Waukesha Chamber Top 10 Businesses: Stearns Lighting Sales
In the midst of the worst economic conditions in a decade, Stearns Lighting Sales achieved the largest sales increase in its 23-year history.
When other firms cut back on sales and advertising efforts to cope with a poor economy, Stearns Lighting, a manufacturers’ representative, took advantage of the slowed competition to capture more market share. The result was a 10% increase in sales in 2002.
"In a shrinking economy, customers aren’t buying as much, but that doesn’t mean we shouldn’t try to grow sales," said David Stearns, president. "So we looked at all opportunities to add new customers."
When customers asked for more inventory, rather than shying away for fear the inventory wouldn’t sell, Stearns Lighting committed itself to filling customers’ shelves if the customer indicated there was a demand for the products. The strategy generated a half-million dollars for Stearns Lighting in one month.
"We focused our efforts on places with potential for a long-term business relationship," Stearns said. "We analyzed all our accounts, and had to shed some accounts that weren’t as profitable, but we decided it was important to make a commitment to the customers who would be loyal to us."
The decision was an example of Stearns’ belief in long-term planning. When considering accounts, salespeople must think not just about what an account looks like now, but how it will look a year or more from now, Stearns said.
Stearns Lighting also has added design-consulting services, taking the burden off distributors to be lighting experts. In addition to selling lighting fixtures and equipment, Stearns Lighting teaches its clients such techniques as how to use and install lighting. Adding such services helps keep business, Stearns said.
With a staff of four full-time and two part-time employees, Stearns Lighting has worked to create an atmosphere in which work feels like home. Employees all receive two weeks of vacation each year and eventually can qualify for four. The firm is making a transition away from providing health insurance through a health maintenance organization to paying 100% of independent policy premiums.
To foster a sense of empowerment and stake in the business, employees operate their own profit zone and have a specialized responsibility that takes care of a part of the customer base. The system is designed to prevent micro-managing.
"There are two people we must treat well, the customer and the employee," Stearns said. "If both are happy, all will benefit."
Company name: Stearns Lighting Sales
Location: 425 E. Broadway, Waukesha
Year established: 1979
Type of business: Manufacturer’s representative
Main products/services: Marketing/sales, lighting design
Number of employees: 4 full-time, 2 part-time
Business words of wisdom: "Work hard, create opportunities, and don’t drop the ball when you get the opportunities."
June 27, 2003 Small Business Times, Milwaukee
