Think BIG!

Big ideas...we can all think of big ideas that have impacted our lives in a big way. Sometimes the idea does not have to be that big in order to have a big impact on our businesses. In 2003, as our industry continues an attempt to regain ground lost to a challenging economy, we are all searching for Big Ideas. Read on to discover the big and not so big ideas that have all without exception had a big impact on our businesses.

First Access

Bedford Park, IL — First Access Executive Vice President Rod Schultz says he runs his business much like a coach, and the primary goal of a coach is to create leadership, fostering a positive attitude amongst the entire team. A newly developed bi-monthly company newsletter helps to document company successes and ensures that the entire team is aware of the company success stories.

Other recent big ideas include the introduction of a holiday bonus. In the past, First Access routinely distributed turkeys in celebration of the Thanksgiving and Christmas holidays. The company also hosted a January event to which family was invited. To offer holiday bonuses signaled the company's confidence in its team and that the company knew the team would continue to deliver its best in a very challenging economy. “This is probably the best decision we've made in a long time. We've worked hard to create heroes and champions and they are the ones who are bringing back great ideas which only help to create a better team effort.”

RESULT: Improved profitability in a soft sales environment.

K-Lift Material Handling Company

Kalamazoo, MI — Sometimes a big idea can involve a big economic risk. “In the forklift truck business,” says K-Lift Material Handling Company President R. David Koestner, “a one-store shop is like the old mom-and-pop grocery store: It's hard to survive anymore.” Operational costs are easier to absorb if they can be spread out over more than one shop. Depending on the economic health of a geographic region, a distributor may improve his or her odds by spreading out. K-Lift Material Handling acted on Koestner's big idea to expand his operations by opening a branch store in Mishawaka, Indiana in 1992. The big idea was not without risks. Profitability was not achieved immediately. “It's just like starting a new business,” Koestner says. “It takes a while before it starts to become profitable.”

RESULT: Sales generated by the Mishawaka, Indiana branch exceed sales generated by the headquarters located in Kalamazoo. Overall, the newer branch is generating about 60% of the company's sales.

Knoxville, TN — A few years ago, Rodrick Jack, president, Storage Solutions, Inc., had a big idea which led to the creation of his company's website. Today, the site continues to provide prospective customers with company and product information, links to various manufacturers' websites, as well as an opportunity to request a catalog or request contact with a customer service representative. As a result of its online presence, Storage Solutions supplies customers with the answers they require, regardless of their location.

RESULT: Internet-generated sales now account for 10% of the company's gross sales.

New England Industrial Truck, Inc.

Woburn, MA — When sales are harder to come by, winning the game may be a matter of increasing market share as opposed to the winning of increased sales. Unfortunately, increasing market share is easier said than done. During the past four years that Dick Rossi has been president of New England Industrial Truck, Inc., he has seen an investment opportunity in underserved territories, expanding and cashing in on increased market share. With the addition of a Connecticut and Maine branch, the company is selling in all six New England states. “We just started to get together and march forward. We haven't stopped even though there's been a recession,” Rossi says. “We haven't let the soft economy slow us down. We're constantly hiring new people, putting more people on. I keep telling everyone here, as soon as the economy recovers, we'll be ready, because we've certainly been training for it.”

RESULT: Increased market share.

Bastian Material Handling, LLC

Indianapolis, IN — Bastian Material Handling, LLC employs a two-person new business development group that was responsible for achieving over $6 Million within a nine month period in 2002. William Bastian, II, president, says, “Their sole purpose is to focus on developing new business. With no bounds, the duo uncovers potential business and then partners with our existing systems teams or field personnel.”

David Kogan (left) and David Wells

The new business development team was given instructions to remain within the U.S. and look at any and all markets. One of their strategies is to build sales from previous company successes within specific vertical markets. Bastian says, “Our goal was to generate $4 million during our first year.” During a period beginning March 1 and ending December 31, 2002, sales totaled over $6 million. In 2003 the team's goal is $12 million, although Bastian indicates he will be satisfied if they achieve $6-8 million. He states, “In a challenging economy, they did excellent hunting last year.”

RESULT: Increased sales.

Professional Materials Handling Co., Inc.

Orlando, FL — Like Bill Gates, who is celebrated for a big idea which has benefited the masses, Peter Nordhorn, vice president of sales, Professional Materials Handling Co., Inc., is excited about the development of a new software package that is specifically tailored for the material handling industry. After eighteen months in development, the Locator System, a warehouse movement and inventory control program, can support any warehouse whether it occupies 2,000 or 2,000,000 sq. ft. While the software is similar to others on the market, it has been specifically designed for the material handling industry. As a lower-cost system, it is accompanied by various enhancements. “It comes out of our specific delivery and implementation for several automated lift truck customers,” says Nordhorn. “We're trying to make lift trucks more efficient, we're trying to make the whole system more efficient, while saving our customer money.”

