M. Cooper Supply: ‘It just keeps getting better!’
BY JOHN E. MARTIN
PVF industry veteran
Welcome readers! Every time I miss a month of processing “Martin’s Corner” or skip a month for various reasons, I feel a bit like I simply missed out on a great opportunity to share with the industry and all the readers of The Wholesaler another success story about the independent wholesaler in this country of ours that needs to be told.
I can only imagine that when George Merrill Cooper founded M. Cooper Supply Co. way back in 1938, and what was then way out on the southwest side of Chicago, that he had some thought of having a wholesale company to support a niche market he had found out there or needed to support some contractor or end user for any number of reasons. I’m quite sure he had no written plan to make it last 60-plus years; he just wanted to make a buck and stay in business. No Sir, it never entered his mind most likely. As business must have improved for Mr. Cooper in those first 20 years, the U.S. went through a couple of wars (WWII being one of them), during that time also. Culture changes and other major economic changes that happened across the country changed the face of our country and they started changes in how business was to be done in our system for ever more.
Now, do the math, 60 years later on September 1, 1998, a young fellow by the name of Dennis Goode came along and purchased M. Cooper Supply. Needing a business vehicle (an umbrella company if you will) by which to make the acquisition happen, Mr. Goode founded a holding company by the name of Goode Industries, and he along with his sons Greg and Dan made the buy, and took control of the company at that point. The new ownership had up front ideas of diversification in services and goods they could offer to make a difference in multi-markets within a defined geographic area.
Starting their efforts with a local company like M. Cooper under their direction that already had a product line base for plumbing products, an inventory, and an active customer base in place seemed to be a good place to start — and so begins the story, that just keeps getting better!
Fast forward to 2004. Since acquiring M. Cooper, and obviously working the plan they created, Goode Industries opened a subsidiary company called M. Cooper Cabinet LLC. Starting from scratch, this fledgling small cabinet supplier (with big ideas) to new homes and downtown high-rise projects experienced substantial growth over the next five years. As we all know in those years, markets such as this were booming and in need of good, steady suppliers of product and finished goods. Dennis Goode and his sons’ plan was obviously working for them and playing to the market needs. (As stated by Dennis Goode, “Over the past 30 years, there has been 60 or more independent wholesale businesses of various sizes and shapes go out of business due to not having good working plans for survival in the Chicagoland market. That is why I started with my sons at my side to learn through me and the markets I chose to serve, and then have them carry on. I still expect that to happen.”) That statement would be one apparent solid reason why during this boom starting in 2004 for M. Cooper, they were experiencing great success, as owners and contractors were looking for someone solid and steady to depend on in all phases of their plumbing, cabinets, etc. business.
Fast forward again to 2010, In September of that year, M. Cooper Supply acquired a company by the name of K&L Supply of Hanover Park, which is now known as M. Cooper North. Adding this piece of the plan finally enhanced their ability to better service the entire Chicagoland market.
Well, enough of all the information that I have read about or was told or learned from the street about M. Cooper. This company is continuing to move in a very positive way and of course in the right direction under the style of management that has been proven. Let’s hear directly from the folks that started it all.
Today, ladies and gentlemen, it is my pleasure to be in the corporate office of M. Cooper Supply in Mokena, Ill. Please, meet Mr. Dennis Goode, founder and CEO of Goode Industries, and owner of M. Cooper Supply Co. Good morning Dennis. I thank you so much for allowing myself, Martin’s Corner, and The Wholesaler industry magazine to have this much of your time to share the story of your company(s) and the growth ride you have been on almost since the start back in 1998.
Goode: Thanks to you John, and it is a pleasure to have you here with us. Having your company (Anvil International) as a valued vendor and partner in our industry efforts is really a pleasure, but having you here also on behalf of the industry to tell our story in print for all the readers of The Wholesaler is really an exciting deal for us.
Martin: Well Dennis, it is a pleasure to do it. I know you have heard it said from many manufacturers in this business over the years, but it is true that the making of our industry lands squarely on the backs of all the visionary people out there in the past to the current that see a need, and focus on that need for the good of an industry or a segment of that industry. Our success at Anvil was squarely built on the backs of and with the support of independent wholesalers and end-users. It’s part of the record, very clear. There are a lot of good things that go on with all the large and very large chain wholesalers nationally and regionally no doubt. In today’s world, producers of commodity products like Anvil makes here in the USA needs good business from all of you to help us run factories, keep hard working people on the pay role, keep production up, and to help you help us continue to compete with importing companies from around the world.
