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Master Distribution Hirsch National Sales
Leadership, experience and strategies prove key to growth at Hirsch
BY MARY JO MARTIN Editorial director
T
wo of the visionaries in the concept of “master distribu- tion” were Hirsch founder Joe
Hirsch — who planted the seed — and his successor Dan Mariscal, under whose leadership the company launched its National Sales division. Hirsch founded
Tom Malarkey, sales manager of Hirsch
National Sales
his namesake company in Los Angeles in 1933, and led it with a very simple phi- losophy: “Treat your customers the way you would want to be treated, and get them what they need when they need it.” He also
believed that by investing in the Chicago Faucet line he could grow the business beyond just a local sup- ply house. This idea was the corner- stone for the future growth of Hirsch. When Mariscal acquired the busi-
ness from Hirsch in 1978, the com- pany had just two branches and 26 employees. Before the practice of master distribution became more common in the PHCP/PVF industry, Mariscal saw a great opportunity to expand Hirsch Pipe and Supply by leveraging their deep inventory and expertise in the Chicago Faucet and Sloan Valve product lines nationally. Mariscal opened Hirsch National Sales in 1980, and was very success- ful in growing that platform. About a decade later, current CEO
Bill Glockner joined Hirsch and eventually acquired the business. With a degree from Princeton, an MBA from UCLA’s Anderson School of Business and a background in management consulting, Glockner brought a whole new set of ideas and energy to Hirsch’s operations, includ- ing expanding Hirsch National Sales to include the redistribution of a broader range of residential products to the kitchen and bath showroom market. Among some of the other ini- tiatives Glockner launched were Hirsch International, Fine Faucets kitchen and bath showrooms, and In- ternet retailer Faucet Depot. Today, Hirsch operates 19 stores
throughout Southern California — all of which are supplied by the com- pany’s Central Distribution Center in Commerce, Calif. Their business model includes: • Sales through supply houses,
showrooms and direct shipments from the CDC to customers in South- ern California • Sales throughout the nation through Hirsch National Sales • International sales through Hirsch International. Glockner has assembled a capable
management team that includes a mix of talented industry veterans, along with selective hires from outside the industry to round out the group.
Master distribution is a partnership Hirsch National Sales primarily fo-
cuses on decorative lines, and carries over 25,000 different line items. Among their key lines are: • Chicago Faucet • Sloan • TOTO
• Duravit
Hirsch National Sales sales manager Tom Malarkey (far right), with some of the experienced associates that provide technical and friendly service.
• Porcher
• Hansgrohe • Danze • Blanco
• Grohe • Delta • Moen • Jado
• American Standard “We like to describe the relation-
ship with have with our vendors as a partnership,” said Tom Malarkey, sales manager of Hirsch National Sales. “The suppliers who work with us know that they can count on us to take care of the customers’ needs and make the inventory investment re- quired to properly support their line. The vast majority of our sales come with brands that we have carried for decades. However, we are always open to expanding our product offer- ing when we see a manufacturer that we think has addressed a nascent market need.” He went on to note that the first
consideration Hirsch National Sales looks at when evaluating a potential new supplier is “’Will the customer buy it?’ If we are hearing a buzz from our customer base, we are definitely going to pay attention. Then we ask ‘does it work for our market’ and ‘is it a reliable product with a strong backing by the manufacturer’? Plus, let’s not forget profitability. If we are going to invest in a product line, we need to make sure there is a real re- turn on that effort. Finally, we look at the return policy — this goes to the ‘risk’ of the ‘risk/reward’ equation. All potential new products are re- viewed by a team of managers from the divisions that would have in- volvement, and by our purchasing de- partment. We look at sales projects with GMROI analysis.” Hirsch National Sales uses both
Tom Malarkey, who is sales manager o Hirsch National Sales is pictured here (center) with some of the company’s key warehouse team members.
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outside and inside sales teams to serve customers, and uses a variety of communication channels to market the business, although they consider their service and performance their best marketing tool. “We have long-term relationships
with our customers because they know we can deliver on our promise of providing ‘The product you need when you need it with expert advice.’ On that level, we feel that performing day in and day out is the best market- ing tool we have.” And of course, the economic con-
ditions over the past few years have made customers more price con- scious than ever before. “The expectation is that we get bet-
ter, more efficient and do it all for the least cost,” noted Malarkey. “Proba- bly the biggest change of the current recession has been that price is a dominant decision maker. There is no longer an ability to charge a premium for better service. We have to provide the better service and match all of our competitors’ prices. Then we have to figure out how to do it while making a profit. Sometimes that is tough, but that is the world we live in.”
Changing with the times Hirsch has always been a company
that embraces new technology, which has proven very beneficial in helping them operate at peak efficiency — and serve their customers with a high degree of accuracy. “Electronic technologies have
moved from ‘nice to have’ to ‘need to have’,” said Malarkey. “We are cur- rently in the final stages of rolling out a new online ordering system. Our shipping department is online with all of our carriers to have the latest up- dates on any order. “We also track activity on our
website, but it’s not a major driver of new business. The wholesale business is fundamentally different than retail. In retail, it is all about eyeballs and conversation. In whole- sale, your website is your business card, but it is not the dominant factor creating sales volume.” Of course, inventory accuracy is a (Turn to Hirsch... page 34.)
•THE WHOLESALER® — JUNE 2011
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