper and Cody, Wyo. Houston Supply in Wyoming, now a Division of george T. Sanders Company, will also be able to participate in events with the A-D suppliers. And with 14 locations, george T. Sanders can now better serve the markets in Colorado and Wyoming. george T. Sanders and Houston Supply have been proudly servicing the needs of the professional plumbing and heating trades for over 50 years. Contact the main office at 303/426-9660 or visit www.gtsanders.com. Northeastern Supply’s Leonardtown, Md., store moves to new, ‘more convenient’ location BALTiMORE — Northeastern Supply inc.’s new Leonardtown, Md., store, located at 26731 Radio Station Way, opened on January 12. Leonardtown manager Tim Yates said, “The new store is only five minutes away from our old location, but it is much more convenient for our customers.” The new building houses some 15,000 square feet of interior space, and the ample outdoor storage space allows the company to stock more products than ever. The larger quarters allow the entire inventory to fit under one roof. Better parking and docks or drive-in loading are now available. Companies and individuals interested in obtaining products or services from the new Leonardtown branch can contact Tim Yates from 7 a.m to 5 p.m. Monday through Friday. The address is Northeastern Supply, 26731 Radio Station Way, Leonardtown, MD 20650, phone 301/475-2828, fax 301/475-9163. For additional information, visit www.northeastern.com. See contact information on page 70 TECHNOLOGY PEOPLE RESULTS “APR Supply has maintained its competitive 12 • • THE WHOLESALER® — APRIL 2009 SUPPLIER NEWS advantage by leveraging the industry features, benefits, and companion products offered by Activant.” – Scott M. Weaver, President & CEO, APR Supply Q&A with Matthew Hurray CECO capitalizes on high-quality production to grow business BY MARY JO MARTIN Editorial director N Activant designs business software especially for plumbing wholesalers and invests a significant portion of its annual revenue in research and development. Our distribution-savvy employees dedicate themselves to ensuring you maximize the return on your technology investment. More than 4,200 distributors rely on Activant’s superior technology solutions and knowledgeable people to achieve proven results. ow in its fourth generation of Hurray family ownership, CECO has been producing high-quality porcelain enameled cast iron plumbing fixtures since 1928. Originally known as the Commercial Enameling Company, CECO was founded by Michael Hurray in Los Angeles, Calif.. Upon his death in the late 1940s, his son Edward took over. CECO was passed on to Edward’s son Michael Hurray in the early 1990s and then to Michael’s sons Mark and Matthew Hurray in 2003. in its early years, CECO produced plumbing fixtures, and during World War ii they also produced bomb casings for the U.S. Military. Today, CECO’s core competencies include an established, high-quality manufacturing process, the ability to quickly deliver product to its customers and an established distribution network on the wholesale level. Thanks to its extensive experience and desire to remain a privately owned operation, CECO has developed a reputation for its ability to efficiently produce and deliver high-quality plumbing fixtures. Over the years, CECO has produced products for a large number of American plumbing fixture manufacturers. The company’s headquarters and main distribution center are in Huntington Park, Calif. They also have regional distribution centers scattered around the country in Northern California, Arizona, Colorado, Texas, Missouri, Oklahoma, georgia, Florida, North Carolina, Maryland and New Jersey. in addition to the Hurray brothers, CECO is fortunate to have the talents of several other key executives: • Chief financial officer Bob Col clough, who is assisted by Shana Leang • Miguel Cervantes is coordinator of inside sales and customer service • Tim Cencak is national sales director • Victor Corro is the warehouse and distribution.acti vant.com/results 80 0.776.7438 © 2009, Activant Solutions Inc. All rights reserved. Activant and the Activant logo are registered trademarks of Activant Solutions Inc. All other company or product names are the trademarks or registered trademarks of their respective companies. See contact information on page 70 The CECO management team includes (from left): Matthew Hurray, Miguel Cervantes, Shana Leang, Bob Colclough, Tim Cencak, Victor Corro and Mark Hurray. logistics coordinator. Recently, Matthew Hurray talked with editorial director Mary Jo Martin about their plans for continuing CECO’s great tradition in the marketplace. MJM: You are now in the fourth generation of your family to own this business. Why has it been so important to maintain CECO as a family business, and how has that direct owner involvement shaped the way you do business? Hurray: The major advantage of being a small family owned business is the ability to make decisions — whether big or small — in a timely fashion. With the speed at which business is conducted today, it is important for companies to make decisions quickly — and Mark, Robert and i can get in touch with each other via phone, e-mail, or in person and make decisions quickly. This is something that larger companies have difficulty with because of a longer chain of command. MJM: Do you have a factory sales force or use independent reps, and why do you prefer your chosen method of going to market? Hurray: CECO uses both factory salespeople and manufacturers’ reps. Tim Cencak, who has more than 13 years of experience at CECO, along with Mark and i, spearhead our sales efforts across the U.S. We work closely with our manufacturer’s reps throughout the country. This combined effort is essential to our success, in that our wholesale base has many different ways to contact us for product information, inventory updates, technical support and more in a timely fashion. MJM: What have been the best ways you’ve found to market your products, build relationships and expand your customer base? Hurray: The best way we have found to market our products is through various trade shows and buying group exposure. A lot of our business is based on relationships, and that is where we see the biggest benefit from our manufacturer’s reps. good reps usually have strong relationships with a large customer base in their territories, which opens the door for smaller companies like CECO. We are very fortunate to have a superb group of manufacturer’s reps across the country that are able to do exactly that. Our number one priority every year is to increase our customer base. During economic times like these, this is a major component for success. in the last year, we have had a competitor completely abandon their wholesale distribution. Even though these are trying times for (Turn to CECO, page 14.) LOWER INVENTORY. INCREASED TURNS. GREATER PROFITS. At a time when everyone is focused on reducing costs, supplier performance has never been more important. Everyone promises you great products, great service, at a great price. At Legend Valve, it isn’t a promise... it's a guarantee. While others are reducing their commitments to customers, we're increasing ours. • Shipment within 24 hours, so you keep inventories lower and profits higher • Industry-high • Error-free 99%+ fill rate transactions • No restocking fees • No minimum orders Guaranteed. QUALITY AT EVERY TURN™ 1-800-752-2082 www.legendvalve.com © 2008, Legend Valve & Fitting, Inc. All rights reserved. Downstream Thinking is a registered trademark of Legend Valve. It’s All About Performance is a trademark of Legend Valve. See contact information on page 70 14 • • THE WHOLESALER® — APRIL 2009 SUPPLIER NEWS CECO (Continued from page 12.) everyone, this is a tremendous opportunity for CECO to help provide quality products to wholesalers that have lost a source for cast iron fixtures. We can help them continue to meet the needs of their customers, while at the same time increasing our customer base. MJM: Describe the importance of wholesalers to your sales and distribution efforts? Hurray: CECO has always relied heavily on plumbing wholesalers throughout the country for the distribution and sales of our products. in fact, it is wholesalers that have made our company what it is today — and that is something we recognize and are quite proud of. Many of our competitors supply products to the Big Box retailers on both commodity and showroom fixtures, whereas we depend on the wholesalers to distribute our products through the supply chain. You will not find our prod- ucts at The Home Depot or Lowe’s. MJM: What are you doing to further solidify your supply chain partnership with your wholesalers and contractor customers? Hurray: One aspect of our products that has helped solidify our relationship with all of our customers throughout the supply chain is the reality that CECO sinks are green products. Over 90% of every CECO cast iron fixture is made from recycled material. MJM: Please describe your manufacturing operations? Hurray: One of the major decisions that we made as a company going into the last two years was to increase our inventory levels on all the products we manufacture. The reasoning behind a larger investment in inventory was simple: Make sure we have the products when customers call. We feel this has been very advantageous in helping us achieve our goal of increasing our customer base — especially when we get calls from “new” accounts. This investment has also been very advantageous to our curproducts, at valued pricing, with rent customer base. many different styles to Our larger cuschoose from. We are a comtomers realize pany that stands behind those that we have products. the inventory, More than MJM: Are you and this helps 90% of every CECO involved with industry them create cast iron fixture, such as trade associations, buybetter turns this sink, is made from recycled material. ing groups, trade shows, within their etc., and if so, how does specific systems. The smaller wholethis help your business? salers realize that they don’t necessarily Hurray: CECO has been a participant need to tie up their dollars by carrying in the K/BiS show for a number of years large quantities of product because we now and we are looking forward to the are already doing that for them. show in Atlanta this year. We invite MJM: What have been some of your wholesalers to visit us at our Booth, most recent product launches? number B3706 KHB). Hurray: Our most recent product The exposure that this show provides launch was the introduction of our new not only to our customers, but also to Designer Select kitchen fixture series to their customers, has been a tremendous the market. There are five new models aid to the growth of our company. currently available with two new Farm MJM: What sets you apart from your Sinks on the way. These fixtures have an competition? attractive designer ledge around the top Hurray: The main thing that sets us of each bowl, extra deep bowls for supeapart from our competition is that we are rior usability, and have been very well a small company that is very easy to do received by the wholesalers, builders business with, and we have genuine interand showrooms. est in the well being of our valued cusMJM: What products are you best tomers throughout the supply chain. ■ known for? Hurray: CECO plumbing fixtures are For additional information, visit known to our customers as top-quality www.cecosinks.com. SANIFLO Macerator The original plumbing solution SINCE 1958 Install a complete bathroom anywhere! e! t 3 inlets (toilet, shower/bath and sink) t Check valves included t Vertical plumbing, up to 15ft t Horizontal pumping up to 150ft t'VMMSBOHFPGNPEFMTUPTVJUZPVSTQFDJmDOFFET tyear warranty 1-800-571-8191 | www.saniflo.com Saniflo…all you need is water and an electrical power supply, get the job done in a day ! Saniflo systems are installed above the floor. All units are pre assembled and suitable for : Garages Under the stairs Basements Bedrooms ¾” discharge pipe See contact information on page 70 WHAT DOES EQUITY HAVE ON TAP FOR YOUR BUSINESS? Equity Plumbing is a new Marketing Group that offers marketing services and sales support to a network of independent Wholesale Plumbing Distributors. Equity provides Distributors and Manufacturers access to a powerful national membership network, proprietary marketing plans, special promotional materials, and advertising opportunities. What does Equity have on tap for your business?... ANNUAL MEETING Our Annual Meeting offers valuable opportunities for Manufacturer and Distributor Member networking through: t One-on-One meetings t Peer networking sessions t Educational industry meetings t Drive sales with exclusive “Show Only” promotions t Speaking and event sponsorship opportunities MARKETING SUPPORT SUPPLYLINES is a professionally designed, full-color newsletter that is individually customized by each participating Distributor with content that is provided by approved Manufacturers. SUPPLYLINES enables Distributor Members to effectively promote our Manufacturers’ products to Contractors/End users. THE ADVOCATE, our group’s featured publication, is a showcase for Manufacturers and their products with a circulation to reach industrial purchasing and sales managers. This publication includes messages from Equity executives as well as news and industry-related educational articles. With sales exceeding MARKETING PROGRAMS AIM - Strengthens Manufacturer relationships through marketing and educational activities supported by local sales reps. $6.2 billion in combined plumbing and electrical products, VOLUME PLUS - Provides Manufacturers with a conduit to offer incremental growth plans, which establish individual sales goals for participating Members. Equity provides marketing services and sales support to a network of independent PROFIT POWER - Provides Members with a significant financial incentive for converting business from non-approved Manufacturers to approved Manufacturers. wholesale distributors that services nearly every primary and secondary market in the United States. THAT is power that flows to INCENTIVE TRAVEL - Provides Members with a way to drive sales by offering cost-effective travel incentives to their customers. PROMOTIONS - Each month Members receive several promotions that are exclusive to the Equity Plumbing Membership. Equity Plumbing offers a promotional development and delivery service, at no cost to all Manufacturers. your bottom line. LET THE PROFITS BEGIN TO FLOW CALL BOB SNYDER TODAY TO GET STARTED (888) 433-2342 X234 WWW.EQUITYPLUMBING.COM See contact information on page 70 J O I N T O D A Y A N D W A T C H T H E P RO F I T S F L O W T O Y O U R B O T T O M L I N E 16 • • THE WHOLESALER® — APRIL 2009 MASTER DISTRIBUTION Service and availability keys to success for The Distribution Point BY MARY JO MARTIN Editorial director H is 10+ years on the management team at Fort Worth, Texas-based Morrison supply provided Ranson Roussel with extensive experience and knowledge of the plumbing distribution industry. From that vantage point, Roussel quickly recognized the tremendous opportunity to enter master distribution as Home Depot announced its purchase of yoW in 2001. The Distribution point was formed by Roussel as an independent u.s. master distributor with the primary focus of supplying the wholesale plumbing community. Based in Moody, Ala., The Distribution point stocks 21 vendors, including kohler, American standard and Toto, and supplies 3,000 customers from its call center and warehouse operations. “We work very hard on developing strong relationships with our vendors as understanding product (new and existing) and the supply chain is crucial for a master distributor,” Roussel noted. “These partnerships are key for our overall success and growth rate. “Basically, the lines we carry are based on our customer demand. We track and monitor all lost sales and once a pre-determined threshhold is hit, we then begin the process of adding a line, product grouping, sku, etc. The analysis of our customers’ demand is the biggest indicator in this process — we always want to have ample supply in stock to meet their needs.” Currently, TDp is primarily focused on residential product, but they do service commercial orders. strong in customer service, Roussel noted that they are capable of working with customers on job Shown in the TDP warehouse photo are (from left) Mequotes, and are constantly gan Graves, Lee Anne Holsomback, Melissa Glidewell, looking for opportunities to Jennifer Ho, Mollie Donohue and Alishia Ho. grow and expand their customer base. Roussel is extraordinary,” said DonThe Distribution point’s 35 employohue. “ He applies an open door policy ees are led by a management team that along with an approach of ‘asking for includes: forgiveness rather than permission.’ He • president Ranson Roussel employs smart, ambitious and outgoing • Vice president-operations Rusty Baker individuals and provides them the • Director of Marketing Mollie Donohue framework to grow and expand their • Director of purchasing Barbara Quinn wings, allowing them the ability to make • Director of Inside sales Joan Wood. decisions on their own. He pushes us all “The leadership headed by Ranson (Turn to The Distribution... page 18.) See contact information on page 70 See contact information on page 70 18 • • THE WHOLESALER® — APRIL 2009 MASTER DISTRIBUTION The Distribution Point: Forging strong links in the chain (Continued from page 16.) to strive to give him 100% every day. I have found it rare not to have a ‘micromanager’ as a boss — but Ranson’s philosophy is one that empowers his employees through decision-making and team-building exercises. It really adds to the success of the organization as it challenges us all to ‘think’ and think outside the box. This, coupled with the incredible atmosphere he has created, makes coming to work incredibly enjoyable.” Roussel also stresses employee training — especially for TDp’s customer service reps - to ensure that they are able to best serve customers and answer questions that might arise. TDp currently has one outside sales rep who calls on customers, but the majority of its sales are provided through its inside customer service representatives. “our CsRs continually receive training and product reviews from our vendors.” Roussel noted. “Technical knowledge is not as important for a master distributor as cross selling and product substitutions. For the most part, when a customer calls, they are in search of a particular product. As a result, our sales staff is challenged with recommending additional products the customer might not have considered, or recommending an alternative product if needed.” Roussel’s background at Morrison allowed him to “walk in his customers’ shoes,” so he can strongly identify with their needs. This has given him a unique perspective on recruiting new business and building strong relationships with customers. “In comparison to traditional wholesaling firms, we have more of an opportunity to develop strong relationships with our customers due to the frequency Members of TDP’s sales team are (from row, from left): Megan Graves, Jennifer Ho, Stephine Jennings, (back row) Wendy Cascio, Shari Watkins, Candace Davies, Lee Anne Holsomback and Alishia Ho. of calls and the amount of repetitive business we strive to capture,” he explained. “Many of our CsRs have developed a strong rapport with their customers as they are speaking to them See contact information on page 70 several times a week. I would say the biggest difference between our business and a typical wholesaler is the frequency of the calls verses the frequency of visits (Turn to Alabama ... page 20.) Through these doors are greater profits and peace of mind. To relieve the stress of orders that don’t arrive on time, we give you the industry’s fastest lead time on any configuration, size or color of shower enclosure. And if you think that’s fast, we have a 24 hour turn-around time on all stock doors.. POaQ]aV]eS`R]]`Q][j&#"!'!& See contact information on page 70 20 • • THE WHOLESALER® — APRIL 2009 MASTER DISTRIBUTION Alabama master distributor builds strong relationships (Continued from page 18.) of inventory to keep on hand, without tying up too a customer makes to a showroom. our CsRs have the much cash in product that might not turn quickly. opportunity to speak to the same showroom represen“We closely monitor demand rates and lost opportative multiple times a week — which is why relatunities,” Roussel explained. “We continually monitor tionship building is so key to our business model. our vendor led times, fill rates and supply chain issues. We CsRs work very hard at forming relationships with our customers and want to ensure that they are meeting all of their needs.” According to Donohue, The Distribution point has found that the best ways to market itself and target new business is through advertising in national industry publications such as The Wholesaler, along with putting together direct mail pieces and e-mail campaigns. In addition, TDp relies on referrals from its customers and vendors, which is why service is such a key element of their business. To streamline the order- The management team at The Distribution Point includes (from left): President, ing process both for TDp and Ranson Roussel; Director of Purchasing, Barbara Quinn; Vice-President of its channel partners, they Operations; Rusty Baker, Director of Inside Sales; Joan Wood and Director of have invested in a new Marketing, Mollie Donohue. mainframe computer system, and when launched summer of 2009 will be capawant to ensure we have a large depth of skus, but we ble of eDI. However, Roussel noted that at this time, also have to ensure we are turning product and not “we are not yet convinced that online ordering will aid becoming overstocked by items that will just gather in the facilitation of the timeliness of an order. This is dust. It basically comes down to a team of individuals a function that we are monitoring closely and if we who continually analyze and monitor our inventory, believe it would be of greater benefit to our customers, constantly making additions and deletions and adjustwe will implement it.” ing quantity on hand. It is an on-going process that is “our CsRs can process an order in less than two continually tweaked and re-defined.” minutes — from the start to the end of a call. When It is also critical that TDp can ship product in the analyzing the time it would take to access an online most economical way possible to keep costs down, site, search through the thousands while still ensuring accurate and of skus available and place an timely delivery. There are 15 fullorder, the time needed would time warehouse employees who more than exceed our two-minute are strategically segmented into call time. We are constantly lookreceiving, shipping and stocking. ing for new and innovative ways “shipping is, of course, a corto expedite our ordering process, nerstone to our business model,” but want to ensure that at the end Roussel noted. “We ship all of the day, it will benefit the servorders same day to ensure that our customers receive their product ice capabilities offered to our cusnot only as quickly but as cost tomers.” effectively as possible. We have The traffic on TDp’s website has been consistently strong and the developed great relationships company continually updates its with our carriers and shipping home page as a way to promote its providers, and they perform outvendors and their products. They standing services for us. have also experimented with “our warehouse is a well-oiled some exclusive offers through the machine and are staff is crosswebsite. Currently, they are running a panasonic protrained so that individuals can shift on an as-needed motion of a free WhisperGreen™ display and product basis if demand is stemming from one particular area. These guys are incredibly efficient. They are the ones training with the purchase of any four WhisperGreen who are owed the credit for our same-day shipping or WhisperGreen-Lite™ ventilation fans (see guarantee as they are the members of our team who www.thedistributionpoint.com for details). ensure this happens.” product availability and shipping reliability are key As the number of master distributors grows and the to any master distributor’s success. It becomes a delicate balancing act to ensure the right amount and type (Turn to The Distribution Point, page 22.) Product lines: See contact information on page 70 American Standard Kohler TOTO Delta Brizo Moen ShowHouse Brasstech Grohe Hansgrohe Danze Price Pfister Mr. Steam Kaldewei Chicago Faucets Panasonic Elkay Alsons InSinkErator Newport Brass Creative Specialties Axor Install a Bathroom Almost Anywhere Zoeller Pump Company's Qwik Jon® Ultima is the smart solution for all sewage removal needs when gravity flow is a problem. 