Keeping our plant loaded cost to a real honest competitive number, is the only way we see to make all the above happen for you and for us. We are competitive for the wholesaler because our foundries and plants strive continually to find ways to lower our transaction cost to each of you. We do that by working and knowing the markets, and the players in every market. M. Cooper is a player that we know in the market you serve — congratulations on that.
Now let’s get started with a few questions about the chain of events that have brought you, you companies and all the people that work for M. Cooper to this point today. In my introduction above I told a lot of the start up story starting with Mr. George M. Cooper forming the company in Orland Park in 1938. Sixty years later you purchased it, allowing you and your sons to take control. That started the ball to rolling it seems, but before we get into all the details, tell the readers a little bit about Dennis Goode?
Dennis Goode: Well, to get to that answer, let me start with noting the fact that I was born in the Chicagoland area. In 1976, I went to work in the wholesale plumbing industry as a warehouse person for Builder’s Plumbing and Heating Supply in Addison, Ill. After numerous promotions I was named corporate purchasing manager. Purchasing, I found became a real passion for me. (Note from the writer: Mr. Goode did not tell me this, but just as an aside, I know that he was named Corporate Purchasing Agent of the Year in our industry in 1986!) In 1990, I went to work for L.W. Paul Supply Company, which is where I received 8 years of experience in administration and finance. In 1998, using the vast knowledge I had gained, decided to form Goode Industries Inc., to purchase M. Cooper Supply.
Martin: Thanks Dennis. How about moving on into telling us a bit about your key management TEAM and how they are structured please.
Dennis Goode: You bet I will, John. That is a piece of the company that I really enjoy — building a great core of people to respect and grow the company who respect my business philosophy to grow the company.
First of all, I must introduce my son Greg Goode to the readers. He is VP of sales and marketing. Greg is being groomed to be the future owner of M. Cooper Supply. He has been in the industry about 18 years. In addition to working full time here running all the sales and marketing aspects of the company, he is also attending Purdue University in the evening pursuing his MBA.
Next we have Janet Pace who is VP of purchasing for us. Janet came from Louisiana and has been in the business over 35 years working with good companies like LCR-M and Your Other Warehouse, both Hajoca Companies. She also was with Y.O.W. when it was sold to Home Depot. Later she went to work for Builders Plumbing and Heating here in Chicago. Janet came to M. Cooper in 2007 and is doing a great job for us. Having her in charge of our substantial inventory dollars is a real comfort for me. We here at M. Cooper are very proud of Janet’s involvement in the industry. As an example she was just elected and installed as President of the Chicago Chapter of The Executive Women International. I was very pleased to be asked to give the keynote speech to the chapter at her installation. All these women executives from some 35 plus Chicago area corporate companies are very active in their own business operations like Janet is, but also in joint business issues and problems that harm us all……working on issues to benefit us all.
Next, we have a gentleman by the name of Gary Hull that I brought in as President quite recently. Gary is a graduate of Roosevelt University with a BSBA. He also entered the business here in Chicago after graduation and spent his entire career cultivating his true passion and that is sales and marketing! In 1982 he helped develop Mid-Continent Marketing, which became a leading manufacturer rep in the state of Illinois.
In 2008, he sold the company to his junior partners. For the next couple years he was consultant to several companies which included M. Cooper, and now he was named as president of M. Cooper Company in early 2011. Gary is a great addition to our company and our TEAM.
We also are pleased to have David Poteete with us as VP of finance. He has an Associate’s Degree at south Suburban College (1989), and a Managerial/Business Accounting Degree from Purdue Calumet. In various roles since 1990, David has experience with both plumbing contractor and wholesale distribution and has been with M. Cooper since 2005. Currently he is chairman of The Plumbing Division of the American Supply Association and on the Board of Directors of the Midwest Distributors Association.
We are lucky to have Rick Stahmer with us also. He was recently hired as operations manager for the company. He is a graduate of Indiana U., with a BS in Finance. He has 25 years of experience in the wholesale business as well, with a lot of that time in IT. His strength and focus is in streamlining processes and maximizing operational cost savings while improving customer service.
Finally, we are pleased to have Jim Mischka on board with us as our inside sales manager. He has his Associates degree South Suburban College and has 19 years in the plumbing wholesale business. Jim joined the M. Cooper family in 2006 as the Operations manager and then took over as Inside Sales Manager.
