The Gustave A. Larson Company corporate offices and
distribution center in Pewaukee, Wisconsin.
Gustave A. Larson Company
The New Face Of Distribution
By Leah Carson, Successful Builder Magazine
Imagine that there’s a business whose sole function is
to make your business as successful as possible. No, it’s not an impossible
dream. The reality is right here, right now, in the form of the Gustave A. Larson Company.
Although lately it’s become fashionable for companies to claim that customer
service is a priority, Larson truly ‘walks the walk.’ As the premier Heating,
Ventilation, and Air Conditioning (HVAC) wholesaler in the Midwest, Larson not only offers
the expected -- a broad selection of the finest products available from leading
manufacturers -- but goes far beyond to help its customers succeed.
"Our basic philosophy is that we don’t sell anything; our customers do,"
explains company president Andrew G. Larson. "Our sole purpose is to support their
efforts to improve efficiency, profitability and competitiveness."
The HVAC contractor’s selection of the Gustave A. Larson Company as a strategic
partner is significant not only to the contractor but also to the builders and homeowners
they serve, says Larson. That strategic partner must have a long-term commitment to the
industry and must make the investments necessary to help the HVAC contractor operate in a
cost-effective manner.
The Gustave A. Larson Company is ‘the silent
force’ behind the move to provide good value to the consumer and builder by focusing
on technology and removing excess costs. Larson is committed to ‘supply chain
integration,’ which simply means streamlining the flow of goods from manufacturer to
the end user. The company is taking the necessary steps to bring HVAC products and systems
to the marketplace with maximum efficiency. This, in turn, provides the builder and
homeowner with the best possible value.
With 24 branches serving nine state, Larson maintains over $25
million in inventory to serve its customers. This means a reliable source of supply, and
assures their customers that product is available when and where it's needed.
Certainly, the values held by the company since its
founding in 1936 -- professionalism, progressiveness, and personal service -- are still
the bedrock of this organization. But the application of these values has adapted to meet
the swiftly changing needs of the construction industry.
Great changes have occurred in the past year alone. Everything the Gustave A. Larson
Company embodied before -- including local branches, local inventory, and knowledgeable
counter people who provide effective problem solving -- becomes especially significant in
this era of change.
The challenges facing the new-construction market at the
start of the millennium "are on a grander scale," says Gregg Turley, vice
president of sales and marketing. "We are seeing distribution channels change
dramatically. Manufacturers are consolidating and gaining greater power. Distributors are
getting larger as well. Contractors are growing.
"But most of all, builders are discovering that it’s vital to be efficient
and to have a competitive advantage. They’re facing intense competition and pricing
issues. Our programs help builders and HVAC contractors compete more effectively, allowing
them to offer a better home at the same price."
There is a trend toward consolidation at all levels - manufacturer, distributor and
contractor. The benefit of this trend is that these entities can provide services and
products at a lower cost. Larson is a member of Key Wholesaler Group Association; a
nationwide organization of 13 wholesalers with 102 locations, which combines and leverages
their purchasing power. As a result, Larson is better able to cost-effectively deliver
products and services to their customers. That leads to maximum value for homebuyers, who
receive more and better features for the same price.
With the recent acquisition of the Service Parts Company in Chicago, Larson now has 24
branch locations – serving nine states -- and maintains over $25 million in
inventory. Every branch receives a re-supply of products and parts each night from the
main distribution center. Their branches can also transfer inventory back and forth to
serve specific customer needs in the most timely way possible.
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Larson's self-service branches display an extensive array of
products easily accessible to their customers. With the variety of markets Larson serves,
they are likely to have 'hard-to-find' items in stock.
Larson's unique 'team' concept assigns a network of
professionals to every customer. Each person in the team has a specific role that assures
their customers the highest level of knowledge and service in the industry.
Larson's knowledgeable counter consultants are readily
availble to anwer questions and recommend the right solution to any problem.
Every Gustave A. Larson branch receives a re-supply of
products and parts each night from their main distribution center. The branches can also
transfer inventory back and forth to serve specific customer needs in the most timely way
possible.
Larson works diligently to remove unnecassary costs and
inefficiencies from the distribution channel. They bar code all products which allows them
to measure processes for maximum productivity and efficiency.
Many of Larson branches contain learning centers that offer
educational programs, and even satellite-broadcast meetings. This commitment to education
exemplifies Larson's effort to help their customers be more knowledgeable and better
business people. |
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What does this mean to Larson’s customers -- HVAC contractors and builders? It
puts $25 million worth of inventory at their disposal that is available where they
need it and when they need it. Since there’s a more reliable source of supply,
procurement costs go down. What’s more – given the wide variety of markets that
Larson serves, they are likely to have ‘hard-to-find’ items in stock. This
one-stop supply concept lets the contractor operate more efficiently, holds down costs,
and utilizes skilled labor more effectively.
And it’s not just the one-stop shopping that increases
efficiency. The products they distribute enable greater efficiency, too. For instance,
Larson offers Trac Pipe, a new flexible gas line that greatly reduces the labor involved
in delivering natural gas to gas-operated appliances. Another example is Sky Pak – a
through the wall heating and cooling system that can be installed with significantly less
labor than conventional split systems. Cutting installation time lets contractors make
better use of their labor force.
