Published August 2002
At
Randy’s, ‘real value
is in the people’
By
John Wolcott
SCBJ Editor
After
Sept. 11, an Everett business — Randy’s Ring & Pinion — responded to the
tragedy by rallying its stunned employees to work even harder to show
their resolve to resist giving in to the terrorist attacks on the nation’s
economy.
“Everyone was really
feeling hurt. But we doubled our marketing efforts and maintained a positive
attitude in the workplace,” said Paul Carey, the firm’s marketing manager.
“That made the difference. We saw a real drop in sales after that event,
but within two months we’d passed our earlier sales volume.”
It helped that founder
and President Randy Lyman already ran his business with a positive, motivated,
competitive attitude, so creating that same response to the attacks seemed
natural for this fast-growing company.
For years that same
positive sales and customer-service attitude has helped the business carve
out a significant national niche in the differential market. Since it
was started in 1982 in California, Randy’s has become one of the most
successful sales firms for rear-end, ring-and-pinion gear sets that are
essential for keeping trucks, buses, cars and other motor vehicles operating.
“It’s not well known
outside of the industry, but these differential gears are very precise
pieces of equipment that not everyone can repair or work with. Some mechanics
might not replace or re-build one in several years. Our retail shop people
work on many of them every day, so they’ve become experienced specialists,”
Carey said.
Along with its Everett
retail shop, Randy’s has such business clients as the cities of Everett,
Seattle and Tacoma, vehicle fleets such as Gai’s Bakery and Frito-Lay
and more than 3,000 auto repair shops, plus owners of custom cars and
racing vehicles.
But it’s not just
stocking and shipping thousands of differentials, axles, positractions
and tools that makes Randy’s successful, it’s the customer service and
motivated sales force, Carey said.
“We use state-of-the-art
computer systems for tracking and shipping, with 25,000 active customers
in the database compared to only 12,000 in 2000, but the real value is
in the people,” he said.
Randy’s takes an
unusual approach to motivating its sales staff, he said.
“We handle about
1,000 calls a day, double a year ago. We have motivated sales people who
make customer service a priority. We promote competition among the sales
crew, but customers still come first. Along with individual commissions,
we also have group commissions, so related sales people will help keep
commissions up for one of their group who spends a lot of time helping
a customer with a special problem,” Carey said.
A
history of growth
Randy’s Ring
& Pinion in Everett has seen significant growth in the past six
years, according to Marketing Director Paul Carey, expanding from
gross sales of $1.4 million in 1996 to $6.5 million in 1999 and
$12.3 million last year.
With sales boosted
by increased marketing and the opening of a 15,000-square-foot distribution
center in Nashville, Tenn., last October for Midwestern and East
Coast markets, Randy’s is anticipating $20 million in sales by the
end of this year.
Six years ago,
the business had five employees working in a 15,000-square-foot
facility on Airport Road in Everett, after its move from Redmond
in 1995. This fall, the firm will move its 50 employees and tens
of thousands of parts a half-mile further north on Airport Road
to the former JanSport building it purchased recently.
The business
expects to use about 50,000 square feet of the 70,000-square-foot
headquarters, subleasing the rest until it needs the space for more
expansion.
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The company also
pays commissions to its shipping department employees to eliminate the
kind of dissatisfaction that often exists between sales and shipping staffs.
“We know that our
commissions enable our shipper to increase their pay, so they are really
motivated to get the shipments out that the sales staff has promised,
so everyone works together for the customers’ interests,” Carey said.
Those attitudes come from the top management, he said,
including Lyman; Jeff Wilson, vice president of operations; and General
Manager Mark Weedin.
“What also keeps our people motivated is monthly outings
for bowling, racing go-carts or picnics with their families. Next Memorial
Day, half of the employees are already planning on a camping outing together,”
Carey said.
With sales increasing about 40 percent annually in recent
years, Lyman wants to maintain a 30 to 40 percent growth rate. As for
expanding, he’s interested in creating a network of franchised service
shops nationally.
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