Home again in Bishop, Calif.
Every yard has a story to tell. But few are as dramatic in recent years as that of Home Lumber Co. in the Eastern Sierras of Bishop, Calif.
The small single-unit dealer operating on a three-acre site in mountain country four hours north of Los Angeles has seen success and sales growth, rapid-fire transfers of ownership, a gut-wrenching bout with possible closure and finally, a former-management buyout that saved the business.
Through it all, general manager Randy Smith—who has been associated with the yard since 1975 and running it since 1995—has brought to the job the kind of industry best practices that have kept it profitable every year.
“Our goal in any home is do everything from the first anchor bolt to the bathroom hardware, to get a shot on everything in between,” said Smith. “That means cabinets, windows, doors. That means whatever the person wants. We don’t say ‘no’ until we have to.”
One unique aspect of Home Lumber is that the company performs its industry magic at altitudes ranging from 4,500 ft. to 10,000 ft. above sea level. Located in the Eastern Sierra Mountain Range, Bishop was once described by Men’s Journal magazine as one of “America’s Coolest Mountain Towns.” Custom homes and small builders provide a steady stream of business opportunities, even in lean years.
Like most dramatic stories, Home Lumber’s tale is somewhat complicated. In a nutshell, Milt Johnson, a longtime officer of the Lumber Association of California and Nevada (LACN), sold his three-unit Home Lumber chain to Stock Building Supply during the North Carolina-based chain’s buying spree of 2006. To the shock of the Home Lumber crew, Stock announced in 2009 it was about to close the Bishop yard, when Brent Johnson, Milt’s son, stepped in to buy it back in June, with the understanding that Smith would continue to run the facility.
Saving the yard led to celebration, but it was tempered by the emotional rollercoaster that took the employees—all eight of them—for a ride. The drama reached its summit this summer.
“We were on pins and needles the whole time, with a spike driven in our back,” Smith said.
“Our employees had to sit here and witness just like I did, ever day, wondering, ‘Are we going to get it?’” Smith recalled. He added: “One of the main reasons to fight for this store was the tremendous support from our customers.”
There remain plenty of business challenges for the independent lumberyard, but Home Lumber is certainly ending 2009 on a high note.
“It’s exciting that we’re able to continue the Home Lumber legacy,” said Brent Johnson, whose grandfather Ellis Johnson started the company in 1947. “It’s a perfect opportunity to get Home Lumber back in the lumber industry.” And like every Pro Dealer of the Year candidate, the management points to its employees as the secret of its success.
“My employees have been here a long time. They are very loyal employees, and they are not going to go anywhere. They were ready for the fight just like I was,” Smith said.
Smith still bristles at Stock’s short-lived decision to close the Bishop location: “We never lost money—never,” he said. But the focus is now on maintaining the long string of success in a recession that is hurting California more than most states.
In response to the downturn in residential construction, the yard instituted a time-sharing plan allowing employees to keep their jobs and benefits. With the crew’s support, people took on multiple tasks.
One example of maximizing resources: The company’s drivers serve as scouts for potential new business, reporting back to the office when they see anything from a new foundation to a new fence.
The company’s approach will be to keep doing what works. Run lean. Build word of mouth. Treat all customers equally, and never say “no” unless it’s absolutely unavoidable.
“A young homeowner could come in here right now and ask me for doors for her home, and we treat her just the same as our biggest contractor,” said Smith. “And they know that.”