Planting the Flag
Kaye says American Lumber can fulfill small orders because of a computer system it developed. The system splits up all the orders that need to be fulfilled at any given time by what supplies are needed. This means that for each set of orders, workers only need to take out and put back a particular building material once. The system also slashes the number of forklift trips to carry shipping palettes between American’s storage area and its packing and shipping area.
American Lumber introduced the first version of its computer system in 1988, and has been tinkering with it ever since. “This was an area in which we were very competent, and the need was underserved by our competition,” Kaye says. “This is where we would plant our flag.”
Before potential customers saw American Lumber’s ads or received the direct mail postcards, the company reinforced and strengthened this core competency. The sales team held a workshop on welcoming and pricing small orders. Salespeople began to emphasize American’s ability to ship orders that mix items and consult with customers about what buying patterns make the most sense for them.
Potential customers noticed the ads, according to a readership survey conducted by Baxter Research Center. In the April issue of one publication, 46% of readers remembered beginning to read the ad, compared to a 32% average for all other ads, according to the survey. And since the campaign started in the fall of 2009, the number of small orders processed by American Lumber has increased by 20%.
Kaye says the magazine advertisements also subtly focus on another fundamental strength of American Lumber: The ads “remind customers that they love wood. … Because we know wood, we’re better equipped to evaluate and sell products which simulate or substitute for wood.”
