Kass Industrial Supply Corp. With enthusiasm!

By A. D. "Butch" Horn

Commitment, strength, discipline and enthusiasm anchor the game plan for Kass Industrial Supply.

Bronx, NY--"Our business is like a football team. Our salesmen are the running backs and the structure

Ironically, he uses a football analogy in the home of the Bronx Bombers, but his point is clear. "Once you get through that line, there's no set play any more. It's up to you. You have to be committed to what you're doing; strong in what you're doing; disciplined in what you're doing; and ready to do it with enthusiasm." That basic game plan has carried Kass Industrial Supply through nearly 60 years in a dynamic, demanding market. Since starting as a neighborhood hardware store in 1950, the company has seen its customer base change drastically and has adapted its way of doing business to keep pace.

"Years ago, people would be lining up out on the sidewalk waiting to get in, because in the Bronx there was a lot of manufacturing," adds Allen Kass, co-president and co-owner. "There were sheet metal houses, cabinet makers, lamp makers, window makers and casket makers," he recalls. "Those businesses have almost all moved away or closed down -- many moving to Southern states and some replaced by offshore competition.

The changes in those businesses pushed us in new directions, too."

"A certain amount of change over the years has been a matter of timing, and our ability to react to it," Marty adds. "It wasn't related, but the big change from plaster to drywall occurred just as many of these local customers were going away, and that probably was the biggest thing to hit our business."

In 1960 the drywall screw hit the market and Kass was the first in its area to sell these revolutionary little fasteners.

An ability to be flexible and adapt to the marketplace has been a hallmark of the company, and the co-president cousins have been around for most of the ride.

"Kass went from serving plasterers to selling to a whole new business in sheetrock," Allen adds. "My father went to the manufacturer's plant and picked up the first drywall screws as they came right off the line -- he said they were still warm in his hand when he got them."

"The first drywall job that was approved in this country was used in the Rockaway area of Queens," Marty points out. "They were putting sheetrock on metal studs and using hardened wood screws. The first drywall screw was a redesigned sheet metal screw and it opened up a whole new product line."

As the drywall business sorted itself out and new players took to the stage, Kass became heavily involved in new product development. As new companies evolved, doing business with a company they had confidence in kept them coming back to Kass.

"The industry was so new that these guys came to us because we are the ones they'd worked with on their old jobs," Marty says. "And, fortunately for us, as their business started to expand it grew at a much faster rate than our industrial market slowed."

"It's often the same way today," Allen adds. "If somebody wants to get into the drywall business in this area, they know they can get everything they need from a Kass location. If you're a drywall or carpentry contractor, you know we have what you want; when you want it -- including a 7 a.m. delivery or a delivery at 4 on a Saturday afternoon, if that's what you need."

Still adapting to changes

That dramatic change of the 1960s has given way to subtle, more consistent changes. As a new type of contractor evolved -- the drywaller -- products and services to meet his needs came, too. "Whether it was a new saw for cutting drywall, or modifying an existing tool for a new role, it seemed like it was one item after another," Allen recalls. "And Kass has always worked very, very hard to stay on top of these developments. We've always believed that bringing new, innovative products to our customers is one of our primary jobs."

In addition to all the innovations connected to the new drywall industry, the nature of building in a major metropolitan area has also guided the introduction of new products. In an area like Manhattan, construction means reaching for the sky -- there's no space anywhere else. Taking a jobsite to new heights, literally and figuratively, has increased the demand for worker safety products.

Not all change has been on a product-by-product scale, or even based on a market change. About eight years ago Kass saw another hole open up in its downfield blocking, to further the football analogy, and made a sharp cut toward the end zone. This time, the play called for reinventing a portion of its business to become a true, two-step distributor -- reselling what it reeceived from manufacturers to smaller dealers. These dealers, many of whom represent lumberyards, often weren't able to stock inventories to compete with a "Big Box" or other competition.

What prompted this apparent swerve in the business plan?

"We are involved now with a much wider variety of merchandise than in the past," Marty explains. "It wasn't all that long ago that we didn't sell pneumatic tools, but now we have experienced great success in that market.

"The manufacturers we represent want us to help them penetrate the market and to work with dealers to provide them with the kind of pricing and service support they need," Allen continues. "Pneumatics are a good example of how we can help. They need a strong support network for parts and service. And, so that we don't conflict with our dealer network, we don't sell things like lumber and sheetrock.