RESULT: Reduction in warehouse inventory management costs and the opportunity to sell a new product.

Mark Goldstein

Coastal Equipment Corp.

Portland, ME — When it comes to customer service, Coastal Equipment Corp. strives to go above and beyond its customers' expectations. Sometimes it's a matter of looking beyond the surface to uncover the solution a customer requires. “We concentrate on solving the customers' problems, as opposed to providing them with the answers they may want to hear. We've had customers call for a conveyor that needs to go from here to here, and we go out and look, and they don't need it,” says company president, Mark Goldstein. Goldstein believes that the attention he pays to his customers establishes a sense of trust and respect. He adds, “Just being able to work with a customer and let him know you have an interest in him, and it's not just take the order and run, has gotten good results for us.” Sales have increased ten percent over the last year and Goldstein estimates profits may be up this year by as much as 300 to 400 percent.

RESULT: Increased sales and profits.

Southeast Industrial Equipment

Sales Boot Camp Trainer Don Buttrey

Charlotte, NC — When it comes to ideas which have a big impact on business, one of the most productive is to take advantage of the manufacturer's training programs as well as the Sales Boot Camp offered by MHEDA. Steven Thorne, president, Southeast Industrial Equipment, says that continuous training has had the greatest impact on his service and sales departments. He says, “We have two Toyota-trained trainers on staff. Certified trainers, they have trained our technicians and helped to drive an annual 20% growth in the revenue generated by our service department. Sales training programs have helped us to increase our market share by almost five points last year.” Training has helped Southeast Industrial Equipment to guarantee customer satisfaction. “We want to fix each truck right, the first time.” Salespeople participate in training programs offered by the manufacturer, MHEDA and at their sales meetings. Is training a good idea? It must be. 2002 was Southeast Industrial Equipment's most profitable year since 1994.

RESULT: Increased market share and profitability.

Forte Industries

Gene Forte

Mason, OH — When times get tough, sometimes the only change needed is the way we go to market. Gene Forte, president, Forte Industries, boasts of a substantial increase in sales resulting from an expanded product line. Says Forte, “We are putting a stronger focus on consulting as well as our ability to deliver a broader product line.” To support the marketing of a broader product line, Forte Industries has hired additional employees, possessing skill sets in specific core competencies including operations improvements, supply chain execution software and facility design.

RESULT: Increased sales.

Vargo Material Handling

Hilliard, OH — Seven years ago, Michael Vargo, president, Vargo Material Handling, began to recognize the potential of growth associated with his company's shift into systems integration. “That's where I see the focus of our company going,” says Vargo. But it's been a gradual change, growing as the company's customer base grew. Vargo Material Handling has picked up momentum over the last three to four years and has added engineers to its staff. “It just became a natural fit for us,” Vargo says. “We started off as a generalized material handling house. The customers grew and we grew with them.” The shift has had a large impact on sales figures, more than doubling them over the last decade, and has more than tripled employment within just eight years. Vargo Material Handling's annual sales grew from $5 million to $8-10 million, depending on the peaks and valleys of the economy. By recognizing an opportunity and having the courage to seize it, Vargo Material Handling has strengthened its presence in the marketplace and secured potential success in the future.

RESULT: The opportunity to more than double sales during the past decade.

Wells Equipment Company, Inc.

Federal Way, WA — A profit and loss statement was a source of inspiration for Tom Wells, president, Wells Equipment Company, Inc. It was his company's P&L that illustrated the higher profit margins associated with the sales of the ergonomic vacuum tubes. Working for another company, Wells learned just how profitable a “sideline” product could be. He made a decision to start his company eight years ago, focusing more heavily on the sale of vacuum tubes. He has not regretted it. “The business has grown steadily even during the slow times,” he says. “The vacuum tubes help the end-user to cut manpower costs and reduce workers' compensation premiums,” Wells says, “and the ergonomic solution enhances productivity, all important features and benefits in an environment fraught with pressured profit margins.” Wells Equipment Company also sells trucks, hoists and cranes, but last year at least 50 percent of his sales volume was directly related to vacuum lift tube sales. More important, 50% of his sales are associated with a higher percentage of profits.

RESULT: Increased sales and profits.

Aurora Lift Truck Service, Inc.