6LPSOHHQRXJKIRUUHVLGHQWLDOUREXVWHQRXJKIRUFRPPHUFLDO 1REUHDNLQJRUEXLOGXSRIIORRUVQHFHVVDU\ *ULQGHUSXPSWDQNFDQEHLQVWDOOHGIUHHVWDQGLQJRUEHKLQGZDOO 5HDUIOXVKWRLOHWLVFRPIRUWKHLJKW$'$FRPSOLDQWDQGIHDWXUHVHORQJDWHGERZO 0RGHOFRPSOHWHZLWKUHDUIOXVKWRLOHWDQGJULQGHUSXPSWDQN 0RGHOVWDQGDUGUHDUIOXVKWRLOHWVROGVHSDUDWHO\ For more information on the Qwik Jon® Ultima, and other Zoeller Pump Company products, please visit www.zoeller.com. EDWKURRPV EDVHPHQWV FDELQV WRROVKHGV YDFDWLRQKRPHV NN IVERSAR Y A 2VBMJUZt4FSWJDFt*OOPWBUJPO SI N C E 1 93 9 .PEFM .PEFM ϯϲϰϵĂŶĞZƵŶZĚ͘ͻ>ŽƵŝƐǀŝůůĞ͕<zϰϬϮϭϭͻǁǁǁ͘njŽĞůůĞƌ͘ĐŽŵͻϱϬϮͲϳϳϴͲϮϳϯϭͻϭͲϴϬϬͲϵϮϴͲϳϴϲϳͻ&yϱϬϮͲϳϳϰͲϯϲϮϰ See contact information on page 70 22 • •THE WHOLESALER® — APRIL 2009 SUPPLIER NEWS Symmons Industries expands line of premium bathroom suites BRAINTRee, MAss. — symmons Industries is a premier manufacturer of commercial and residential plumbing products, setting the standard for quality in plumbing fittings since 1939. Building on the reputation of its pioneering pressure-balancing shower valve and its wide range of exceptional products for the kitchen and bath, symmons recently expanded its premium product line to include a variety of bold, beautiful bathroom suites. From contemporary to traditional, symmons offers a complete suite to enhance any bathroom décor. each premium suite includes lavatory and Roman tub faucets, tub/ shower systems and a variety of complementary bath acces• Reminiscent of the classic architecture of sories. The components of oxford, the geometric lines of the oxford suite each suite can be configured evoke a sense of being among england’s ornate to accommodate the specific towers and steeples. Boasting a bold and stately needs of each project. All design, the refined, distinct look of the oxford suite tub/shower systems feature is appropriate for a range of décor options from tra- the symmons anti-scald, pressure-balancing mixing valve, ditional to contemporary. • Featuring fresh, clean lines, the Naru suite offers which puts an end to “shower a chic, contemporary design inspired by the Japanese shock.” Constructed from verb “Naru,” meaning to become, to be, or to grow. solid brass, bronze and stainIdeal for achieving a spa-like atmosphere, the Naru less steel, symmons shower valves ensure a safe, comfortsuite offers a soothing waterfall flow. • The simple, sophisticated elegance of the able shower every time. Also, homeowners can Ballina Collection seamlessly blends classical styling with modern splendor. The graceful, flow- enjoy the benefit of an easy, ing lines of the design are inspired by the strong, non-invasive shower upgrade yet beautiful movements of modern ballet. While by choosing symmons trim showing its poise, the Ballina Collection comple- replacement. With a symmons Temptrol® shower valve behind ments a transitional or contemporary setting. • evoking the antique cottage charm of an english the wall, simply replace the country estate, the Winslet Collection embodies nos- trim components in front of the talgic elements of colonial décor. The bold, arched wall with any symmons premicurves and simple lines combine to provide an old um trim design to quickly and inexpensively refresh the look world feel for today’s modern bathroom. of the bathroom. suited for a variety of residential and commercial applications, symmons premium products are crafted from the highest quality materials and built to innovate within the industry. In addition to expanding its premium product line, symmons revolutionized the custom fittings category with The Design studio™, the only service to provide custom-designed bathroom fittings for luxury hospitality and condominium projects. As symmons reaches its 70th year in business, the company maintains an unrivaled commitment to quality materials, superior engineering and solid The Oxford Suite Ballina Collection The Naru Suite The Winslet Collection New Symmons suites The Distribution Point (Continued from page 20.) market becomes more competitive, it is the economy,” Roussel noted. “As crucial for any company to stand out. wholesalers are looking to refine invenThe Distribution point does this through tories and run as lean as possible, we are their outstanding service record, of finding the items we need to have in which Roussel is exceedingly proud. stock are shifting a bit. We are constant“service is our biggest competitive ly analyzing our inventory and cusadvantage, coupled with being an indetomers’ demands as we want to ensure pendent distributor,” he said. “By not that we can support the wholesale combeing tied to a retail or wholesale chanmunity with the products moving in the nel, we are not positioned to compete market place. with our customer base. We also con“A master distributor runs counterstantly monitor our call volumes and cyclical to the economy. When the housrates as we want to ensure zero hold ing market is booming, our support times and the guarantee that a customer comes in the form of special orders, hard will speak to a live person without to find skus and high-dollar items, phone menus, hold times or transfers.” which are costly to stock. As the econoIn that vein, Roussel noted that he has my downtrends, we are finding that our seen some changes in customers’ expecinventory is changing, and we are stocktations during his years in the industry, ing more of the day-in-day-out items. By and is always looking for ways for The having large quantities of these items on Distribution point to adapt to those hand, we enable our customers to still changing needs and wants. But currentsupply and sell their basics while allevily, his customers’ biggest concerns ating and reducing their own inventory revolve around surviving the downturn spending.” ■ in construction. “The biggest changes we are seeing For additional information, visit right now are stemming from the state of www.thedistributionpoint.com. stand the test of time. With a reputation for manufacturing durable, long-lasting products, symmons offers a lifetime guarantee on all premium products used in residential applications. Now a third generation, familyowned company, symmons continues to workmanship. pairing reliable behind the wall technology with stylish and durable design in front of the wall, symmons is truly the smart choice in plumbing products. ■ For additional information, visit www .symmons.com. PACE Supply opens three branches sANTA RosA, CALIF. — pACe supply Corporation, a santa Rosa-based wholesale plumbing distributor, announced the opening of three new branch locations. The 32,000-square-foot santa Clara location opened in March. The 39,000square-foot oakland location and the 42,000-square-foot san Francisco location will open in April. At a time when many companies in the construction sector are cutting jobs, pACe is hiring workers, adding about 90 employees, including warehouse workers, truck drivers and sales staff, bringing its head count to 365. pACe is looking to diversify by entering new markets in the Bay Area’s urban core. It’s a new direction for the company, which, until now, focused on Northern California’s suburban and rural construction markets. With the expansion, pACe will be selling equipment for high-rise office buildings and other large commercial projects. Along with the expansion of its commercial division, pACe has brought on board a team of people whose expertise is commercial hydronics — a business that has close ties to the mechanical contractors in the Bay Area. Online training for hearth dealers from Selkirk RICHARDsoN, TexAs — selkirk Corporation announced superpro usA product knowledge 101, its newest online course at selkirk university. The new superpro usA course addresses usA specific content designed for the hearth market. The course is hosted through selkirk u’s usA Campus/ superpro usA faculty. Additional courses are continually in development. This leading edge online training tool is another example of selkirk’s commitment to provide training and education to customers. superpro usA product knowledge 101 takes the student through three separate 30-minute segments: • Basic knowledge • sales and system Design • Installation Basics. At the end of the course a multiple choice final exam tests the student’s overall knowledge in a way that is meant to maximize educational value; students may retake the test until they achieve a score that is satisfactory to them. Visit www.selkirkuniversity.com to learn more. Better for the environment. Safer for drinking water. Navigator Thermostatic Mixing Valves comply with all new lead-free requirements while maintaining the quality you have come to expect from Bradley. The Navigator unique single valve design, ease of installation and reliability haven’t changed, Bradley just got the lead out. Get the lead out of your projects, specify Bradley’s Navigator thermostatic mixing valves. >:C;07<547FBC@3AjE/A6@==;/113AA=@73A :3<=F:=193@Aj;7::A>/@B7B7=<A 0@/2:3G1=@>1=; &0@/2:3Gj eeeP`ORZSgQ]`^Q][^`]RcQbab[d % ! # ! ' See contact information on page 70 CA AB 1953 defines lead-free as less than 0.25% 24 • • THE WHOLESALER® — APRIL 2009 SMART BUSINESS Educating contractors Torrington Supply hosts seminar on collections management BY MARY JO MARTIN Editorial director I n an effort to strengthen its customers’ business practices, the Torrington Supply Company sponsored a seminar on collections management for hvAC and general contractors, builders and remodelers, plumbers, and electrical engineers. The seminar — cosponsored by A.O. Smith Water Products — focused on preventing collection issues along with handling and recovering from a debt should one arise. Waterbury, Conn.-based Torrington sponsored a similar course several years The dinner event drew 65 contractors and provided useful information about avoiding common problems that contractors encounter with customers who pose a risk of non-payment; what contractors can do when, despite utilizing preventive measures and engaging in best practices, their customers default on payment; and relevant topics of the federal bankruptcy laws. A.O. Smith Water Products co-sponsored the event. Brian McBride, sales manager for Emerson Swan/A.O. Smith, spoke about two new products — tankless water heaters and a high efficiency water heater. ago, and it was well-received at the time. According to credit manager Cheryl McPhail, many of Torrington’s customers are experiencing unprecedented problems with collections and the company felt it was the right time to step in with some added support. “Collection issues are seriously affecting our customer base,” she said. “Many of them have never had to deal with collecting on bad checks, filing mechanics liens, filing small claims or just making col- lection calls. In light of that, and considering the current economic and credit environment, we wanted to provide our customers with the knowledge and tools to assist them in protecting their businesses.” Director of sales Christopher Fasano added, “We looked at the two areas where our customer base is feeling the pain right now — generating sales and collecting for their services. We focused on collections immediately because The Bootz Collection. The beauty of porcelain. The strength of steel. Bootz brings together the industry’s most complete line of “porcelain-on-steel” plumbing fixtures for the kitchen and bath. Attractive, lightweight, durable… Bootz Industries is always your assurance of exceptional quality and value. Call us today at 812-423-5401. Bootz Industries 1400 Park Street • P.O. Box 18010 Evansville, IN 47719-1010 (812) 423-5401 • Fax (812) 429-2254 http://www.bootz.com E-mail: [email protected] See contact information on page 70 when our customers get paid, our customers’ business’ remain strong. “Our customer base is having a difficult time right now. Their customers are facing tough situations — some lose their jobs after their projects have started, others have basic plumbing and heating needs that they just cannot afford. When these situations arise, it puts our customers at risk for bad debt.” Unfortunately, a similar scenario is playing out in many other parts of the country. When these issues arise, and contractors are not fully knowledgeable about ways to protect themselves, it not only affects their ability to be profitable, but can put their businesses in jeopardy. “Our customers have seen just a drastic change in payment patterns, and so quickly that many of them are unprepared to weather the storm,” McPhail noted. “They are not getting paid for the work and services that they provide, and at the same time the credit environment has tightened so drastically that getting a line of credit at the bank is not a viable option.” Fasano added, “The most difficult consequence is that when contractors cannot collect for their services, they can no longer afford to pay their employees and their suppliers. It becomes a huge mess. We just want to be there to support them in their efforts.” Critical advice for contractors The dinner event, which drew 65 customers, was held at John J. Sullivan’s restaurant in Ansonia, Conn. There was no charge to attend. Among the members of the Torrington team on hand were Fasano, McPhail, director of marketing Manny Salinas, COO and president Barry Wolff, director of corporate operations Mitchell Miller, CFO David Petitti, regional branch manager Eric Weyler, branch manager Mike Crane and outside sales team members Pat Kennedy, Tony Brown and MaryAnn Parizo, who accompanied their customers. Wolff formally welcomed all attendees and introduced the presenters for the seminar, Tom Sansone and Jason Gagnon. Sansone and Gagnon are attorneys with one of the leading Connecticut law firms, Carmody & Torrance. They worked closely with Torrington’s McPhail and Dave Petitti to craft an agenda that would provide a lot of useful information in a relatively short period of time — as well as one that promoted interaction between attendees and the presenters. Many attendees took advantage of the opportunity to ask questions during the presentation. “We strove to avoid discussing a lot of complex legal concepts and theory, and tried to confine our presentation’s elements to practical, common sense points that the attendees would find useful in their own day-to-day business activities,” Sansone explained. The agenda was divided into four (Turn to Contractors... page 26.) 713.466.1644 1.877.996.9911 A successful company is judged by the clients it keeps. Once you come aboard, you’ll stay. See contact information on page 70 www.candcvalve.com 26 • • THE WHOLESALER® — APRIL 2009 SMART BUSINESS Contractors find value in collections management seminar (Continued from page 24.) components: • Preventive measures to avoid some of the common problems that contrac- Cheryl McPhail (center) credit manager at Torrington Supply is joined by two members of her department — Grace Jimenez (left) and Liz Gempka (right). tors encounter with customers who pose a genuine risk of nonpayment for the services provided. • how to manage the relationship with customers by utilizing “best practices” when providing service to them. • What contractors can do in those situations where, despite utilizing appropriate preventive measures and engaging in best practices, their customers nevertheless default on payment arrangements. In particular, the use of mechanic’s liens, claims under bonds for public projects, conventional lawsuits and small claims proceedings. • Relevant topics of the federal bankruptcy laws, emphasizing how best to protect one’s rights when a customer files for bankruptcy protection. According to Sansone, “There was a lot of interest in the use of web-based *':063& -00,*/( '0353&/%: From left are Barry Wolff, president and COO at Torrington Supply; Jason Gagnon and Thomas Sansone of Carmody & Torrance; and Chris Fasano, director of sales at Torrington Supply. search engines as a means of checking on the financial health of prospective and existing customers. The attendees were also very interested in the steps for properly recording a mechanic’s lien on a nonpaying customer’s real estate. And, of course, bankruptcy is always a hot topic these days, given the current economic climate.” Among the attendees were Frank Russo from Ralph Russo Plumbing & heating and Emilio Espejo, vice president-sales & project management from M&O Corporation. Both agreed the session was a very valuable experience and covered every basic aspect of the collec- tion process. “I found the collections seminar informative, interesting and easy to understand. It’s nice to know we have a supplier that cares and offers the help we need to survive in a poor market,” noted Russo. Espejo walked away with a new knowledge of what is important in running a contracting business: “As contractors, we tend to believe that selling is more important than collecting. In reality, it is the other way around. A smart contractor needs to be educated on “selfhelp” remedies like the ones presented at (Turn to Collections, page 28.) The best ways for contractors to navigate bad debt situations T ,&&10/-00,*/( We don’t chase trends. Over the last 117 years we’ve seen a lot of mediocre ideas catch fire then burn out. As a company, we’ve endured because the ideas of service and value never go out of style. Our combination of quality products, high fill rates and quick shipping gives you the ability to turn your inventory and create repeat business. If that’s what you’re looking for… Union Brass has exactly what you need. Visit us at unionbrass.com or call 877.454.8858. IT JUST WORKS. ©2009 Union Brass Manufacturing Company See contact information on page 70 o give contractors a fighting chance to get through the current economic downturn — and associated financial challenges that are threatening their livelihoods — attorneys Tom Sansone and Jason Gagnon of the Carmody & Torrance law firm outlined specific suggestions for contractors to best deal with collections situations. Following were some of the highlights: • The best way to deal with a bad debt situation is to avoid bad customers. They provided a lot of information about how to screen potential customers to avoid entering into projects with bad credit risks. This included on-line investigations through the State of Connecticut Judicial Department, the Connecticut Secretary of State, and the Better Business Bureau’s websites, as well as the value of using good credit application forms and checking a potential customer’s credit references. • It is important to use good, clear contracts that spell out the contractor and the customer’s respective rights and responsibilities. Sansone and Gagnon emphasized that, in many instances, the reason a customer defaults on payment obligations is attributable to the contractor’s inability to manage the cus- tomer’s expectations appropriately. They stressed the value of adhering to the work schedule, showing up on time, not exceeding the estimate and utilizing written change orders when the scope of work has been modified. • Even when a customer “checks out” fine, there may still be a problem down the road with getting paid for the work one does. So, Sansone and Gagnon provided some legal tools for protecting one’s rights: filing mechanic’s liens, making bond claims under publicly-funded projects, obtaining guaranties and other forms of security for payment, using the Small Claims Court for unpaid debts of $5,000 or less, and performing the cost-benefit analysis to determine if it is worthwhile to hire a lawyer to collect a larger debt. • During the seminar, Sansone and Gagnon distributed a booklet with 17 pages of information, written in “plain English,” that summarized the topics they covered during their presentations. In addition, there was an appendix in the booklet that contained sample forms for credit applications, customer questionnaires, mechanic’s liens, demand letters for payment on publicly-funded projects and Small Claims Court complaints and instruction forms. All the hot water heaters in the world with PVC venting that are 98% efficient. Condensing 98 Tankless Water Heater Where technology meets ecology. 800.519.8794 s NavienAmerica.com See contact information on page 70 28 • • THE WHOLESALER® — APRIL 2009 TECHNOLOGY TODAY Business benefits of being nice I recently received an e-mail from someone I admire greatly. he has a best-selling book and has demonstrated lots of integrity in his message and in his life. he related the story of how he had recently received a letter from the lawyer of a firm he mentioned in his best-selling book. Most firms would be grateful to be positively mentioned in a best-selling book. This firm, however, took a different approach. The lawyer letter was robot-like (as lawyer letters are prone to be), cold and demanding. It stated that the author is responsible for too many people contacting this lawyer’s client and asking about their services (can you believe that?). I went to the website of the firm that was recommended by the best-selling author and the words seemed really nice. They had a nice phrase (even with the SM — Service Mark symbol) on their home page about how they help customers. This seems like a classic case of “words = nice; reality = They don’t really practice this.” Being successful in relationship marketing means that you have to be genuine to the core. You know what I’m talking about. The ad on Tv says the firm “really cares for you.” When you go there you’re treated like dirt and abused. The disconnect is painful. Many firms demonstrate a lack of plain old-fashioned graciousness, even though their marketing ad copy says, “We really care about you.” It is easy to become cynical today. At a time when business is tougher, being kind seems to be the bare minimum as a requirement for success. I wonder how this so-called “marketing firm” treats paying customers once they have their money. That “We really care about you” trite phrase evaporates in reality when it isn’t real and is only a thin veneer covering the ugly attitude underneath. Watch how politicians react after the election in the January-June timeframe when they are not up for re-election. Many people will be shocked (how about that!) that politicians say one thing to get elected but demonstrate a completely different attitude once securely in office. Relationship marketing has to be based on being genuine or, like a house of cards, it crumbles under a strong wind. Witness the problems with the financial system in the United States, and you’ll see that, if a system is not based on sound principles, this nasty thing called reality will force it to crumble. So, how can you “become genuine?” how can you communicate the importance of being “real” to your associates, your customers, your suppliers and elsewhere? It starts with an attitude of trying to help others. See issues from their point of view. Too much of our society has grown callous and uncivil in tone. vehement arguing and yelling are not appropriate in civil interchange. You can tell a lot about people by the way they treat the waitstaff at a restaurant. I recently had breakfast with a well-known celebrity who was speaking at the same conference as I was. We got together to catch up and chat. I found it very revealing that this celebrity treated the server in a very disrespectful way, deriding him because one minor request (out of several initially blurted out) was omitted. Then he bragged to another person how he was able to “set straight” this poor, hard-working server. Yet, when the celebrity is on Tv, he is all smiles and Collections See contact information on page 70 (Continued from page 26.) the seminar in order to minimize costs incurred in professional legal counsel.” Along with the discussion on collections management, Brian McBride, sales manager for Emerson Swan/A.O. Smith, spoke about two new products — tankless water heaters and a high efficiency water heater (96% efficient). “Our customers need these kinds of products to help them sustain their businesses because at some point, it all becomes about price,” Fasano noted. “With innovative products, contractors can differentiate themselves and rise above the price criteria.” This is one in a series of seminars Torrington Supply Company is developing for its customers. The company hopes to partner with other vendors on future seminars. “Our customers gave us excellent feedback on this event,” said Salinas. “We will be using other topics suggested by our customers for future seminars.” Salinas thanked A.O. Smith for co-sponsoring this event. McPhail added, “Torrington Supply strongly