Martin: Let’s move to inventory to service your market segments? Do you let each geographic branch location stand on it’s own for inventory buys, or does corporate (Janet) have the direction and the flexibility to make sure local inventories are up to speed based on segment needs?
Dennis Goode: Fair question, and one that needs a clear cut response. To answer your question in an all-encompassing way, I’ll start by saying that currently, M. Cooper Supply operates out of two distribution centers offering a full line of commercial and residential fixtures and faucets, including American Standard, Porcher, Villeroy & Boch, St. Thomas Creations, Jado, Moen, Delta, Brizo, Danze, Jacuzzi, MAAX/Aker, MTI and National Bathing products, Rheem Water Heaters, Charlotte Pipe & Foundry Product, Anvil International products, as well as other pipe, valves and fittings needed in our different market segments served.
Our cabinet division, M Cooper Cabinet Company also warehoused in Mokena, offers kitchen and bath cabinets from Crystal, Fieldstone, Ultracraft, Kitchencraft, Homecrest, Smart and Bertch vanities, as well as laminate, solid surfaces, quartz and granite countertops. The M. Cooper Kitchen & Bath showroom allows our customers to choose from all of above mentioned names.
We service the entire Chicagoland area, going as far north as Wisconsin, as far west as Rockford and as far south as Kankakee. We also deliver into NW Indiana. We have a total of eight plumbing and cabinet outside salespeople with combined segment duties, and 12 inside salespeople in total.
Martin: Knowing that inventory management is a darned if I do and darned if I don’t balancing act, how have you controlled your inventory over the last of couple of years?
Greg Goode: Hey, Good morning John! Good to see ya, and my thanks also for giving our company this exposure in The Wholesaler. We all appreciate it. On the inventory question, I’ll just say that while Janet has qualified help, at the end of the day she is very good at watching it all, and knowing what us going on with the allocated dollars we have in that warehouse. She spends it like it was all hers, and that is a good thing!
Martin: Thanks Greg. While I have you and Dennis is taking a break, let me throw this two part question at you:
• How are the annual sales at M. Cooper divided (%) among the market segments to you are dedicated?
• Do you have a market niche that you consider a specialty for you?
Greg Goode: Hey, I’m glad Dad is on a break also, as I love to answer these questions. First of all reference question 1: The current snap shot (due to the market conditions today that are available), about 93% of our business is plumbing with 65% of that being commercial and 35% of it residential. The balance of 7% is cabinets that consist of 100% residential both single and multi-family.
In reference to question 2, we feel we have created a business culture that honors our customers. We treat them fairly, and react to their needs in a timely manner. Our success is based on our commitment to providing value added services and top quality products to our entire customer base.
John, we have a Mission Statement here at M. Cooper that reads like this:
“The employees of M. Cooper Supply, a Midwest plumbing and cabinet distributor, are committed to the success of our customers by providing excellent customer service while maintaining the highest ethical business practices.”
Martin: Thanks Greg. You have a lot of pride my friend, and well you should. Your company mission statement needs repeating often. I hope you have it on our business cards, invoices, etc. Great stuff!
Are there any special or major projects in your area where you have been involved that are a particular source of pride?
Greg Goode: Absolutely, John! Several of the jobs listed below are important to M. Cooper because they involve public institutions for medical and education facilities as an example, which are the backbone of our economy. Please note the following list:
• Northern Illinois University
• University of Chicago Medical Center
• Silver Cross Hospital
• Palos Community Hospital
• The Aqua Hotel –Chicago
• Kinsey East & West Towers –Chicago
• Ritz Carlton –Chicag.o
Martin: Wow! This is an impressive list of projects in the Chicagoland area. You and the TEAM must be pleased.
Have you had to change the focus of your business or do anything differently over the past 24 months or so due to the economic slump? Could you describe the situation in your market area now, and when you may see it improving?
Dennis Goode: Thanks Guys. I had to get that phone call. I’m back, so I’ll pick up from here. That is another really good question, John, for the times we live in. You know I have told Greg and all our employees that I lean on and respect and need their opinions that, “You must always be prepared for the opportunity!” During the current economic recession, we’ve used the opportunity to focus on two things.
First, we dissected our business to determine on what each does well and then, try to enhance it. At that time, we also will make adjustments or corrections to our inefficiencies. Secondly, we continually look for ways to grow our market share either through competitive intelligence or acquisition. Our acquisition of K&L Supply last year, recently renamed M. Cooper North, now completes our strategic placement of the two distribution centers and has positioned us to increase our market share as things turn around.
