Michael Lawson
Albany, GA (USA)
Role(s):
Founder/Owner/Principal
Lawson Industries
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Startup
Location:
Albany
Industry:
Automotive
Year Founded:
1999
Number Employees:
10-50 people
Description:
Business Description
Lawson Industries was established in 1999 as a C Corporation, registered in Georgia, which imports and distributes automotive parts throughout the United States. Lawson Industries offers exhaust shops a better quality part for 15-25% less than what they are currently paying. Through Lawson Industries infrastructure of watching cost in every area of their business, they are able to give customers a better quality part at a better price and deliver faster than any wholesale distributor for better service.
Product Overview
Lawson Industries requires 90% of all exhaust products to be in inventory. The products include Exhaust Hardware, Gaskets/Flanges, Mufflers, Aluminized Tubing, Stainless Steel Mufflers/Tips and Catalytic Converters. Lawson Industries has introduced a patented Southern Hanger™ that has impacted the exhaust industry. With numerous purchase orders, the Southern Hanger™ has taken the place of most competitors’ hangers that are currently on the market today. Through its unique design, an installer now has one part to do a job that once took several parts. All exhaust hardware parts are manufactured out of top quality steel, wax coated to prevent rusting and packaged to the desired quantity. Once boxed, all products are palletized and shrink wrapped for shipping.
Customer Profile
Ninety percent of the purchasers of Lawson Industries’ products are wholesale distributors and exhaust shops. Currently, more exhaust shops are calling on Lawson Industries due to the fact they can buy the amount necessary to meet the freight minimum and still buy for less than they could going through a wholesale distributor. Lawson Industries markets to over 13,000 exhaust shops but cannot fulfill their orders due to the lack of inventory. With an influx of capital to increase the inventory, Lawson Industries potentially would be able to add another 183,000 automotive repair shops to their customer base. Another emerging customer group is the private label customer. Due to Lawson Industries’ expertise in vendor/manufacturer relationships, they are offering U.S. manufacturers superior quality and pricing needed to outsource their private labeled products. Lawson Industries currently has a private label customer with over $500,000 in purchase orders and unlimited potential for more if the inventory capital was available.
Competition
Nine years ago, there were over 10 major competitors in the marketplace. Through establishing strongholds, key vendor/manufacturer relations, and lean costs management, Lawson Industries has survived mergers, acquisitions, and fallouts. Now, Lawson Industries has only two primary competitors, AP Exhaust and International Muffler Company. Each of these manufacturing companies specializes in one area of the exhaust industry. AP Exhaust specializes in premium mufflers, and IMCO specializes in economy mufflers and tubing. Lawson Industries has worked tirelessly on diversifying their inventory to offer exhaust shops a whole array of products. The “One Call System” is Lawson Industries’ goal. For example, Lawson Industries has been called the “Wal-Mart of the exhaust industry.” An exhaust shop can call Lawson Industries and get everything it needs in one order. This makes Lawson Industries a more valuable company to the industry and a more stable company for the future.
Current Position and Business Objectives
Currently, Lawson Industries has completed its muffler line which has been regarded as the best muffler line in the exhaust aftermarket industry. After looking around the world, Michael Lawson flew to South Korea to visit a factory currently making OEM (original equipment manufacturer) mufflers for the automakers Kia and Hyundai. After negotiating and presenting the vision for a partnership, he was able to contract with this factory for his muffler line. This same diligent method is pursued in purchasing their entire inventory. Lawson Industries does not pay for any of their parts in advance! All payments, including those purchased from overseas, are handled once the inventory has been inspected for quality and quantity purposes at Lawson Industries’ distribution center. Lawson Industries also negotiates all inbound freight rates so that cost is not inflated or over priced by the vendor. Lawson Industries has numerous requests for a larger inventory so that purchase orders can be filled in a timely manner. With a current $750,000 line of credit, only small amounts of each category are in inventory. The requested capital investment would allow Lawson Industries to proceed with ordering the necessary parts to complete the industry demands and expand the private label opportunities. Lawson Industries cannot afford to grow a venture of this magnitude without sufficient inventory because the high demand of orders not fulfilled in a timely manner does result in a lack of repeat business.
Processes and Procedures
Inventory – smart buying, payments made only after quality and quantity inspection are preformed
Sales – selling directly to customers to meet their needs daily; not weekly or bi-weekly as with the competition
Shipping/Delivery – Orders are shipped the same day with delivery within 24-48 hours. Lawson Industries’ cost for delivery ranges from 8-10%; while the cost for the competition ranges from 18-22%. Lawson Industries’ controlled cost is accomplished through their logistics partners.
Warranty - Quality parts are backed by a 2-year warranty; not the typical 30-day warranty, which is industry standard.
Payment - All shipments are paid by C.O.D., Pre-Paid Credit Card, or Pre-Paid Check. No bad debt or A/R to collect.
Progress to Date and Future with Increased Capital
Lawson Industries has only tapped 1% of the market, so the growth potential for Lawson Industries is unlimited. In a multi-billion dollar industry, exhaust sales continue to grow each year for Lawson Industries. With the price of new cars escalating and a decline in new car sales, more and more car owners are buying or keeping older cars. With more used and older cars on the roads than ever before, the need to maintain these cars has increased. Thus, the demand for Lawson Industries’ inventory increases. Lawson Industries has set in place the foundations for growth that are not size constrictive. With the processes and procedures in place, an increase in capital will allow Lawson Industries to address the main problem, which is the lack of inventory to fulfill the needs of the current and potential customer base.
Better Prices - Lawson Industries understands that volume purchases deserve volume prices. With the exhaust industry so competitive, one way for wholesale distributors and exhaust shops to raise profits is to lower cost. Lawson Industries understands this formula and offers wholesale distributors and exhaust shops a pricing structure to maximize profits.
Better Parts - Lawson Industries has improved the industry standards by providing better parts to wholesale distributors and exhaust shops. Lawson Industries has accomplished this purpose by using better quality materials for their products. Lawson Industries continues to make products better, more durable and rust free for wholesale distributors to sell and exhaust shops to use. The typical warranty offered by the industry is only 30 days, but Lawson Industries offers a two year warranty.
Better Service - Lawson Industries has guaranteed wholesale distributors and exhaust shops their orders will ship the same day. There is no need for a wholesale distributor to buy truckload quantities to get a price that Lawson Industries offers everyday. Why should a wholesale distributor or exhaust shop tie their money up in inventory, when they can call and have their orders in 24 to 48 hours? Lawson Industries has customized its business around the wholesale distributor and exhaust shop to make them as profitable as they can be