believes that anything we can BY TERRY BROCK Technology/marketing specialist niceness. People who only see him on Tv think he is kind and caring. The day before yesterday I met someone at a social dinner. She related that she had had the opportunity through her job to interview two former U.S. presidents. One treated her graciously, asked about her, invited her to meet the members of his family and even let her use his wife’s golf clubs. The other former president delayed her and others, was rude, his voice was abrupt, and he was very demanding. I’m purposely not mentioning which presidents these were because, in a hot political season, people would claim it is politically motivated. This is not political. This is about basic human decency and treating people with care and respect — whomever they are and whatever position they hold. My personal belief is that if someone is working and trying to make an honest living, they deserve respect. They have to demonstrate deficiencies before I think less of them. As you adopt an attitude of wanting to help others in a genuine, real way, it permeates to your business. It becomes a part of who you are at the core, and this reflects on the bottom line. We’ve lost a lot of that genuine care in our society today. Perhaps a slow-down is a good time to stop, examine (Turn to Brock, page 30.) do to assist our customers with their businesses strengthens our relationship. We received tremendous feedback of appreciation that we would offer such an event.” ■ Carmody & Torrance, a firm with 65 lawyers and offices in Waterbury, New Haven and Southbury, has been in existence for over 100 years. Torrington Supply Company has had a long and productive relationship with Carmody over the years. Sansone has been a partner at the firm since 1993 and was recently recognized by Connecticut Magazine as one of the top business litigation attorneys in the state. Gagnon is quickly on his way to establishing himself as a skillful commercial litigator. Torrington Supply Company is a Connecticut-based, privately held wholesale-distributor of residential, commercial and industrial plumbing, HvAC, pumps and industrial piping supplies serving contractor, industry and institutions. They operate from eight locations throughout the state, including a 72,000-square-foot headquarters, showroom, and distribution center in Waterbury. For additional information, visit www.torringtonsupply.com. ALL THE GAS CONNECTORS YOUR CUSTOMERS NEED FOR ALL THE GAS INSTALLATIONS THEY DO. Large Demand ProCoat ®Connectors Specifically engineered for gas appliances with large BTU requirements (up to 290,000 BTU/hour). Ideal for tankless water heaters ProCoat ® Black Virtually invisible, perfect for gas fireplaces and decorative hearths ProCoat ® Stainless Steel Gas Connectors The connector’s proprietary polymer coating provides complete corrosion resistance Safety+PLUS ADVANTAGE ® Combines a ProCoat ® connector with an excess flow valve for the safest connector on the market When it comes to gas products, whatever you need, BrassCraft’s got it. Including the industry’s most reliable line of coated gas connectors. BrassCraft has connectors for low, moderate and large-demand applications. Each features ProCoat ®, a polymer coating that provides corrosion resistance against harsh chemicals, UV rays, and salt. Better selection. Greater strength and flexibility. Advanced corrosion resistance. Performance you’ve come to expect from BrassCraft – the brand that sets the standard for quality and innovation. Ask for it by name. Committed to Quality, Driven by Innovation. To see the full line of BrassCraft gas products visit: www.brasscraft.com ©2009 Brass-Craft Mfg. GAS CONNECTORS G A S B A L L VA LV E S W AT E R S T O P S See contact information on page 70 WAT E R C O N N E C T O R S 30 • • THE WHOLESALER® — APRIL 2009 INDUSTRY NEWS ERP ownership eased for Lawson Software customers ST. PAUL, MINN. — Lawson Software provided an update on customer adoption of Lawson Managed Services, which includes Lawson Application Management and Lawson Managed hosting. These services are designed to help companies and organizations minimize or eliminate the infrastructure or administrative costs of owning enterprise applications. As organizations across industries today are seeking efficient, flexible and more cost effective means of deploying their enterprise software systems, Lawson said that more than 85 of its customers worldwide are now using Lawson Managed Services for their enterprise resource planning (ERP) applications. These customers represent companies and organizations across many of the specific markets Lawson serves, including healthcare, public sector, food, fashion, manufacturing, distribution and equipment service management. Lawson Application Management is designed for customers who want to control their information but don’t want to manage their software. It’s a tailored suite of services that includes application modification maintenance, performance tuning, patch management and support desk capabilities, all provided by Lawson Professional Services. Lawson Managed hosting provides companies and organizations the choice of hosting their applications with Lawson and the ability to access them for a single monthly fee. It includes application maintenance and critical incident support and is for customers who want a simplified ownership experience within a traditional licensing model and with lower long-term cost of ownership, and it gives customers a less expensive option than hosting their business applications themselves. This frees information technology resources for other initiatives and reduces the staff required to manage the system. In addition, Lawson Managed hosting helps give customers service-level and pricing predictability, measurable return on investment and reliability with contractually committed service levels. Lawson Managed Services provides service level agreement-based managed services that best align with the customer’s cost structure and in-house expertise. With Lawson Application Management, organizations and companies can adjust the program to their needs and requirements as they evolve over time. Lawson Professional Services provides a full range of services to help customers prepare, implement and educate employees on Lawson applications. Lawson employs consultants who have thorough software and industry-specific knowledge to provide customers information on business and software best practices. Lawson also provides comprehensive implementation, learning and software management services. For details, visit www.lawson.com. Brock (Continued from page 28.) how you treat others, particularly those who are serving you, and ask about how much genuine care is being communicated. Relationship marketing is about kindness. Yes, this is simple, but it is not always easy. Take time to think about how others are being treated. No, you don’t let people walk all over you, but a tough-minded attitude of kindness towards all is good training for real bottom-line business. There’s an old saying on the street. I’ll clean it up a bit since this is a family publication: “Money talks. Other stuff walks.” Cling to what is real. Treating people with kindness and integrity is the right thing to do. It also improves the bottom line in business. ■ See contact information on page 70 Terry Brock is a marketing coach who helps business owners market more effectively, leveraging technology. He shows busy professionals how to squeeze more out of their busy days using the right rules and tools. Brock can be reached at 407/363-0505, by e-mail at [email protected] or through his website at www.terrybrock.com. See contact information on page 70 L ike steak and lobster, some things go great together. Stainless and Carbon are no different! Unlimited Resources...Endless Possibilities Whatever it Takes “Your supplier of choice, for every dimension of our name.” The only master distributor with these product grades under one roof! Global Stainless Supply t Pipe (304L, 316L, 304H, 310, 317L, 321H, Duplex, Aluminum, 400, 600, 625, 800H/HT, 825 & C276) t Fittings (304L, 316L, 317L, 321H, Alloy 20, Aluminum & Duplex) t Flanges (304L, 316L, F51 & 6061 T6) t Forged Steel (304L, 316L & Alloy 20) t Valves & Components (304L & 316L) Forgings, Flanges & Fittings, LLC. t t t t Rough Forgings (A105/LF2) Flanges (A105, A105N/LF2/F5, F9 & F11) Fittings (WPB/WPL6/WP5, WP9 & WP11) Forged Steel (A105N/LF2/F5, F9 & F11) www.OneStopPVF.com 45"*/-&44r$"3#0/r/*$,&-"--0:r-085&.1r"-6.*/6.r$)30.& Houston, TX - Corporate 8900 Railwood Dr. Suite A (GSS) - Suite B (FFF) Houston, TX 77078 GSS Phone: 713.980.5089 GSS Fax: 713.980.5099 FFF Phone: 713.695.5400 FFF Fax: 713.695.4016 Richmond, VA 4111 Carolina Ave. Bldg. A Richmond, VA 23222 Phone: 804.228.8901 Fax: 804.228.8905 Indianapolis, IN 3333 North Pagosa Ct. Indianapolis, IN 46226 Phone: 317.898.0331 Fax: 317.898.0502 See contact information on page 70 Atlanta, GA 255 Racetrack Road Suite 20 McDonough, GA 30253 Phone: 770.305.7002 Fax: 770.305.7788 34 • • THE WHOLESALER® — APRIL 2009 INDUSTRY NEWS PERC identifies drainline transport as first joint project ChICAGo — The newly named Plumbing Efficiency Research Coalition (PERC), formed through a Memorandum of Understanding, has identified drainline transport as its first research project. The Coalition is comprised of five industry organizations seeking to conduct muchneeded research in a number of areas. Representing the Coalition on the initial conference call to establish the first project were: Mary Ann Dickinson, Alliance for Water Efficiency; Pete De Marco, International Association of Plumbing & Mechanical officials; Jay Peters, International Code Council; Ike Casey, Plumbingheating-Cooling Con tractors Asso ciation and Barbara higgens, Plumbing Manufacturers Institute. IAPMo’s DeMarco will serve as project coordinator for this inaugural research study and will also chair the technical committee assigned to the project. Each of the five member associations of PERC has named a representative to this committee. The first order of business is to define the parameters of the project. With the enactment of the Energy Policy Act of 1992, all water closets (toilets) manufactured in or imported into the U.S. were required to flush no more than a maximum average of 1.6 U.S. gallons, effective January 1, 1994, for residential models and January 1, 1997, for all models. At that time, concern for drainline transport efficacy was voiced by many in the plumbing trade and those in various professional associations. In response to significant consumer complaints about poor flush performance, early reporting and research on 1.6-gallon-per-flush water closet models focused primarily on the flush efficacy of the various models on the market. Intermittent and anecdotal complaints of drainline transport problems were not thoroughly researched and were largely attributed to older or faulty sanitary drainlines. Since then, water closet manufacturers have made great strides in improving flushing performance. Recently, the need to find additional efficiencies on water-consuming plumbing fixtures has resulted in the creation of voluntary specifications that eliminate another 20% from the flush discharge volume of water closets, bringing consumption down to a maximum average of 1.28 gpf. These toilets are known as high efficiency toilets. Some water closet manufacturers are now voluntarily offering models that flush at 1.0 gpf. This activity has rightfully raised the debate of drainline carry efficacy anew. Many plumbing experts are concerned that we are at or approaching a “tipping point,” where a significant number of sanitary waste systems will be affected by drainline transport problems, espe- cially in larger commercial systems that have long horizontal runs to the sewer. Drainline transport problems have recently been reported in Europe and Australia, further raising concerns. Looking forward, newer technologies, such as non-water consuming and high efficiency urinals, lower flow rate faucets and increasingly efficient water consuming appliances will further reduce the amount of water discharged into sanitary waste systems. Greywater reuse systems — systems that collect discharged water from lavatory basins, clothes washers, bathtubs and shower fixtures for reuse, usually for irrigation purposes — is another emerging technology that significantly reduces wastewater in residential sanitary drainage systems. Yet, to date, an extensive research project of sufficient scope to be able to determine whether significant problems could arise regarding drainline transport has yet to be conducted. The Plumbing Efficiency Research Coalition was founded to develop research projects that will support the development of water efficiency and sustainable plumbing products, systems and practices. Projects will be financed through government grants, foundations and private financing. Laundry Room Countertops Island Dine Unique Countertops Contact Us For a Free Brochure: Call Toll Free 866-799-0106 WOW THEM with Stainless Steel Island Countertops See contact information on page 70 www.alinebyadvancetabco.com ™ Built to be the Best www.bradfordwhite.com 800.523.2931 ©2009, Bradford White Corporation. All rights reserved. See contact information on page 70 36 • •THE WHOLESALER® — APRIL 2009 BESCHLOSS BEAT Q&A with Howard Kent Ironbound Supply expands in Greater Newark MORRIS R. BESCHLOSS PVF and economic analyst I ronbound Supply was incorporated in New Jersey in March 1964. This PvF distributor was originally formed by a mechanical contractor in Newark, N.J., as a way of purchasing and warehousing raw material at a discount price. President howard Kent’s father-in-law was the owner and president of this contracting company. Kent joined Ironbound in 1965, when he was 25. At the time Kent accepted the position at Ironbound Supply Co., his plumbing product knowledge was minuscule. With Howard Kent, president, Ironbound Supply his financial background, he learned the industry, its products and terminology along the way. he started with no discernable identity, customers or major product lines. Ironbound only stocked the standard PvF items required by the local mechanical contractor. As time passed, Ironbound acquired new customers for these standard PvF items. When these new customers started inquiring about specialty non-stock items, he realized that if customers were looking for specialty items, this could be a primary focal point. This was the initial start of Ironbound’s growth. Ironbound Supply occupied a 5,000square-foot building with an indoor loading dock. Since space was at a premium, the company stocked only the most commonly requested PvF for its commercial and industrial customers. Square footage limitations dictated that they only carry up to 4" PvF, as larger items were out of the question. These limitations also prevented Ironbound from pursuing entry into the residential plumbing supply business, as the physical size of the fixtures, soil pipe and required showroom were prohibitive. The available space dilemma was further complicated by the lack of available manufacturers. Most manufacturers already had agreements with existing supply houses in the area. There were 15 competing supply houses in Newark alone. This unfortunate fact prevented Ironbound from having direct access to many desirable product lines at the time. After weighing their options, Kent and Associates decided to pursue mechanical and refrigeration contractors. A major factor in this decision was that Ironbound already stocked many items that these contractors used on a daily basis. The major stumbling block was the original connection with Kent’s father-in-law’s contracting business. This fact fomented distrust with competing contractors that Ironbound wanted to do business with. Through strict confidentiality and excellent service, Kent earned the trust of many of these reluctant contractors. Kent also stressed prompt same-day service for stock items, with back orders delivered the next business day. Ironbound also created goodwill by accepting returned material with no restocking charges and assisted contractors in locating oddball items. This service was invaluable to the average contractor, as they needed specialty material on the job quickly but didn’t have the time to research it thoroughly. The subsequent increase in business and capital allowed Ironbound to increase its square footage to 13,500 square feet in 1986. hydronic and steam specialty products are now the main core of Ironbound’s business, especially since many industrial and manufacturing facilities are leaving New Jersey at an alarming rate. That’s why Ironbound is now focusing more heavily on commercial and institutional accounts. The standard piping items keep their customers in touch with them on a daily basis, but it’s the specialties that enable Ironbound to strengthen their profit margins. Ironbound has been selling the exact same steel, PvC, copper and brass PvF for more than 45 years. There have been no significant changes in the base materials being utilized, only in the way that the commodities are brought to the marketplace. originally, most of their inquiries came via telephone and fax, but these inquiries have been replaced by ones channeled through their website and individual e-mail addresses. Ironbound looks for product lines that have limited distributors and that provide solid profit margins. These products must also require a minimum of warehouse space. Ironbound valve Actuation is Nibco’s valve actuation facility. The actuation of ball and butterfly valves with electric or pneumatic actuators allows Ironbound to pervade a national market with the help of their website (www.ironbound.com). They can actuate 1/2" to 24" valves with any necessary accessory for virtually all commercial and industrial applications. Their most commonly sold specialty items are steam traps, heat exchangers, steam and water coil replacements, pressure reducing valves, motorized valves, back-flow preventers and stainless sanitary fittings. Not all specialty items bring a high selling price. however, some of these commodity items can be re-packaged or modified to sell significantly higher than standard. one example is the 1/4" brass ball valve that is sold at a competitive market price. however, when they swap the standard lever handle with a small thandle it is re-marketed as a “pressure gauge ball valve.” This simple modification allows them to sell essentially the same valve at a higher price. one of their key specialty product lines is Zurn acid waste pipe and fittings. Although Ironbound is not a plumbing supply house, many of their mechanical contractors do process piping in school laboratories and scientific institutions. Most newly constructed schools require polypropylene piping on all waste lines. Zurn was looking for a stocking distributor in New Jersey and, after some thorough research, Ironbound considered it a good fit. This product line consists basically of pipe valves and fittings 11/2" to 6". Ironbound is only required to stock a moderate quantity of this material, which keeps shelves and computer system unburdened. The lightweight pipe is stocked in 10-foot lengths and is sized well-financed industry distributors occupy an enviable position. Are you in that particular category? Kent: We are well positioned financially and can weather the type of adverse market conditions that we see around the world today. We also have diverse and varied product lines that allow us to be flexible and meet the changing needs of our customers. Beschloss: As a highly respected, 45year-old distributor in an intense metropolitan market, focused on a commercial and institutional customer base, are there any expansion opportunities in the greater Newark area or beyond? Kent: For the time being, our expansion opportunities are focused on growing our current location. Being that new construction is dwindling, we are focused on selling our current customers more of our many products. The contractors performing repair and retrofit work remain busy, and we have tailored our stock to suit them. our actuation website transcends geographic limitations, so it remains a source of expansion as well. Beschloss: What is the extent of your employment personnel group, industry inside and outside salesman? Could you elaborate please? Kent: our inside and outside sales personnel offer more than 100 years of industrial and commercial sales experience. Two of our salesmen have experi- I believe that all types of industrial automation companies will benefit from [an economic] resurgence. We are poised and ready to meet the industrial and commercial valve needs for these customers. impervious to weather, meaning that it can be stored in a small elevated area. This product line has met their goals of creating substantial revenue with a modicum of required inventory space. This new venture has opened doors to a new niche of customers and increased sales to existing customer bases. Beschloss: In these turbulent times when credit is key to survival and mandatory for orderly expansion, could you comment on your overall financial situation? Are you self-financed or supported by a solid bank with a gilt-edged credit line? Kent: We are self-financed and have not borrowed from our bank in more than seven years. We are confident that our bank would respond to our credit needs if called upon to do so. We have a long-term relationship with this bank, and I am a former member of their board of directors. our current asset to liability ratio is 5.5 to 1. Beschloss: With some of the largest phCp distributors either owned by deeply indebted parent companies, the medium- ence in field and office work for local mechanical contractors. Beschloss: Since you are obviously a pvf specialist with valve actuation facilities, are there growth opportunities within that product framework? Kent: The true potential of our actuation facility has yet to be fully realized. once industry returns to prominence in our country, it will have to do more with fewer employees. I believe that all types of industrial automation companies will benefit from this resurgence. We are poised and ready to meet the industrial and commercial valve needs for these customers. our interactive website can be found at www.ironbound.com. Beschloss: Since you have had solid growth since 1964, are you expecting the same revenue growth under today’s turbulent conditions? Are any specific product groups more given to upward expansion than others? Kent: The global economic slowdown has compelled us to control all expenses, monitor profit margins on all (Turn to 45 years... page 38.) See contact information on page 70 38 • • THE WHOLESALER® — APRIL 2009 BESCHLOSS BEAT 45 years of solid service keep Ironbound Supply in the forefront (Continued from page 36.) product lines and enlist the help of our vendors, if available. We have been keeping in close contact with our existing customers so that we will be aware of any upcoming projects. We have seen recent sales growth on products that allow our contractors to reduce their required material installation time. Any contractor realizes that the cost of plumbing supplies pales in comparison to the cost of labor payroll. Two product lines showing brisk growth are copper grooved and copper press. These pipe joining methods are not only efficient but can be used where an open flame is not an option. Beschloss: Despite the severe recession impacting the U.S. economy in general, do you find that your sector of marketing opportunities is well positioned for additional opportunities in the future? Kent: We feel that we are taking the appropriate steps to deal with the current situation and become more efficient. Because of this, we will emerge even stronger than before during the economic recovery. Beschloss: Since you are a “family company,” are any other family members active in the business? please tell us their executive positions with Ironbound, if this is applicable? Kent: My son-in-law Stephen Kaiteris has more than 17 years industry experience with expertise in steam and water specialty items. Steve is in the process of acquiring control of Ironbound Supply Company. he is well respected, and I feel that his product knowledge and amiable personality make him a natural for leading our com- pany into the new millennium. Beschloss: Despite the lessened opportunities for selling businesses in today’s market, do you have in mind selling your business some day? Kent: As mentioned in the last question, a sale agreement is in progress to my son-in-law Stephen Kaiteris. This agreement will be accomplished through a sale