Everything is done with a certain flair at the Mississauga, Ontario, location of KBC Tools. CEO Paula Bass refers to it as her Canadian headquarters.

"KBC sells on both sides of the U.S.-Canadian border," says Bass. "We value all of our customers but we have made a special commitment to Canada."

The new 50,000 sq. ft. Mississauga warehouse consolidated the operations of three Toronto-area locations, creating the opportunity for increased efficiency in the warehouse as well as the business functions.

It also combines Bass' artistic background with her affinity for business. Bass has a degree in art as well as an MBA in marketing and finance. Prior to joining KBC, she spent five years working at a large Chicago arts center. She designed the warehouse building as she would a work of art.

"We incorporated many details into the warehouse," says Bass. "Wider aisles allow for ease of movement — especially with pallets. It also allows space for growth."

Some of the features include white ceilings, which makes the area brighter while reducing lighting expenses, warehousing based on a serpentine picking system, and areas for fabrications and wiring machines to Canadian standards. To save on costs and to recycle, KBC shreds the vast amounts of waste paper to reuse as packing material.

The new building allowed Bass to unleash her creativity in the showroom, as well. She says showrooms are important for KBC because nearly 15 percent of its sales are over the counter.

"People like to come in and look around," says Bass. "It gives customers the opportunity to be hands-on. With some things — like precision instruments — it's important to get the feel of it."

There are point-of-purchase displays, comfortable places to sit and flip through the catalog, and large machine tools on display. The room has a stylish color scheme and a classy restored 1953 Ford pick-up. The walls are adorned with supplier graphics and cartoon bubble captions. She says it is important to incorporate comfort and a sense of style into the showroom.

"The point of the showroom is not necessarily to sell from the location, but rather to give a sense of who we are," says Bass. "It is a sales prop. It gives customers a chance to come in and 'kick the tires' or space and time to sit down and think."

Branches form an important point of contact for KBC because the showroom is where relationships are formed, says Bass.

KBC is a catalog house. It does not employ any outside sales staff. This may seem unconventional in an industry where distributors focus on the value added by outside sales staff, but Bass emphasizes that she is still in a service business.

Bass says the 160 KBC employees are well trained in technical and product knowledge and customer service. The company has a high rate of order fulfillment and low prices, she adds.

"It means better service for the customer," says Bass. "They don't have to wait for an outside sales rep."

Customers call when they have a question and the staff answers it, says Bass. If they place an order, the goods are there the next day. She says this business model is a convenient, efficient and expedient way to do business.

"Customers have called wondering if KBC values their business because we never send salespeople," says Bass. "We explain that we are strictly a catalog house and we focus on providing service, saving them money and letting them do their job."

KBC has experimented with outside sales, adds Bass. She found that outside salespeople are expensive and for KBC, it actually reduced branch profitability.

"Some outside salespeople are great customer resources," says Bass. "I think most distributorships with great outside sales staff had founders that were great outside salespeople. If you've never done it, you may not be great at managing it."

KBC has also tried to work with independent reps, but could not find the right relationship, says Bass. So it sticks to what it knows best.

Magnetic Radiation Labs of Itasca, Ill. is located near a KBC branch. Purchasing manager Tony Renelli says the precision machining company has built a strong relationship with KBC.

"Unlike many catalogs, KBC is willing to stock what we need," says Renelli. "If we need something immediately, we can go and get it."

Can a catalog house compete with the service offered by full service distributors? Renelli says there are easily 15 or 20 distributors from whom he could purchase the same items, but he says he enjoys the relationship with KBC.

"[The KBC staff] has a strong machining background and can provide technical information, which is especially important on non-standard items," says Renelli. "They go out of their way to help us."

KBC invests in its people, says Bass. The company provides customized training that allows employees to develop interests and individual expertise.

"We use video training, manufacturer-sponsored training and the product training manuals produced by the Industrial Distribution Assn.," says Bass. "We also have team meetings where we discuss what to promote and how to sell certain products."

At KBC, there is an atmosphere of friendliness and equality. The managers often work alongside the staff and she, herself, often answers the phones or lends a hand in the warehouse, says Bass.

Many KBC employees have extensive backgrounds. Others have no tooling training prior to joining KBC but were hired because of great customer service skills and a willingness to learn, adds Bass.

"We have a tremendous amount of respect for the knowledge and skill of our customers," says Bass. "I will never have as much product knowledge as the person on the other end of the line."

Time is very important to customers because every moment costs them money, says Bass. Through the right products and service, she says KBC speeds their processes.

"Our customers are artisans of the art of tool and die," says Bass. "We are selling the ability for them to continue in the most expedient way."

Most distributors concentrate their efforts on larger accounts and focus on larger industrial areas, says Bass. Catalog houses can service out of the way places and customers too small for other distributors, she adds.

