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THe Family Touch
Every four months, Dave Locke and his staff at Campbellford Wholesale load a trailer with Frank’s Red Hot Sauce, Clamato Juice, gum and other Canadian-only items for shipping to a convenience store in Milton-Queensland, Australia run by the daughter of one of Campbellford’s past customers.
Although this customer is Campbellford’s only overseas account, the wholesaler has shipped product in the past to Florida and New York State, and has done business with two accounts in Nunavut. It’s a good example of how a small, family-owned wholesale company started in the basement of Locke’s grandfather’s home has been able to thrive and grow in a competitive business often dominated by much larger companies.
Locke’s grandfather, Ralph, started a billiard hall in Campbellford in 1920. He would often travel to Toronto and bring back tobacco, confectionary and other items for family and friends. In 1930, he realized there was a business in what he was doing as a favour and started Locke’s Cigar Store and Wholesale. Over the years, the business grew and Ralph eventually retired, handing it down, in 1950, to his son Murray (Dave and brother John’s father), who played an active part until December 2009. Dave and John have been the driving force behind the company since 1985.
locked in |
Today, the company has 20 dedicated employees, a 24,000sq. Ft warehouse, eight trucks and seven sales reps, and handles about 18,000 SKU’s for customers in an area from Port Hope in the southwest to Algonquin Park more then 200 kilometres to the north - as well as Milton, Queensland, of course, on the other side of the world. “Our success over the years has come from our location and size,” says Dave Locke. “We’re far enough away from Toronto and Ottawa, but not so remote that we can’t grow our business. We have access to a large area and we’re big enough to service it. Being able to service this niche marketplace is what makes us stand apart.”
Campbellford services a variety of customers, from small independant convenience stores, convenience-gas stores, to foodservice accounts. Campbellford ensures that all it’s customers, regardless of size or location, receive the same level of attention and care. “If we don’t have what they want, we’ll get it for them or find someone who does have it,” says Locke. “We look after our customers 100%, and everything is guaranteed.”
Campbellford services a variety of customers, from small independant convenience stores, convenience-gas stores, to foodservice accounts. Campbellford ensures that all it’s customers, regardless of size or location, receive the same level of attention and care. “If we don’t have what they want, we’ll get it for them or find someone who does have it,” says Locke. “We look after our customers 100%, and everything is guaranteed.”
category growth
Campbellford began dealing exclusively in tobacco and confectionary, but has since expanded it’s offering, now carrying health and beauty products, pet foods, snacks, batteries, flash lights and even pool noodles for cottagers. Of its customer base, 40% are convenience and gas and 60% are foodservice, with about 80% of it’s SKUs allocated for convenience and 20% for foodservice.
“We got into foodservice because of the price wars that go on with tobacco and convenience - we’re up against the big retailers like Costco and WalMart,” says Locke. “Competition is so fierce in the convenience channel that you can’t do very much in terms of pricing. The price war, however, in not nearly as bad in foodservice. Although we carry fewer items, the margins are a lot higher.” Campbellford’s customer base swells to as many as 600 accounts between March and October each year, as vacationers and cottagers flood into the company’s trading area. “During this period we are going full tilt,” Locke says. “We have a big seasonal business because we are in some of the most popular cottage and vacation areas in the province.”
“We got into foodservice because of the price wars that go on with tobacco and convenience - we’re up against the big retailers like Costco and WalMart,” says Locke. “Competition is so fierce in the convenience channel that you can’t do very much in terms of pricing. The price war, however, in not nearly as bad in foodservice. Although we carry fewer items, the margins are a lot higher.” Campbellford’s customer base swells to as many as 600 accounts between March and October each year, as vacationers and cottagers flood into the company’s trading area. “During this period we are going full tilt,” Locke says. “We have a big seasonal business because we are in some of the most popular cottage and vacation areas in the province.”
self - sufficient
Like many small businesses, Campbellford does almost everything itself, including sales, marketing and human resources. The company’s sales team of seven fans out throughout its territory, visiting customers on a weekly basis. This ensures they’re serviced to their satisfaction and the sales team develops new business where they can. The sales staff still take orders manually and rely greatly on their personal contact and relationships with customers. They work closely with suppliers and manufacturers to find out about hot sellers and new products on the market and what their customers are likely to want. “One of our salesmen has been with us for 42 years,” Locke says. “Our sales reps will try and get new accounts, but we have to watch it closely and check with our suppliers to make sure there are no payment problems. Lots of little independants may want your service, but may not be able to pay for it. We’re not a bank.” In addition, Campbellford Wholesale maintains good relationships with other wholesalers who happen to have accounts in it’s region. “We make sure other wholesalers, including us, don’t get stung by a bad account if the account happens to be shared.”
The company also creates its own banner and promotional programs, producing flyers and offering weekly specials to its convenience and foodservice customer. “We work with the manufacturers and create our own specials,” says Locke. “We create special sheets for foodservice and send out weekly promotions to our convenience customers. You have to be proactive in this business.” Despite success, Campbellford has felt the effects of the recession. “Nobody seems to have any disposable cash, which makes it really hard to raise prices,” Locke says. “Hydro and gas prices are really killing us. Driving 200 kilometres to Algonquin Park for a $5.00 deliver surcharge just doesn’t make sense right now. You can’t make any money doing that.”
The company also creates its own banner and promotional programs, producing flyers and offering weekly specials to its convenience and foodservice customer. “We work with the manufacturers and create our own specials,” says Locke. “We create special sheets for foodservice and send out weekly promotions to our convenience customers. You have to be proactive in this business.” Despite success, Campbellford has felt the effects of the recession. “Nobody seems to have any disposable cash, which makes it really hard to raise prices,” Locke says. “Hydro and gas prices are really killing us. Driving 200 kilometres to Algonquin Park for a $5.00 deliver surcharge just doesn’t make sense right now. You can’t make any money doing that.”
a family affair
At 90 years and counting, the Lockes intend to keep the business in the family. Curtis, John Locke’s son, and John’s wife are both currently involved. Many of the wholesalers’ employees have worked for the company for a long time and feel like family, as do many of it’s long time customers. Locke says the company is going digital, working on implementing online ordering and marketing, but it doesn’t want to lose the family touch that has been the hallmark of it’s success over the decades. “Online is the way to go, but we still do have a lot of special orders for customers, blending cases with six of this flavour and six of that,” Locke says. We don’t want to lose that personalized touch.” The challenge for Campbellford Wholesale in the future is not so much succession planning as it is finding new ways to make money in an increasingly competitive marketplace. “We’re going to have to diversify more into foodservice where the competition and margins aren’t so tough.” YCM
Article from YCM Magazine, July/August 2011 - Written by Talbot Boggs