Montgomery, IL — Appearances may not be everything, but sometimes they can count for an expanded customer base. Fred Rhoads, president, Aurora Lift Truck Service, Inc., proved that a big idea for his company was as simple as literally getting bigger. Today, he attributes his expanded base of customers to a new facility constructed just three years ago. He says, “We needed the additional space to work more efficiently and an upgraded, modern look. This place is modern. It's designed for a truck dealership. It's got a lot more appeal to it.” He believes the new building has helped pull in additional customers who might have been dismayed by their “dismal” old facility, thinking the company perhaps a little less capable of delivering the solutions they required. The downturn in the economy has been rough for most distributors, but Aurora Lift Truck has begun to see an increase in sales over the last few months. Rhoads is already thinking about the future and the possibilities for diversification. Thanks to the company's increased square footage, it has the room it needs to grow.

RESULT: Ability to serve new customers.

Alliance Material Handling

Baltimore, MD — An old rock and roll song declares, “One is the loneliest number that you ever knew, two can be as bad as one...” On the other hand, three is a charm. Hobb Santel is president and CEO of Alliance Material Handling, a combination of three companies which merged during the past 18 months. Santel says, “There is value in a collaboration.” That value is demonstrated as teams of cooperating sales representatives reach out to their customers, offering more product expertise and the combined talents of what used to be three companies.

Sales personnel specialize in particular products and consult other team members for the total solutions their customers need, collectively presenting a knowledgeable front. “We have salespeople talking to customers only about lift trucks, new and used,” says Santel. “We have salespeople talking to customers only with the mindset of parts, service and short-term rental, and salespeople talking to customers with the mindset focused on engineered products. Then we pair these individuals as teams with somewhat similar geographic responsibility.” The salespeople then exchange leads within their respective geographic areas. This approach has led Alliance to add a half-dozen new salespeople to its staff. And, according to Santel, “Our current market share far exceeds what it used to be.”

RESULT: Increased market share.

Grady W. Jones Co. Inc.

Memphis, TN — During the past 18 months, all of us have cited the importance of cost-cutting tactics as a survival tool. Grady Jones, CEO, Grady W. Jones Co. Inc., agrees with the importance of cost cutting, but also attests to the benefit derived when the company begins to tie compensation to increased profitability. Two years ago, the Grady W. Jones Co. started paying mechanics for revenue hours above the company's break-even point. They've established a graduated system by which a mechanic benefits from an increased hourly rate, depending on how many hours he bills over a particular threshold for the month. Jones says, “I feel our mechanics are inspired to work harder and be even more attentive to their customers, searching more thoroughly for potential problems and enhancing the customer's general satisfaction with the company. We are preventing unexpected down time.” A motivated, attentive mechanic inspires a customer to feel confidence in the company, and as a result that customer is more loyal. And a loyal customer base leads to a strong economic standing in the years to come.

RESULT: Increased profitability.

Allied-Callaway Equipment Co.

Kansas City, MO — In a challenging sales environment, Richard Strickland, president, Allied-Callaway Equipment Co., turned to an inno-vative product line in the hope of giving his company a boost. Successful in the development of an ergonomic line feeder, the company will soon begin selling the Glide Path to fellow distributors throughout the U.S. and Canada. According to Strickland, “Ergonomic equipment increases efficiency and reduces the risk of worker injury, thus saving time and money. We think there's a good market for the product, once need is established.” The product line is a recent development for Allied-Callaway, and Strickland hopes to capitalize on it to the fullest extent. When the economy comes back, he notes, Allied-Callaway will be able to leap right back into the fray.

RESULT: A regional distributor is representing an innovative product throughout the U.S. and Canada.

Brodie, Inc.

Lawrence, MA — Larry Snook, vice president, Brodie, Inc., says that there is nothing really new in this business. Yet in the face of a maturing industry his experienced team of sales professionals made a conscious effort to convert Toyota's Class I Internal Combustion (IC) truck users to Electric Truck users. By selling the features and benefits of Toyota's line, his team generated a 23% increase in sales in 2002. “The first step was to take advantage of the product training offered by the manufacturer. In just one or two meetings our team was ready to hit the streets.” The proof lies in the numbers: In 2001, 37 Brodie customers were electric truck users. In 2002, 195 Brodie customers were electric truck users.

RESULT: Increased sales.

Yale Pacific, Inc.

Union City, CA — “Thinking big is a part of our culture at Yale Pacific, Inc. Our objective is to grow our revenue by heightening our presence on the western coast of Washington and Oregon,” says Ralph Logan, president. Yale Pacific has completed four acquisitions in the last 24 months. Logan explains, “We have an acquisition strategy. Our strategy has been to establish between four and nine branches in the last 36 months. We want to be a $100 million company.” Yale Pacific is aggressively shopping while sticking to its shopping list. On that list are companies who will further the company's expansion into specific markets. Logan explains, “We are focused on large volume, high-profit customers who will contribute to strong aftermarket sales.” Yale Pacific is a big idea company.

RESULT: Increased presence in local market.