and gifting of stock. Beschloss: What is your outlook for the phCp industry in general and the pvf sector specifically? Kent: The PhCP industry is suffering along with most industry sectors in our economy right now. When vigorous construction does return, PvF must be included in the project. PvF is the lifeblood of any edifice, as it transports steam, air and water; it should remain a timeless necessity because of the simple See contact information on page 70 physics of the task that it performs. It is a product that boasts constant demand and very little change or obsolescence. Beschloss: With the current financial clouds hanging over all forms of distributors, what is your advice to young people that are getting started in our industry today? Do you advise hanging in there, or would you advise looking in other areas of endeavors? Kent: Before purchasing any business, carefully weigh all advantages and disadvantages. Make sure to estimate all expenses and estimate what profit margin is required to break even. Failure to take all expenses into account could only lead to disaster if your financial funding is insufficient. This industry can be very financially rewarding and will always be required. If you plan your work and work your plan, success should follow close behind. ■ Morris R. Beschloss, a 52-year veteran of the pipe, valves and fittings industry, serves as pvf and economic analyst for The WholeSAleR. WHEN THE PRESSURE'S ON, WE DO THE HEAVY LIFTING. Your customers rely on you to get them the stainless steel pipe, fittings and flanges they need fast. So rely on Summit Stainless. We’ve re-entered this market in a big way, by adding extensive stainless steel seamless and welded pipe, fittings and flanges to our eight service centers nationwide. Best of all, we bring you the same commitment we’ve kept for 40 years to sell only through you, and never to your customers. So you can trust us to ship direct. And that will save you time and fuel. Protect your profits: call Summit Stainless at 800.742.7605. Corporate Headquarters: 2001 Elizabeth Street North Brunswick, NJ 08902 PH: 800.742.7605 • 732.297.9505 FX: 732.422.1370 www.summitstainless.com ROUND • SQUARE & HEX • ANGLE • FLAT • STRUCTURALS TREAD PLATE • ORNAMENTAL TUBING WELDED & SEAMLESS PIPE • PIPE FITTINGS & FLANGES YOU CAN NOW BUY FROM SUMMIT STAINLESS STEEL ONLINE! TO FIND OUT MORE VISIT US AT www.summitstainless.com/ecommerce See contact information on page 70 See contact information on page 70 THE WHOLESALER® — APRIL 2009• • 41 INDUSTRY NEWS ‘Revolutionary’ Arcadia heating and cooling system comes to F.W. Webb (Continued from F.W. Webb, page 1.) in the region. The Acadia is a revolutionary new green technology for heating and cooling a home, while at the same time helping consumers and businesses save money. Acadia outperforms conventional fossil-fuel-based heating systems such as oil-powered furnaces, the most common system in the Northeast, by up to 300%. F.W. Webb has long been a partner with Hallowell International in the development of the Acadia, providing components to manufacture the system. The enriched partnership provides Hallowell with an expanded distribution network with increased training facilities and customer support through the 70 F.W. Webb facilities across New England and Upstate New York. The Acadia is a single system engineered to comfortably heat and cool homes no matter what the weather outside, and it is both economical and environmentally friendly. The engineers at Hallowell created the Acadia using revolutionary boosted compression tech- nology, enabling this clean technology to run effectively and efficiently in temperatures as low as -30°F. For additionl information, visit www.fwwebb.com or www.HallowellInternational.com. Even if your glass is 1/4 full, you can thrive in a tough market (Continued from page 8.) to actual programming. Even fewer IT people understand business analysis. So their work often concentrates on their areas of expertise and interest regardless of where the high-value tasks are. • There is no internal champion for the effort. One of our client’s success in revamping their pricing happened because one guy saw the potential and stub- ...Normal employees will feel uncomfortable rolling the dice on their career without some pretty good data. bornly harangued senior management and the IT department to make it happen. When he got frustrated, he used to tell me, “I could understand the resistance if I was doing something weird but I’m just trying to make the company more money. I can understand that IT thinks I’m a pain but you’d think senior management would be happy that I am doing this.” • Delays in getting reports or extracts sap the energy and enthusiasm of the managers. If every question requiring data consumes hours, days or weeks to get an answer, most managers can’t remember what the question was by the time they finally get an answer. The pace of life in wholesaling is fast and furious so by tomorrow the answer may be irrelevant or the question may have changed. I think most non-decisions are due to the time and effort required to get actionable information. Much of our analysis experience is in price management and inventory management. Each decision to change stocking levels or pricing requires information. Of course the president can always make sweeping gut-based changes but normal employees will feel uncomfortable rolling the dice on their career without some pretty good data. Most coaching fails due to lack of data. When the pricing manager tells a branch manager or sales guy that he needs to change his pricing, he better have data to back his recommendation. Without data, the branch manager or sales guy pulls out his tried and true, “I know the customer” trump card and the changes are effectively stopped dead in their tracks. Frankly, when there is no data, I side with the guy closest to the customer too since he is at least involved in the process. When the pricing manager can say, “I know you sold this product to seven customers at 20 different prices in the same week. And by the way you sold the same customer at three different prices on the same day,” there is some basis for getting the pricing and inventory under control even when he plays his trump card or throws a “lay-on-his-back, kicking” tantrum. For too many companies so much time is spent digging for information, they never get around to the actual business decisions and changes that will make them more successful. As part of our consulting we have developed software tools that help quickly extract and organize data into “decisionable” information. They are designed to work with millions of transactions so they can help small to large wholesalers effectively use the data in their computer systems. The magic is that 80% of the users’ time can be focused on making meaningful decisions while only spending 20% of their time spent accessing the information needed for those decisions. With a clear market vision and distilled, accurate information, your decisions will improve and be more timely. For more information on data analysis and pricing tools, e-mail me at [email protected]. ■ Rich Schmitt is president of Schmitt Consulting Group Inc., a management consulting firm focused on improving the profitability of distribution and manufacturing clients. www.go-scg.com Rich is also the co-owner of Schmitt ProfitTools Inc. (SPI), a business producing print, CD-ROM, web and palm-based catalogs as well as pricing management and analysis software for wholesalers. www.go-spi.com 42 • • THE WHOLESALER® — APRIL 2009 INDUSTRY NEWS Coburn’s, Gerber build long relationship (Continued from A look at, page 1.) Gerber Plumbing Fixtures LLC beautifully illustrates loyalty at work. The two companies have done business together since at least the 1950s, and in many ways are very similar. Both are family owned (Gerber was long owned by the Gerber family and now is under the direction of Globe Union, Inc. and Michael Werner who successfully led his family’s company for years; while Coburn’s has been owned by the Maloney family since its founding in 1934). Employee turnover is minimal and it is not unusual to find employees who have spent decades with either organization — or to have multiple generations of the same family at all levels of the companies. Much of the reason for this is the active leadership and hands-on family atmosphere that is evident from the top of the management team on down. Both “Gerber is really easy to work with; I they are part of a large company that businesses approach the mar- Bill Dickens of Coburn Supply Co. points out the feacouldn’t ask for a better rep than Chuck does things very well. That’s important ket, and their employees, in tures on some Gerber faucets to showroom customers. Barbot of Barbot-Woolf-Canale. He to customers - to know that it’s a relimuch the same way — with makes sure we have all the information able company been around for a while, open communication and respect. local manufacturer’s representatives and part of a large organization. we need. Coburn’s, based in Beaumont, Texas, (Barbot-Woolf-Canale in Louisiana and “Customers who are interested in “Our showroom staff has to be very has nearly 50 branches in Texas, Proline Marketing in South Texas). familiar with all the product technology Gerber run across all levels of our cusLouisiana, Mississippi and Tennessee, “We know we have sold Gerber for so we are able to explain the benefits to tomer base. Gerber’s best-selling prodand has a history of catering to small city more than 56 years because one of our our customers. They want a stylish look uct for us is the Avalanche toilet, with markets. Its 27 showrooms, each of current vP/general managers, Clodile at an affordable price. Gerber is very its good flushing technology and low which is unique and reflects the market Romero, has been working here that price competitive and has very good water consumption. That’s a really big it is in and the personalities of its branch long and stated we had Gerber when he selling point. They’ve invested a lot into design and finish selection.” management, range between 1,500 to started as a truck driver,” Atchetee said. — Jennifer Robitaille, Slidell, La. their design and are becoming known 5,000 square feet. “When you have a relationship with a for their style. The majority of Coburn’s showroom national plumbing vendor like Gerber “Having a dependable rep agency “As for Gerber, I’ve always liked sales are residential. Most of their home and you are describing a situation you’re their products. I really appreciate the and good company that supports you builder customers are small to medium facing, you know that they truly underchanges in their style; they’ve gone makes it easy to work hand in hand all sized - putting up less than 60 homes stand your needs. It gives you a level of from utilitarian to high style. Of course the way around. Good stock and good annually. The company’s long-term relacomfort because you feel you can put you want product to be highly function- availability is a necessity. Gerber is tionship with manufacturers such as your cards on the table. They know al and work well, but you also want it to very good at having their product in Gerber is beneficial because of the peryou’re telling them the truth and that be attractive. Their products today are a stock and ready to ship right away. You sonal service, flexibility and understandyou’re not embellishing. It helps get the mix of style and performance. And the have to have that open line so you all problems resolved right away. ing they provide. price point is very attractive.” know what to expect of each other. I sell “The showroom business is like anyRussell Atchetee, a 31-year Coburn’s — Mark Jacobs, Hammond, La. by my reps, it plays a big part in how thing else. You want to do your best for veteran as well as a licensed plumber, is much of their product I show and the your vendors and your reps, especially the Kitchen and Bath manager. He over“We really try to educate the con- placement.” when you have a good relationship with sees all of Coburn’s showrooms, and — Karen Jackson, Harvey, La. sumer on the benefits of Gerber and that them. We’ll really go to the mat for vendeals closely with Gerber national sales dors like Gerber to get results.” manager Tommy Price, as well as their According to Price, Coburn’s is “always receptive to any ideas that Gerber has about going to market. Coburn’s keeps the lines of communication open. We have meetings on a reguPRESSURE BALANCE lar basis with open and candid conversations on how we can strategically grow THERMOSTATIC PROTECTION this business together. We have a mutual for trust with Coburn’s and continue to www.pppinc.net SHOWER , LAV, and TUB work hard to grow the line with them. It has always helped us find middle HIGH LIMIT STOP FEATURES... ground. Gerber is also fortunate to have “MAKE THE CONNECTION” great reps working that territory who O O HIGH LIMIT 120 F (49 C) SCALD ensure that we understand and support PROTECTION Coburn’s needs.” FITS ALL SHOWER HEADS & In the rapidly changing world of SHOWER HOSES showroom design, Coburn’s especially SCREWS IN PLACE IN SECONDS appreciates Gerber’s packaged showNO TOOLS OR ADJUSTMENTS room display suites. By having a packNECESSARY age that includes both product and disAUTOMATIC RESET FEATURE play, it enables Coburn’s to get it into A FLOW RATE OF 4 GPM at 40 their showrooms quickly — which PSI 1066 means it is in front of their customers SOLID BRASS WITH POLISHED quickly and can start generating sales. CHROME FINISH “Gerber has updated and upgraded their suites and come up with a stylish PRECISION PLUMBING PRODUCTS look,” said Atchetee. “The new suites Division of JL industries, inc. are very timely, well done and stylish, Airport Business Center • 6807 N.E. 79th Court Suite E Made in the U.S.A. with a display already constructed that Portland, Oregon 97218 • (503) 256-4010 • FAX: (503) 253-8165 Rev 02/06 We do not Export Jobs. was ready to show. In a showroom environment, you don’t have a lot of down See contact information on page 70 (Turn to Loyalty... page 46.) Here’s what some of Coburn’s showroom managers had to say: TEMPERA-THERM TEMPERATURE HIGH LIMIT STOP MAX-120OF 1062 SHOWER HEAD MIXING VALVE USE WITH SINGLE OR DOUBLE HANDLE SHOWER MIXING VALVE ASSEMBLIES COLD HOT TEMPERATURE HIGH LIMIT STOP MAX-120OF 1062 PRESSURE BALANCING VALVE 1066 N BU IL DI N G CO U NCIL U. S . G R E E 1062 US GBC 1016 ® THERMOSTATIC MIXING VALVE )FDIBTFEHJSMT%VHVQSPDLT'PVOECFFUMFTPOFPGXIJDIJTXBJUJOH JOIJTTIJSUQPDLFUGPSKVTUUIFSJHIUNPNFOUJOSFBEJOHDJSDMF +VNQFEPõ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t DPOUSJCVUJOH UP-&&% DFSUJmDBUJPO See contact information on page 70 $ '! ,( $ '! *+ %* & % &$ )*' &%&$+ ) % &'" ' $ ()! ##+ '& * )( 46 • •THE WHOLESALER® — APRIL 2009 TALKIN’ RADIANT Jason, Rocky and Bullwinkle N ot long ago, a wholesaler asked a question on the Wall, which is HeatingHelp.com’s bulletin board. I thought it was a great question because it showed that the wholesaler really wanted to get into the heads of his contractor customers and figure out what was most important to them. Listen: “I am a wholesaler trying to promote my company, myself, and my products in a new territory. I am thinking about designing a brochure to hand out to contractors to show them what I have to offer. What would catch your eye, and make you consider using a different supplier. Job pictures, product pictures, pricing?” Good stuff, right? And as you can imagine, the contractors weren’t shy about answering this guy. They focused on customer service and having the products that you sell in stock for them. It’s also important to them that the counter people understand the products, and that a real person answer the phone so the contractor doesn’t have to ride the voicemail merry-go-round. Then one of the guys told this story about above-andbeyond customer service. “It was a large radiant order that had run late (from the manufacturer, not the supply house). As the old saw goes, it was a dark and stormy night. Literally! There was a driving rain and the temperature was in the 40s. It was a night not fit for man or beast, and we had beasts to spare on that mountaintop jobsite. No lions, or tigers, but regular visits by bears, raccoons, porcupines and wild turkeys. “The materials arrived at the supply house late in the week, and my wholesaler knew we needed them ASAP. Imagine our surprise when the owner of the supply house and his wife arrived, in the dark and in the pouring rain, to deliver the goods. The Mrs. got out of that comfortable box-truck cab and got just as wet and muddy as the rest of us did. This was way above and beyond the call of duty, and that was just one example of their dedication to exceptional service. Their attitude filters down to all of their employees.” Would you do that? Would your wife or husband go along for the ride, and then get out of the truck to help? I think this wholesaler has a customer for life. If you were a contractor, reading a new guy’s brochure, would a story such as this one sway you? Hey, who doesn’t want this sort of service? But how many are willing to offer it. I think there’s much to learn in other people’s stories. Loyalty cements 50-year bond between manufacturer, distributor (Continued from page 42.) time to design something to fit. So this new display package helps get product on the floor really fast. Gerber’s reps are very active in making sure the displays get put up. It really aids the process and speeds things up.” Gerber has long had a solid reputation in the market for its quality products, and especially its loyalty to the trade. However, it had often been thought of as more of a utilitarian line, than one of high style. That has begun to change in recent years. “Gerber was acquired about five years ago by Globe Union and we totally revamped our product offering,” Price explained. “Since that time, we have created new products to the tune of about 800 SKUs. We’ve redesigned the look of our faucets, as well as developed new toilet technology. Gerber has taken a different approach in the market. It has allowed us to penetrate commercial, hospitality and residential markets. By diversifying our business in that way, we have been able to overcome the ups and downs that varying segments of the mar- In recent years, Gerber has updated and upgraded their suites for a stylish look. A display package quickly gets product on the floor with active help from Gerber’s reps to ensure the displays are put up. Which brings me to Jason, Rocky and Bullwinkle. Rocky is a regular contributor to the Wall bulletin board at HeatingHelp.com. He works out of Fairbanks, Alaska, and each winter, while people from the Lower-48 are bitching and moaning about their working conditions, Rocky sets us straight. Someone will ask how cold it is up there and Rocky will mention that it’s, oh, about 50° below zero, and has been for days and days. Which really doesn’t register on the human mind, does it? I mean, unless you’ve worked in these BY DAN HOLOHAN Wet head his wholesaler’s salesman. You might want to put on a sweater before you read any further. Here’s Rocky: “I, too, have a story of a wholesaler going above and beyond. We had to install two Buderus boilers in a remote Alaskan village at the confluence of the Yukon and Tanana Rivers. My wholesaler who sold me the supplies for this job told Imagine our surprise when the owner of the supply house and his wife arrived, in the dark and in the pouring rain, to deliver the goods. The Mrs. got out of that comfortable box-truck cab and got just as wet and muddy as the rest of us did. conditions. To help us understand, Rocky tells us that if you toss a cup of steaming hot coffee into air that cold, not a drop of coffee will hit the ground. “The whole thing just vaporizes,” he says. Rocky’s stories always make me want to run and turn up the thermostat, so I wasn’t that surprised when he shared this one with us. It’s about Jason, me he wanted to help me install this system so he could get a better understanding of how all these components worked as a system — to better understand why I needed the things I needed. He drove with me in my pickup for four hours out of Fairbanks, the last two hours over a horrendous, non-maintained gravel road, (Turn to Going above... page 48.) ket experience. “You have to sell your product to get good floor space. Gerber tries to position ourselves with our competitors in terms of price points but our products are just as stylish and functional. That really counts with consumers.” Atchetee was especially complimentary of the performance of Gerber’s products. “Performance wise, Gerber’s products do real well,” he noted. “Their lower end expensive products have been made to function extremely well, which further helps us sell their upper end product. Gerber’s reps provide us with training on their high-performance products like the Avalanche and viper toilets. In the toilet part of the business, the performance is what consumers and plumbers are most interested in.” Despite the fact that the U.S. economy in general, and the housing market in particular, have been suffering a serious decline, the partnership between Gerber and Coburn’s has helped both companies weather the storm. “Right now you hear that the market is off on average about 25% to 40%,” commented Price.“But we actually showed growth on the positive side last year and we’ve started off well this year. We’ve been in the right place at the right time and I think our product line and our partnership with the independent wholesalers like Coburn’s has really helped us. We’re also working with our buying group affiliations.” Price reiterated Gerber’s commitment to wholesale-only distribution, saying that the company continues to believe it is the best way to go to market. “Selling through big boxes would be an easy avenue to get a quick sale, but our loyalty to the trade and wholesalers has been real and has sustained us over all these years,” he noted. “We all work hard within our industry, and the long-term strategy and decisions we make today will affect us years from now. It could be damaging to us if we ended up over-distributing our products. Instead, we continue to support those people and companies who have supported us. Coburn’s is prime example of that. “As a manufacturer, it is a joy to work with a company like Coburn’s. Their approach to the marketplace is one of humility and graciousness. They believe in hard work and they are loyal to those who go to bat for them. They let their vendors and customers know they really appreciate doing business with them. That attitude has served them very well. “On a business side, they are very smart. Coburn’s runs a tight ship and make decisions based on feedback and good communication. Gerber is proud to be a partner with Coburn’s and looks forward to many more solid, sales years ahead.” ■ For additional information, visit www.coburns.com or www.gerberonline.com. Labl8hg^8bl8[b` J^Zeer8 J^Zeer8 :b` Gnk8eZm^lm8ab`a¦^_y8\b^g\r8fh]neZmbg`¥ \hg]^glbg`8mZgde^ll8pZm^k8a^Zm^k8bl8Zee8 Z[hnm8[b`8gnf[^kl8[b`8^_y8\b^g\r8[b`8 hnminm8[b`8pZkkZgmr8Zg]8h_8\hnkl^8ma^8 [b`8hiihkmngbmr8h_8[hma8Z8k^lb]^gmbZe8 fh]^e8Zg]8Z8\hff^k\bZe8fh]^e8\ZiZ[e^8 h_8]^ebo^kbg`8·>8pZm^k8 OaZm8p^8]hgÁm8f^Zg8bl8[b`8lbs^8La^88 =K8fh]^el8Zk^8ma^8lZf^8]bf^glbhgl8Zl8 hnk8hma^k8ab`a¦hnminm8fh]^el89g]8ebd^8 Zee8:hl\a8mZgde^ll8pZm^k8a^Zm^kl8ma^rÁk^8 ^g`bg^^k^]8_hk8k^ebZ[bebmr8Zg]8]^lb`g^]8 _hk8^Zlr8l^kob\^ 9KE= Certified @b`a¦Gnminm8 ;hg]^glbg`8 Obma88:hma8 J^lb]^gmbZe8®8 ;hff^k\bZe Eh]^el8 9oZbeZ[e^ :hl\a8HkhLZgde^ll½8 ?O@8;88=K 8`Ze¥fbg8µ8Ð>8kbl^ Ë8ma^kfZe8^_y8\b^g\r8 X X Dhp8FGq8^fbmm^k 8:LM¥@k8fZq8bginm8 8:LM¥@k8fbg8bginm X9embmn]^8m^lm^]8mh8³ X X 8o^gmbg`8ienl8 \hg\^gmkb\8himbhgl X:nbem8_hk8]nkZ[bebmr8 Zg]8l^kob\^Z[bebmr XHN; >bg]8mZq8\k^]bm8bg_hkfZmbhg8hg8 mabl8ikh]n\m8Zg]8Zee8^eb`b[e^8:hl\a8 ikh]n\ml8Zm8ppp:hl\aLZq;k^]bm\hf TAX CREDI T :hl\a8La^kfhm^\agheh`r8;hki 8O^gmphkma89o^gn^ Dhg]hg]^kkr8F@8 ¦¦¦ ppp[hl\aikh\hf 2009 See contact information on page 70 48 • • THE WHOLESALER® — APRIL 2009 TALKIN’ RADIANT Going above and beyond (Continued from page 46.) towing my river boat behind us all the way, to a remote village at the end of the road system. We launched my boat with all my tools, food, spare gas, etc. at this village and drove the boat 85 miles downstream in a raging snowstorm to the confluence of the Yukon. We started in on the Buderuses (Buderi?) at the Tanana Village elder’s home. This is an old-folk’s home for the native elders of all the Yukon’s many villages. My salesman worked right along with us for two-and-a-half straight days, ripping out old monster boilers and piping and installing the Buderi, Caleffi hydros-separators, pumps, piping, and everything else. “The first night we were there, I noticed a skinned moose skull sitting on the table in the small kitchen they use to make food for the residents. It still had the eyes, brains, tongue; you name it — just no hide. It was still there on the second night, just sitting on the table in this 75° room. Apparently, they were going to have a potlatch for one of the elders the next day, and they wanted to let the moose skull ‘ripen’ a little to make a good moose-head soup. Yummie! “After the job was finished, I sent the rest of my crew home on a single-engine Cessna, while Jason and I saddled up the river boat and headed back upstream, 85 miles to my truck. Then four hours back to Fairbanks. Jason did all of this without pay, just so he could ‘understand my business’ a little better. Do you reckon he gets about 95% of all my business? When I started in the business in 1970, working for a manufacturer’s rep, I was 20 years old and had zero experience in the field. They sent me out on the road a few years later to call on fuel-oil dealers in and around New York City. My head was filled with books, but there was no dirt under my fingernails. So when I’d call on an oil dealer, I’d ask if I could work with their best technician for a day or two. I’d carry the tools and do whatev- er they told me to do. The oil dealers took me up on my offer and the technicians beat the snot out of me, and this is how I began my real education in this business. I did this over and over again until I understood what their lives are like, what they need and want, and what it’s like to do this every day. I did this until I learned, and until I appreciated it all. Oh, we did ask Rocky about the Bullwinkle soup. Here’s what he told us: “I conveniently found some other place to be when they served up the soup. ‘Oh, darn, you already served the soup? I was so wanting a big, heaping, steaming bowl of those fermented moose brains.’ “Some of the things the traditional elders eat in these villages are just a wee bit different from what you and I eat, but the folks were just as nice as they could be, and very appreciative of our work. All fuel has to be barged in during the summer, while the Yukon is open. Needless to say, we have no reason to complain about our fuel-oil prices. They are paying about eight dollars a gallon. The two Buderi, a 100-gallon indirect, and an outdoor-reset staging control, along with proper piping and pumps, made a difference. We cut their fuel bill in half, and gave them better comfort and more hot Supplying Venting Products with a Competitive Edge With solutions for every venting need, Simpson Dura-Vent saves time and money. Simpson Dura-Vent, the competitive advantage for a successful business. One supplier; Complete Venting Solutions. ProTech Division Simpson Dura-Vent is a division of Simpson Manufacturing Company. NYSE:SSD. Made in the USA. 800-835-4429 www.duravent.com See contact information on page 70 Dan Holohan began his love affair with heating systems in 1970 by going to work for a New York-based manufacturers representative that was deeply involved in the steam and hot-water heating business. He studied hard, prowled many basements and attics with seasoned old-timers, and paid close attention to what they had to say. Today, Holohan operates the popular website, www.HeatingHelp.com. He has written hundreds of columns for a number of trade magazines, as well as 15 books on subjects ranging from steam and hot water heating, to teaching technicians. His degree is in Sociology, which Holohan believes is the perfect preparation for a career in heating. Holohan has taught over 200,000 people at his seminars. He is well known for his entertaining, anecdotal style of speaking. Holohan lives on Long Island with his wife, The Lovely Marianne. They have four incredible daughters, all out in the world and doing wonderful things. Simpson Dura-Vent Quality, Choices. Service, Solutions. water at the same time. It’s good to be the hero sometimes! It is good to be the hero. And I think that’s what these two wholesalers have become to their contractor customers. Heroes. ■ 8 0 0 - 5 4 3 - 2 5 5 0 Copyright © Liberty Pumps, Inc. 2008 All rights reserved. w w w. l i b e r t y p u m p s . c o m See contact information on page 70 One of Americas fastest growing, privately owned companies. 50 • • THE WHOLESALER® — APRIL 2009 ON THE PVF PULSE Best-selling energy economist, author Economides verifies our predictions B efore the largest industry assemblage to ever attend the PVF Roundtable at the Hess Club in Houston on February 8, this admixture of manufacturers, distributors, industrial maintenance and project engineers, specifiers and turnkey contractors were riveted by the most comprehensive energy outlook ever, encompassing current status as well as future development. I had the distinct pleasure to be privy ...New discoveries of oil will be progressively more difficult and costlier to find. As demand soars in China and India, especially, this will effectively close the cost-price gap by the third quarter 2010, at the latest. to the presenter, Michael J. Economides, a professor of economics at the University of Houston, who was the focal point of my admiration. The fact that both his statistics and conclusions dovetailed my own, played only a minor role in my enthusiastic response. Since I normally precede the main speaker at these quarter-year meetings, I was amused by his twitting my comments regarding the morose state of oil and natural gas pricing, and its longterm impact on future development. I had also warned the group that credit would be the make-or-break standard for survival throughout 2009 and 2010. The following are Economides’ most cogent points: • Although admittedly a Democrat, Economides debunked the role of renewable energy. He emphasized that coal, natural gas and oil have been and will continue to provide the empower- See contact information on page 70 ing natural resource for 87% of the world’s energy needs for at least the next 50 years. • Like myself, he labeled ethanol a scam whose impossible-to-reach mandated level was the result of an unholy alliance between 20 Midwest Senators, agricultural giants Archer-DanielsMidland, Cargill, and other agribusinesses, bent on forcing this cost ineffective blend down the throats of the American public. • The learned Professor accused Al Gore and such cohorts as Robert F. Kennedy Jr. of misleading the American public in their fight to ‘outlaw’ coal, and de-industrialize America to sell the “inconvenient truth” of their unproven climatic theories. • Economides also took a shot at T. Boone Pickens for exaggerating the positive impact of solar and wind energy producers. He further claims that BY MORRIS R. BESCHLOSS PVF and economic analyst Pickens knows these will only produce 1% of energy needs, but is bent on promoting major investments that Pickens has accumulated. • Echoing a sentiment that I have often repeated, Economides expects a major price rebound in both oil and natural gas within 18 months. With a purported breakeven around $75 a barrel, the Houston professor expects that level to be reached by the end of this year, but then spike over $100 in 2010. He concluded by reaffirming my point of view that new discoveries of oil will be progressively more difficult and costlier to find. As demand soars in China and India, especially, this will effectively close the cost-price gap by the third quarter 2010, at the latest. Nationalization fear rocks financial institutions Nationalization has been a synonym for government take-over throughout the last century. Over the years, it was normally associated with tin-horn dictatorships like Italy’s Benito Mussolini, Cuba’s Fidel Castro and now Venezuela’s Hugo Chavez. But the most egregious example of all was the imposition of nationalization in the United Kingdom, ushered in in 1945, after Britain’s legendary lion, Winston Churchill, was ousted in favor of a ramshackle labor government, headed up by Prime Minister Clement Atlee and Foreign Secretary Ernie Bevin. They not only proceeded to nationalize all major aspects of Britain’s industry and commerce, but ended that illustrious nation’s position as a world power, and pauperized a greater segment of the population than it uplifted. Despite a short respite under Premier Margaret Thatcher, the U.K. has now fallen into permanent disarray, with its banking system leading the downward spiral. There are similar signs that elements in the current Administration are attempting to lead the American institutions into a point of no return, starting with the U.S.’s disintegrating leading banks. With Bank of America, Citigroup, Wells Fargo, U.S. Bancorp, and even JPMorgan Chase selling at prices that weren’t even imagined a year ago. Only the infusion of TARP cash seems to be propping up these institutions. It’s the ultimate irony that the governmentsponsored absorption of failing Countrywide Financial, Merrill Lynch, Wachovia and Bear Stearns had a lot to do with these once grand Wall Street champions dangling at the edge of the survival precipice. But despite U.S. government protesta(Turn to Beschloss, page 66.) The Best Products, The Best Service... 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Double-walled bath is constructed with 4" copper strips; each strip is hand-welded producing a one-of-akind fixture that has “functional art” written all over it. Inside bathing well has the ideal slope to embrace and cradle the shoulders, ensuring an unforgettable stress-free soak. Custom dimensions/ projects welcome. Diamond Spas. www.diamondspas.com www.caromausa.com Quartz surfaces Luxurious vessels This K/B manufacturer offers a stylish product line that delights demanding customers. By bringing distinct and The Silestone® Platinum Collection features some of the most advanced colors available in the quartz surfacing market. www.aquacleana.com Ergonomic showerhead www.seamlesssink.com High efficiency toilet The Avalanche 1.28 is this manufacturer’s latest high efficiency toilet (HET). 3" flush valve, Fluidmaster f i l l valve, uniquely designed jet feed, rim structure and trapway configuration contribute to performance. Large water surface helps with cleaning and maintenance; slimline tank includes a color-matched side-mounted trip lever. Offered in comfortable ErgoHeight model. Gerber Plumbing Fixtures LLC. Ceramic toilet/bidet This patent pending ceramic toilet and bidet washes front and rear with blow dry features, eliminating toilet paper. With optional front entry seating, wheelchair users no longer have to pivot 180° to mount the bidet and trust that it is clean. This feature helps caregivers who are outsized by their patients restore confidence, dignity and independence for their aging patients. This bidet has a 12" rough-in; IAPMO code approval is pending. Aquacleana. innovative concepts to unique sizes and shapes, they offer product designs that embody luxury at an affordable price. Vessels are available in glass, stainless steel, copper, nickel, ceramic, marble, granite and wood.Coordinate beautifully with traditional elegance or contemporary styles. Cantrio Koncepts. Collection consists of 4 unique colors with distinctive metallic accents and the exclusive performance of Silestone natural quartz. Offers beautifully innovative products with advanced quartz surfaces. Cosentino. www.silestoneusa.com www.cantrio.ca Backlit mirrors Vivid and luminescent, the Integrity backlit vanity mirror provides an ideal balance of high fashion with functional- The ergonomically designed IN2ITION shower delivers an enhanced level of comfort, convenience and versatility by combining a hand-held shower and a fixed shower head with an extra wide spray. The 2-in-1 system gives consumers the option to use either the handheld shower or shower head separately or together for a fullbody shower experience. Available with 4-5 spray functions, including 3 massage options and an aerated champagne spray. The ergonomic, soft grip handle and dial allow for maximum comfort. Alson Showers. www.alsons.com Modern door lever The new Apollo lever encompasses classic geometric shapes and offers a modern twist with a sleek aesthetic that com- www.gerberonline.com Lever faucets The Ovaline Lever Collection was designed for those looking for a more sophisticated, softer minimalist style than a typical square or round faucet. Line is fully coordinated with matching lavatory, tub/shower, thermostatic valves and bath accessories; is available in 13 decorative finishes. Shown is single-control, wall-mounted lavatory faucet. May be installed with or without back plate, for an even more minimalist look. Cascade Faucets. www.cascadefaucets.com Shower enclosures ity. Seamlessly integrating light and glass, the Integrity is a unique lighting station created to replicate natural light, eliminate shadows and provide the perfect environment while preparing for the day or evening. Using a minimalist design concept, the mirrors add sleek luxury to any modern bathroom. Electric Mirror Co. Preceria shower enclosures feature an elliptical-shaped header suspended above thick glass. Oversized curved pull handle and decorative hardware complement overall product design. Glass-toglass hinges offer choice of swinging the door panel in and out, and of either a curved or straight door. Frame finish options include silver, brushed nickel or 9 powdered-coated finishes. Clear glass showcases tile and emphasizes an open feel; Silk glass is a beautiful effect offering more privacy. Basco. plements a variety of decors. This interior door series is available in 4 functions – privacy, passage, single dummy and full dummy. Lever has a 4.375" length and is shown with a Round Rose base measuring 2 3/8" dia. Available in a variety of finishes; shown here in polished chrome. It features concealed screws on both sides. Ashley Norton. www.electricmirror.com www.bascoshowerdoor.com www.ashleynorton.com 54 • • THE WHOLESALER® — APRIL 2009 SCHOR’S K/BIS PICKS Grab bars The award-winning designs of ADAcompliant WAVE decorative safety grab bars are complemented by exceptional mounting kits. Matching bath accessories include shower and tub wire baskets, matching metal-finish soap dispensers and more. All products have been treated with the SANIGUARD antimicrobial product protection process. Products are available in a wide variety of decorative finishes. Great Grabz. LED vanity mirror Illuminated showering The latest LED technology allows applying this attractive minimalist design to a lighted vanity mirror with 3x magnification. In addition to this mirror being aesthetically appealing, the LED technology projects better light and is virtually maintenance free. Each of its 32 LEDs lasts past 50,000 hours and uses only a fraction of the power that traditional bulbs do. This environmentally conscious mirror is available in chrome and brushed nickel. Kimball & Young. Magic Showerhead’s patented technology transforms an ordinary shower into an illuminated waterfall. The LED inside the showerhead illuminates water jet; www.kimballyoung.com users can choose from a variety of color combinations, single color or fading colors. From the temperature indication model, users will know if their shower temperature is safe based on the color of the water. Safety, convenience, energy saving and green technology are all part of its design. A truly environmentally friendly product; needs no batteries or electricity. Memowell Corp. www.greatgrabz.com Square patterned sinks www.magicshowerhead.com Minimalist sophistication New shapes and patterns enhance this line of bronze sinks. These sinks are spun cast by hand of bronze one at a Advanced towel warmers This manufacturer’s Zero Collection was inspired by those consumers who are looking for a true minimalist style, with a slightly more sophisticated, softer look than is typically found in a traditional square or round faucet. This line is fully coordinated with matching lavatory, tub/shower, thermostatic valves and bath accessories; available in all 13 decorative finishes. Shown at left is the single control lavatory faucet, which is also available in a vessel height model. La Torre Faucets. www.italyfaucets.com/schede/latorre Horizontal shower panel Raindance Rainfall is a horizontal, multi-functional shower panel with a torrent spray mode. The extremely flat, time for more uniformity to the finished sinks. New for 2009 is the addition of square shaped sinks, available in a variety of patterns including botanical, wing, and brocade. Available in two color types: antique bronze and white bronze. Pictured is the square bronze sink with an antique bronze finish featuring the botanical pattern. Linkasink. www.linkasink.com Glass tiles This comprehensive glass tile product line consists of JewelStone glass mosaics, braided glass mosaics, stained The CR527P soaking bath, designed by Shawn-Ian Bruce, is crafted from this manufacturer’s proprietary Carrera™ composite material in Matte White. This 60" x 32" x 24" rectangular pedestal features exclusive ergonomic design; has the look and feel of natural stone; and is easy to clean with no grout lines or seams, stain resistant and renewable with consistent color throughout. The floor drain assembly is included. Jason International. www.jasoninternational.com Multi-sensory bath The 200 Series is comprised of 4 wallmounted models featuring all-welded steel construction and advanced heat technology. Each has a stainless steel heating element, UL-listed temperature control and high limit control for precise heating and exemplary product performance. Collection is available in 4 designer finishes — polished chrome, satin nickel, oil rubbed bronze and white. Also offered are accessories including an aromatherapy oil well, robe hook, single bar towel rack and triple bar towel rack. Backed by a consumer-friendly limited warranty. Mr. Steam. Sound vibration and ergonomic design come together in the Fountainhead VibrAcoustic bath. Multi-sensory envi- ronment synchronizes music, vibration and light with water. Massaging beat adds physical vibration that can be adjusted to the desired level of intensity. As bathers’ breathing slows and deepens, they can’t help but relax physically. Kohler. www.us.kohler.com Medicine cabinets This collection of architecturally inspired medicine cabinets were designed for style and practicality. The manufacturer, an old mill company, still ww.mrsteam.com Stone tubs and basins Inspired by Italian design, these luxury composite stone tubs and basins are made in South Africa and have sales rectangular panel projects into the space and offers 3 spray modes. Concentrated Rain Splash torrent spray gushes out of the showerhead like a deluge in the great outdoors; aerated shower’s distance from the wall guarantees freedom of movement, allowing the downpour effect to be savored. 4 rotating whirlmassage sprays swivel forward to massage the body when activated and swing back inside the shower’s surface when another function is used. Hansgrohe. glass, Murano Vena glass, signature series, dazzling green glass mosaics and panel collections. Add tile to your showroom to make it a one-stop shop. This highly profitable line has a great display program. Hirsch Glass. worldwide. Available in colors including Limestone White, Kalahari Sands, Balinese Brown, Terra Red, Zen Black, or metallic finishes like Bronze, Copper and Aluminum. Palazzo Baths. believes in traditional values of starting with the best materials and applying detailed workmanship. Classic medicine cabinets are meticulously crafted by a few select craftsmen who still practice the fine art of millwork, using only real wood panel and solid wood mouldings. Mann’s Manufacturing. www.hansgrohe-usa.com www.hirschglasscorp.com www.palazzobaths.com www.medicinechests.com • 55 THE WHOLESALER® — APRIL 2009• SCHOR’S K/BIS PICKS Efficient flushing system Base and shower pans Flushmate® Pressure Assist Technology is a flushing system designed for performance and conservation. The high Line includes single curb shower bases, bathtub replacement shower pans, and ADA-compliant and barrier-free shower pans. Shower pans are one-piece units Apron-front sink The Fiesta apron-front sink has a curve thrown in, injecting an eye-catching note of circular geometry that extends beyond a counter’s edge. Dimensions are ample, at 16" across (inside diameter) and 7.5" deep. Flat bottom makes it ideal for holding glasses and bottles when used as a bar sink. Available in Antique and Brushed Nickel; both reveal thousands of hammer hits that add textural interest as well as an artisan element. Native Trails. www.nativetrails.net Bamboo vessel efficiency model flushes 1.0 gpf. This manufacturer has 25 years of proven reliability, performance and maximum water savings; offers a 10-year warranty. Sloan Valve Co. with fully integrated drains, integrated 6" splash walls, integrated curbs or barrier-free entrances, and integrated pitch 1/4" per ft to the drain. Leak-proof mold-free shower pans are ready to accept tile, marble or stone. Tile Redi. www.tileredi.com www.flushmate.com Mini tankless Complete bath/kitchen collection Series 4 apartment water heater is one of a line of U.S.-made electric tankless and mini tank water heaters for industrial, The Rivers Collection offers a complete line of unique stone lavatories, vessels, pedestal lavatories, vanity systems, www.us.kohler.com Futuristic faucet With its organic good looks and ecofriendly pedigree, this solid bamboo vessel sink adds unexpected elegance and a natural warmth to any bath design. Exceptionally beautiful but durable and easily withstands the rigors of daily use. Each sink is professionally sealed with a waterproof polyurethane to create a maintenance-free finish that carries a 10-year guarantee. The sink measures a generous 17" high by 6" deep with a 13/8" thickness. Totally Bamboo. www.totallybamboo.com Leaf lavs The contemporary Leaf Vessels lavatory offers homeowners a new choice for today’s modern bathroom, with a unique twist on the typical bowl-shaped vessels. This vitreous china, above-counter lav coordinates with the company’s existing modern furniture and fixture offerings to create a stylish and functional bathroom space. Provides simple elegance for a grooming station, and creates a real focal point in the bathroom. Kohler. bathtubs, kitchen and bar sinks in a variety of colors. Collection has a variety of wrought iron vessel stands that allow a showroom to use the different types of materials in sinks from this line and numerous other manufacturers. This leads to a mix and match look designed to produce much higher gross profit margins. The Stock Market. commercial and residential applications. Flow capacities range from 0.5 gpm (2.5kw) to 25 gpm (126kw) for 99% energy efficiency. Ruggedly constructed; compact and reliable. Eemax. www.eemaxinc.com Bath storage options This manufacturer introduces a line of bath storage options for environmentally conscious consumers featuring eco- www.the-stockmarket.com The Distinctive Series LVH 1200 accessory water faucet features futuristic lines with a modern look; makes a design statement in modern kitchens or a stunning accent to eclectic ones. Uses twin levers that flank the base of its barrel-tipped spout. Spout features a generous 6" reach and stands 7" above the countertop; allows for the easy filling of cups, pots and pitchers. Available in Chrome, Satin Nickel and Oil Rubbed Bronze. Lead-free faucet has a built-in aerator and ceramic disc valves to ensure long-term operation. Water, Inc. ww.waterinc.com Natural bath basins Innovative steam therapy These bathroom basins are made with natural materials such as stone and copper. A new line of vanities are the perfect The ChromaSteam System spa package provides enhanced relaxation including the mental, physical and emotional bene- Direct vent fireplace The RHFE 750 ETR Gas Modulated Fireplace maintains energy efficiency and beauty using a gas flame in a direct vent fireplace. State-of-the-art digital electronic controls include dual timers, a thermostat or a manual control option, and a child lock. A fully functional remote control gives the consumer total control of the heat output; 3-speed fan allows even heat distribution yielding an increased level of comfort. Rinnai. compliment to these stylish basins. Contemporary design and hand-carved features of Kangyur vanities combine harmoniously with the natural sinks to create a beautiful example of style and taste for the bathroom. 