Trucking Times is always on the lookout for accessory outlets to profile in the magazine. Sometimes, we’re personally familiar with a company; other times, we hear through word of mouth. Occasionally, someone will make a recommendation. When Greg Hooks, CEO of Curt Manufacturing, spent time with Dave Herrmeyer raving about the clean restrooms and continued growth to be seen at Discount Hitch & Truck Accessories, it piqued our interest. Here’s what Hooks had to say:
“The environment you create, whether for the consumer or your employees, is important. Cleanliness shows professionalism and the culture of the workplace. When consumers go to Discount Hitch, they can watch TV; there are reading materials, and the bathrooms are well kept and well appointed. The employees are well dressed, knowledgeable, and they look professional. That brings customers back and shows a lot of pride in the business.
“All the people in the organization know towing inside and out. What they do best is set the standard for working with consumers to help them through the purchase and put together a whole towing system. They set a high bar.”
A customer-driven culture builds reputation, repeat business
Setting the bar high is all in a day’s work at Discount Hitch & Truck Accessories. From employee training to partnering with quality-minded suppliers to branding the company’s image and running a streamlined operation, owner Kenny Owen strives to do a better job every day. Especially when it comes to customer service.
The company’s mission statement says it best: “At Discount Hitch & Truck Accessories we are customer driven. Our single most important mission is to provide the highest standard of customer excellence. It means ensuring your total satisfaction by making every experience at Discount Hitch & Truck Accessories a pleasant and rewarding one.”
While a product or price advantage may be duplicated, it’s not easy to replicate a solid customer-service culture. From Owen’s perspective, the focus on superior customer service is a proven ingredient in the company’s evolution, helping to build its reputation and repeat business.
“My philosophy is you’ve got to put yourself in your customers’ shoes,” said Owen. “We try to make people feel at home. There are fresh flowers, music, Wi-Fi and leather couches in the waiting rooms. I’m proud that you can eat off the floor in any of our stores. We shake people’s hands, ask how they’re doing, and walk them through the process. We want people to think they’re getting a great product at a great price from a great place. It’s a lot like going to a nice restaurant. If the food is good, the beer is cold and everybody makes you feel welcome, you don’t mind spending money and you’ll go back.”
The proof is in the pudding. From a small, single store operation with three employees who specialized in custom-built hitches, Discount Hitch has grown by leaps and bounds.
Recognized as a market leader -- the place to go in Texas for hitch and hitch-related products -- Discount Hitch attracts a loyal retail following that accounts for 90 percent of the company’s sales, the remainder comprised of auto dealerships, RV manufacturers and fleet accounts. To handle the volume of business, they now have 47 employees who staff eight locations scattered throughout the Lone Star State as well as a successful online sales operation.
Evolution from hand-made to ready-made
Owen’s roots in the business go back to his high school days in the mid-’70s. He worked part time for a local tool and U-Haul rental business in the Houston suburb of Pasadena, where he and the owner produced hand-made hitches for cars. They eventually began purchasing a few ready-made hitches and the business started to grow. When the owner decided to retire in 1982, he made Owen an offer he couldn’t refuse. They closed the deal within four days.
From the get-go, Owen focused his sights on trailer hitches and a handful of truck accessories. He changed the name from Pasadena Moving Center to Discount Hitch, eliminated the rental equipment, hired his younger brother, Doug, and his brother’s best friend, and set about building hitches.
The company started out catering to a local clientele keen on fishing and hunting, and in need of hitches. The three-man team worked around the clock building an average of 100 hitches per day. “We did whatever it took to get the company started,” recalled Owen. “Back then, the hitch industry was just beginning. There were only about 25 popular part numbers. We built all of the hitches from scratch. It wasn’t a big investment. Now, there are over 1,200 part numbers. It’s amazing how the industry has changed.”
And so has Owen’s business. Recognizing the growth potential as the truck market surged, he slowly began buying ready-made hitches direct from a manufacturer to augment his custom-hitch business. “That,” said Owen, “was how we got on the map. Here we were with a one-store operation, and we were going gangbusters. We were doing numbers in the quarter-million dollar range.”
That drew the attention of another hitch supplier. Though reluctant to switch vendors, Owen was ultimately convinced when the company’s rep showed him how much money he could save by purchasing ready-made hitches instead of building his own. The company also provided the training and insight needed to grow the business.
“They did a good job of teaching us how to do better, to do things the right way,” said Owen. “They showed us what markets we could make money in and what markets we should avoid. They had that knowledge and we didn’t, so it really helped us going forward.”
A few years later, Discount Hitch was approached by Curt Manufacturing. Though already doing some business with Curt, Owen decided to switch vendors again. “At the time, we were only buying colored hitches from Curt,” said Owen, “but they worked hard to earn our business. They just blew us away with their customer service.”
