TOTO, Villeroy & Boch announce sales alliance - The Wholesaler

92 Pages·2012·14.93 MB·English

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Find us on Facebook & Twitter JUNE 2012
twitter.com/wholesalermag
VOL 67, NO. 6
facebook.com/WholesalerMag
News of Plumbing • Heating • Cooling • Industrial Piping Distribution
Tyco acquires
n
o Shurjoint
i
t
Piping
u
b
Products
i
r
t
s
i LaNSdaLE, Pa. — Tyco has ac-
D quired Shurjoint Piping Products, a
leading oEM manufacturer for

r grooved and threaded piping com-
e ponents. Shurjoint will be inte-
grated into Tyco’s Fire Protection
t
s Products business unit. Financial
a terms were not announced.
(Turn to OEM Shurjoint... page 81.)
M
Irr Supply
Centers buys
Inland Supply
NorTh ToNawaNda, N.Y. — Irr
Supply Centers Inc., a regional dis-
tributor of plumbing, heating, cool-
ing, refrigeration and electrical
supplies, has acquired the assets of
Inland Supply, which has one loca-
tion in Syracuse, N.Y., servicing the
Standard Plumbing Supply has thrived thanks to a history of innovation. Shown here is their advanced
supplies and equipment needs of
sorting system, which plays a key role in the company’s efficiency. As president Richard Reese describes,
contractors, institutional, industrial
‘We have a DC that follows the WalMart platform on inventory. We don’t put it on the shelf and pull it
and municipal accounts.
again... We sort product the minute it comes in and send it right back out.’ (See more on page 32.) (Turn to Inland, page 81.)
An exciting new package of products
TOTO, Villeroy & Boch announce sales alliance
Morrow, Ga. — Under the terms of a new american market will be sold exclusively tubs, showers, accessories, vanities and
alliance, all Villeroy & Boch USa bath- through the distribution and sales channels bathroom furniture.
room products available in the North of ToTo USa. This will include a com- By combining ToTo USa’s innovative
plete range of products technology and Villeroy & Boch USa’s
such as toilets, decorative sleek European style, this alliance offers
lavatories and washbasins, North american consumers, architects,
designers, distributors and premium
Scan with your
kitchen and bath showrooms an exciting
smart phone or
visit online at new package of products from which to
qr.qg.com/9W7iRR
choose when designing or remodeling
to renew your
subscription to high-end bathrooms.
The Wholesaler!
(Turn to Sales alliance... page 81.)
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I N
NDUSTRY EWS
4
• •THE WHOLESALER® —JUNE 2012
Danze repositions its branding
wooDrIDGe, ILL.— Danze Inc., the creator of styl- “and they’ll keep searching until they find
ish and affordable kitchen and bath solutions, is ini- exactly what they want.”
tiating a new repositioning of its brand within the to help deepen their understanding of
plumbing products category — “Delight people consumer marketing as they began a vigor-
every day with refreshing experiences and well-de- ous brand refinement process, the Danze brand management at Danze. “we also love how in
signed products.” this redefined customer commit- marketing team partnered with consumer marketing both style and messaging it reinforces our differ-
ment represents not only why Danze first opened professionals at Chicago-based firm Y&r Midwest ence from others in the plumbing products category.
its doors back in 2001, but how its products directly (owned by Young & rubicam). the language we use to describe ourselves and vi-
impact the lives and homes of today’s americans. “Danze is a wonderful brand with a huge oppor- sual elements of the new logo and identity hope-
Long known for its combination of fresh styles, tunity to bring style and functionality and a real fully demonstrate our commitment to deliver
finely crafted products and affordable price points, smile into the homes of millions, we are thrilled to refreshing experiences at every turn, in a playful
Danze was impacted (like many other kitchen and help them get there,” said Kary McIlwain, president and inspiring way.”
bath manufacturers) by the challenges of the hous- of Y&r Midwest.
Personality brought to life — anatomy of the logo
ing crash. after a series of strategic brainstorming sessions,
“Instead of panicking, we did what any strong or- the Danze and Y&r teams consistently found Danze set out to transform its logo into a symbol
ganization would do. we stopped and listened again themselves reflecting on how, day-in and day-out, of refreshing ideas and to stand out from the com-
to what our customers were saying,” explained Danze products impact the lives of families and in- petition. Here are some of the elements that brought
“The language we use to describe dividuals on an emotional level. it to life:
this creative process led Danze to develop a new • Moving to a more contemporary font in lower
ourselves and visual elements of the new
and dynamic belief system: “we believe everything case form aligns with the Danze culture — fun and
logo and identity hopefully demonstrate our
we do helps people feel better about their homes, approachable.
commitment to deliver refreshing experiences their lives and themselves. we knew we hit on • the addition of the splash mark provides a vi-
at every turn, in a playful and inspiring way.” something that not only felt right, but would be ex- sual hook, which represents not only the brand’s in-
tremely relevant to the Danze end user,” noted dustry, but their excitement.