5 different styles and sizes are constructed of Shesham, a durable wood from the foothills of northern India. Vanity doors are hand carved with a rainfall-style design and have rich espresso finish. Terra Acqua. friendly products. These exciting designs are loaded with customizable storage options. This manufacturer is offering them in materials that minimize pollution, and is making use of sustainable woods like Plyboo and Lyptus,that conserve energy and reduce waste. The New Avalon design in Plyboo features a medicine cabinet with soft closing popup door and is semi-recessed. Vanity Flair. fits associated with Steamtherapy™. Complete with AromaSteam™, ChromaSteam™ and in-shower Musictherapy™ speakers. Integrates light with steam selection of colors ranging from blue to red. Features low voltage, high performance LED light modules. AromaSteam releases aromatherapy essences electronically into the steamroom. Moistureresistant Musictherapy speakers deliver 70 watts peak performance from almost any audio source. Mr. Steam. www.rinnai.us www.terracqua.net www.vanityflair.net ww.mrsteam.com 56 • •THE WHOLESALER® — APRIL 2009 SHOWROOM STYLE Navigating K/BIS 2009 A deep look at getting better show results! BY PETER SCHOR Showroom specialist T here is no doubt that 2009 is a challenging year for all of us in the showroom industry. I am hoping that you read my December 2008 column, which had some guidelines on what you can do during these times. The January 2009 showroom column had My advice through these tough economic times: Cut down on the amount of negative news...stay current, adopt a positive attitude, and keep a solution-oriented mind. Your clients deserve this. some positive insights taken from the negative happenings. Furthermore, there are many answers for today’s economic problems in the archives of The Wholesaler (www.thewholesaler.com). The September 2006 to current showroom articles are available and easy to print in pDF format! Kitchen and bath industry In early December, Ed S. pell, master market researcher for the k&b industry, who has 35 years of experience in the market segment, said, “For all the scare headlines, 2008 turned out to be a decent year for kitchen and bath remodeling. kitchen remodeling declined about 6%, to 7.1 million jobs, but high-end project returned causing spending to increase more than 255 to over $121 billion. bath remodeling jobs dipped nearly 7% to just over 10 million units, but spending on those jobs was up slightly less than 1% to $71 billion.” Yes, I know the economy has turned dramatically downward since that date, but presently things are more positive. Hotel industry Have you wondered why there was not a single nickel in the “bail-out” for the hotel, travel and tourism industry? The reason is that the hotel industry, specifically, is doing well. In fact, construction is still booming. Most hotel projects in progress are fully funded through early 2010 and there is great demand for bath/plumbing products. Do you want to receive “juicy” information for your company about how to cash in on the hotel industry? Look in the December issue of The Wholesaler on page 67, under the heading “Industry News.” Many people in our industry were grateful for the information. As you know, I am the proverbial optimist. When it gets tough out there, I become very creative and work “smarter” with my clientele. My advice through these tough economic times: Cut down on the amount of negative, toxic, repetitive news you watch on television and read in the newspapers. Fifteen minutes a day will give you all you need to stay current, adopt a positive attitude, and keep a solution-oriented mind. Your clients deserve this. Reduce stress by reading my February 2009 showroom column: “Stress reduction in these tough economic times.” General overview of K/BIS 2009 — Slim pickin’s require smart choices This year, k/bIS 2009 (www .kbis.com), will be held at the World (Turn to Making the most... page 58.) INSTALL GRATIFICATION TEMPRA© SERIES TANKLESS ELECTRIC WATER HEATERS • Unlimited Supply of Hot Water SAVE • Sleek Design Saves Space ENERGY WATER MONEY • Saves Energy and Reduces Your Electric Bills • Proven Reliability Backed by a Three Year Warranty Simply the Best TOLL FREE 800.582.8423 www.stiebel-eltron-usa.com See contact information on page 70 See contact information on page 70 58 • • THE WHOLESALER® — APRIL 2009 SHOWROOM STYLE Making the most of K/BIS (Continued from page 57.) Congress Center in Atlanta. Next year k/bIS 2010 will be held on April 16-18 at McCormick place in Chicago. Atlanta is a great place to have the convention and, for most, a welcome change for those in the South and Northeast regions. The show hours will be 10:00 a.m. to 5:00 p.m. on Friday and Saturday, and on Sunday from 10:00 a.m. to 3:00 p.m. The show will have about 700 exhibitors and will cover about 400,000 square feet of exhibit space. There are three exhibit halls (A, b, and C). There are also three specialty pavilions at k/bIS to help you focus on industry segments: • Decorative Hardware (new) in b Hall • Natural Stone and Tile in C Hall • Cabinets also in C Hall. The NkbA bookstore always has some good books available on bath design and sales skills. Many of these books can be put on display in your own showroom library. There is also the NkbA Center Stage, which has CEU Credit presentations that will be open to all attendees. The schedule will be available at k/bIS 2009. a new product be best: IApMO Code approval, mechanical reliability, shipping on time, and perhaps will be in business next year! The cost for non-exhibiting manufacturers to walk the floor is $250! The purpose of the policy is to protect the manufacturers exhibiting at k/bIS and main- I am sad to say that k/bIS 2009 is becoming even more of a “kitchen and bath dealer and design-oriented” show, leaving out the balance of the showroom industry attendees: product sellers, plumbing wholesalers and DpHA-type showrooms, and the manufacturers and reps that serve them. There are very few educational programs for our segments. In my knowledgeable industry experience opinion, the NkbA, the educational arm of k/bIS, is starting to reverse itself. The New product pavilion, now called “best of k/bIS 2009,” has had some improvements going from one kitchen and one bath product award to 10 categories in kitchen and nine categories in bath. The 17 judges are all from the NkbA. I think to improve upon “The best of New products” the judging should be done by independent designers, architects, or a voting ballot from the attendees. How about have some of the great plumbing wholesaler and DpH showroom product gurus; people like Jeff burton, Joe passero, Sam Rose and numerous others, who know what makes costs and room numbers of the events. please read the titles and descriptions of the seminars and make your own decisions whether or not the seminars fit your needs. One of the greatest perks of the k/bIS Convention is getting the magazines and free subscriptions. Most of the maga- When you look for manufacturers from China, be sure that they have the “ISO Quality Certification,” and have an understanding of how we do business in the U.S. tain the integrity of the show. Last year it seemed that some non-exhibiting manufacturers wore inappropriate clothing, which made them look like walking billboards rather than industry professionals. I still think they might have arrived at a better solution. I know a dozen manufacturers from many parts of the world that are coming to walk the show to see if they should exhibit in the future. They might come away a little disappointed. Things to watch for at K/BIS 2009 Check your k/bIS Show Directory website, www.kbis.com, click on “Conference” for detailed descriptions, ICC-ES PMG Listing Service Look For the Mark… on Plumbing Products that Comply with Codes and Standards FOR DETAILS: www.icc-es.org/pmg Most Widely Accepted and Trusted 09-01563 See contact information on page 70 zines are not assigned a booth until the middle of April or closer to show time. I would go to (www.kbis.com under “Exhibitor List” and look under “publication — business to business” and “publications — Consumer.” Last year, I counted 23 magazine booths. If you come to their booth with a complete contact list of your other showrooms, you can subscribe as a group with the completion of one subscription card. You will note that many magazines might not be exhibiting in 2009, but you can still find the magazines in bins located outside the convention hall. Make sure you stop by the TMb publications booth where The Wholesaler, phC News and plumbing Engineer magazines are located! Make sure your staff has subscribed to The Wholesaler so you can read my monthly showroom column. Many associations utilize booths as a way of getting closer to the show, so check this out. There are many more manufacturers this year from China. Additionally, there are more new American companies importing products from China under American type names. When you look for manufacturers from China, be sure that they have the “ISO Quality Certification”, and have an understanding of how we do business in the U.S. Due to the date of the k/bIS 2009 Convention, and the magazine deadlines, I will be writing about “New and Hot bath products and Trends” in the May, June and July monthly columns of the magazine. please see the New product Showcase in this month’s magazine for some of the hottest products and product lines of the year. ■ peter Schor, president of Dynamic Results Inc., is an educator, motivational speaker, consultant, coach and writer in our industry and many diverse others. For the past 17 years, he has conducted 100 educational programs yearly, including 34 industry conventions. Schor has great expertise in the field of showrooms and has won many industry awards. he also works with manufacturers in the field of sales, marketing and public relations. Schor can be reached at 1491 Ivy Arbor, Lincoln, CA 95648, phone 916/408-5346, fax 916/408-5899, e-mail [email protected] or visit his website at www.dynamicresultsonline.com. HOT WATER HERO When it came to replacing the antiquated multi-tank system at the Paul R. Ruth fire station in Henderson, Nevada, Eternal was the water heater for the job. Ease of installation with PVC venting, the self-cleaning reservoir, and standard piping methods with recirculation won city planners over. They are so happy with the efficiency and long warranty that Eternals are planned in many more applications throughout the city. See our stories at www.hybridstories.com See contact information on page 70 60 • • THE WHOLESALER® — APRIL 2009 MOVING UP CONGRATS! The air-Conditioning, Heating and Refrigeration Institute has restructured its staff responsibilities: • CEO Jack Klimp will retire June 1 • Stephen R. Yurek will continue to serve as president • Joe Mattingly continues as general counsel and corporate secretary • Stephanie Murphy is responsible for finance, membership and office Brian peelver Stacie Weaver operations • Bill Tritsis will handle certification programs • henry hwong is responsible for standards, product section services and statistical programs • Francis Dietz is responsible for public affairs, meetings and education • David Calabrese will have overall responsibility for government, regulatory and international affairs, assisted by Karim Amrane with regard to regulatory activities, Don Davis with regard to government affairs and Jim Walters with regard to international affairs. The senior staff positions of executive vice president and senior vice president, public affairs, were eliminated in the restructuring. Cascade Faucets and their La Torre brand have appointed Andrew Schor sales director, for the U.S. and Canadian The Push-Fit Solution For Plumbing and Heating Systems AB1953 Of course not. Years ago no one knew the AB1953 Legislation was coming. But we’ve always been in compliance, by keeping lead out of virtually all of our plumbing products Can your fittings supplier say the same? pw rfh IAPMO UNIFORM PLUMBING CODE ASTM F 877 CSA B137.5 ASSE 1061 NSF 14 NSF 61 For a complete listing of our lead-free products contact us toll free at 1-800 94-JG USA or via email at [email protected]. See contact information on page 70 Andrew Schor Jeremy Olberding regions. Schor brings 23 years experience in faucet manufacturing, plumbing and the DpH industry. Jim Fuller of Coburn Supply Company was named chairman of the aSa Warehouse & Operations Council. Fuller is a vice president at Coburn’s and a key member of their executive management team. Chicago Tube and Iron Company welcomed Steve Olson to their Wisconsin division as outside sales representative for the southwestern Wisconsin territory. Olson has more than 10 years experience in the tool steel market, working in inside sales, outside sales and the warehouse. Colmac Coil Manufacturing promoted Jeremy Olberding to sales manager. Olberding will supervise factory sales personnel and oversee the Colmac Heat Transfer, Industrial Refrigeration, and Heat pump Water Heater product groups. He joined the Colmac team in 2005 as an applications sales engineer and also served as R&D engineer and R&D engineering manager. Eastern Industrial Supplies Inc. promoted two key branch managers: • paul Thompkins is now regional manager of West Georgia. Thompkins began his career in the pvF industry at the young age of 15. He was hired by Eastern as the warehouse manager in LaGrange, Ga., in 1998, and was later promoted to counter and inside sales, soon to be followed with a transition into outside sales. Thompkins was promoted to branch manager in 2006. • Michael “Scat” Scaturro was promoted to regional manager of Coastal Carolina. Scaturro has been working in this industry for over 24 years. Thirteen years ago, Eastern hired Scaturro to spearhead the development of Eastern in the Coastal regions of South Carolina. David Dauberman, area sales manager for Emerson Climate Technologies, received the 2008 Walter b. Stopera, CM, Speaker of the Year Award. This award recognizes an individual who consistently presents outstanding educational programs at all levels of RSES meetings and conferences. Brian peelver was promoted to general manager of Ferguson’s Evansville, Ind. branch. peelver began his career with Ferguson in 1999 as a management trainee in Naples, Fla., and was promoted to a variety of positions in the Florida market, including outside sales associate, branch manager and sales manager. First Supply promoted Stacie Weaver paul Thompkins Michael Scaturro to general manager for its seven southeastern Wisconsin facilities, with responsibility for day-to-day operations. Weaver joined First Supply in 2004 and has been counter sales rep, branch supervisor of the West bend and brookfield, Wis., facilities and, most recently, operations manager for the southeastern Wisconsin locations. Flowserve Corporation named Lars E. Rosene chief sustainability officer, in addition to his role as vice president of public affairs. Rosene will drive the implementation and management of the company’s sustainability and social responsibility efforts, while continuing to maintain oversight of the company’s internal communications, global reputation, government affairs and corporate brand management initiatives. Lawson Software named peter Quinn chief customer officer. Quinn, who has more than 20 years of experience in business software and business management, heads Lawson’s new Customer Experience Office and leads a team that will be the customers’ advocate at Lawson, keeping customer concerns at the forefront of all levels and all departments. Quinn joined Lawson in 2006 and has served as vice presidentmarketing operations since 2007. Mestek Inc. appointed John Looes Mid-Atlantic regional sales manager for distributor products. Looes will oversee the company’s sales efforts for Hydrotherm, RbI, Smith, Ray, Sterling and beacon Morris. previously a member of Mestek’s commercial sales team, Looes rejoins Mestek following eight years experience with a manufacturer’s rep organization. Mitsubishi Electric HvaC advanced Products Division created four new regional commercial sales positions: • Ronald Young, Northeast commercial sales manager, has almost 30 years of experience in HvAC sales and nearly 20 years of experience in application engineering and sales team management. He began his career with Carrier Corporation, before moving to York International/Johnson Controls in their applied products division. • Southern commercial sales manager Dennis Cobb has more than 25 years of HvAC applications experience. before joining Mitsubishi in 2004 as the Southern regional manager, Cobb spent five years with Carrier Corporation as one of their territory managers. • Jim Benville, Western commercial sales manager, was the regional manag- • 61 THE WHOLESALER® — APRIL 2009• INDUSTRY NEWS er for Mitsubishi Electric HvAC’s pacific Northwest area for five years. previously, benville was a project engineer/project manager for pAE Consulting Engineers. • Central commercial sales manager Will Scott has been with Mitsubishi for three years and previously worked with sales teams at Carrier. Nancy Leo was named national accounts manager for Moisture Control Services, a division of Munters Ab. Leo, who has nearly 30 years experience in the field of property loss restoration, will be responsible for directing MCS’s marketing and sales initiatives, with a focus on the disaster recovery market. The Conduit Division of Robroy Industries welcomed Jesse Fowler as production supervisor. Fowler has more John Looes Nancy Leo than six years of plant supervision experience. His knowledge of lean manufacturing techniques such as value stream mapping and his 20 years experience at an Eaton/Aeroquip tube bending unit will be valuable assets to the company. Stiebel Eltron has appointed two new regional sales managers: • Doug Belden was named Western regional sales manager. He was formerly with Ferguson Enterprises and has over 15 years experience in the plumb- ing/HvAC mechanical arena. • Glenn Issac is the Eastern regional sales manager. He was formerly with bosch as national account manager and Eastern regional sales manager, and has over 20 years of tankless water heater experience. Jerry hughes, a well-respected 20year industry veteran, has joined Systematic Selling to help bolster the firm’s comprehensive consultation and training services offered to wholesalers and their customers. As founder and owner of his privately held rapidgrowth, three-location, multi-million dollar HvACR wholesale firm, he and his company were consistently recognized for their leadership and innovation on local and national levels. As a member of Johnstone Supply Inc.’s board of Doug Belden law January 1, 2011 if enacted. perhaps some of the motivation behind the Maryland legislature’s actions is the bad press nearby Washington, D.C., has recently received over possible health affects on some of its children due to excessive lead levels found in their water system years prior. The D.C. story continues to play out very publicly — and emotionally — through local media outlets and the internet. For updates on the Maryland lead-free initiative as well as other pertinent leadrelated initiatives, visit www.weareleadfree.com. TeleNotes releases Document Share SANDY, UTAH — Telenotes’ new Document Share feature allows users to upload and save any type of document to an account in their TeleNotes database. These documents can then be accessed by other users within the company via the internet. This new feature allows field sales representatives or field service technicians to have access to important documents, specifications, quotes, bids or other files in a central location. The TeleNotes Sales productivity System is a web-based, full feature database system designed for companies with outside sales representatives and field service technicians to act as a full time personal administrative assistant and contact management solution. The unique system allows sales reps and service techs to remain in the field, interacting with prospects and customers, instead of sitting in the office doing data entry or administrative reports. TeleNotes SpS Inc., a Utah-based corporation, services sales teams and service companies from those with as few as several individual representatives to those with large national corporate sales teams. TeleNotes can be reached at www.telenotes.net or at 866/835-3668. Glenn Issac directors, he provided inspiration and direction on multiple strategic issues. Webstone Company Inc. appointed Grant Dow Western regional sales manager. Dow is responsible for all western U.S. and western provinces of Canada. His duties include sales enhancement, training, new product launches and representative management. Dow has extensive industry experience in sales management and is a licensed plumbing contractor and a member of IApMO. ■ Weather hits cold-climate distributors COLUMbUS, OHIO — In its monthly targeted and regional economic news for distribution strategies (TRENDS) report, Heating, Air-conditioning and Refrigeration Distributors International announced that national HvACR distributor sales for the month of December 2008 were (at median) just -0.3% below December 2007. The HARDI Central region posted the best sales gain at +7.0%, with Canada not far behind at +5.2%. The Great Lakes region failed to benefit from the onset of winter and experienced a -3.7% sales decline from December last year. The Southwestern region reported the poorest performance, with a sales decline of -13.7% at median. The West, Southeast and Mid-Atlantic regions experienced sales declines when compared to the same month last year. Median days sales outstanding (DSO) stood at 46.85, down almost two days from November 2008. For information about HARDI’s monthly TRENDS reports, including access to the complete reports and quarterly TRENDS forecasts, visit www.hardinet.org. Is Maryland looking to go lead free? NORTH ANDOvER, MASS. — Legislation is being presented in Maryland that would dramatically reduce the allowable lead content in piping and fittings that deliver water for human consumption. Hot on the heels of the State of California’s low lead legislation (Ab1953), Maryland’s House of Representatives has drafted House bill 357, a lead-free facsimile of the California statute. Entitled “business Occupations and professions – plumbers – Lead-Free Material,” the draft legislation requires piping and fittings for portable water delivery to be “Lead-Free”, which is defined as containing no more than 0.25% lead, as calculated by a weighted average of those surfaces that come in contact with water. The bill will go into See contact information on page 70 62 • • THE WHOLESALER® — APRIL 2009 INDUSTRY NEWS Recovery Act offers more perks for alternative energy investment LEESbURG, vA. — REHAU announced that its RAUGEO™ ground loop heat exchange system qualifies for use under the American Recovery and Reinvestment Act, signed into law on February 17 by president barack Obama. The $787-billion plan, which aims to create 3.5 million American jobs, while also improving the nation’s infrastructure and services, includes the use of $288 billion for tax relief, $144 billion for state and local support and approximately $111 billion for infrastructure and scientific development. The Act contains long-term tax incentives to encourage the use of high-efficiency HvAC and renewable energy technologies, including systems like RAUGEO, in both residential and commercial applications. It follows last October’s Emergency Economic Stabilization Act of 2008, H.R. 1424, which also includes both commercial and residential incentives for high-efficiency HvAC and renewable energy technology use. Along with the Emergency Economic Stabilization Act of 2008, it provides an uncapped credit through 2016 for residential investments in geothermal heat pumps, as well as an uncapped 10% investment tax credit for commercial installations through 2016. by including geothermal heat pump systems within the definition of “energy property,” the Economic Stabilization Act also allows for a five-year depreciation period for commercial systems placed in service after October 3, 2008. “REHAU is a company dedicated to innovating for the advancement of both industry and society, and we are enthusiastic about the potential these two Acts afford in relation to our role in advancing renewable energy technology adoption in the U.S.,” said Scott Emery, business unit manager, civil engineering and infrastructure at REHAU. “We have recently launched our unique RAUGEO system in North America, which is based on a European design that incorporates RAUpEx® cross-linked polyethylene (pExa) pipe, the EvERLOC® fitting system and pRObALANCE® manifolds for individual circuit balancing and purging. We look