Strength in Numbers
Centaur Enterprises, a general-line construction distributor in Nebraska, boasts two strong allies in its ongoing growth: Sphere 1 and STAFDA
By Kimberly Griffiths, Associate Editor -- Industrial Distribution, 10/1/2005
When asked what his first thought was when it was announced that his company, Centaur Enterprises, was named 2004 Member of the Year by Sphere 1, company president and CEO Wayne Garrett takes a breath and relives the moment.
"I didn't know it was going to happen, and I was dumbfounded," he says. "Any time you are acknowledged by your peers is flattering, and I was humbled and honored by the recognition."
Garrett and Centaur, headquartered in Grand Island, Neb., joined Sphere 1, a nationwide cooperative of independent tool and fastener distributors, in March 2003. Centaur was recognized as Member of the Year for buying more products from the group's vendors than any other member. According to Garrett's information, the contest was a close one between Centaur and nine other companies.
"We support our Sphere 1 vendors whenever possible," says Garrett. "More than half of my top 10 vendors are Sphere 1, and working with them has produced greater returns for everyone—our customers, our vendors and ourselves.
"I shopped a lot of groups," he says. "There are two kinds out there: those that enhance the power of their 'A' buyers, and those that help you be effective in a broad market. Sphere 1 is one of the first types, and we thought it would be better to focus on our own 'meat and potatoes.'
"I look back now and kick myself though, for not joining earlier. It's the best and greatest thing we did," he says.
Anything but "typical"Centaur Enterprises started off, in 1982, as an automotive aftermarket distributorship in Grand Island, a partnership enterprise between Garrett's father, Wesley, and the company he had worked for, Centaur Sales & Service based in Omaha. Wesley bought out the partners a year later, maintaining sole ownership.
Garrett and his two brothers, Don and Jim, who own a minority share of the company, bought the distributorship from their father in 1993.
Because of the company's inventory of fasteners, Centaur joined the Specialty Tools & Fasteners Distributors Assn.
"We were a small nut-and-bolt house in addition to our other products," says Garrett. "But we went to the STAFDA meetings and recognized that STAFDA distributors tended to have more core construction products.
"There were no real STAFDA-type distributors in our area, so we started to pull in more of those products," he says.
The automotive products, says
Garrett, didn't lend themselves to the future he saw for the company, so he replaced them with construction products.
"Construction, as a market, is still growing," adds Garrett.
Centaur's product line now consists of power tools, abrasives, fasteners and hand tools. As a general-line distributor, Centaur is now, as Garrett describes, a "typical STAFDA house."
They just get itKevin Kennedy is regional sales manager for Newell Rubbermaid, a company that represents five different suppliers within the construction industry, including Irwin Industrial Tools and Lenox. The company also is a Sphere 1 supplier. Kennedy works with Centaur in conjunction with the Irwin and Lenox product lines.
"Centaur is a key distributor in the area," says Kennedy, "and has been since they joined Sphere 1 in June last year. It's a great partnership, with Centaur supporting new products and getting behind the products' marketing."
On the subject of the marketing, Kennedy says, "Centaur is one of those members that just gets it. They understand that walk-in traffic drives business, so help by setting out our promotional materials, and partner with us across the board."
One particular instance of promotional partnership had Centaur calling Kennedy about a Travel Channel television show, and the show's project of turning a truck into a rocket-powered hybrid vehicle.
"Centaur called on us to be their promotional supplier for the show, and we were excited to take part in it," says Kennedy. "I mean, they used our product to mount a rocket on a truck. We gave them some product for the show, and in return, we got that exposure."
Going above and beyondCentaur's customers consist of three groups: construction, which includes heating, HVAC, plumbing, electrical and general supplies; industrial, which is mainly MRO supplies; and OEM businesses, which buy the fasteners.
Jay Hehnke is vice president of Jerry's Sheetmetal, an HVAC shop in Grand Island. The two companies have worked together since 1990, Hehnke says.
"We originally were going to one of their competitors for products, but every time we needed something special, and the usual shop didn't have it, Centaur did," he states. "Every time, they seemed to have what we wanted. Obviously, soon after, we switched to working with them as our first choice."
The relationship between Centaur and Jerry's has remained strong throughout the years, with Centaur continuing to provide the shop with specialty items and products delivered in a timely manner.
"They're a good, solid company to work with," says Hehnke. "They treat us right, and do what we need of them."
Jeremy Hochreiter, job superintendent at O'Hara Plumbing, a mechanical contracting company in Grand Island, agrees.
"They take very good care of us," he says. "We buy fasteners, tools and anchors from them, and if there's something we need that they don't have, they get it—and most times, will deliver it to the job site."
Hochreiter mentions the shift in product and inventory Centaur put into effect—from automotive to construction—and how it has helped a lot of businesses in the area.
"They've grown and brought in different products to suit the needs of their customers," he adds. "That, and their excellent customer service, will make it easy for us to continue to work with them."
"We've always done great service," says Garrett, when explaining his company philosophy. "We want to take care of them. You know, there are three types of service: good, bad and excellent. Customers don't recognize 'good' service, as it's what they expect, but they do take note of the 'excellent' and the 'bad.' Obviously, we go above and beyond to be noticed for our excellent service."
Blocking and tacklingWith service as one of the company's strong points, Centaur can focus on continuing its success in the world of distribution.
"The construction market is good and solid," says Garrett. "As always, there is some uncertainty, but it is improving. Within the industrial market, there is more of the conservative nature on display, but that is still solid and steady."
Garrett lists margin erosion as one of the continued battles of most distributors.
"It all goes back to training and proving your value to the customer," he says. "It's really just blocking and tackling and being consistent. At the end of the day, the customer wants what they want, when they want it. They just want to get the job done."
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