It’s no secret that a shortage of skilled, well-educated
workers is the greatest challenge facing the building industry today, and that trend holds
true in the HVAC sector as well. Contractors and builders who apply their labor forces in
the most cost-effective and profitable manner will thrive.
The Gustave A. Larson Company has taken on the responsibility of helping contractors
over this hurdle. "We’re helping them use their human assets more
effectively," Andrew Larson says.
Larson has made a considerable investment toward helping their contractors by
establishing professionally staffed counter services at all of their branches. Andrew
Larson notes, "We’re serious about providing quick service, knowledgeable
people, and solutions for any product application or problem our customers may have."
The company recognizes that time is a precious commodity. "Where they are making
money and helping their customers is on the jobsite," Larson says, "so they want
to get back there as fast as possible. We help them do that." Innovative ways of
making this happen include a drive-through loading area at some locations; call-ahead
service; guaranteed 10-minute ‘in-and-out’ service; and emergency delivery that
brings parts to the jobsite within an hour.
Larson also focuses on builders and helps them maximize
profit opportunities. One prime example is the company’s exclusive builder program.
It’s built on the premise that builders who sell comfort are offering more value to
homeowners, and will distinguish themselves from their competitors. HVAC contractors
enrolled in the program learn to work with builders and utilize selection showrooms that
share information with the homeowner. It’s been found that when homeowners learn the
benefits of new technology (ultra-violet air purifiers, fresh air ventilation, zoning,
etc.), they become eager buyers.
Timing is important in the homeowner’s decision process. The decision to include
HVAC advancements should be made before closing so that costs can be included in the
mortgage application – spreading the cost over the life of the mortgage. Larson also
helps relieve concerns that HVAC improvements will push the costs out of the
customer’s reach, by demonstrating that cost efficiencies resulting from energy
savings will actually save the homeowner money in the long run.
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The
Gustave A. Larson Company offers many programs to make their contractors better business
people, better managers, and better able to share with the builder and homeowner the
latest in product advancements and benefits of indoor air comfort.
Many of Larson’s branches include learning
centers. Contractors and their employees attend service seminars for the products they
sell and install. They also have educational programs and satellite-broadcast meetings
available to them on a variety of subjects. Larson also employs service advisors
who are technical experts and can help right on the jobsite, offering solutions to
problems that crop up unexpectedly.
Larson provides their contractors with a special training seminar opportunity -- called
‘Boot Camp’ -- conducted by nationally known authority, Steve Howard. This
seminar helps HVAC contractors learn how to sell high-efficiency air comfort systems and
convey their benefits to builders and homeowners.
Another program Larson makes available focuses on helping contractors run their
businesses more profitably. During these sessions, a consultant helps contractors
understand a wide range of small-business issues including -- cash flow and cash
management; how to sell and market products and services; and how to efficiently manage
and run their internal operations. The course is specifically geared to the HVAC industry
to help contractors become better strategic partners with the builders they service.
Larson is in the forefront of full utilization of
computers, the Internet and e-commerce. Their website –www.galarson.com
– was recently judged best HVAC distributor web page by a
national marketing research organization. But, that’s just the beginning of their
commitment to efficiency through electronic tools.
All Larson sales consultants are linked to Larson’s mainframe computer via laptop
computers and have immediate, real-time access – 24 hours a day - to inventory,
complete product pricing, and other information that customers often need on the spot.
This allows for quick access to important information when the customer needs it.
Larson also bar codes all products. This enables them to measure a wide range of
processes, which produces the necessary information to remove inefficiencies from the
distribution channel. Larson also works with its suppliers through an Electronic Data
Interchange (EDI) program, providing sales data to manufacturers to aid just-in-time
inventory initiatives. Ultimately, this procedure lowers costs to builders and homeowners
while maintaining high service levels.
Larson has developed a unique ‘team’ concept to
provide their customers with the ultimate in service.
There is a well-established network within the company in which each support person
plays a specific role. Contractors have an outside sales consultant who calls on
them, but they also have an inside account representative which they can phone at
any time who works closely with the outside salespeople. There is also a market leader
who is available to each customer, who represents a further source of product knowledge
and information.
"Our ‘team’ of experienced professionals are there specifically to serve
our customers," Gregg Turley points out. "They answer questions, provide pricing
information, and follow up on anything the contractor needs. It’s an extremely high
level of knowledge and service throughout the team that improves the efficiency of
communication."
Even smaller objectives like literature availability and warranty service are
addressed. Contractors really appreciate Larson’s ‘on-the-spot’ warranty
service that provides for immediate replacement and credit when a customer brings in a
malfunctioning part. The company maintains a full-time literature staff so customers can
order literature just as they order products. Larson has found that quick access to
literature is important because it is a selling tool used by contractors to show and
explain what’s being provided.
What more is there to say? Actually a great deal, but
it’s probably best that you find out the rest for yourself. Time is the currency of
the new millennium, and Gustave A. Larson is dedicated to providing the services necessary
for you to compete more effectively.
It’s all part of what you can expect from a company whose aim is to become your
partner in success.
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