forward to the benefits these Acts will have on the adoption momentum of REHAU’s RAUGEO heat exchange system in the U.S., as well as its positive effects in underscoring the importance of overall renewable energy technology implementation.” The Economic Stabilization Act created the first significant U.S. tax incentives for geothermal heat pumps since 1980 and, for the first time, classified them under federal renewable energy provisions, alongside solar and wind technologies. The positive impact these systems have on energy independence, the environment and national security has already led to additional financial, regulatory and utility incentives at the local and state levels (a comprehensive See contact information on page 70 list of incentives by state is available at www.dsireusa.org). Along with many others, sales and property tax exemptions, loans, rebates and grants represent the types of varying state-specific programs available for investors, projects and homeowners. In addition to tax incentives for renewable energy use, the American Recovery and Reinvestment Act earmarks $2 billion for energy efficiency and renewable energy research, development, demonstration and deployment activities, including a specific $400 million allocation for geothermal technologies. “According to the U.S. Environmental protection Agency, geothermal is ‘the most energy-efficient, environmentally clean and cost-effective space conditioning system for most locations in the U.S.,’” Emery said. “Recognizing geothermal as part of this core group of renewable energy technologies for which further development and adoption is imperative signifies a strong step forward for systems like RAUGEO and for the overall energy policy of this country.” For additional information, call 800/247-9445, e-mail rehau.mailbox@ rehau.com or visit www.rehau.com. • 63 THE WHOLESALER® — APRIL 2009• INDUSTRY NEWS Regal Beloit’s new brand, identity communicate innovation, vision bELOIT, WIS. - Regal beloit recently announced the rebranding of its GE branded businesses under the name Genteq™, for markets that include residential and commercial HvAC equipment and electrical applications that utilize capacitors. When Regal beloit acquired General Electric’s Commercial and HvACR motors and capacitors businesses in 2004, it also acquired the rights to use the GE brand through 2009. With this company’s reputation for innovation and speaks to the future. “We want to assure customers that this rebranding is an exciting, progressive step,” he said. “Genteq will continue providing unparalleled service and developing the progressive, inno- vative HvACR solutions for which this company has always been known.” The name Genteq combines the root “gen,” referencing new beginnings (genesis) and ingenuity, with “teq,” showing a continued passion for the newest technology and a unique, innovative “...This rebranding reflects the company’s reputation for innovation and speaks to the future.” rebranding, the Genteq logo will take the place of GE ECM, GE Commercial Motors and GE Capacitors logos on all branded products, sales and marketing materials, websites, communications documents, signage and other related items beginning immediately, with complete phasein to be completed by December 31, 2009. Some aftermarket products will phase in over the next few years. According to paul Selking, HvAC industry leader, this rebranding reflects the CEE announces water heater industry group NASHvILLE, TENN. — The Consortium for Energy Efficiency (CEE) is a nonprofit, public benefits corporation that promotes the manufacture and purchase of energy-efficient products and services. At a press conference held at the bASF Corporation booth during the 2009 International builders’ Show® and NExTbUILD, CEE announced the formation of the Coalition for ENERGY STAR® Water Heaters. Water heaters that qualify for the ENERGY STAR label were introduced to the market on January 1, 2009. The Coalition is comprised of industry associations, utility providers and leading water heater manufacturers. Representatives from the Department of Energy, ENERGY STAR, CEE and the Coalition discussed the importance of this initiative and were available for a networking opportunity with attendees. Spokespersons from manufacturers A.O. Smith, bradford White, Rheem, bASF and Rinnai were also in attendance. Through consistent messaging by industry stakeholders, including manufacturers, utilities, retailers, environmental groups and government agencies, CEE and the Coalition for ENERGY STAR Water Heaters aim to encourage the support of increased development and use of ENERGY STAR residential water heaters by the industry’s supply chain and consumers. See contact information on page 70 approach to problem solving. The contemporary Genteq logotype is accompanied by a distinctive blue logo that displays converging paths, giving it a technical look. The strong left to right direction of the paths reflects a flow of air and energy. The paths converge to represent Genteq’s commitment to forming a strong relationship with every customer. For more information, visit www. jointhegeneration.com. 64 • • THE WHOLESALER® — APRIL 2009 THE CHANNEL REP RAP cascade Faucets has appointed the following territory manufacturer rep agencies: • Levitt associates, New England • Gotham Sales, New York, New Jersey • klein & associates, Florida • J.D. Sales, Texas, Oklahoma, Arkansas, Louisiana • Pahl & associates, Southern California • Ron Heil, Las Vegas • RkH Sales, Ohio • One Source Manufacturer Reps, Illinois and Wisconsin • Pac West Sales, Pacific Northwest • attersall Marketing, Calgary & Ontario • JSa Sales, British Columbia. cooper B-Line, a division of cooper Industries, recently honored PMI Sales and Marketing with its 2008 Rep of the Year award. The award honors the manufacturer’s choice of “Best in Class” for a regional sales agency. PMI, based in Houston, was a top-performing agency for Cooper B-Line in 2008, converting several new STAFDA accounts, which generated significant incremental volume. As a Cooper B-Line consignment partner, PMI provides operational and logistical support for the company. Heat Transfer Products recently announced the following lineup of independent sales agents in Canada: • The Morgan Group will be responsible for the province of Ontario. • kvc Industries corp. will be responsible for the provinces of Alberta, Saskatchewan and British Columbia. • Nova West Hydro Thermal Sales will be responsible for the provinces in Atlantic Canada, including Prince Edward Island, Nova Scotia and New Brunswick. HTP is also actively searching for sales representation in other Canadian provinces, including Quebec. Jaclo held their annual sales meeting at their 65,000-square-foot facility in Cranford, N.J., on February 3-4. Sales representatives from around the country flew in to see the company’s new, stateof-the-art education center, tour the factory, learn about new product introductions and undergo a training seminar on jaclo’s plating techniques, new shower technology and designs. David Schlocker of DRS & associates gave a presentation on Jaclo’s brand building efforts, public relations and marketing strategies for 2009, with a recap of 2008. Ken Goren of Designer Hardware presented a testimonial (from a dealer’s perspective) to communicate to the reps the value and profitability of jaclo as a vendor partner. To celebrate a successful 2008, Jaclo CEO Larry Brodey and national sales manager T.J. Mullaly presented seven awards for outstanding results to their independent sales representative organizations. amorello Sales, Nov-ell Sales and Martin L. kornstein received awards for being a part of the $1,000,000 Club, which represents the more than $1 million they made during 2008 in Jaclo sales. The Weinstein Group, GTS Sales &(&2 7KH &RPPH U F L DO (QDPH O L QJ &RPSDQ\ &D V W , U RQ 6L QNV \RX F D Q F RXQW RQ 3U RYL GL QJ W RS TXD O L W \ SU RGXF W V D QG V H U YL F H W R W KH :KRO H V D O H U V RI $PH U L F D V L QF H 0RV W L W H PV V KL S ZL W KL Q KRXU V 3KRQH ( PD L O F H F RPD W W #KRW PD L O F RP ZZZ F H F RV L QNV F RP See contact information on page 70 PMI Sales and Marketing won 2008 Rep of the Year award from Cooper B-Line, a division of Cooper Industries. The award honors the manufacturer’s choice of “Best in Class” for a regional sales agency. and Heritage Marketing of Texas were the recipients of the $500,000 Club award for the half million dollars of Jaclo sales they achieved last year. Lastly, k&a Sales was honored as the Rep Agency of the Year for going above and beyond the call of the duty by creating solid relationships with customers, having an enhanced knowledge of the industry and keeping Jaclo primed on current market trends. Dectron Internationale Inc. named manufacturer’s representative, qaT (Total air quality), Laval, Quebec, as its “Rep of the Year — 2008.” Some of QAT’s larger 2008 projects included: • A variety of data centers for Canadian telecommunications firms that received Ecosaire® by Dectron high-efficiency, precision air conditioning equipment • Air filtration gear from Dectron’s Circul-Aire® gas phase air purification subsidiary for the City of Hudson, Quebec • 10 indoor community pools and two indoor waterparks throughout the greater Montreal area, which all received Dectron DRY-O-TRON® heat recovery dehumidifiers. kindred has appointed the following representative agencies: • Smith and Stevenson co., Charlotte, N.C. — North and South Carolina • Suncoast Sales, Tampa, Fla. — Florida (excluding Panhandle) • Will & Pierce, Daphne, Ala. — Alabama, Mississippi and Florida Panhandle • Mountain West Marketing, Pleasant View, Utah — Utah and Southern Idaho • SFE Enterprises, Nashville, Tenn. —Tennessee • Gentry & assoc., Kennesaw, Ga. —Georgia • Signature Specialties Inc., Fraser, Mich. — Michigan • Lines of Design, Denver, Colo. — Colorado Master-Bilt has recognized several team members for their excellent work in helping the company go above and beyond its 2008 sales goals. The 2009 Achievement Awards were given out at the national sales meeting held during the NAFEM show on February 5 in Orlando, Fla. The winners of the 2009 sales awards were: • Most Improved Territory of the Year (sales representative) — Bill Smith Marketing Ltd., Calgary, Alberta • Top Sales Volume (sales representative): First Source Marketing Inc., Lake Kiowa, Texas • Group of the Year (sales representative): Heartland Reps LLc, Kearney, Mo. • Master-Bilt Regional Manager of the Year: Rick Blinson • Extra Miler Award (given to MasterBilt personnel in recognition of outstanding service to customers and fellow employees): Cathy King, customer service representative • Special Award-Rising to the Challenge: Trillium Sales and Marketing, Ancaster, Ontario • Special Award-For new products sales (sales representative): Rooker Marketing, New Albany, Miss. • Robert Seta of Trademark Equipment, based in Ashland, Mass., was announced the winner of Master-Bilt’s contest to name their new equipment line. Seta submitted Endura™, to represent Master-Bilt’s most durable and complete line of foodservice equipment that includes reach-ins, pass-thrus, roll-thrus, prep tables and undercounter cabinets. Mestek Inc. announced a sales partnership with the Sweeney-Rogers corporation, headquartered in Raynham, Mass. Under this new partnership, Sweeney-Rogers will become the manufacturer’s representative for Smith Cast Iron Boilers residential and commercial products and also the Petite, Kompak, Suntemp and Heatrim hydronic baseboard radiation offerings. Their representative territory includes Maine, Vermont, New Hampshire, Massa chusetts, Connecticut, Rhode Island and upstate New York. ■ QAT of Laval, Quebec was named Rep of the Year — 2008 by Dectron Internationale Inc. • 65 THE WHOLESALER® — APRIL 2009• Frank Webb’s Bath & Lighting Center opens in Concord, N.H. BEDFORD, MASS. — Frank Webb’s Bath & Lighting Center recently opened at 46 Henniker Street in Concord, N.H. This is the 27th showroom location for this growing chain and the fourth to showcase lighting for the home. “We’re pleased to continue our expansion,” said Jeff Pope, president of F.W. Webb Company, the parent corporation of Frank Webb’s Bath Centers. “In this economy, homeowners are looking for solid remodeling information to help them make the right choices. We offer a real alternative when planning a bath or kitchen renovation. Unlike big home improvement stores, we provide personal service and love it when customers ask questions. “Our showroom staff is not on commission, which is a real difference. This removes any hidden agenda and allows our team to really listen to the customer and provide the best product guidance for their project.” According to Toni Michaud, manager of the new center, while the bathroom is often the smallest room in the home, it typically takes the most effort to plan, build or remodel, especially these days, Grundfos advisory regarding fraudulent credit card scam OLATHE, KAN. — Over the past few months, Grundfos Pumps has seen increased instances of credit card fraud and, in order to minimize the cost and exposure to distributors, encouraged them to take proactive steps to verify any credit cards as payment. Grundfos issued the following notice to all its partners: Be aware when a customer requests a quote via e-mail or fax for SQE, SQ and SQ Flex product. The most common requests ask for all of these product types at once. Each case has been very similar: an order comes into a partner using a credit card for purchase, and the initial run of the credit card comes back approved. However, once the customer’s credit card is run for the full amount (after shipment), the card is declined, because it has been stolen. If someone you don’t know is purchasing a large amount of product using a credit card, make sure you validate the credit card by calling the credit card company and/or running the credit card for the full amount before the product ships. Grundfos Pumps works diligently to contact partners when an order is received that may reflect fraudulent activity, especially when the particular partner does not normally order Groundwater, but they are not always able to catch this fraudulent activity. It should also be of particular concern given that, per agreed shipping terms, distributors are responsible for product as soon as it leaves the manufacturing facility. For additional information, visit www.Grundfos.us. when the product choices can seem overwhelming. Frank Webb’s Bath Center offers working displays that allow customers to actually experience how water will cascade from a faucet or how a steam shower looks and feels or how a whirlpool tub with air jets differs from one with water jets. According to F.W. Webb management, Frank Webb’s Bath Centers has carefully considered what customers are looking for and designed this unique retail chain to address those needs. The showroom displays a wide array of quality brands, including TOTO, American Standard, Grohe, Jacuzzi, Murray Feiss and many others. Customers will find everything from the toilet and tub to the towel bars, as well as vanities, lighting, mirrors and accessories. Homeowners also find kitchen sinks, faucets and whirlpool products at every location. If a customer doesn’t have an installer, the showroom staff will put them in touch with quality resources in the area of their project. Homeowners will be treated with the same care, whether they are purchasing a replacement toilet or faucet or building a new home with luxury kitchens and baths. INDUSTRY NEWS While Frank Webb’s invites local contractors and designers to come learn about new products and to use the showrooms as an extension of their firms, homeowners are welcome to walk in and browse, research and purchase in any of the showrooms. Michaud explained that the company’s new website offers tips on how to start your project and what to bring as far as project measurements to make the most out of your first visit. “Many times the product options available will be impacted by the space you are working in,” she explained. “When you are trying to replace fixtures, it is important to communicate what is now in place so that we can give you every option available to maximize your space and budget.” To learn more about Frank Webb’s Bath Center in Concord, call 603/7173085 or visit www.frankwebb.com. CIPH applauds proposed home renovation tax credit TORONTO — On February 6, the Canadian Institute of Plumbing and Heating wrote Minister of Finance Jim Flaherty to express its support of the proposed home renovation tax credit (HRTC). The new initiative is expected to stimulate the home renovation market in 2009. At the same time, it has been noticed that in preliminary literature related to the proposed HRTC, boilers have not been referenced along with other heating appliances, such as furnaces and hot water heaters. CIPH addressed this con- See contact information on page 70 cern in their letter to Flaherty, reminding him that boilers should be afforded the same consideration for tax credits as any other heating appliance. CIPH requested that a complied list of eligible product under the HRTC be sent to the association prior to finalization of the proposed tax credit so that CIPH may review it for accuracy before the program is finalized. This precautionary action will ensure that CIPH members’ products are accounted for in the proposed new initiative. 66 • • THE WHOLESALER® — APRIL 2009 INDUSTRY NEWS Geothermal technology poised to support economic recovery and long-term energy goals WASHINGTON, D.C. — The federal economic stimulus package is intended to create and save 3.6 million jobs and to jumpstart the economy with economic recovery tax cuts and targeted investments. In addition to putting money back in the pockets of consumers and businesses, the package also includes provisions that will help achieve long-term goals, such as improving energy efficiency in both the public and private sectors. Among those provisions, the plan calls for a disbursement of $6.9 billion to state and local governments for energy efficiency upgrades and the reduction of carbon emissions, which amounts to an average of $100 million to each state. By investing a portion of this $100 million in rebates or low interest loans to homeowners who replace their old fossil fuel or electric furnaces with geothermal heat pumps, the country would make progress toward the goals of the stimulus package. States that have invested in similar programs were able to create hundreds of “green collar” jobs while significantly increasing energy efficiency and reducing carbon emissions. An additional state $2,000 rebate on the purchase of a geothermal heat pump — or the availability of low interest loans — could generate 200 heat pump sales every month in a typical state, or 2,400 geothermal heat pump unit sales at the end of the first year. Further, every 18 heat pump installations can create one new job. This means that, by the end of the first year, 133 new green collar jobs can be created (2,400 units divided by 18 installations per job). At $2,000 per unit, the total cost of a job creation/energy efficiency rebate program would be $4.8 million over the course of a year. Every geothermal heat pump requires 24 hours of manufacturing labor and 32 hours of installation labor. Small businesses involved in the installation include heating and air-conditioning contractors, electricians, plumbers, excavators and drilling machine operators. These businesses have the capacity and technical skills to begin installing green geothermal technology in more homes immediately. Reduced carbon footprint. In addition to creating jobs, a rebate program and the ensuing installation of geothermal heat pumps would cut an average four metric tons of carbon emissions per year per unit, due to the high energy-efficiency of geothermal heat pump technology. This means that, for the average unit life of 24.4 years, 97.6 metric tons of emissions could be eliminated over the lifetime of each unit and 234,240 tons over the lifetime of every 2,400 units sold through a state rebate program. A recent paper published by Oak Ridge National Laboratory estimated that aggressive deployment of geothermal heat pumps could achieve 35% to 40% of a recommended carbon reduction path for the U.S. building sector. If every state takes at least 5% of the funding available through the energy New locations for Cregger (Continued from Cregger, page 1.) side sales) anchor the Brunswick team. The Brunswick branch is located at 165 Key Circle Drive. The phone number is 912/717-0920. Cregger Company’s Charlotte, N.C., Exclusive from Dormont... a complete tankless water heater connection kit. Everything you need in one kit! Greater productivity! Fewer components simplify installation No field threading or cutting needed Fewer leak points! Reduces or eliminates the need for pipe nipples, 90s and elbows Simplifies maintenance! To place an order or for more information: Call: 1-800-DORMONT www.dormont.com Visit us at AHR, ‘09 – Booth #5068 A Subsidiary of Watts Water Technologies, Inc. See contact information on page 70 efficiency portion of the stimulus package and invests it in a geothermal heat pump incentive, there couldn’t be a more cost effective, greener way to put people back to work, save fossil fuel, reduce carbon emissions and save homeowners thousands of dollars per year for the next 24 years. It’s the stimulus that keeps on stimulating. The stimulus package funding is critical to a U.S. heating and air-conditioning industry that has been hit hard by the recession. The collapse of the residential new construction market and the lack of consumer financing have slammed the industry over the past two years, and heating system sales were down to levels not seen since 1970. Geothermal heat pumps are built by manufacturers in the U.S. at domestic plants in nine states, and geothermal systems are operating and saving energy in all 50 states and are being exported around the globe. To learn more, call the Geothermal Heat Pump Consortium at 888/255-4436 or visit www.GeoExchange.org. branch was relocated this past year into a much larger downtown compound. The new facility includes considerable paved outdoor storage, much of it covered, as well as a 30,000-square-foot warehouse. The additional storage space will accommodate the company’s move into HVAC equipment and supplies. The new branch is located at 4700-B North Tryon Street in Charlotte. The phone number is 704/5377711. Farrell Petty is branch manager. The Greenville, S.C., branch of Cregger Company was also relocated into a larger facility in Simpsonville, S.C. The new 30,000-square-foot location will provide local contractors with plumbing and HVAC equipment and supplies. The branch, managed by Jay Kimbel, is located at 307 Standing Springs Court in Simpsonville. The phone number is 704/537-7711. Cregger Company is also completing construction of the organization’s fifth Design On Tap offsite decorative plumbing showroom. Design On Tap in Greenville, S.C., will be located in McBee Station at 400 East McBee Avenue in downtown Greenville. The 3800-square-foot showroom will house significant displays from a myriad of upscale manufacturers, including Kallista, TOTO, Porcher, American Standard, Rocky Mountain Hardware, Rohl, Hansgrohe, Bain Ultra and more. A grand opening is slated for late April. In related news, in February Cregger Company acquired the assets of the Lexington, Ky., branch of Kenny Pipe and Supply. A Cregger Company spokesman commented “We’re very excited to have the associates of Kenny Pipe’s Lexington branch join the Cregger Company family. This group has tremendous industry experience and strong ties to the local and surrounding markets. We feel very fortunate to have such excellent representation in the region.” The 20,000-square-foot facility at 1209 Industry Road in Lexington is managed by Kevin Shearer and can be reached at 859/255-1066. • 67 THE WHOLESALER® — APRIL 2009• INDUSTRY NEWS Lochinvar featured on national home-renovation TV program includes the redesign of the home’s boiler room. To determine the airdate and local listings in various regions of the country, interested viewers can visit www.pbs.org and search Episode #2824. Throughout this season, the show’s experts are converting a 104-year-old rowhouse in Brooklyn’s historic Brothers Randy & Erik Gitli of Aladdin Plumbing Prospect Heights neighborCorp. stand in the modernized boiler room of the hood from a nine-room Brooklyn Brownstone project house. boarding house to a threefamily home, while preservLEBANON, TENN. — The industry’s most ing and restoring period detail wherever advanced residential