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The E.P. Henry Company Story This story is excerpted verbatim from a profile of this family business that was featured in the Family Business Strategies newsletter. The E.P. Henry Company was included because of the clever evolution of their business idea, and how they used that to create competitive advantage.
“E.P. Henry, founded in New Jersey in 1903 by Edward P. Henry, has always relied on technological ingenuity for the success of their concrete and paving products.
That technology, which began at the turn of the century with wooden molds in Edward’s basement, has come a long way.
It now includes 4 modern plants, 3 state-of-the-art finishing facilities and, of course, the Internet.”
It is clear that they’ve evolved their offerings over time. They’ve modified their business idea.
“While the company is now owned and operated by the 4th generation, they believed they would also benefit from the fresh perspective of someone outside the family business.”
They looked outside of themselves. Here is an example of how they made decisions that led to a reconsideration of their core business assumptions. The results were significant.
The folks at E.P. Henry would say, they changed the game plan and gained a significant competitive advantage as a result.
They “...have focused extensively on applying a common marketing strategy to a product— branding-- and an industry—concrete-- that is not known for being brand-oriented.
‘What we’ve been able to do is create terrific brand awareness for a commodity product. We’ve taken a piece of concrete and made it a consumer product in much the same way that Starbucks has taken a cup of coffee and branded it.’
Mark says that the Internet has been integral to the success of their innovative marketing plan. ‘We look outside our industry at other consumer products companies as models, because to look within our industry would slow us down’."
This step required a deliberate reconsideration of themselves as a company. How they think about themselves has a powerful impact upon the options and alternatives that make sense to them.
They say, "Most concrete products producers are just selling chunks of concrete, and that’s how we’ve managed to separate ourselves from the pack and really catapult ourselves beyond everyone else."
This company didn’t do anything that any family business couldn’t do, but they did something that most others do not do. Ask yourself why? What stops you from redefining yourself and changing the game right under the noses of your competitors?
“We asked him what he felt was holding his competitors back. The answer was simple and direct. ‘Vision. They just lack the vision. They’re selling a piece of concrete, and we’re selling a consumer product and there’s a huge difference.
One of the things we’re developing is a software program that allows Mr. And Mrs. Homeowner to look at their patio before they buy it by taking a digital picture of their house, defining the area where they’re going to have their patio, and actually placing in different colors, patterns and textures that will let them see how it will look with their house.’
To further educate consumers, they’ve implemented an online guide to finding and selecting a contractor.
But while some features of their site target the end users of their products, they remain primarily a manufacturer, selling their products through authorized retail dealers, and over 80% of their inventory requires professional installation by contractors.
To that end, they’ve created a Dealer Locator on the site to lead potential customers to a point of sale for their product.”
You can see how their redefinition created new opportunities within their business idea. E.P. Henry didn’t just stop there.
They followed through, modifying their practices to reflect the newest iteration of their business idea, rather than continuing to offer older, outdated processes.
‘What we’re doing is pull-through marketing. We’re getting the consumer all hot and bothered, and then chasing them to our dealers.
The Internet ties our marketing program together. It allows me to stay more current. Once we print a catalog, the moment we print it, it’s out of date. Yet our website is dynamic. If we introduce a product in the course of the year, I can put it on the website.’
Just as important as convenience is company image: ‘It gives you a lot of credibility, and you can also look a lot bigger than you are.’"
“To drive this point home, he shares with us an anecdote from his earlier days in the catalog business.
‘I had a client that made chalkboards and blackboards. When you walked into their office, it was something straight out of the 1950´s, and this was in the 1980´s. They had a big, impressive catalog that they spent thousands and thousands of dollars on, and I asked them why they did [the catalog].
He said, `Nobody sees my company or my offices. The catalog is what they see, and they think they’re dealing with a much bigger and more sophisticated operation based on what they see in this catalog.’ And it’s true!’”
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