"The resale business has become a huge part of our daily routine," points out Mike Bennett, the company's longtime general manager. "Now, in addition to our regular contractor business, we're regularly running trucks to Delaware; Kingston, NY; Atlantic City; and to all of our six branches. Our product mix and our territory are always growing."

Maintaining separation

The company is sensitive to loyalties and commitments as it expands its resale business. "We adjust whom we sell to based on the markets we're in," Allen says. "We don't, for example, sell Paslode pneumatics to residential contractors in this area because we are a Master Distributor for them and sell to dealers in this area. We don't compete with our own customers.

"Paslode has been the door-opening line for us," he adds, "and from there, since the truck was going anyway, we began asking, 'What else can you use; what would you like to add?' It wasn't long and we were adding dozens of things from gloves to drill bits and power tools. We started out with one product and now have a complete catalog of items just for dealers."

"We showed some of these lumberyards how to put gloves on their counter or drill bits on display and increase their income," Marty recalls.

Furthering the two-step program, Kass partnered with another of its key vendors, DeWalt. "We had an opportunity to take the DeWalt line to about 350 of the dealers we were working with and offer them better pricing than they were getting even with their buying groups," Allen advises.

"So, we began building a book of business and it has been a win-win situation. When we started, The Home Depot was just getting into some of these areas and the local lumberyards couldn't match that kind of product mix. We were able to bring a mix to our dealer customers, thanks to our partnerships with key suppliers. We were able to give our customers everything in the Buildex, Ramset, Tapcon and DeWalt lines, for example. And, we made it possible for them to have two or three of each tool on their shelves and if they didn't sell, we'd take them back," He concludes.

Kass has an outside sales force of 13 with three specialists catering exclusively to the dealer/resale market.

"We specialize within our sales staff to take advantage of everyone's talents and area of expertise," Marty explains. "We have a few people who are so good and have been doing it so long, that our customers think of them first when they need something -- advice or product. Some of our guys will be on a Manhattan jobsite at 5 a.m. to meet with a superintendent 'cause that's what it takes to get the job done."

Over the years, Kass has developed its team through strong training, education and communications. Its success can be scored based on the longevity of its key employees. The success stories are common.

"I was supposed to work here for a week," laughs general manager Bennett. "That was in 1977 and I'm here 30 years later. That one week saw me working in the warehouse, eventually managing the warehouse and then moving into purchasing and to where I am now. It has been quite a ride and it doesn't feel like 30 years.

"This is a big company, yet we're small enough that I can keep in touch with customers and know what's happening. There's still a personal touch," he adds. "And we'll keep growing -- where, I can't tell, but we're always looking for the right opportunity."

"I came with the computers," grins credit manager Maureen Lalla, "and since I had an accounting background, I stayed once the new computer system was up and running. I supervised billing and moved up to where I am today. There have been such tremendous changes in the 27 years I've been here, so the job is always new -- new companies coming into the system, new products added to the line and new technology to keep it all straight.

"I feel like we've all grown up together in the business, and we work as a team. We have fun and we joke around, but we get a lot accomplished," she concludes.

The right ingredients

"There's no right or wrong way to be successful in this business," Marty advises. "You have to have good communications, be fair, be able to empathize with what your customers and staff are going through, and be open-minded enough to let people work to their strengths.

"Over the years we've probably broken all the conventional rules of what a good salesman should do," he adds. "Some of the 'old school' relationships require that. Today's 'new school' relationships aren't all that different, except people are under a lot more pressure for speed. You've got to make deliveries on time -- you've got to keep your promises."

There are lessons to be learned even for a company that's more than half a century old.

"As you grow, you are likely to go into a segment of the market or a new market where you are not the principle supplier -- you may not even be known -- but you can eventually become that if you build relationships. And, you may have to work at undoing some relationships competitors have been working hard to build. The whole relationship situation is the key. That's something that organization's like HD Supply don't seem to understand. You can't just put up a big building and expect to be the top supplier," Allen points out.

"A relationship with a manufacturer must be a symbiotic one. It needs to benefit both parties financially. That means not always beating them up on price.

"But, paramount to the success of our business are those relationships we've forged with customers. Without loyal customers we have nothing."