condensing heating possible. In this particular episode, they boiler, the KNIGHT® Heating Boiler from choose to install two KNIGHT Boilers to Lochinvar® Corporation, made its nationefficiently provide heat for the home’s al television debut on an episode of This cast iron radiators, radiant floor heating Old House. The episode, which aired for and domestic hot water. In addition to its the first time in some markets on March ability to keep heating costs to an 12, documents a portion of the renovation absolute minimum, the KNIGHT is also an of a neglected 1904 Renaissance Revival ideal choice for this project as it features brownstone in Brooklyn, N.Y., and 5:1 turndown, allowing the boiler to Beschloss (Continued from page 50.) tions decrying nationalization as a viable banking alternative, that is exactly where the orifice of our nation’s financial system will be ending up. However, don’t expect that this march toward government takeover will stop with the banks. America’s massive coal industry is in jeopardy because the environmentalists, who have been significantly empowered by this Administration, will put penalties on new and existing utilities using coal, making the U.S.’s largest natural resource potential out of bounds for future development. Next will come the domestic automotive sector, which can only be saved by downsizing under government direction or bankruptcy. Within the next four years, the tentacles of government control will have become so impenetrable, as to make their removal virtually impossible. Keep your eye on current developments in Western Europe and you will see its parallel to what will be going on in the U.S. Both the transition and its outcome possibilities are frightening. The stock market, touching 1997 lows earlier recently, hasn’t become demoralized by accident. Deleveraging spreads its tentacles globally As the continuing surge of recessionary statistics arrive from all corners of the world, no region, nor nation, is left unscathed from this global attrition. Only China, which is making a prodigious effort to encompass a much larger slice of its world-leading population into the modern era, has both the monetary strength as well as the demand power to move its global economy forward this year. Although Beijing is also suffering from an export retraction, China’s hefty $600-billion stimulus cache (the equivalent to America’s $2.57 trillion) has the heft to overcome the shrinkage of major commodities, like oil and a wide range of other imported products to reverse the current global implosion. Preliminary evidence indicates that China is on a major campaign to nail down oil contracts and production facilities all over the world with an eye toward the middle of this century when the present low prices and ready availability will seem like a distant memory. Touted as the world’s leading growth economy this year, even at a ‘modest’ six percent, China has both the surplus cash and the will to move forward aggressively this year. Already in a position to surpass tottering Japan as the world’s No. 2 economy in 2009, the ‘middle empire’ may be moving ever closer to the global leadership position far sooner than first anticipated. This could come about as America’s discretionary consumer sector deflates at lightning speed, while China grows its internal expansion with a real currency surplus, not debt-laden monopoly paper. Look for China’s comeback to be the uplifting economic surprise for 2009. ■ Morris R. Beschloss, a 53-year veteran of the pipe, valve and fitting industry, is Pvf and economic analyst for THE WHOLESALER. generate the precise amount of heat for consistent indoor comfort based on the outdoor temperature. With up to 98% efficiency, the Energy Star-qualified KNIGHT Heating Boiler can literally cut heating costs in half. Engineered with Lochinvar’s exclusive SMART SYSTEM™ control, the KNIGHT offers unequalled control and monitoring functions that are easy to understand and use. The two-line, 16-character LCD display uses words instead of potentially confusing codes to communicate with the technician. In addition, the SMART SYSTEM includes a built-in cascading sequencer for the installation of up to eight boilers. With seven floor-standing models and five wall-mount units, Lochinvar offers the industry’s broadest selection of fully modulating, condensing heating boilers. ...The show’s experts are converting a 104-year-old rowhouse in Brooklyn... They choose to install two KNIGHT Boilers to efficiently provide heat for the home’s cast iron radiators, radiant floor heating and domestic hot water. The sealed-combustion direct-vent design of the KNIGHT offers unmatched flexibility for placement within a building, permitting air intake and exhaust runs up to 100 equivalent feet using PVC or CPVC pipe. For more information, call 615/8898900 or visit www.Lochinvar.com. Master Distributors offers current sensors from Tamura Corporation SANTA MONICA, CALIF. — Master Distributors, a leading distributor of electro-mechanical, interconnect and passive components, offers Tamura Corporation’s line of closed loop hall effect current sensors, including the newest addition to the line: the S23P Series. An ideal solution for the global industrial and power electronics marketplace, the S23P series delivers fast response, galvanic isolation and zero insertion loss. “We’re excited to offer the industry’s leading closed loop current sensors,” said Master Distributors president Ike Nizam. “These products provide our customers with a cost-effective method for attaining wide power bandwidth and superior accuracy.” Pcb mount current sensors, the Tamura S23P series features an integrated primary conductor designed to the industry-standard package and pin-out. The S23P is rated for operation in the industrial temperature range (-40°C to +85°C) with industry-standard performance. The series includes the S23P50/100D15 (K = 1:2000) and the S23P50/100D15M1 (K = 1:1000), both of which operate from ±12VDC to ±15VDC PS. Samples for evaluation are available upon request. For additional information, visit www.masterdistributors.com. Generac launches new brand strategy, celebrates anniversary WAUKESHA, WIS. — Generac Power Systems Inc., a leading manufacturer of standby and portable power generation equipment, announced a new corporate brand strategy that builds on its commitment to customer satisfaction and bestin-class products, while continuing to deliver customer peace of mind and a superior product experience. Generac has developed a new logo that reflects its commitment to delivering superior products that enhance consumer experience. The new logo is reflective of Generac’s current business strategy — dependable, confident, straightforward and streamlined. The logo will be on nearly all of Generac’s product packaging to help make shopping easier and to build better long-term brand equity. In other news, on February 6, Generac hosted its official kick-off 50th anniversary celebration. A cake-cutting ceremony was held to celebrate and to thank all employees for their tireless efforts. Bob and Brian, from the “Bob and Brian Morning Show,” the top-rated morning show in Milwaukee, on WHQG, 102.9 FM, helped the company celebrate. Unlike its competitors, Generac is focused solely on generators, providing a broad line of diverse offerings. For 50 years, Generac has offered home and business owners the options they need to protect their families, businesses and valuables during power outages. For additional information, visit www.generac.com or call 888/generac. 68 • • THE WHOLESALER® — APRIL 2009 CLASSIFIED ADS EMPLOYMENT OPPORTUNITIES REPS WANTED SALES REPS WANTED Major pipe supplier and pipe converter serving the Plumbing, HVAC, and Sprinkler Industries is looking for manufacturers reps in New England, Upstate NY, Virginia, and Maryland. Reply to Larry Greenberg at [email protected]. SALES MANAGER WANTED As the recognized leader in the design, development and manufacture of commercial plumbing fixtures and washroom accessories, our successes and continuing growth mean excellent opportunities for people like you. So, join the Bradley team and get the tools you need to achieve your goals in our dynamic, performance-oriented environment. Now, that’s exciting! SALES MANAGER Reporting to the Director of Plumbing Wholesale Channel Sales, this individual will oversee and facilitate sales activities to achieve performance goals. This position is located outside of Chicago at Bradley’s Riddile, Illinois office. Staff includes inside sales support and an outside sales team. Specific functions include, but are not limited to: • Developing and implementing strategic sales plans • Directing sales forecasting and channel development activities, as well as personnel staffing, training and evaluations; assigning sales territories to representatives; and acting as an advisor and resource to dealers, distributors and clients • Perform sales statistics and division expenditure analysis • Direct product simplification and standardization • Interact with key clients and help your sales representatives maintain relationships and negotiate/close deals. The candidate we seek is an outgoing, selfmotivated professional with demonstrated business acumen and high ethical standards. This position requires: • Bachelor’s degree (master’s preferred) plus 4-10 years’ related experience • Demonstrated supervisory, personnel management, decision-making and problem-solving capabilities • Initiative, professionalism and highly successful sales skills • A real commitment to customer service, teamwork, change management and visionary team leadership We support your success at work and in life with solid pay and excellent benefits. Learn about the rewards of a Bradley career and apply online at: www.bradleycorp.com. EOE INDEPENDENT REPS WANTED! Build your own business with residual income! Join our team selling our sales productivity system to manufacturers and wholesalers. Send your resumé to: [email protected] FOR SALE BUSINESS FOR SALE HVAC Business — Includes shop, home, on 14.5 acres. Shop/Home built in 2007. All equipment in shop included. Business grossing $775,000 to $1,200,000 Family operation. Located in central Oregon $360,000. For details contact: [email protected] Phone (541) 385-5500 POWER ON DEMAND BRANCH MANAGER Career Opportunity for a highly energetic self-starter to join a leading fabricator and sprinkler distributor in the Northeast. Long Island Pipe Fabrication and Supply is looking for a branch manager for its expansion into Northern New Jersey. Experience in the Fire Sprinkler Industry is a definite plus. Fax resumé to 516-222-9234 or email to [email protected] WANT TO BUY WANTED TO BUY Contractors! Wholesalers! Sell us your surplus or overstock plumbing materials. Black, Galv., PVC, Groove, NoHub, Copper, Brass, Weld Flg's & Fittings, Valves, SS316 & 304, etc. Excess Plumbing, Inc. [email protected] Ph. 602-252-1280 • Fax. 602-252-1668 PROFESSIONAL SERVICES WANTED TO BUY We are a growing plumbing supply company on the East Coast looking to continue our expansion mode. If you are a plumbing supply company with annual sales of $5 million or more and are interested in selling, we are interested in meeting you. Contact us via email at: [email protected] INVENTORY LIQUIDATORS INVOICING SERVICE Smart Invoicing Services Group provides a fully automated document delivery service of invoices, monthly statements and past due letters; all sent first class at "presort" rates 10 to 20% less than standard mail. Alternatively, documents can be faxed or emailed to your customers who accept them in this manner! • Let us do the work for YOU! • No more stuffing envelopes • No more trips to the post office • No more address labels • No more hassle! All of this while REDUCING your current cost outlay for document delivery and saving valuable manpower expenses! Call today for a quote or simply email us at [email protected]. www.smartinvoicing.com office (913) 362-8994 fax (913) 362-0609 The Wholesaler classified advertisements are your marketplace for buying and selling, finding employees or finding a new postition! • 69 THE WHOLESALER® — APRIL 2009• CLASSIFIED ADS SUPPLIERS JUST FAUCETS AS SEEN ON WILD CHICAGO • ALL BRANDS • ☞ TOILET TANK LIDS BACK TO THE 1920’s ☞ —BRING SaMPLE PaRTS— • FAUCET PARTS • TOILET PARTS • VISIT OUR SHOWROOM Mon - Fri: 9:00-5:30 • Saturday: 9:30-3:00 Showroom: 1-847-255-0421 • 1-800-331-0421 Fax:1-847-255-7850 540 S. Arthur Ave. Arlington Heights, IL 60005 www.justfaucets.com Managing Editor James Schaible www.thewholesaler.com associate Editor Publisher Editorial Director John Mesenbrink Tom M. Brown Jr. Mary Jo Martin administrative assistant Production Manager PvF & Economic analyst Morris R. Beschloss Debbie Newberg Cate C. Brown Editorial Offices: 1838 Techny Court, Northbrook, IL 60062 Phone: 847/564-1127, Fax: 847/564-1264, e-mail: [email protected] Direct subscription inquiries to: Cynthia Lewis, Creative Data Services; 519 E. Briarcliff Road, Bolingbrook, IL 60440; [email protected]; Phone: 630-739-0900 ext 203, Fax: 630-739-7648 Sales Offices Midwest, Southeast, E. canada David Schulte 1838 Techny Court Northbrook, IL 60062 847/564-1127 Fax: 847/564-1264 East (Indiana; W. Mich.) Brad Burnside 1838 Techny Court Northbrook, IL 60062 847/564-1127 Fax: 847/564-1264 West, Texas Diane Spangler P.O. Box 9802 Fountain Valley, CA 92728 714/839-6700 Fax:714/839-6777 [email protected] [email protected] [email protected] classified ad sales Debbie Newberg: 847-564-1127 Watch the May issue of The Wholesaler for the 2009 PVF Hall of Fame! ® TMB Publications, Inc. Tom M. Brown Jr., President The Wholesaler (publication number USPS 351-650 ISSN 0032-1680) is a trademark of TMB Publications, Inc. The ® Wholesaler is published monthly by TMB Publications, Inc., 1838 Techny Ct. Northbrook, IL 60062; tel. 847/564-1127; fax 847/564-1264. Copyright 2009 by TMB Publications, Inc. All rights reserved under the United States, International and PanAmerican Copyright Conventions. No part of this publication may be reproduced, stored or transmitted in any form or by any means, mechanical,®photocopying, electronic recording or otherwise, without the prior written permission of TMB Publications, Inc. The Wholesaler is delivered free of charge to qualified subscribers in the U.S. and Canada. Others: U.S., U.S. Poss. and Canada, $100/yr.; two-year annual subscription rate U.S. and Canada, $155; other countries, $200/yr. or $300 for two year (U.S. funds) plus $20 surface postage. Single copies, $15. Second class postage paid at Northbrook, IL and additional mailing offices. POSTMASTER: Send address changes to The Wholesaler, Creative Data Services, 519 E. Briarcliff Road, Bolingbrook, IL 60440. [email protected] Publications mail agreement No. 41499518: Return undeliverable Canadian adresses to PO Box 503, RPO West Beaver Creek, Richmond Hill ON L4B 4R6 70 • • THE WHOLESALER® — APRIL 2009 VIEWPOINT The economy’s depressing but no Depression yet BY JIM SCHAIBLE Managing editor T his is one of my favorite photographs, a picture of my dad playing with his pet bear cub, Muddy, in 1937. He got the cub because its mother was shot raiding chicken coops and someone thought he would like a bear. For a 14-year-old lad staying with relatives in Michigan, it was was a grand idea. Some of Dad’s fondest memories are of the summer he and Muddy shared. The merits of keeping wild animals as pets notwithstanding, Dad traveled from home in Illinois to Michigan two summers for a good reason — to reduce the burden on the family, still struggling through the Great Depression. In a family with six children, one less hungry mouth to feed made a big difference. An idyllic summer with a pet bear was a bright light in an otherwise grim decade the nation endured during the 1930s. Dad’s family was typical, and stories abound about the suffering as well as the small triumphs Americans experienced during the Depression. We face a difficult economy now, but it is small stuff compared to those dreadful years between the stock-market crash in October 1929 and the country’s involvement in World War II beginning around 1938. The statistics still are staggering. Fully 25% of the work force — more than 11 million! — had no jobs, and among those still working, a great many suffered underemployment. Nearly everyone felt the anxiety of losing jobs, and because there were few social safety nets then, a lost job meant serious hardship. My grandfather never lost work because he operated the big steam engine that powered the local paper mill, but sometimes his hours were cut. The mill reduced his wages, which never were quite enough. My grandmother also worked in the mill but at less than a man’s pay, and often faced layoffs. Families survived as well as they could. Leisure pastimes such as gardening, fishing and hunting became necessities to put food on the table. Innumerable off-thebooks businesses sprang up, from backyard auto repair to basement tailor shops. Illegal moonshine stills dotted the country. Everyone made do with what they had; my grandfather used a tool to cut treads in bald tires for a few more miles of driving. Dad collected scrap metal to convert into cash, which he used to buy things like tires for the bicycle he assembled from parts scavenged out of junk piles. The Depression was world-wide. My mother’s family in England faced equal challenges. My British grandfather, a skilled tradesman, always had work but never sufficient take-home pay. He became adept at re-soling shoes and rolling cigarettes. My mother, with her brothers and sisters, went “scrumping” — stealing apples from local orchards. When the war began they had German bombs to worry about as well. The Depression generation learned to bargain for almost everything, making deals that involved cash and barter. They took that talent to war and returned with managerial skills learned in the military, becoming the legions of successful business owners that drove America’s economy during the post-war years. Despite the peoples’ resiliency, they faced constant hardship. Many Americans, especially in the hardest-hit rural areas, faced outright starvation. Knawing fear lurked in nearly everyone’s mind and they never forgot the Depression’s harsh lessons. History books recount the story of the Hoover administration’s relative inactivity, the Roosevelt administration’s controversial New Deal, and how finally it was wartime spending that injected astounding amounts of capital into the system, lifting the nation out of the Depression after ten long, cruel years. Here are the numbers: After the war, the nation’s 1946 budget deficit stood at $269 billion — nearly $3 trillion in 2009 dollars — which equaled about 120% of the gross domestic product. That was the kind of spending required to raise the country out of the Great Depression. Today’s national debt of some $11 trillion represents “only” about 80% of GDp, and might have to rise higher to stave off another, even worse depression. Fierce arguments about government intrusion into business and finance continue. But parents with hungry, sick children aren’t interested in economic theory. The Depression generation learned that self-reliance wasn’t enough, that a big nation with a big economy needs government involvement to keep things running more or less smoothly. An unregulated financial sector — and also individuals — will succumb to irresponsibility and greed and build an economic house of cards, as we saw in 1929 and have seen in the sub-prime mortgage debacle. Like it or not, only governments can impose regulations and restrictions to keep that greed in line. Financial markets won’t regulate themselves, and become so bloated and unsustainable that the built-in “natural” regulatory mechanisms can’t work. The resulting boom-and-bust cycle generates periodic chaos and chronic instability. Regulations that rein in the markets’ lower impulses, but generally leave them alone to operate responsibly, can foster an environment in which everyone benefits. It worked for the better part of 50 years while this nation built the strongest economy in history. Then deregulation removed the safeties, and instability began to return. The Obama administration has stumbled in places but finally is finding its footing and has begun to set an economic course the financial markets can live with. Detractors abound and the jury is still out. But a worldwide financial collapse would be an unprecedented disaster, and doing nothing seems like a sure road to catastrophe. Few remain who remember the Great Depression of 1930-40. My parents described that time. I’ll gladly not have to remember Great Depression II. ■ ADVERTISERS INDEX / CONTACT INFORMATION Activant Solutions . . . . . . . . . . . . . .12 www.activant.com Advance Tabco . . . . . . . . . . . . . . . .34 www.advancetabco.com American Valve . . . . . . . . . . . . . . . .37 www.h20stop.com Anderson Metals Corp. . . . . . . . . . . .6 www.andersonmetals.com Arrow Industries . . . . . . . . . . . . . . .50 www.arrowindustries.com BASCO . . . . . . . . . . . . . . . . . . . . . .19 www.bascoshowerdoor.com Bootz . . . . . . . . . . . . . . . . . . . . . . . .24 www.bootz.com Bradford White . . . . . . . . . . . . . . . .35 www.bradfordwhite.com Bradley . . . . . . . . . . . . . . . . . . . . . .23 www.bradleycorp.com Brass Craft . . . . . . . . . . . . . . . . . . . .29 www.brasscraft.com Briggs . . . . . . . . . . . . . . . . . . . . . . .57 www.briggsplumbing.com Bosch Thermotechnology . . . . . . . .47 www.bosch.us C&C Industries . . . . . . . . . . . . . . . .25 www.candcvalve.com Ceco-Commercial . . . . . . . . . . . . .64 www.cecosinks.com Core pipe . . . . . . . . . . . . . . . . . . . . . .9 www.corepipe.com The Distribution point . . . . . . . . . . . .2 www.thedistributionpoint.com Dormont Mfg. Co . . . . . . . . . . . . . .66 www.dormont.com Eemax . . . . . . . . . . . . . . . . . . . . . . .28 www.eemaxinc.com Eternal Hybrid Water Heater . . . . . .59 www.eternalwaterheater.com Equity plumbing . . . . . . . . . . . . . . .15 www.equityplumbing.com Forgings, Flanges and Fittings, LLC . . . . . . . . .32, 33 www.onestoppvf.com Fujitsu . . . . . . . . . . . . . . . . . . . . . . . .4 www.fujitsugeneral.com General pipe Cleaners, a div of General Wire Spring . . . . . . .11, 65 www.drainbrain.com Global Stainless Supply . . . . . . . . .32 www.onestoppvf.com Heatinghelp.com . . . . . . . . . . . . . . .63 www.heatinghelp.com ICC-ES . . . . . . . . . . . . . . . . . . . . . .58 www.icc-es.org John Guest . . . . . . . . . . . . . . . . . . . .60 www.johnguest.com J&M Industries . . . . . . . . . . . . . . . .62 www.smartinvoicing.com JMF . . . . . . . . . . . . . . . . . . . . . . . . .20 www.jmfcompany.com Lavelle . . . . . . . . . . . . . . . . . . . . . . .61 www.lavelle.com Legend Valve . . . . . . . . . . . . . . . . . .13 www.legendvalve.com Liberty pumps . . . . . . . . . . . . . . . . .49 www.libertypumps.com Matco-Norca . . . . . . . . . . . . . . . . . . .3 www.matco-norca.com Navien . . . . . . . . . . . . . . . . . . . . . . .27 www.navienamerica.com Noritz . . . . . . . . . . . . . . . . . . . . . . . .17 www.noritz.com North American Safety Valve . . . . .31 www.nasvi.com pleasantville Urban Enterprise Zone . . . . . . . .30 www.downtownnj.org/ourmembers/pleasantville-urbanenterprise-zone110.php precision plumbing products . . . . .42 www.pppinc.net QC Valve . . . . . . . . . . . . . . . . . . . . .18 www.qcvalve.com Saniflo . . . . . . . . . . . . . . . . . . . . . . .14 www.saniflo.com Schmitt profitools . . . . . . . . . . . . . . .8 www.go-spi.com Service Metal products . . . . . . . . . .51 www.servicemetal.net Simpson Dura-Vent . . . . . . . . . . . . .48 www.duravent.com Smith-Cooper International . . . . . . . .5 www.smithcooper.com Stiebel Eltron . . . . . . . . . . . . . . . . . .57 www.stiebel-eltron.com Summit Stainless Steel . . . . . . . . . .39 www.summitstainless.com T & S Brass . . . . . . . . . . . . . . . . . . .43 www.tsbrass.com Ta Chen Intl Corp. . . . . . . . . . . . . . .72 www.tachen.com Tapco . . . . . . . . . . . . . . .40, 41, 52, 56 www.tapcogenuinepartscenter.com Union Brass . . . . . . . . . . . . . . . . . . .26 www.unionbrass.com Valfit . . . . . . . . . . . . . . . . . . . . . . . .38 www.valfit.com Warren Alloy Valve & Fitting Co. . .7 www.warrenalloy.com Webstone . . . . . . . . . . . . . . . . . . . . . .6 www.webstonevalves.com Weldbend . . . . . . . . . . . . . . . . . .44, 45 www.weldbend.com Westbrook Mfg. . . . . . . . . . . . . . . . .16 www.westbrookmfg.com Zoeller pump Co. . . . . . . . . . . . . . .21 www.zoeller.com See contact information on page 70 See contact information on page 70