For Empire Machinery and Supply Corp. of Norfolk, Va., sales were strong throughout 2005 and continued strong as the New Year opened, according to president/CEO Henry Turner, Jr. The company's emphasis on documenting value-added services has played a major part in that accomplishment, says Turner.

"How to document cost savings and show the customers what we bring to the products we sell them," is how he describes the approach. It is one the company has been fine tuning, with positive results.

Each member of Empire's outside sales force is required to, "have at least one customer cost savings documentation report [each month] that was signed off by the customer. So at the end of the year, they'd have 12 altogether," Turner explains.

Empire has been doing this for about five years, Turner says, and the approach has proven successful.

"Each year, the cost savings rise. The guys are getting better at it," he explains. "I think at first they may have thought, 'Oh, boy. This is another piece of paperwork.' But now they see the advantages it gives them with their customer, when they show that particular customer how much they are saving."

Once this documented approach to value added was implemented, Empire began receiving consistent positive and favorable feedback from its customer base, Turner says.

"It's a win-win situation. If it's done properly, it really puts you in tight with the customer," he explains.

Empire is also a member of Affiliated Distributors, and places incentives on having its salespeople work with Affiliated's manufacturer members, Turner explains—something that has also proven beneficial.

Shipbuilding and ship repair make up an important segment of Empire Machinery's business. The company also has contracts with mechanical contractors, municipalities and general manufacturing facilities, Turner says.

One blow to business in '05 was the U.S. Navy's decision to cancel the repairs that were planned for its aircraft carrier, the USS John F. Kennedy. The repairs on the JFK were slated to be done at the Norfolk Naval Shipyard. The cancellation represented a loss of business for both Empire and the shipyard, Turner lamented.

"But everything is running on all cylinders now," Turner says. "We've become the dominant player over the years as far as general-line industrial supplies for that market."

Turner shares the usual concerns facing most distributors these days—fuel costs and steel prices, among others. But he adds his voice to those concerned about the impact of national contracts, especially where decisions are made far away from the customer base being impacted.

"My biggest concern is large national accounts not checking out their local vendors at the different locations that they have throughout the country before they make a decision on a national contract," he says. "I have seen that done several times, where corporate would say 'Well, we need to be dealing with these people, because these people promise [us] the world.' And all of a sudden, they then find out that the people they picked can't service the business in their different segments or locations throughout the country."

jnowlan@reedbusiness.com