"We have some large accounts but our main focus is the small to medium customer," says Bass. "We have many shops that have only 20 to 50 employees."

She says it helps her smaller customers that the price is listed in the catalog. The price is the same for accounts of all sizes.

For the Neilsville, Wisc., location of exhaust system manufacturer Fleetguard Nelson, there are few local options. Maintenance clerk Paul Mohr says the company relies heavily on mail order.

"They are pleasant to work with and reliably get us what we need," says Mohr. "That is important for us so we order a lot from them."

For Arnprior, Ontario-based Nu-Tech Precision Metals, reliable delivery is also important, says purchasing agent Debbie Raymond. The variety of over 100,000 catalog items is a big factor in her daily purchases from KBC, she says.

"We deal with other suppliers, but we have always dealt with KBC," says Raymond. "The guys on the tool floor have a tool allowance, so they all want to see the flyers. It gives them a chance to upgrade their tools."

Bass says targeting the marketing materials to the audience and reaching out through multiple channels is important. KBC is aggressive with targeted mailings and manufacturer marketing programs, she says.

"From local hobbyists and small manufacturers spending $500 a year, to large accounts, we send regular flyers," says Bass. "We also maintain two catalogs and two Web sites — with U.S. and Canadian prices."

The marketing efforts are a natural outlet for her artistic abilities. It is also where some of her bold, outspoken manner comes to the forefront.

"I'm not afraid to speak up," says Bass. "When one of our major competitors was giving out donuts, I started a campaign saying we deliver deals, not donuts."

The same competitor recently advertised its "newly aggressive pricing." She says this left her wondering what kind of deal it offered before.

Although KBC competes with some of the large distributors and other catalog houses, it sells to many of its competitors, from national houses to small local distributors.

"We don't want to own the world," says Bass. "We want to be large enough to offer good deals on quality tools and machinery while making a profit, yet small enough to be intimate."

Being a smaller catalog business allows KBC more flexibility in its relationships, says Amtek Tool & Supply president Jim Blankenship. He says his Detroit-based distributorship has a valued relationship with a master distributor, but for some things it is easier to go through a catalog house.

"KBC is not as sterile as other mail order businesses. They take a personal interest in my business," says Blankenship. "They are less structured in a good way, which makes it a pleasure to do business with them."

Tool Time president Harel Rapaport says he welcomes competition. The small distributorship operates in the Toronto area.

"KBC complements our efforts while keeping us on our toes," says Rapaport. "As a catalog house, they don't go directly against what we are doing."

Tool Time is close enough to KBC to go there several times per day when necessary. KBC also has long-distance relationships with distributors, says president Jim Digiglio of Montreal-based Norvik Tooling.

"We have an excellent relationship similar to those we have with suppliers," says Digiglio. "They know how we do business and work with us to make the sale."

He says dealing with KBC is valuable because it gives Norvik access to many product lines and he knows the company will deliver its promises.

KBC supports the products and marketing efforts of its vendors through its flyers and in-store promotions, says L.S. Starrett Co. sales coordinator Mac Christie.

"Anytime [Bass] is involved with our promotions, she adds her creativity and sense of fun to it," says Christie.

It is important to manufacturers that distributors possess the product expertise. Christie says KBC insists on a high level of employee training.

Niagara Cutter national sales manager Joe Sarkees says the company is committed to the small distributor but also values companies like KBC.

"Though distributors are our core, the channel has evolved," says Sarkees. "Large nationals and catalog houses have a role and KBC does its job well."

Sarkees appreciates how aggressively Bass promotes products. He says Bass came to him for advice on how to get the most out of trade shows for KBC and its vendors.

"[Bass] never hesitates to ask questions," says Sarkees. "She also listens and is willing to accept advice from people who have experience."

That outgoing attitude has also made Bass a well-known individual within I.D.A. Though it may seem strange for a catalog house to be a part of I.D.A., she says membership is essential.

"It's an opportunity to network, make contacts and take classes," says Bass. "I.D.A. meetings are a chance to evaluate key product lines and get a sense of the industry."

Bass says when she first took over the business from her father in 1993, she was concerned about the image she presented as a woman business owner.

"I am following my father's legacy," says Bass. "But I didn't want the image that I was just running my dad's business."

The management team helped her to step into her role. Bass' outgoing personality and individual style, combined with her business sense, soon dispelled any concerns.

Executive vice president John Earles built the business with her father, says Bass. She and Earles collaborate and divide the responsibilities of operating KBC, she says.

"This allows me to concentrate on the Canadian business," adds Bass.

KBC has been in Canada since 1989 and began by brokering inventory across the border. She says the Canadian headquarters in Mississauga is the realization of her father's last project in the business.

"Canada now accounts for a healthy percentage of KBC's sales and we expect it to continue to grow," says Bass.