Michael werner, president and Ceo. Danze discov- McIlwain. after a successful introduction of the brand’s new
ered that homeowner preferences had changed and with this exciting belief system as its source of identity to the trade at this year’s Kitchen & Bath
roles had shifted with the times. “thanks to the in- inspiration, Y&r created a new logo and identity Industry show, Danze plans to jump-start a direct
formation-rich Internet, the industry wasn’t leading that would visually express who Danze is, and the relationship with homeowners this summer. the
the way any more — consumers were. today’s con- way Danze makes people feel. goal of this strategic initiative will be to help drive
sumer wants products that reflect the way they live. “our new logo and identity better capture the those homeowners to trade partners – a win-win
they want products that improve their lives. and freshness, youthfulness and relevancy of Danze,” scenario for all Danze partners.
they want it all at a better value,” werner added. according to Kevin McJoynt, vice president of Visit www.danze.com.
Fourth-generation family business Mesa has grown into one of the showroom in Mesa. “My dad and
plumbing industry’s largest inde- uncles made a name for themselves
expands with Phoenix showroom pendently owned family businesses in the 80s by introducing people to
in the southwest, with four divisions, the newest products that were ex-
including plumbing, showroom, tremely well made and at an honest
commercial and heating and air. price, which made Central arizona
“we saw an opportunity to expand supply a household name in the Val-
in an area that was previously under- ley,” said smith. “My brother and I
served, especially for people remod- want to continue that tradition. our
eling their homes,” said Jeremy new showroom is about making peo-
smith, director of studio services. ple feel comfortable, at home and
“My vision has been to bring high- excited about the thousands of op-
level design at all price points from tions and brands we offer.”
around the world to phoenix first. the studio showcases faucets, bath-
You don’t have to go to Los angeles, tubs, toilets, fixtures, hardware and
Mesa, arIZ. — Central arizona sup- 4750 N. 16th street, carries every- New York or buy online to have ac- lighting options, starting from a $50
ply marked its 10th location in ari- thing from the basics in plumbing, cess to what’s new and what’s next. Delta faucet to a $5,000 toto Neor-
zona and the expansion of its hardware and lighting to the most You can stop into our showroom to est toilet. another differentiator
fourth-generation family business unique, hard-to-find national and in- see it and try it before you buy.” unique to the traditional showroom ex-
with the opening of a 10,000-square- ternational brands on the market. In 1975, Central arizona supply perience, Central arizona supply cre-
foot showroom in phoenix offering what began as a simple parts sup- was the first company to introduce ated a Demonstration Bathroom at its
waterware, hardware and lighting. ply store founded by the brothers Bob the idea of a plumbing showroom in new location where customers can not
the studio in phoenix, located at and Harry smith 44 years ago in the Valley when it opened its first only see and touch, but also experience
new products. Customers can bathe in
the much-buzzed-about micro-silk
Ferguson acquires Reese Kitchens
technology bathtub by Jason Interna-
tional that infuses oxygen into the skin,
NewportNews, Va. — Ferguson has Gallery, a Ferguson enterprise. experience three different showers
acquired reese Kitchens Inc., a promi- three showrooms — Broadripple, with customizable features including
nent Indianapolis cabinet designer Greenwood and Zionsville — will op- “we believe that Ferguson can build scent-infused steam or try a top-of-the-
catering to the residential remodeling erate as satellite locations of Ferguson’s on the legacy of our family business,” line toto Neorest toilet with remote
market, in an asset transaction com- main showroom in the Indiana Design said David reese. “they will also be controls and warm air dryer.
pleted april 23. Ferguson will continue Center. product offering at these loca- able to offer the best opportunities to the studio is now open to the public
to conduct business from the former tions will be expanded to include our employees, so we felt it was the and also caters to plumbers, interior
reese Kitchens’ locations under the kitchen and bath plumbing products best decision we could make.” designers, builders and contractors.
name reese Kitchen, Bath & Lighting and fixtures, appliances and lighting. Visit www.ferguson.com. Visit www.centralazsupply.com.
