Wal-Rich continues to evolve

BY MARY JO MARTIN

Editorial director

Founded in 1950 by three partners  -- Sidney Waller, Arthur Wallach and Murray Rich -- Wal-Rich Corporation is now a third-generation manufacturer and distributor of plumbing, heating, and industrial specialties.  Prior to forming Wal-Rich, the founding fathers worked for Paul Munk Co, one of the first companies of its type to publish a catalog of plumbing specialties and market exclusively to plumbing wholesalers.

From their humble beginnings in a 2500 square foot stockroom in Long Island City, N.Y., the founders called on the diverse and ever-growing plumbing wholesale market in New York City.   Today, operating from a 40,000-square-foot distribution center in Corona, N.Y., Wal-Rich’s customer base has grown from local independent supply houses to include national chains that span the US, Canada and the Caribbean. From its original crew of five (three partners, a secretary and a warehouseman) Wal-Rich now employs over 35 office and warehouse personnel, with a national sales manager overseeing 15 independent manufacturers’ rep agencies.

Wal-Rich’s executive team includes president Jerome Rich and vice-presidents Andrew and Daniel Rich. Andrew Rich recently spent time talking with editorial director Mary Jo Martin about the continued evolution of Wal-Rich in the plumbing specialty market.

MJM: Can you describe the range of products offered by Wal-Rich?

Rich: Our product line is continually evolving. The products that my grandfather sold were considered plumbing specialties, which still comprise 85% of our line. They are items such as tank levers, strainers, aerators and other finishing products that are the bread-and-butter of the industry, and really haven’t changed much in the past 50 years. We’re also master distributors for Sloan Valve, Dresser Piping Specialties and Continental Industries. Sloan Valve is an industry-standard for flushvalves and the “hands-free” plumbing market.  Dresser has been a premier manufacturer to the waterworks and gas industry for over 100 years. Continental makes cutting-edge products for the gas utility industry. As we look toward the future, we see great opportunities in our existing master distribution relationships, and are looking to use our market position to attract new ones.   

MJM: Being a third-generation family business, are most of your supplier relationships long term?

Rich: As an “old-line” specialty house, we have relationships with domestic sources that date back to my grandfather’s time. We also do a considerable amount of importing, and have been dealing with those agents for 25 to 30 years. Our relationship with Dresser goes back 35 to 40 years. Our relationship with our vendors is just as important as our relationship with our customers.

MJM: How do you evaluate potential new suppliers?

Rich: Principally on the basis of product. We add new products all the time. We want to be as much of a one-stop shop for our customers as we can.   At the same time, we also look to find manufacturers that are seeking a well-positioned partner in servicing the short-term needs of the plumbing wholesaler.  As a master distributor, we are an extension of them, and can provide factory-level service with shorter lead times.

MJM: How do customer relationships differ for master distributors than traditional wholesalers -- or do they?

Rich:  Cultivating and nurturing customer relationships is key at every level of distribution. If you’re a traditional plumbing wholesaler, your customer is the plumbing contractor or homeowner or builder. Master distributors, in turn, pursue the wholesalers. As long as you don’t compromise the level of distribution, you can effectively navigate the channel -- and companies need to maintain their loyalty to the level of distribution they’ve chosen. In pursuing new customers, we employ a multi-tiered approach that includes advertising, direct mail and manufacturer’s reps.  Even in the age of websites, e-mail and fax machines, person-to-person contact is still essential in this industry. It is important to choose your reps wisely-because they become the face of your company.

MJM: With so many sources of competition in the marketplace, how does Wal-Rich differentiate itself?

Rich: We service our customers incredibly quickly and take pride in being able to provide an accurate answer in a timely fashion. If a customer calls, they call for a reason. There is always something behind what they are asking for, and we work to probe beyond the surface of the question to get more of an understanding of what the customer really needs.   A high fill rate is also critical to good service, and with over 4,500 skus in our warehouse, we are able to consistently achieve a 98% fill rate.   Our purchasing staff does a great job in analyzing the factors that cause spikes in demand, and our relationships inside the industry allow us to fill-in “on-the fly.” 

At this point, we do not use bar-coding system for inventory management.  Order fulfillment is a hands-on approach in which an order is pulled, checked, and packed by three different people. It’s a bit labor-intensive-but our low turnover rate keeps experienced personnel in-house. If you have a constant turnover in your warehouse, you are more mistake-prone because you are always training new people. As a third-generation family business, we try to keep our employees satisfied and motivated so they truly become assets to the firm. Employees who enjoy working for you care more about what they are doing and take pride in a job well done.

MJM: How have you seen the role of master distributors changing in recent years, and do you foresee any other changes/opportunities on the horizon?

Rich: I think that master distribution is growing. This growth is happening from two different levels in the channel-the manufacturer’s level, and the wholesaler’s. Over the past several years, as markets have tightened, manufacturers have trimmed personnel to defray costs. A factory that might have had a sales and customer service department with 12 to 20 people in the past now operates with just four or five people. This can compromise their ability to service-but a knowledgeable and capable master distributor can pick up that slack. We also exist in a world where time is money and the ability to get product faster is crucial.  Where a manufacturer may have a four- to five-week lead time, a master distributor will have product on the shelf so that the job can get done sooner.

At the wholesaler’s level, the master distributor is also very important. With the business climate being what it is, a company like ours is certainly an asset.  With over 4,500 different items, we give our wholesalers the ability to consolidate their purchases, and get material quickly while maintaining low freight requirements.  Every wholesaler needs a company like Wal-Rich to keep them “lean and mean” these days.

For details, visit www.wal-rich.com.