There are two parts to being successful in almost any endeavor. First, one must be able to offer what’s needed today. Second, one must be able to plot a course into the future. At Beisser Lumber, President Dave Ling and his team have both tasks well at hand.
Founded in 1953 in Ft. Dodge, IA, Beisser Lumber now encompasses three Iowa-based locations and offers the regular collection of LBM products along with specialty services such as a door plant, a dedicated estimating department, design, precision I-Joist cutting, and installation services. “We sell a lot of lumber, but we also sell a wide range of specialty products as well,” Ling explains. “And frankly, some of those products are where we can add more service value, which is an area of focus for us. For example, decking products are evolving. It’s not just treated lumber anymore or just picking out a color of stain. Our customers are matching colors and textures to a house now and being able to explain the differences between this composite or that PVC product is important in helping our customers make the right selections for their jobs. We now stock four different lines of decking, eight colors, and two different rail systems, so decking is a really big product for us. Windows are a big product category for us as well. We obviously supply windows for new construction, but we also have a strong customer base that’s in the remodel space, so being able to provide a wide range of window options, along with installation, has been important. We also have a door plant with both an interior and exterior line, which gives us a lot of quality control as well.”
Employee longevity breeds great service
Being successful at providing what’s needed today comes in part from being able to offer exemplary customer service, a skill Dave credits to his team, many of whom have been with the company for decades. That longevity, says Ling, is a true advantage and one that sets Beisser Lumber apart from the competition.
In order to best utilize that level of experience, Beisser Lumber implemented the Beisser Lumber Leadership Team. “This team consists of our department supervisors and managers, and when you look at that group, the tenure ranges from three years all the way to 37 years. Our Leadership Team consists of 15 people, who on average, have 19 years of experience with Beisser Lumber and the average age being less than 50 years old,” Ling says.
“We’re committed to working with our builders, especially as products evolve. Whether it’s a commercial or residential project, it’s important for us to assist our customers in making the best selections for their projects.” He adds. “We’re here to help our customers consider different products, especially when considering the different price points. It’s our goal to help our customers build the homes and facilities they envision, regardless of the budget.”
One of the things Beisser Lumber has done with some of those earlier-mentioned specialty products is to put in place sales specialists that work with its outside sales team in each of those areas, so when builders are coming in to make selections, they’re meeting with an expert in those areas. “I think that goes along with the service that we’re trying to provide—it’s very high touch. And we’re here not just to provide material but to help make selections of products as well,” says Ling.
Of course, the flip side of opportunity is challenge, and no LBM dealer is immune to the difficulties challenges can bring. “We’re in a really competitive market here,” says Ling. “There’s still a lot of consolidation in our industry across the country, and that’s happening in Des Moines, too. So we have some of the biggest companies that are on [LBM Journal’s Top 100] list right here in Des Moines. We’re seeing a lot of pricing pressure for a lot of reasons. Right now, product is expensive, and interest rates are high, so we need to be super, super aware of price.”
Strategies that Ling and his team have put into place to offset those challenges include putting greater focus on customer engagement. “We’ve always been a people-first business, so all the decisions that we make are geared towards making a positive impact on our team and on our customers,” explains Ling. “I think one of the bigger changes we’ve made is simply trying to engage our team at a different level. We want to be a place where people are proud to come to work. We want it to be a place where our customers are proud that we are their partners. We have to remind ourselves that beyond selling lumber and building products, we play an important role in the development of our communities. I think that’s probably been one of the biggest changes is just saying, ‘Hey, let’s remember that what we’re doing matters to our communities.’”
An eye on the future
With the recent purchase of a 72,000-sq.-ft. warehouse that’s about three miles from its main office, Beisser Lumber intends to turn up the heat on customer engagement Ling was talking about. “We’ll continue to operate out of our Grimes location as a lumberyard, and we will move our millwork division to the new facility,” he says. “We have a door shop, like I mentioned earlier, so we will relocate that area of our business to the new location as well as our trim operation. We’re also really excited about being able to offer our builders and customers a better showroom experience, so we’re allocating a significant amount of space to enhance their experience as well.”
This restructuring of how showroom space is utilized will hopefully give Beisser Lumber more breathing room for the expansion of installed sales, a service it offers to both the pros and homeowners. “Windows are getting bigger, doors are getting bigger, and these are things that builders want to offer to their customers,” says Ling. “But maybe they don’t have as much experience installing these bigger products or other specialty items. So that’s where our install group comes in. With some of those products such as specialty windows and doors, if a customer is coming in and looking for that product, and they’re not working with a contractor, we’re able to either give them names, or depending on the project and product, we will do the install for those folks.”
Physical expansion isn’t the only way that Beisser Lumber has its eyes on the future. While the business had been family owned for most of its history, owner Kim Beisser sensed as he thought about future succession planning that a new ownership model would be needed—one that could potentially include some form of employee ownership.
“In 2004, my father-in-law, Kim Beisser, started to think about what the succession of the business would look like,” Ling explained. “At that time, he wasn’t looking to sell the company. Instead, he brought in a group of employee shareholders with the idea that over time the employees would start buying him out. Coming out of the recession, Beisser Lumber had a lot of growth, to a point where it was going to be hard for a group of employees to buy him out within a reasonable amount of time, so our family was likely going to be involved at some point one way or the other. That’s where the conversation started for me to join the business. Outside of the Beisser family, we now have 15 employee shareholders.”
In order for that vision of the future to come to pass, it’s important to Beisser Lumber to attract good employees—an issue that many LBM dealers across the country are struggling with. To keep up, Ling said the company’s hiring process is evolving with the times.
“Three years ago, we had a heavy dependence on temporary staffing agencies to fill our open positions. The benefit was the ability to fill positions quickly, but it was also challenging to get the level of employee engagement we were looking for when we were not necessarily the employer. Our work is hard, and there’s a lot to learn, so I think it can be overwhelming at times for a temporary hire to see the reward in the work, and it was easy for those folks to leave and try something different.”
“When we started talking about who we want to be as a company, and what we want to be as an employer, that was one area we looked at really hard and just said, let’s make sure we’re hiring good people on the front end—people that want to be part of a team, people that understand what we’re trying to do, and want to have a good time doing it. We still use temporary staffing agencies, but at this point nearly 90% of our operations team is full-time. We rolled out an employee referral program and paid referral bonuses as well as sign on bonuses that are paid out over 12 months. We also put a lot of effort into a more formal onboarding process for new team members, whether that’s a salesperson, estimator, or yard team member—everyone goes through it. Since we started that program, 99% of our new hires over the past year are still with us.”
As he thinks about what may come in the near future, all things considered, Ling is feeling optimistic for Beisser Lumber. “There continues to be lots of discussions around housing shortages across the country” he opines. “And yes, that’s a challenge in our markets as well, but looking forward in the short term, we don’t know when things will really start to pick back up—but we continue to be cautiously optimistic. Longer term, we’re excited about our future. We feel like we’ve got great customers who build great homes and a fantastic team. We’re not trying to be the biggest lumber company; we’re just trying to be the best for our customers.”
Get to know Beisser Lumber Co.
Founded: 1953
Ownership: Family and Employee
Locations: 3
Employees: 170
Software platform: DMSi
Customer mix: 90% Pro / 10% DIY
beisserlumber.com