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D&WC: Please give a detailed description of your company and its history.
Tony Lovette: VIMCO was founded in 1905 by the grandfather of the previous owner, Sid Burnstein. VIMCO began as Virginia Iron and Metal Co. During the early years, the company was in the iron and metal business.
As with any family business that has survived through the years, VIMCO's ability to adapt with the times has helped us stay in front of changing business environments. In 1952, Sid Burnstein came into the company and changed its business focus to insect screens servicing the East Coast market from New Jersey to Georgia. Sid's main interest had always been solar energy, and he believed the future of the company would lie in energy saving products.
Gene Demestre joined the company in 1981 and again began the process of changing VIMCO's direction. Gene's background had been sales and marketing, and he has been leading VIMCO into the window coverings industry.
I joined the company in October 1993. My experience in operations and finance were added to take VIMCO into the next decade of growth. My background in the furniture industry has ALIGNed well with our move into the window treatments industry.
On August 31, 1995, Gene and I purchased VIMCO in a 50/50 management buyout. As president, Gene focuses on sales and dealer activities, while as chairman of the board I focus on operations, finance and management.
The company's growth over the last few years has been explosive. With 1994 sales 25 percent ahead of 1993 and 1995 sales up 34 percent over 1994 and a similar increase expected in 1996, VIMCO is very confident of the future.
D&WC: What window coverings products did you handle initially? What products do you handle today?
Gene Demestre: Initially, VIMCO was in a completely different industry: the manufacturing of insect screens. Today, solar shading systems, interior and exterior shading systems make up 90 percent of VIMCO's business. Motorized shading systems clearly are our No. 1 focus and the fastest growing part of the business.
D&WC: Give a percentage breakdown of these products. What one product or line stands out above the rest?
Demestre: We do approximately 50 percent of our business in manual shading systems and 40 percent in motorized shading systems. The balance is custom jobs built to order. Motorized shading systems featuring Phifer sun control products clearly are our fastest growing product area.
D&WC: Is your business computerized?
Lovette: In 1993 we computerized our operation. In late 1995 we implemented our own internally developed marketing system called ADAPT!office. It is a highly automated marketing system that was very costly to develop, but is providing significant sales returns.
D&WC: Who are your customers? What parts of the country do you service?
Demestre: Our customers are window coverings, commercial/contract and specialty dealers throughout the United States, Canada, Mexico and Puerto Rico.
D&WC: How many salespeople do you employ?
Demestre: VIMCO currently has 15 sales and sales support persons that call on or assist our distribution network.
D&WC: How has your segment of the industry changed since you first began?
Demestre: Our business has changed significantly over the last five years. We have invested greatly in three areas: sales and sales service, quality production and technology. We've used technology to give us the information and speed to improve performance in quality and sales and sales service.
D&WC: Where do you see yourself and your company five years from now?
Lovette: Our plan is to be the dominant choice for solar shading systems and blackout systems in North America. We feel we are making significant progress toward that goal.
D&WC: What best describes your niche in the marketplace?
Demestre: We have a reputation for doing truly custom work. Our experience and capabilities in our niche are a tremendous asset to our dealer base.
D&WC: What are some of the key factors involved in your growth and success?
Lovette: I believe there are two key factors to our success. First is the hands-on, get-in-the-field-and-help-the-dealer attitude of Gene Demestre. He is intensely committed to dealer service and that attitude travels the entire organization. Second is our internal focus on speed and quality.
D&WC: What advice would you give to other window coverings professionals?
Demestre: Building a positive relationship with your dealer base from a sales, service, information and personal level is critical to development.
D&WC: What trends and cycles do you see occurring in the industry? How is your business addressing them?
Lovette: Increased competition is the dominant trend. Our niche market is exploding with competition. Pricing is extremely competitive. These issues and others will continue to facilitate industry consolidation. There are significant advantages to size which enable you to provide true economics of scale and create better efficiencies for your customers.
D&WC: What distinguishes you from the competition?
Demestre: Attitude! We believe intently in our customer focus and refuse to let go of it.
D&WC: Do you educate your customers?
Demestre: We believe strongly in education. We send VIMCO installers to assist and train dealer installers on jobs. Additionally, we meet with and train dealers upon request at their facilities.
D&WC: Do you work through distributors or sell direct to the retailer?
Demestre: We primarily sell to window treatment dealers. We very successfully use distributors in areas that we do not personally cover in order to provide better service then simple telephone contact.
D&WC: Have you made use of alternative marketing or communications methods?
Lovette: VIMCO has recently joined cyberspace with an extensive Internet presence. We would like to encourage dealers to visit our World Wide Web site at http://www.vimco.com.
VIMCO
9301 Old Staples Mill Rd.
Richmond, VA 23228
(804) 266-9638; (800) 446-1503; Fax: (804) 266-2937
Manufacturer and distributor of exterior and interior shading systems and sun control systems. Provides shading products for windows, doors, sunrooms and skylights.
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