Martin: Dennis, this is certainly a plan that is text book, and it appears that you have found a way to make it work exactly as you have called it……Congrats man!
Just a couple more! I must ask you about marketing and buying groups. Being a strong market driven independent in this industry must be a very good feeling with a lot of pride attached. Having said that, I know that M. Cooper is also a proud member of The Embassy Marketing/Buying Group, which is member owned and is completely made up of strong local and regional independent players. Can you share with the readers of “Martin’s Corner” the reasons you became a member/owner in Embassy, and has it been what you thought it would be?
Dennis Goode: We strongly feel that a company’s involvement in trade associations and buying groups are imperative to the success of a company. Our joining of Embassy Buying Group has been invaluable and has benefited us in many ways. Along with the enhanced incentive opportunities, we have also found the group a good source of networking and benchmarking. In addition to the buying group we are actively involved with the American Supply Association. ASA is nationwide well-known trade industry assooiation. I serve as Chairman of the ASA Governmental Affairs committee. I represent the interests of the Wholesale Plumbing Industry in Washington, DC. Dave Poteete is also the Chairman for the Plumbing Division of ASA and is on the board of the Young Executives (YE) of ASA. Greg Goode is also an active member of the YE.
Martin: You know, Dennis, I know of no one that puts effort into a good solid group like Embassy that doesn’t get good solid returns like you are, and always have positive things to speak about the group. There are indeed lots of good groups out there today, but you seem to have found a good home with Wally Gumm and the Embassy member/owner system, and I’d say you made a good choice for the company. Thanks for your honesty!
Okay, moving on, how have your customers’ expectations changed over the years, and how has M. Cooper Supply adapted to those changing needs/wants?
Dennis Goode: There have been two major changes in the market over the last two years. First, the customers have pulled back on their inventory levels. This along with the Vendors decreasing their field inventories has forced the wholesaler to increase theirs at a time where everyone is looking for a way control spending. Adjustments were carefully made to our inventory levels to preserve turns and maintain premium service level. Secondly, in today’s financial climate with banks tightening credit has forced our customers to rely on us more than ever on us to help finance their projects. Thus, creating a very stressful climate, where we try to diplomatically ask for money in a certain time frame without losing them as a customer.
Martin: My friends, what is My Joyful Heart? Is it a part of some Community Service type organization? Why is a section of your warehouse dedicated to this non-industry looking enterprise aimed at what looked like a distribution shipping point for a side business. Is it leased to some one?
Greg Goode: Okay this one is mine. First of all, John, I assure you that part of our distribution center is NOT leased to anyone. M. Cooper is community minded in more ways that anyone would most likely think. If I said you could narrow down the community minded wording to be “Children of The Community Minded,” it would be even more fitting. We have made it a paramount rule around here for years that what we do as a company for this help and support of the children of our community is first and foremost an effort from the heart and soul of M. Cooper (the company) and its people, and in NO WAY is done or talked about to get industry recognition or praise. We just don’t operate that way. With the opportunity to have this article published about our company, I think it is time to make a few statements about our activity with an organization called “My Joyful Heart!”
In March 2009, inspired by the story of My Joyful Heart, we decided to make a commitment to this effort for children care by offering the use of 5,000-square-foot of warehouse space in our Mokena Distribution Center. Since the move to our location My Joyful Heart is now able to assist 500 children throughout 14 schools. These under-privileged children ages three months to 17 years old receive a gift package six times a year. Gift packages consist of clothing, shoes, books and hygiene related product which most of us take for granted. We are blessed to be able to help such a wonderful organization. We also sponsor several other community activities with the hope to spread the word of our family business and increase our customer loyalty.
Martin: To you, Greg and to all the readers of “Martin’s Corner,” If I have any soft spots in my old heart, the largest is the one that is focused on child abuse and senseless harm to children. I must tell you that my heart melted upon walking thru the packaging area of this “My Joyful Heart” operation and seeing clothes, and dolls, and toys, and shirts, and shoes, and pajamas, and bibles, and books, etc, etc, etc. ear-marked in shipping containers for different age boys and girls — WOW! I can’t tell you how wonderful it felt and what a great surprise for me to see such an effort in a warehouse dedicated to plumbing and industrial products.