Center of activity

While the company has expanded to six different branch locations to serve contractors and dealers, it has remained anchored in the Bronx. "Although we're a multifaceted company we haven't moved too far from our roots. The original store was only a few blocks from here, and we didn't move in here until about four years ago," Allen instructs. "We've found that the great thing about being in the Bronx is that we're truly centrally located for anyone wanting to do business in the New York City metro area. We're just five minutes from New Jersey, five minutes from Manhattan, 10 minutes from Queens, 15 minutes from Westchester County and 25 minutes from Connecticut."

While centering its corporate focus on metro areas, the Kass organization finds plenty of time for side trips to such uncharted areas as the golf courses of Myrtle Beach, SC. Its regularly scheduled golf outings have ballooned into annual events that attract some of the highest ranking officers from several manufacturing partners. "We have so many top executives tell us that if they can make only one event like this a year, it will be ours 'cause we have so much fun," Marty grins. "During these events we give away a lot of goodies, including presenting awards to recognize our top vendors. We don't think there are a lot of distributors that appreciate their vendor relationships.

"We consider events like this, and pulling people together as a team, to be a warm way of doing business," the co-presidents agree.

Kass Industrial Supply Corp. at a glance

Founded: 1950

Ownership: Martin and Allen Kass

Key Individuals: Mike Bennett, Mike Scheftel, Brian Schroeder

Headquarters: 1715 Washington Ave., Bronx, NY 10457

Facilities: Bronx headquarters, 33,000 square feet

Branches: Bensalem, PA; Mamaroneck, NY; Islandia, Long Island, NY; Baltimore, MD

Markets: Commercial construction, drywall and carpentry in New York, New Jersey, Pennsylvania, Connecticut, Delaware and Maryland

Employees: 85 total

Lead lines: Ramset, Buildex, Paslode, DeWalt, Grabber, Makita, Hitachi, Bosch, Milwaukee Electric, Porter-Cable, Channellock, Powers Fasteners, Irwin Industrial Tools, Louisville Ladder, Michigan Ladder, Stabila, Ironclad, Perry

Computer software: FACTS

Associations/affiliations: STAFDA, Sphere 1, AWCI

Website: www.kassind.com

Making a difference in people's lives

The co-presidents of Kass Industrial Supply, cousins Allen and Marty Kass, on their own and on behalf of the company are active in many organizations that support their community. Among them are the efforts of the American Cancer Society, the Make A Wish Foundation and several hospitals, including the internationally-known Memorial Sloan-Kettering Cancer Center. A year ago, while taking part in the annual STAFDA convention, Allen was awarded a trip to NASCAR's opening race of the 2007 season, the Daytona 500, courtesy of DeWalt.

"I'd been to a race not long before, and I asked the folks from DeWalt if they'd work with me to donate the trip to Make A Wish, which they were happy to do," Allen explains. "Because of their generosity we were able to literally make a wish come true for a young woman who has endured dozens of surgeries and is confined to a wheelchair."

Not only was the Make A Wish recipient able to attend the race of the year, she was given royal treatment by the entire DeWalt team. She recently wrote a note of thanks:

Please tell whoever donated the tickets that the trip was amazing. Seeing all of the races was cool even though it was cold the first day and boiling hot the next. I had a great time. I am a big NASCAR nut, so seeing all those wrecks was scary but wild at the same time. Meeting Matt Kenseth was really cool. He is a very nice man.

The hotel was great; it felt as if I was back at home watching TV.

I also got to take a tour of the track and got to see one of my favorite bands performing live. And I got to see some of the cars up close as they were being inspected. That was awesome!

Being at the track for those couple of days was really special to me. Not everyone gets a chance to see three races and meet a famous driver. I felt honored that you chose to send me to Daytona.

Thank you very much.

Jody

Shortly after the Daytona race, Allen also received a note from Kirk Stinson, vice president of field sales to the independent channel for DeWalt, suggesting that the trip had been such a success and made everyone involved feel so good about the experience that DeWalt would like to explore making it a permanent arrangement. Stinson wrote:

Allen,

hank you. What you did was very special and we appreciate that, both as individuals and as a company. It says a lot about you and your company.

DeWalt is looking toward working with Kass to make this an annual connection between the company and Make A Wish.

The common perception of New Yorkers is as tough, hard guys. The co-presidents of Kass aren't comfortable with that image -- "we're just direct, we want to get to the point quickly and get on with it 'cause we're all busy, too" -- and their actions, in the office and outside, speak volumes to a different reality. Play straight, play fair and play hard -- and take care of your people! That's their version of the "tough" New Yorker. In this case, they're helping to take care of others, too.

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