• Be sure to visit www.thewholesaler.comfor web exclusive articles and videos!•
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I
N THIS
6
•
JUNE
I
SSUE 2012
The Front Page
Standard Plumbing Supply’s advanced
sorting system is just part of the com-
pany’s commitment to innovation that
has carried the Master Distributor
through 60 years of success. President
Richard Reese says, “We don’t put it on
the shelf and pull it again... We sort
product the minute it comes in and send
it right back out.” Story on page 32.
In the News
Danze revamps, redesigns branding...........................4
Distributors: 2012 off on the right foot.....................10
new book traces story of Flushometer toilet............16
Aqua Glass charging ahead with new technology....20
nhS founder General tools marks 90 years.............28
Master Distribution:
Standard Plumbing Supply marks 60 years
of innovative business practices...........................32
N. American Master Distributors directory.........40
nKBA career center under way................................44
K/BiS keynote address looks to a bright future.........48
Distributor flourishes with new software..................72
lead-free is the law. What you need to know............74
Photo essays: Wit; K/BiS...................................84, 86
Product review..................................................64 – 68
K/BIS Keynote Address
Michael Werner
Michael Werner, CEO/president of Globe Union
and Danze, outlines the challenges facing the in-
dustry, and how the industry can face them in a
positive way to move confidently into a future
that is all about change.................................50
Columns
RiChSChMitt: Amazon a threat or partner?............8
DAvEKAhlE: Sales power in your plans................18
tERRyBROCK: it’s a snap!.......................................24
JOhnnyMARtin: On the mend................................26
MORRiSBESChlOSS: PvF sector on the move as
U.S. becomes energy exporter............................56
iRvinGBlACKMAn: 5 no-no’s for estate plans.........60
JASOnBADER: here’s the lowdown on vMi............84
PEtERSChOR: What’s new and hot –K/BiS ’12.....76
Next Month
We present our 40th annual top 100 Wholesalers listing!
See contact information on page 90
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S M
MART ANAGEMENT
8
• •THE WHOLESALER® —JUNE 2012
Effect of Amazon Supply uncertain
Amazon – [am-uh-zon] noun changes that eviscerate the existing • The actual product delivery
players. Frankly, I wasn’t smart process would need to allow landed
1. River in Northern South Amer- enough to know how or if they would product costs for the buyer that would
ica; the largest river in the world get aggressively into our industry. I be equal to or less than a local brick
2. Fabled mythical race of female just knew that someone would. and mortar physical distribution in-
warriors of Scythia near the Black Can their strategy succeed? Time frastructure. Said another way, you
Sea; also in South America will tell. Years ago, I had a strategic build warehouses to minimize trans-
3. Mostly green parrot marketing job with a large company. portation costs associated with get-
4. Large, strong and aggressive We attempted to chart a direction for ting the hard-goods to the installer in BY RICH SCHMITT
woman our part of the company by combin- a timely manner. As delivery Management specialist
5. Large, strong and aggressive ing what we knew, what we could see processes improve, many customers’
$48B internet company; changed the on the horizon and what we could needs can be adequately served others have built significant internet
way books and other products are then imagine. We discussed business through more distant distribution cen- businesses that already skim some of
sold throughout the world; See book- strategies of the future based in tech- ters and thus there is less need for a the highest margin business off the
store: extinct, quaint vestige of an- nology and came to the conclusion local presence. (This has been at the top. I think they will probably be the
other era where books made from that many of the potential world heart of physical distribution theory first target for AmazonSupply but I
paper were once sold. changing strategies could not succeed since there was physical distribution am certain they are after a lot more
6. Recent entrant into Internet without costly, unimaginable techno- theory.) that Grainger’s business.
hard-goods market; DBA amazon- logical advances: • Transportation would need to be • Don’t give up Internet sales to
supply.com • The cost of high-speed commu- able to deliver product across great e-wholesalers without a fight —
nications would need to be essentially distances for delivery in 1 to 2 days. Some of your customers already want
F
or the last two years, I have zero. Access would need to be readily You need a webstore, if only to retain your existing
been saying that Amazon is the and pervasively available (at the of-
customers who want to order online and will switch
wild card in our industry. On fice, at home and in the car).
occasion, I have lovingly called them • The computer equipment and over to competitors who have a webstore. If your
the “deathstar.” Their strategy is to storage needed for commerce would
competitors are sleeping or bucking the trend, you might
grow through disruptive innovation. need to be widespread at essentially
In other words, they are not looking zero cost. even take some of their tech-savvy customers in the process.
