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The Johnstone Supply Story |
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Over five decades of growth
and prosperity have positioned Johnstone Supply as one of the premier
HVAC/R wholesale distribution companies in the United States. From its
modest beginnings in a single 600 square foot store in 1953, Johnstone
Supply has expanded to over 255 stores nationwide supported by two
cutting-edge, computerized distribution centers located in Portland,
Ore. and Memphis, Tenn. These two warehouses alone cover more than
250,000 square feet.
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Johnstone's
Roots
Established in 1953 by two gentlemen
with the last names of Johnson and Stone, the original Johnstone
Supply Company focused mainly on refrigeration, as Stone was a
refrigeration contractor. Stone's experience and Johnson's capital
investment had the company up and running, but not successfully.
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| Other business demands
on the two partners consumed too much of their time. In addition to
Stone's contracting business, Johnson, a dentist, operated a dental
practice. |
It was at this time Johnstone Supply's founder John Shank entered
the picture. Shank evaluated the business and determined that a
dedicated owner could turn the company into a viable and profitable
concern. Shank purchased the business from Johnson and Stone for
$19,000, and began his ascension into the upper ranks of the HVAC/R
wholesale distribution industry. |
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Built on a Strong Merchandising Foundation
Shank knew that if he compiled a comprehensive
listing of all the quality lines his company represented, customers
would identify Johnstone Supply as a reliable source for almost any
needed repair part. Shank's marketing sense drove the rapid
inception of the Johnstone Supply catalog.
Originally a monthly
mailer, the Johnstone Supply catalog evolved over the years into the
most comprehensive parts and supplies catalog in the industry.
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| Today, the printed
version, sent yearly to over half a million Johnstone customers,
contains more than 1,300 printed pages of products and product
information. In early 2001, Johnstone introduced a state-of-the-art
Internet based catalog, allowing Johnstone customers to view every
product online and log electronic orders at their convenience, while
still going through their trusted local store. |
The Reinvention of a Company
Nearly three decades of growth
saw the company transform itself from one lone store into a
multi-state operation with a dozen company-owned stores and 20
franchises. At this high point in his long and successful
career, John Shank began to contemplate retirement and decided
to reevaluate his future personal and business plans.
Increased franchise reporting requirements and their resulting
legal costs prompted him to bring a halt to the proliferation of
the franchise stores. These costs also encouraged him to come to
a unique decision: restructuring his company into a
cooperative, where individual members shared ownership of the
business.
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close of 1981, all 32 of Johnstone's stores and franchises were
on board and ownership transferred from Shank to the new co-op
members. The membership organized a company management
structure, basing the new company's headquarters in Portland,
Oregon. Johnstone headquarters' staff would report to a seven
position board of directors elected from co-op members and
providing each individual member store with centralized
merchandising, warehousing and financial reporting services in
return for a membership fee. This centralization of resources
continues to benefit members by eliminating wasteful duplication
of standard store functions and substantially reducing the
members' operations costs. |
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The Changing of the
Guard
By 1985, Shank was ready to step down from his
position as Johnstone's President, and he began to search for a
suitable replacement to take the helm. He found this, and more, in
Jerry Schultz, who had joined the company in 1978 from Pacific
Supply, a co-op dealing in petroleum products, fertilizer and farm
supplies.
Shank felt Schultz's background made him the logical choice to
spearhead the growth and development of the newly formed
cooperative. |
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And, his faith in
Schultz was well founded. Under Schultz's direction, Johnstone
Supply grew from 75 member stores in 1985 to 245 stores nationwide
in 2000.
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| After 22 years at the helm, Jerry
Schultz retired in August of 2000, and the Johnstone Board of
Directors appointed new president Gary Daniels, a 13-year veteran
with a proven track record in the areas of marketing, merchandising
and vendor relations. Today
with over 255 stores, Daniels is leading Johnstone into new areas of
customer and vendor services, including an online catalog and
electronic order fulfillment, and an individual web site for every
store. |
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The Essence of the Co-op - Cooperation
Founded on mutual cooperation, Johnstone Supply saw no reason to exclude
their business partners from this successful formula. A three-way
partnership between Johnstone's corporate management, member stores and
the co-op's suppliers provided a strong foundation for developing and
distributing high-quality merchandising collateral. Johnstone's
suppliers share in the costs of producing yearly the most comprehensive
catalog of repair parts in the HVAC/R industry, and the monthly
production and distribution of advertising flyers that feature seasonal
products and special sale items. This cost sharing reduces the
cooperative's out-of-pocket expenses, while the suppliers benefit from
national advertising exposure through their inclusion in the
publications. |
Ensuring Johnstone
Supply's Future Success
Several additional programs will ensure the cooperative's continued
growth and success.
Johnstone
Supply Catalog
Ongoing revisions to the Johnstone catalog guarantee its continued
status as the best in the HVAC/R industry.
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Product depth and
quality is a priority, so Johnstone Supply constantly reevaluates
the catalog's content, updating and revising it; adding and deleting
product and providing detailed illustrations and specifications.
Currently, the Johnstone Supply catalog is produced annually,
contains over 1,300 pages featuring more than 20,000 products and is
distributed to over half a million Johnstone customers.
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Johnstone
University
Johnstone Supply views education as an essential, powerful tool that
gives our store members and customers a distinct competitive
advantage. Our Johnstone University program offers intensive
technical and business seminars to store owners and personnel,
ensuring their expertise in all areas of the HVAC/R. To make
continuing education even more accessible, we have developed
Internet courseware to bring industry experts directly to Johnstone
stores, anywhere, anytime.
The success of
our contractor and technician customers also remains a top priority
at Johnstone. We offer numerous educational opportunities to help
propel them to the forefront of their profession, including the
award winning Customer Focus video program, a series of
interactive, computer-based training CD-ROMs, and a series of
onsite, hands-on technical training classes. |
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National
Accounts Program
The HVAC/R industry is in a period of tremendous change.
Consolidation has become the norm rather than the exception, and
small, privately owned businesses are quickly disappearing. The
Johnstone Supply cooperative is uniquely equipped to meet this
challenge in ways that are beneficial to our customers. |
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| Individually owned
Johnstone stores with national distribution capabilities comprise
our business and maintain our commitment to superior customer
service. This responsiveness to our customers' needs spurred
development of a national accounts program designed to benefit
organizations and buying groups that require a coordinated effort on
a nationwide scale. |
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Johnstone Supply is your source
for quality AO Smith water heaters!