It was late 2019 and I wasn't sure if I could compete with a couple larger fence companies in town. These bigger companies were already selling fence materials at a lower cost. I was on a mission to set up my retail/wholesale division with an idea that there was still room for someone who was able to provide faster service with staff that would be able to help customers figure out what they needed and I felt we could do it better.
I believed price was not the main deciding factor when purchasing fence materials. So, I pulled the trigger on leasing the building in front of my existing fence company and started transforming it into a retail and wholesale store.
3 MONTHS LATER
BAM!! 2020, and the pandemic hit. Nevada went on lockdown with the rest of the country. While the installation side was able to stay open, we had some projects go on hold and only residential work trickled in. About 60% of my staff stayed home and collected unemployment, so cash flow was just not there from the installation side to support the existing staff and new overhead.
HOORAY FOR RETAIL SALES!
To my surprise, people started spending more than usual on DIY fence projects.
With the newly set up inventory, POS system and all the fence material marketing already in place, we were ready for the rush of material sales. 2020 turned out to be the most profitable year we have ever seen.
Fast forward to 2022, material sales have grown to not just local DIY customers, but at times we ship truck loads to other states directly from manufacturers.
Material sales currently covers most of our businesses overhead and that takes a lot of pressure off the installation side. Best decision ever!
-Brian T. Frederiksen
Fence Workers Association.png)
.png){kind=logo}