for ways to adjust or tweak their tar- • The interfacing technology
get markets, they are looking for would need to be extremely conven- At the time we pretty much came to use the Internet to buy product, to
game-changing, revolutionary ient, easy-to-use and broadly avail- to the conclusion that all 6 fundamen- prepare quotes or to review informa-
able to all types of customers. tals were impossible. tion about their account. Some of
• Inconceivable concept • Broad adoption of the interfacing What a difference a couple decades them, currently or very soon, will
just 20 years ago technology would need to be in place can make. Our crystal ball didn’t see want to access this information from
• It’s all in place now prior to launching such a strategy. the Internet becoming a pervasive util- their Androids and iPhones or tablet
• Web-savvy customers (The cost of introducing such bleed- ity like electricity, water and sewer, the computers. Amazon Supply is bring-
ing edge, business altering technol- cost of storage and computers drop- ing additional focus to the concept of
• Find ways to partner
ogy would be expensive and risky for ping to a fraction of the cost nor did buying hard-goods products and sup-
• Change is constant
the early entrants into this arena. Mis- we see logistics companies who could plies on the Internet. You should not
• DEAL WITH IT! steps and problems might risk the deliver next-day or 2nd-day across the ignore this change. You must con-
company’s future.) country at reasonable costs. sider how you will address this reality
So here are my thoughts on the to defend your customer base.
topic: (Daughter Jen, our unabashed direc-
• The infrastructure is in place— tor of sales, asked that I remind read-
As I described above, if you had ers that Schmitt ProfiTools helps
asked me years ago whether their ap- wholesalers to get online or to up-
proach was viable, I would have said, grade your existing store with read-
“no.” Now, however, they are inher- able, searchable content and pictures.
iting many of the ingredients required You can complain to her about this
for this strategy to work and to be gratuitous plug at [email protected].)
fair, they have pioneered and evolved • Industry changes are being driven
some of the ingredients themselves. by sinister outside forces— Namely,
• Don’t Panic — Frankly, I don’t customers in the form of consumers
expect that there will be widespread and purchasing agents. Can you be-
panic throughout hard-goods whole- lieve it? The manufacturers and whole-
saling. Even today, our industry salers controlled everything from
moves pretty slowly in adopting new product to pricing for decades. Now
products and technologies. I don’t ex- the access to information is allowing
pect we will see the impact of this customers to assert their will to de-
new entrant for years — but I always mand and purchase what they want.
take note when a $48-billion com- Like the weather, you can adapt to it
pany makes a very dramatic leap into but you cannot change it.
our industry. • Don’t discount Amazon Supply’s
• Don’t bury your head in the sand sincerity and abilities— If you look
hoping that they will go away— The at their webstore, you can quickly
hard-goods world is changing at a see that they have invested a bunch
faster rate than ever before. There is of money in developing their site
clear direction toward the use of the and store.
internet and technology. Grainger and (Turn to Amazon is here... page 86.)
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I N
NDUSTRY EWS
10
• •THE WHOLESALER® —JUNE 2012
Hansgrohe: Distributors see
Eastern Penn honors vendors, reps
strong ’12 start
Exciting
new products, Columbus, ohio — hARDi an-
nounced North American hVAC/R
average distributor sales for march
bright outlook 2012 were up 11.5%. hARDi’s
monthly Targeted and Regional Eco-
nomic Dews for Distribution Strate-
AlphARETTA, GA. — hansgrohe gies (TRENDS)report showed growth
headed into the second quarter of the in six of seven u.s. regions; in fact,
year with positive momentum and five were in double digits.
upholding its pledge to the environ- “The annual growth rate improved
ment, its community and its employ- for the third straight month, rising
ees. it is investing in its u.s. above 3.0%,” said hARDi economist
workforce and exporting many of its Andrew Duguay. “march sales, on
American-assembled, German-engi- average, were 11.5% higher than
neered products to emerging markets march 2011, building off the 9.6%
overseas. Pictured left to right: Steve Ritsema, regional sales manager, Liberty Pumps; February gain. The activity at the dis-
Describing itself as “always mov- Gary Jones, marketing manager, EPSCO; Curt Schad, Efkay Sales; and John tributor level is also being reflected
ing forward,” hansgrohe is also Minor, Water Systems product manager. in national consumer data. Retail
launching a number of game-chang- sales (deflated ex autos) has also
ing offerings including the Comfort- WilKEsbARRE, pA. — Eastern penn- Award winner for most valuable shifted to higher growth rates in 2012
Zone concept featured in the metris sylvania supply named liberty manufacturing representative. (from 1.7% in January to 1.9% in
and Focus lines, new showerpipes, pumps of bergen, N.Y., its Affiliated All three were recognized for their march). This is a positive confirming
additions to the popular puraVida Distributor mVp (most Valuable aggressive sales efforts through train- indicator for the current hARDi dis-
collection and pressure balance trims partner) Vendor at their 2012 Field ing, contractor calls and participation tributor growth rate trend.”