Reality check: learning to grow smart
Many things in Texas are super-sized. Austin boasts the largest state capitol building in the U.S. The King Ranch, near Corpus Christi, is bigger than the state of Rhode Island. And in true Texas style, Owen thinks big as well. He has always envisioned being a major player in the hitch market.
Having earned an associate degree in business administration while attending night school at San Jacinto Community College, Owen started by creating a business plan. The purpose: To put his vision into focus. His goal: To have stores in 10 or more states within 10 years.
He embarked on his expansion plan with a 6,000 square foot store in Arlington, a Dallas suburb. Owen then added stores in San Antonio and Austin, plus two more in Houston. One is a 15,000 square foot flagship facility. It boasts a 10,000 square foot showroom chock-full of trailer hitches, fifth wheels and related components along with toolboxes, racks, custom wheels, tires, flip-down TVs and more.
Corporate headquarters were next relocated from Pasadena to Rosenberg, an upscale Houston community. The 7,100 square foot facility includes a showroom and four bays. It also serves as home to the company’s Internet sales operation, which is run as a separate business. An adjacent warehouse supplies all of the Discount Hitch stores. More recently, Owen opened new facilities in Austin and the Dallas suburb of Lewisville.
“Our Houston super store is the only one that has the capability to do more things, like tires and wheels,” said Owen. “The rest of the stores primarily do hitches, fifth wheels and a few truck accessories, such as nerf bars, bike racks and tool boxes. That’s the key part of our business. Internet sales have also become a huge part of our business, more than $1 million in sales in the last year and a half. A lot of that has to do with our customer service,” he added. “We drop ship to the customer’s house, offer same-day delivery and free freight over $75. Overall, our business just keeps growing.”
While Owen has kept busy expanding his Texas-based empire, he still had his eye on other markets. During the 1990s he opened stores in Florida, Georgia, Oklahoma, Colorado and elsewhere. The Florida store flourished and was immensely profitable selling just hitches and related products. But then things took an unexpected turn.
“We can go in and dominate a market based on being really good at what we do. But, for some reason, we decided to go into the truck-accessory business,” said Owen. “We leased and moved to a huge property. We had the commitment from our hitch vendors, but not from truck-accessory suppliers. So we did well with hitches, but terribly on truck accessories.” The end result: After five years, Owen closed the Florida operation.
“Our Atlanta store did really well, because we kept it small and focused on our key strengths. But both stores were so far away that once we closed the Florida store, we closed Atlanta, even though it was very profitable.”
He had a similar experience in Colorado and Oklahoma. The Denver operation was hugely successful. The one in Oklahoma City was not. It was a different market and a different clientele. “Oklahoma City is only two hours from Dallas, but people there are totally different, and we were not willing to adjust,” said Owen. So once again, he pulled in his horns, and closed both locations.
The lessons learned proved valuable, and Owen believes others can benefit from his mistakes. “At one time, we had 17 locations and our sales were over $25 million a year. We thought that was the greatest thing in the world. But my Dad always said it’s not about how much you gross, it’s about how much you’ve got in your pocket.
“The biggest challenge was we grew fast, but we didn’t grow smart. It’s not about being in seven states. It’s about doing a great job in the markets where we’re strong. The hardest part has been admitting that we had to refocus and do it right.”
Ever the optimist, Owen continues to see room for growth. He plans to open two more stores in Texas this year, and still has his eye on Denver. “Our plan is to dominate the Dallas-Ft. Worth market,” said Owen, who noted that the new Lewisville store, which opened in 2009, has been successful since day one. “Denver is still on our radar for the future,” he added, “because it’s such a good place to do business.”
Team building, vendor relationships, and added value
Just as Rome wasn’t built in a day, Discount Hitch wasn’t built singlehandedly. In fact, Owen believes his employees are his most valuable asset. It is through their dedication, skills and initiative that his company has prospered and continues to move ahead. “The key to our company is our employees,” said Owen. “I give them all the credit in the world,” he added, noting that his wife, Janica -- who runs the Internet sales operation -- is the backbone of the business.”
To ensure that employees have the resources, knowledge and expertise to succeed, Owen implemented a training program, spearheaded by his brother, Doug. As a first step, new employees first work at the corporate headquarters in Rosenberg, where they undergo extensive training and have to pass a written test.
The process covers such key elements as understanding how to correctly handle paperwork, learning technical skills, acquiring product knowledge and mastering the essentials of good customer service -- knowing how to properly meet, greet and engage customers. Employees also learn if there’s a problem, it’s up to them to find a solution. “No one is going to micromanage them,” said Owen. “If they mess up, they mess up. It empowers them to be like the owner.”
Many of Owen’s employees have worked at Discount Hitch for years, even decades. By providing growth opportunities, he rewards both their loyalty and their expertise.
The shop foreman at the Rosenberg store, for instance, started out 14 years ago as a trainee and worked his way up. The manager who runs the new Houston “super store” began pushing a broom while still in high school and is now married with four children. “It’s important to create opportunities where they can realize their potential,” said Owen.
