Dealerscope Pride Award Winner - Myer-Emco
In 1998, Myer-Emco bought Pro-Line Systems, a home/business security company that was providing the retailer with a security system. When the company was bought, there were 1,100 service contracts. Now, the company has about 2,100 contracts, which account for $2 million in recurring revenue. "That's hard to get into when you're (just) a retailer," Myer said.
Myer also realized that centralization is also key to streamlining operations. Before, several of the company's departments were scattered throughout the area. But several months ago they were reeled into one 25,000 sq. ft. corporate location that houses the offices, main warehouse, design centers and training rooms (for the almost daily training sessions that are held for various Emco employees). Myer said he has already seen the benefits of efficiency by having everyone under one roof.
By 2001, the changes Jon Myer strived to make have paid off and today Myer-Emco is running 10 stores in the Washington D.C. metropolitan area and has 31 trucks on the road working on systems installations. Its average income is up to a cool $32 million annually. Growth, however, isn't always physical. The storefront locations have gotten smaller by about half. Myer-Emco stores have been reducing in size from about 12,000 square feet to about 6,000. Having an attractive, upscale store is more important, according to Myer, and the SKUs have to follow. You won't find a television set at Myer-Emco under $1,000.