with diverters in different styles and marketing summit. Also honored at in counter days, dinner meetings and Days sales outstanding (a measure
finishes. in may, hansgrohe’s de- the event were Cash-Acme/shark- EpsCo’s annual silver Dollar Days of how quickly customers pay their
signer brand, Axor, debuted its highly bite, birmingham, Ala., as the trade show. Their efforts, along with bills) crept up for the seventh time in
anticipated Axor bouroullec collec- EpsCo mVp Vendor and bob Fisch, the sales team of Eastern penn, re- eight months, increasing to over 52
tion in the u.s. Nh Yates Company, Cockeysville, sulted in sales growth with each days. Distributor productivity reflected
Russ Wheeler, president of hans- md., as the John Grothaus memorial EpsCo salesperson. by sales per employee bucked a seven-
grohe North America, commented, month decline by rebounding more
“Four months into the year we had al- than 22% from last month’s figures.
ready achieved many of our goals. successful manhattan and Atlanta- looks to garner similar results. “optimism is high as we see distrib-
business is exceeding our expecta- based product sample libraries, which With increased production at the utors stocking up more strategically for
tions, and the forecast overall looks offer local A & D the opportunity to factory due to more business abroad, strong anticipated demand this sum-
positive.” loan popular models for up to a week the hansgrohe Alpharetta-based team mer,” said hARDi executive vice
hansgrohe has hit several mile- at no cost. hansgrohe’s Facebook fan has grown in numbers. With that in president and Coo Talbot Gee. “light
stones so far in 2012, including as- base has also grown from 3,000 mind, the company has implemented commercial markets appear to be a
sembling its 100,000th ibox “likes” at the end of 2011 to close to additional employee benefits, includ- source of unexpectedly strong growth,
all-in-one rough and launching two 12,000. The recent Twitter re-launch ing resource centers, on-site classes, and the early heat has provided a nice
such as English as a second lan- jump start to the cooling season.”
OBITUARY guage and 100% tuition reimburse- “Distributors’ unitary sales are also
ment for those who are in school and starting off 2012 strong across most
Jack Guterman, retired
qualify. in addition, hansgrohe offers product groups, but with an acceler-
a scholarship program for college- ating movement to 13 sEER and R-
president of American Valve
aged junior and seniors. The com- 22 products. Recent oEm reports of
pany also continues its support of exceptional preseason order volumes
GREENsboRo, N.C. — Jack Guter- ing Corp, where he served as presi- several local charities and regularly support our forecast for a strong uni-
man, retired president of American dent for more than 30 years. After donates to national nonprofits. tary market in 2012,” concluded Gee.
Valve manufacturing Corp., died on his retirement from American Valve, Visit www.hansgrohe-usa.com. Visit www.hardinet.org
April 30 at the age of 93. he was he started his own successful con-
DDI System’s Inform
married to Fernanda K. Guterman for sulting company, which he ran until
59 years until her death in 2000. A his death.
software Version 77 released
son, steven p. Guterman, also prede- he was ex-
ceased him in 1973. tremely active in
Guterman grew up in brooklyn, the Catskill com- sANDY hooK, CoNN. — DDi sys- ing (maintain separate costs and list
N.Y., and graduated from the univer- munity, where he tem’s inform software has expanded prices by warehouse location to in-
sity of pennsylvania Wharton school lived for more its support of multi warehouse func- crease gross profits); Restricted items
of business in 1940. he then enlisted than 60 years. he tionality, gaining added tools in pric- by Customer (using certification codes,
in the Navy and went to officer’s leaves a legacy of ing and overall profitability and more identify products on hand for specific
Training school in Annapolis, md. leadership, in- ways to improve inventory efficiency customers); Consignment Warehous-
he saw action in the pacific and tegrity, commu- and expand product lines than ever ing (create and replenish consignment
achieved the rank of lieutenant nity service and before. DDi continues its tradition of warehouses for customers); Cut mate-
Jack Guterman
Commander. devotion to his innovation and exceptional value rial handling (break products into
Following World War ii, Guter- friends and fam- with this free upgrade for DDi sys- smaller component products while fac-
man moved to Catskill, N.Y., to take ily, who will miss him dearly. tem inform subscribers. toring in costs) and much more.
over management of the family busi- Donations may be made to the Nan New integrated features of Version Visit www.ddisys.com or call DDI
ness, American Valve manufactur- Guterman Foundation. 77 include: Warehouse specific pric- for a demonstration at 877/599-4334.
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