Let me tell ya, God is making simply wonderful and loving things happen here by people that love kids and want to serve the community. This is not M. Cooper doing this, this is M. Cooper acting as a partner to them and finding a small part of their warehouse space and allowing them a very safe and quality controlled place to perform this great community service for God, and mankind. Readers, I was really touched and if you want to know more or read more on this wonderful effort, just go their website which is (www.myjoyfulheart.org) and see for yourself. Be sure to take a box of Kleenex with ya; It will bless your day.
Okay, just a couple more I promise, then we can go for lunch! Can you describe the leadership philosophy at M. Cooper for the readers, such as accessibility to customers and employees, and hands-on activity by the owners and key management?
Dennis Goode: Back again! Our company philosophy is to say “YES” rather than to think of a reason to say “no,” and that makes all the difference! We empower our people to take care of a delicate situation at any cost. Most of the time, the marginal cost is outweighed by a benefit and at the same time it creates a more loyal customer.
Martin: I buy in to that, Dennis, I really do. Okay, here is the next to last question! With so many sources of competition in the marketplace, how does M. Cooper differentiate itself?
Dennis Goode: The Chicagoland market is a changing landscape. I think I mentioned early on in this interview how many wholesalers have gone out of business during the past 30 or so years. It is something like some 63 different businesses in total due to bad management or lack of any management. I really believe that. Several of them happened within the last two years that we have personal knowledge of. As current as September 2011, we witnessed yet another local independent be acquired by a publicly traded company. Being a privately held company allows us to maintain our company philosophy that gets lost with the “mega suppliers” and create a culture that set us apart from the competition. That makes us more dynamic.
Martin: Forgive me, Dennis, but I’m gonna relate all that to really being in the people business category! It really makes sense if you just pay attention and take care of a customer with proper attention and a great product. Great answer above. I really appreciate it.
My last question I would like to direct towards Greg. With you being the future of this company and based on being and continuing to be an independent, where do you feel M. Cooper will be or should be over the next five years?
Greg Goode: The combined 110,000 square feet of warehouse space will allow us to continually improve our warehouse efficiencies and capabilities which ultimately lower our operating cost. Along with having an excellent history of controlling operating expenses and maximizing inventory turns has created a business portfolio that will take us to higher levels of sales and service in the future. Thus, we will achieve our business goals and also be recognized as an independent market leader.
Martin: Fellows, what a great time I have had getting the time and space to do this article with you. Dennis, I sure appreciate you taking the time to set with me for this time to do this interview. Greg, good luck to you my friend, and Janet, you’re just the best, and so thanks for working with me to set all this up. You guys have a great company in M. Cooper, so much success to you in the future. It has been a pure pleasure.
That’s it readers! Here’s wishing you all a Merry Christmas and a very happy Holiday Season, right into the New Year, okay? By the way, be sure to remember that great wine goes wonderful with good or great turkey or ham for Christmas dinner, so be sure to follow up this read on M. Cooper with my “Wine Tip of the Month” in this December issue as well .Enjoy the holidays! Remember it is winter now. It gets cold out there in a lot of places, so don’t forget the coat and gloves, and if trying out a few good wines with friends, please drink safe and responsible!
God Bless, and feel free to contact me at anytime about anything! Have a great Holiday Season, and See ya in 2012.
Starting in our industry in 1968 at Anvil International (formerly Grinnell Company), John Martin has been with them over this 43-year span through at least five different owners! Currently serving as vice president of national account sales for Anvil’s rather successful mechanical products division, he has worked in every phase of the company from warehouse to sales (inside and outside) to the ever popular branch manager’s job in the 1970s and 1980s. He served as regional vice president for their West Coast units, and since about 1990 in this national role with contacts and customers/vendors coast to coast. Martin also traveled all over Asia in the 1980s as their acquisition guy for steel pipe used in their West Coast branch locations at the time! Currently also, he is responsible for Anvil as their lead person at ASA & MCAA, and is identified as Anvil in all the wholesale industry buying/marketing groups, In these capacities he has not only received numerous industry and association awards for his service, he has set on several boards/executive committees within these industry and associations as well. Martin was quoted currently as stating the following, “I’ve been blessed and had fun and been productive for my entire career, but I believe the most energizing time or times in my life have been (still is today) working with all the folks at Anvil and seeing the young ones in the field ‘get it’ on almost a daily basis — meaning learning our company and understanding how to meet the customers needs in today’s upside down world. Anvil is a great place for me to be right now.”
He can be reached anytime at jmartin@anvilintl.com or on his cell phone at 303/588-9806.