While competition in any market drives a quality product, the wood stake production business is much like the lawn cutting business. Just as anyone with a trailer, mower, weed trimmer and time can compete just as any one can set up a simple table saw and get wood drops from truss facilities or local residential jobsites while they are building. With this ease of startup and no consequence of shutting down production, many stake customers have been burned numerous times. With no lease on a building, forklift and delivery vehicle, what is their to obligate them to produce a quality product to keep their doors open.PURCHASING AGENTS AGREE--YOU CANNOT SELL WHAT YOU DO NOT HAVE
While they say history repeats itself, so will human behavior. We have seen individuals keep starting up under different names and even work for other companies only to drop the ball time after time in the Ocala stake market. Sadly, the customers will go back to the low price supplier and your more reliable supplier goes through a downsizing only to be called upon again when the low price supplier can't deliver and even stops taking his customers phone calls. Here we see the reliable supplier increase their expenses with overtime and production to handle this sudden increase in sales only to have the customers jump ship and continue to purchase from the low price supplier and his shaky business practices when the low price supplier locates lumber and starts back up.
This only hurts the customers buying from the low price supplier as they are distracted from their day to day sales by trying to track down the low price supplier while he avoids his cliental. While this is taking place an outside supplier will move in on their customer base who can no longer wait for stakes from customer that was buying from the low price supplier. While the customers of the low price supplier jump through hoops re-establishing accounts and are locating new suppliers the outside supplier is able to show they can supply the expecting customers with a reliable source of wood stakes, even at a higher price then they paid to the pervious supplier who purchased from the low prices stake supplier.
This shows you the wood stake market is not necessarily a price driven market, but more of a quality product/service driven market. A prime example is the disappearance of all the small lumber milling facilities in the south east. Your larger lumber yards like GP and IP, both suppliers to our production facilities, has shown how a network of lumber yards has taken on the aggressive growth of the building in Florida and satisfied it's customers and left no demand for new lumber yards or the rumor projects are unable to be completed due to lack of raw product.
We are approached numerous times a year by a stake producer that is about to shut their doors or looking to downsize and sell off stake producing equipment. Don't be the fooled, ask to see your suppliers production facility, is their lumber fresh or old, do they have stock? Read more in our company history page.