KEEPING YOUR CUSTOMERS CLOSE
MFS Supply, a national distributor of renovation materials, continues its upward trajectory by delivering service and value to its customers
It is one thing to listen. It is another to take smart action based on what you hear. MFS Supply evolved from a small e-commerce business to a leading distributor of cabinetry, appliances, HVAC, lighting, and accessories by pivoting with client needs and market trends and delivering value at every turn.
MFS Supply began in 2006 in Solon, Ohio, selling products online to contractors fixing up foreclosures for banks. When the housing market plummeted and new builds and renovations stalled, more contractors entered the foreclosure space, expanding the business’s customer base. Even in those early days, the team prioritized human touch and personalized attention. When the economy improved, those same contractors entered new markets— and they took MFS Supply with them, explains CEO Brandon Guzman.
QUALITY PRODUCTS AND SERVICE SPUR WORD-OF-MOUTH GROWTH
By expanding its offerings and coupling its e-commerce business with brick-and-mortar locations, MFS Supply built a one-stop renovation supplies shop for the multi-family and real estate-owned industries. In 2012, the company launched its manufacturing arm, which required massive investment in people, property, and processes. MFS Supply sole sources its cabinets and assembles and ships them from its distribution centers in Cleveland, Ohio and Dallas, Texas. It also has smaller fulfillment centers, which serve as showrooms, in Florida, New Jersey, and Toronto, Ontario. These stores help the brand stay close to the customer, and it plans to open four more next year.
Focusing on service—the type of service people want to tell their friends about—has helped MFS Supply grow from 55 people and $44 million in revenue, to 176 people and $85.5 million annual revenue in three years. Every client is assigned a dedicated sales representative who is supported by a team of project managers and product specialists. This means customers can always get their questions answered. Sales reps regularly ask customers for feedback on existing and potential product and share it with the product team, who act on the input. This year, the company launched a new e-commerce platform, MFS Solutions, to support its manufacturing business. The dashboard allows customers to track materials and prices from previous jobs they have sourced with MFS Supply. It is another way the company stands out from big-box suppliers and ignites word-ofmouth growth.
SUCCESS BEYOND DOLLAR SIGNS
For Guzman, success boils down to understanding and valuing customers as well as employees. He has been with MFS Supply since the beginning and started as a sales rep. He tries to stay close to the sales process so he doesn’t lose touch with the market. His noego, roll-up-your-sleeves-and-get-the-job-done mentality permeates the company culture. People work hard and play hard, and Guzman hopes every team member, from the front office to the warehouse, knows their contribution makes the business bigger and better.
MFS Supply is on track to hit $100 million in revenue within the next 18 months. It is building the infrastructure to support doubling that number within the next three to five years. But success means more than profit. Guzman and his team want to build a company people admire—a place people like working and where both customers and employees feel valued.