A.D. MOYER FLOURISHES
DESPITE HOME DEPOT
Pottstown, PA – A.D. Moyer Lumber & Hardware
with locations in Gilbertsville, Pottstown, and Douglassville
not only celebrated their 60th year of business in
1999; it was also their best sales year ever. This
feat, in itself, is noteworthy. Throw into the mix
the fact that an 114,000 square foot Home Depot opened
directly across the street from their Pottstown location
in April of 1999, and the feat could be considered
remarkable.
So how exactly did this modern day
David and Goliath drama come to pass? According to
A.D. Moyer's director of marketing and estimating
for A.D. Moyer, the key ingredients are preparation,
dedication, and quality.
A.D. Moyer began preparing for the opening of a Home Depot or Lowe’s
as far back as 1995. Although there were no definite plans in place at that
time by either home improvement “giant” to locate in Pottstown,
sources from the Servistar Corporation (now True Value) of which A.D. Moyer
is a member, knew that it was merely a matter of time until a home center warehouse
opened in or near Pottstown.
Moyer spent several months and multiple
hours on the internet researching how other independent
lumber dealers across the nation reacted who were
faced with similar situations. A list of probable
dealers of similar size and product mix to A.D. Moyer
was then compiled. These business owners or managers
were contacted either by phone or Email and interviewed.
In addition, information was gathered from A.D. Moyer’s
affiliate, Moyer Lumber of Bethlehem, which has been
operating successfully with a Home Depot less than
a block away since 1994.
A report was then compiled containing
his findings that compared what the dealers that
succeeded did differently than those who failed.
A.D. Moyer’s management group, including owners
Scott and Terry Moyer, then went over every detail
and formed a plan that they felt would allow them
to continue to grow with the existence of a Home
Depot.
This plan, according to Scott Moyer, involved a reorganization of the company
on a small scale, concentrating their focus and efforts. “We are fortunate
to have a very tight-knit team of employees here who care about this company
as if it were their own. That is a key ingredient to our success that cannot
be stressed enough. None of the changes that our management team proposed would
have mattered or even been possible if the employees hadn’t believed
in the company and the plan themselves” said Moyer.
According to Terry Moyer, they knew
that they would lose some of their do-it-yourself
retail traffic, some of which was gained a year earlier
when Rickel’s home center chain went out of
business. A.D. Moyer’s efforts, in turn, were
directed primarily to the professional builder without
deserting the quality conscious do-it-yourselfer.
Terry Moyer cited such adjustments as increasing
the companies outside sales staff, and investing
in more specialized equipment such as a knuckle boom
truck and computerized estimating system among others.
Another way A.D. Moyer chose to compete
was by not competing at all. Rather than keep the
same brand names that the Home Depot sells, they
changed to other brands of tools and other hardware
items geared toward the professional. Specialty services
and loyal customers are yet another quality that
Scott Moyer feels attribute to the company’s
success. “We specialize in custom millwork
and custom ordered items, offer free delivery, and
many other services that Home Depot cannot. We are
also fortunate to have a strong customer base of
loyal individuals and companies including do-it-yourselfer’s,
builders, developers, local businesses and commercial
accounts who have dealt with us for many years and
appreciate what we are about and what we can offer.” he
said.
A misconception of the public is that
A.D. Moyer and Home Depot share the same customers. “Our
clientele only overlap approximately 15%. We are
far more specialized than a Home Depot can possibly
be just by their very nature. That brings us a completely
different type of customer who is looking for more,
and that’s where we focus.”
A.D. Moyer’s marketing campaign for 1999 centered on their new slogan,“It’s
all about quality”. It wasn’t just a slogan and logo to put on
their new sign and in advertisements; it has long been their way of doing business. “That’s
what it really came down to when we broke it all down” he said. “We
asked ourselves why people shop with A.D. Moyer instead of Home Depot? The
answer was because we keep higher quality products at a fair price, some of
the best-trained people in the industry, and we strive for exceptional service.”
A.D. Moyer’s confidence in doing
battle with Home Depot across the street came from
two major factors. The first factor was that A.D.
Moyer sends multiple daily deliveries to the Reading
and King of Prussia markets, the virtual back yard
of existing Home Depots. The second is that Home
Depot was directly across the street from their Pottstown
Store. “We are much better off with them being
across the street than across town. We’ve found
that their existence actually has brought us more
customers in some departments than we had before.
New customers from outside the area that were drawn
to this end of Pottstown by the Home Depot, didn’t
like what they found or couldn’t get the right
information, and came over to us.”
Overall however, it’s the builders
who have unequivocally carried A.D. Moyer through. “They
are the mainstay of our business and we make sure
that we have the products, people, and equipment
to take care of them better. On that playing field,
Home Depot can’t compete with us.”
A.D. Moyer employs approximately 110
full and part time employees, five of whom just celebrated
25 years of service with the company. A long list
of others have been with the company for 5, 10, 15,
and 20 years as the plaques hanging above their store’s
sales counters indicate. With the first months of
2000 showing continued growth for the company, It
appears that A.D. Moyer has found a way to not only
co-exist with Home Depot’s presence, but to
also flourish. |