June 22, 2000
Rick Barrett
Hardwood Review
P.O. Box 471307
Charlotte, NC 28247-1307
Dear Rick,
As the owner and developer of one of the companies you discussed in your June 16th editorial on Internet Marketing, I wanted to give you my feedback. While some Internet companies may be similar to the one you outlined, Hardwoods Online's philosophy does not remotely resemble your description.
I started Hardwoods Online to create a group of world-class suppliers that could be counted on for their quality of lumber and reliability of service. It is my experience that customers are wary about dealing with new suppliers because of quality concerns. Many times they 'Just don't know' how good or bad the product can be. There are many variables regarding quality that can cause customers to not receive the lumber they were expecting. To help eliminate this problem, Jon Ingersoll, head of purchasing for Hardwoods Online, has visited and qualified each of our suppliers. He has detailed what our customers can expect from the mill along with information about each item the mill produces. All of this information is accessible when a member of HardwoodsOnline.com visits our site or talks with one of our salespeople. One of our goals is to eliminate any surprises in the lumber our customers receive, and so far, we have been very successful at achieving that goal.
Your conclusion that computerized wholesale firms are only in business to squeeze margin is simply not the case with Hardwoods Online. We have created a win-win situation for our suppliers and customers. Our suppliers gain access to thousands of additional customers without incurring the significant expense of building and maintaining a website. Our customers benefit from our website in several ways. By logging on to HardwoodsOnline.com, they have access to an inventory of over 500 t/l's of lumber that exceed significant quality standards, that is updated weekly, fairly priced, and is backed by Hardwoods Online. In many cases, customers have several loads to choose from in order to get the best fit for their needs.
The notion that a supplier's inventory is reduced to commodity status is just the opposite of my experience. In fact, the most difficult items for Hardwoods Online to sell are the price sensitive, commodity type items. A large number of our customers come to us looking for unique items that they are unable to find through traditional methods of buying or are looking to improve the quality of lumber they are presently receiving. Because we are experienced in the industry, many times we can help our customers find the lumber they are looking for.
I would like to respond to each of your reasons Internet companies have not been more successful with regards to Hardwoods Online:
Lack of market expertise - Hardwoods Online has over 70 years of combined experience between the sales and purchasing staff. Simply put, our staff has experience in the lumber industry.
Little value to buyers - As I stated above, buyers have several reasons to visit our website.
Lack of inventory - As you know first hand, it is extremely difficult to keep inventory from going stale. To combat this problem, we update each supplier's inventory at least once a week and are regularly discussing our customers' needs with our suppliers.
Limited technology - We have two full time programmers on staff to make sure that we are at the forefront of technology.
We like it the old way - I have always maintained that our website was created to enhance communication, not reduce it. If a customer does not want to log on to our website, we have three salespeople that are willing and able to sell hardwood lumber to them using traditional methods.
Grade and quality differences - In my opinion, this is the biggest concern on your list. A sales company will not survive if their products do not live up to customer's expectations. That is why we focus so heavily on supplying the best lumber possible. We invest hundreds of hours getting to know our suppliers, making sure their quality is in line with what our customers expect, and presenting our knowledge to our customers. The quality of our lumber is why we have so much repeat business.
Your outline of the "ultimate" hardwood company web site lists several components that we have already incorporated into HardwoodsOnline.com. I would invite you to join our site and see first hand what we have to offer. Perhaps, after you have visited our site, your perception of Internet sales companies will be different.
Sincerely,
Mark C. Brown
President
Rick Barrett
Hardwood Review
P.O. Box 471307
Charlotte, NC 28247-1307
Dear Rick,
As the owner and developer of one of the companies you discussed in your June 16th editorial on Internet Marketing, I wanted to give you my feedback. While some Internet companies may be similar to the one you outlined, Hardwoods Online's philosophy does not remotely resemble your description.
I started Hardwoods Online to create a group of world-class suppliers that could be counted on for their quality of lumber and reliability of service. It is my experience that customers are wary about dealing with new suppliers because of quality concerns. Many times they 'Just don't know' how good or bad the product can be. There are many variables regarding quality that can cause customers to not receive the lumber they were expecting. To help eliminate this problem, Jon Ingersoll, head of purchasing for Hardwoods Online, has visited and qualified each of our suppliers. He has detailed what our customers can expect from the mill along with information about each item the mill produces. All of this information is accessible when a member of HardwoodsOnline.com visits our site or talks with one of our salespeople. One of our goals is to eliminate any surprises in the lumber our customers receive, and so far, we have been very successful at achieving that goal.
Your conclusion that computerized wholesale firms are only in business to squeeze margin is simply not the case with Hardwoods Online. We have created a win-win situation for our suppliers and customers. Our suppliers gain access to thousands of additional customers without incurring the significant expense of building and maintaining a website. Our customers benefit from our website in several ways. By logging on to HardwoodsOnline.com, they have access to an inventory of over 500 t/l's of lumber that exceed significant quality standards, that is updated weekly, fairly priced, and is backed by Hardwoods Online. In many cases, customers have several loads to choose from in order to get the best fit for their needs.
The notion that a supplier's inventory is reduced to commodity status is just the opposite of my experience. In fact, the most difficult items for Hardwoods Online to sell are the price sensitive, commodity type items. A large number of our customers come to us looking for unique items that they are unable to find through traditional methods of buying or are looking to improve the quality of lumber they are presently receiving. Because we are experienced in the industry, many times we can help our customers find the lumber they are looking for.
I would like to respond to each of your reasons Internet companies have not been more successful with regards to Hardwoods Online:
Lack of market expertise - Hardwoods Online has over 70 years of combined experience between the sales and purchasing staff. Simply put, our staff has experience in the lumber industry.
Little value to buyers - As I stated above, buyers have several reasons to visit our website.
Lack of inventory - As you know first hand, it is extremely difficult to keep inventory from going stale. To combat this problem, we update each supplier's inventory at least once a week and are regularly discussing our customers' needs with our suppliers.
Limited technology - We have two full time programmers on staff to make sure that we are at the forefront of technology.
We like it the old way - I have always maintained that our website was created to enhance communication, not reduce it. If a customer does not want to log on to our website, we have three salespeople that are willing and able to sell hardwood lumber to them using traditional methods.
Grade and quality differences - In my opinion, this is the biggest concern on your list. A sales company will not survive if their products do not live up to customer's expectations. That is why we focus so heavily on supplying the best lumber possible. We invest hundreds of hours getting to know our suppliers, making sure their quality is in line with what our customers expect, and presenting our knowledge to our customers. The quality of our lumber is why we have so much repeat business.
Your outline of the "ultimate" hardwood company web site lists several components that we have already incorporated into HardwoodsOnline.com. I would invite you to join our site and see first hand what we have to offer. Perhaps, after you have visited our site, your perception of Internet sales companies will be different.
Sincerely,
Mark C. Brown
President