He gave his eldest son an even greater opportunity. Nicholas Owen, now 30, got his start in the business as a youngster sorting nuts and bolts. Two years ago, his father gave him the chance to own two stores, one in Austin, the other in San Antonio. But there was a catch. He first had to prove his ability to run them successfully. He did just that and now owns both stores. Said Owen: “Nick loves the truck accessory business and has always had a passion for it. He does a really outstanding job and is making a killing.”
Just as skilled employees are essential to the company’s success, so, too, are quality vendors. As Owen sees it, quality trumps price every time. “One of the keys to our company is that we’ve always sold quality products. We never would buy from the cheapest manufacturer, always the best manufacturer.”
Even in the ’80s, when there were numerous hitch companies competing for market share, Owen was savvy enough to know that buying cheaper products would be a problem. “We’re in it for the long haul. If you’re going to be a successful businessperson, you need to partner with very good vendors, with good product and good customer support. When you work with good vendors that are on top of their game, it helps you stay on top of yours.”
Targeted marketing reaps benefits
For a company to become known as a market leader, it has to do a lot of things right. One of the areas where Discount Hitch excels is in its marketing strategy. From trade shows and open houses to advertising and community involvement, Owen puts Discount Hitch front and center.
One his most successful ventures targets the RV and outdoor-activities market. The company has a long history of exhibiting at RV, hunting and fishing shows held throughout the state. The shows typically attract enthusiasts, outdoorsmen and mainstream consumers, and are an effective way to build the company’s image and drum up future business. Employees hand out business cards and a glossy, product-filled, 600-page catalog to qualified customers. “We do well at the shows, because we project an image that we’re professional,” said Owen.
The shows also have proven fruitful in another way. Over the years, Owen also has built relationships with many of the RV manufacturers. By offering them a discounted labor rate on hitch installations, Discount Hitch generates an additional revenue stream. “They send us referrals year ’round, and it keeps us really busy,” said Owen. The work also helps to spark future business. “Because we do the installations quickly and do them right, the customers are impressed with our work. The next time, they think of us when they buy another RV.”
To reach a broader audience, Owen advertises on sports-radio stations in his primary markets. As part of his effort to target the state’s large Latino community -- which includes having a bi-lingual manager or assistant manager in every store -- he also advertises on Spanish-language radio stations.
Discount Hitch hosts open houses as well. At a recent event, Owen brought in a pro football player to sign autographs. Employees gave away T-shirts and tickets to a local NFL game. Other activities included a football throwing contest, and for the children, a special guest appearance by Spiderman.
“The radio advertising and open houses give us a lot of exposure,” said Owen. “Having Spanish-speaking people on staff can also make some customers feel more comfortable. We try to tailor our efforts to the audience we’re trying to attract, and it works.”
Owen is also community-minded. A life-long baseball fan, he advertises with Little League teams and encourages his store managers to support high school sports teams in their communities. He’s also coached and held fundraisers for a Little League division for disabled children, and runs ads in local high school yearbooks.
“I don’t do it for the recognition. I believe you’ve got to give back to the community,” said Owen. “That’s a marketing concept that a lot of folks don’t use. It shows a community spirit and our customers recognize that.”
Recipe for success
Much has been written and said over the past few years about the toll the economic downturn has taken on the automotive industry. It’s also had a trickle-down effect on the specialty equipment market, particularly the truck-accessory segment where many companies have struggled to deal with fewer sales and skimpier margins. Not so the case at Discount Hitch.
“I think anybody who complains about the economy needs to step back and evaluate what they may be doing wrong and make progress on that. You can’t be afraid to make decisions. The customers are out there. You just have to be willing to do what it takes to get them to come through the front door.”
It’s also a matter of due diligence, looking at what can be done to improve processes and streamline the operation. In Owen’s case, despite the sluggish economy, the company has experienced dramatic growth, which he attributes to paying more attention to business basics.
“Store for store, we had a 52 percent growth. Of course, we have new locations. But I believe we’ve had great growth because we decided to buckle down -- look at how we could be more efficient and do a better job than we did before -- and we’ve gained market share. We’re already looking for 2011 to be better than 2010.”
The story of Discount Hitch & Truck Accessories is a chronicle of how one young man with big dreams and a passion for his life’s work has created a company and a corporate culture that places high value on its employees and its customers. For Kenny Owen, it’s a proven recipe for success.
After 37 years in the business, Owen still derives satisfaction from going to work each day. For him it is, and always has been, a labor of love. “I still wake up every day with a passion for what I do,” he said. “I still want to make progress, do a better job today than I did yesterday, take care of my employees and do what’s right for our customers. If you go out and do a better job than you did before, people will respond and you’ll gain market share.”
As J. Willard Marriott Jr., head of the Marriott hotel chain, once said, “Motivate them, train them, care about them and make winners out of them… they’ll treat customers right. And if customers are treated right, they’ll come back.”
www.discounthitches.com 1-800-841-4661
