History
A lot of people believe Pohaki is an Indian word. Located deep in the heart of thick pine and birch forests that surround clear spring-fed lakes near Virginia, Minnesota, it's not hard to imagine a mystical, mysterious meaning in the name of this century-old company. Pohaki Lumber owner Allen Williams may even elaborate on the native heritage of the name himself; even pointing out that an Indian image was used in the company logo years ago.
But if he weaves a wonderful tale for you, don't believe him. He's pulling your leg.
Truth is the company's name came from the first two letters of the three owners who founded Pohaki Lumber more than 50 years ago. Steve Pogorelce, Newton Hahne and Clarence Kintner purchased a yard that was built in 1896 as a retail store for a local sawmill and was known as W.T. Bailey Lumber Company. Williams began working at Pohaki in 1964 and married Mary Pogorelce in 1967. By 1970 Pogorelce was the sole owner, and Williams took over the business from his father-in-law in 1988.
With two other independent lumber yards right in town, another within 30 miles and two box stores about 60 miles away, Williams has focused on developing and maintaining a strong customer base. With a commercial/retail split roughly 60/40, contractor/industrial accounts are maintained with a high level of personal service. For example, Pohaki has the only truck-mounted crane in the area.
"We offer custom delivery to all our contractor and industrial accounts - they tell us when they want it and where to place it. Away from the job, we develop relationships informally for the most part. We'll have 20 to 25 contractors in once a year for a meal and cocktails and a short vendor-sponsored training, but most of our relationships are built up one-on one over time. We seem to get along well with our customer; there's a mutual level of trust. I have one customer who was recently bidding on a large contract, and he gave me his take-off sheets. That's a relationship that's been formed over many years."
Product quality is very important to Pohaki Lumber, so much so that he even stocks 2x4s and 2x6s from Europe. "They're definitely higher in quality; not as much bark and the knot structure is tighter. I prefer buying a domestic product whenever possible, but when there is a clear difference in the quality- I buy the better product."
To attract a strong retail customer base, Williams expanded the showroom/office space from 1,200 square feet to 3,000 square feet. Windows, doors and siding are displayed, and all retail products- including some hardware and paint- are directly related to home construction and remodeling projects. To create a retail draw, Williams advertises aggressively.
"Cable TV has worked well for us," says Williams. "Our cable rep does a good job of putting together run-of-day packages that include a lot of focused programming, like 'Trading Spaces.' It's hard to track the effectiveness of dollars spent, but we get a lot of comments on the ads. This year we spent a lot more (on cable television advertising) than we have before, and we've had an excellent year. Are the two related? Hard to tell, but as long as people keep talking about our ads we'll keep advertising."
Williams emphasizes quality and service in cable ads, and is more product-focused in newspaper ads. "We used to advertise weekly in the paper. Frankly, I think people just got so used to seeing our ads every week they just stopped seeing them. Now we advertise once a month, but we change the ad regularly and the size is bigger-up to a half-page. We really push the quality of our products. We run a lot of Marvin Window ads for many reasons. One, the name recognition. Also, they have a strong co-op program and the quality of their ad materials is very good."
In addition to running Pohaki Lumber for the past 40 years, Williams has served as Chairman of the Board for the Northwestern Lumber Association and continues to be heavily involved in the association and other industry organizations. Nearing the end of his professional career, it looks like history is repeating itself at Pohaki Lumber. Williams is easing into retirement by gradually handing the reins over to his son-in-law, Brandon Seppala. "The thought of retirement makes me a little uneasy, but it's not because I'm worried about the business; it's more about what will I do with all my time. I have tremendous faith in Brandon. He has a background in construction, including four years with the U.S. Navy Civil Engineering Corps. More important, he has a good sense for the business and a great attitude with customers.
"This I do know, my customers are comfortable with Brandon and the rest of our staff. A couple weeks ago I was in the office, and everyone else was at lunch. Someone called and asked for Brandon, I told him he was out. He then asked if Garth or Brian were in, I told him no, then identified myself and asked if I could help. He said 'no, I'll call back later.' I guess that's what I get for turning the office over, and it's a great feeling. Just about 40 years ago I started out in the yard, now I find myself there once again. Things are coming full circle, and I'll continue to enjoy every minute of it as long as I'm able."