Lesco to expand distribution through independent marketer program

Golf Course News, Dec 2001 by Overbeck, Andrew

STRONGSVILLE, Ohio - In a move to expand distribution beyond its 228 service centers and 78 Stores-on-Wheels, Lesco has launched an independent marketer program designed to allow their proprietary products to be sold through existing distributors and marketers of green industry supplies. The company has identified 500 markets where it would like to establish these independent marketer agreements. At press time, Lesco had yet to sign any such agreements.

"This is designed to allow our products to be sold in areas we do not cover," said William Foley, chairman, CEO and president of Lesco. "They will have access to all products including Novex, Poly Plus sulfur-coated urea fertilizers and combination products, and the CommercialPlus line of application and mowing equipment."

According to Foley, this move will help Lesco expand market penetration despite a period of slowing growth. The company saw net income for the first half of 2001 fall 78 percent to $1.9 million and the company's stock has slid to $9.80 down from a 52-week high of $15.25.

"This has been a tough year," he said. "But this initiative will leverage our technological capabilities and proprietary technology and allow us to grow more than we could have with service centers alone."

The program will allow Lesco to expand its geographic presence relatively cheaply by funneling products through independent marketers that already have distribution infrastructure in place.

The company will provide each marketer with support including national advertising, store merchandising, presentation guidance and in-store signage and marketing materials. Marketing partners will also have access to the company's online order entry system, customer service, technical support and market training programs.

"We're making sure that our independent marketers receive the same level of support and training, and have the same degree of customer service and technical expertise as our own lawncare and golf associates," said Foley.

- Andrew Overbeck