Material Difference: Erie Materials of Syracuse, N.Y., combines service and innovation to spell success
By Andy Carlo
The story would make a great folk tale if it weren't already true: An unknown contractor came to Erie Materials one Friday and asked it to deliver $25 worth of materials right away so he could complete a job at 4 p.m. that day. The contractor's regular dealer–perhaps because it was out of stock, perhaps because it didn't see the value–had told the guy it couldn't deliver the goods until Monday.
But Erie came through that day. The following Monday, the contractor returned–with $12,000 worth of business.
"We do things other people can't do or won't do," says Bob Neumann, owner of Erie Materials. That attitude has helped Neumann grow the Syracuse, N.Y.-based operation from a half-million-dollar-a-year business since its founding 35 years ago in what essentially was a garage into a nine-unit dealer that was on target to rack up sales of $175 million in 2008.
In a period that has seen the market swing from slow to lethal, Erie's 2007 sales were up 7% from the previous year, and as of November, it was on track to rise another 8% to 10% in 2008. Not bad for a dealer primarily operating in central and upstate New York and eastern Pennsylvania, not the most bustling of housing markets.
With such a track record of solid growth, continual expansion, and giving back to its employees and the community, Erie Materials has earned the title of ProSales Dealer of the Year.
Erie merits attention for several reasons. Since 1973, when its profit totaled just $1,152, the company has finished in the black every year. Unlike other large dealers, it hasn't closed any outlets or had to lay off any workers (although it has let its total payroll shrink by not filling open jobs). Erie has told its employees that, over the next couple of years, times might be tough but the focus remains selling and operating in a business-as-usual mode.
"Our competition is making decisions that continue to provide us with opportunities," says executive vice president Chris Neumann, Bob's son, who oversees much of Erie's day-to-day operations. "We feel we are gaining market share in all product categories."
Perhaps the most notable difference between Erie and other dealers involves a decision that Erie made years ago: It doesn't sell sticks. It's a sign that a pro dealer can set benchmarks with minimal to no touching of commodities.
