cabinets
Tan U.S.
Group Inc.
“With our strategic alliance
programs with different retailers, we
offer something that the competitor next door doesn’t have,”
{ n important part of
Texas company offers product line
xclusivity to major retailers in a strateg
that has led to increased sales. } WoodCrafters success is not
e y Aonly how the products are
made, but how they are sold.
WoodCrafters, an operating division
o f Tan U.S. Group Inc., is based in
by Karl D. Forth, Editor Weslaco, Texas, and makes product
kforth@chartcomm.com l ines for a single retailer.
Abraham Tanus, president and CEO, says. “We’re competing
50 45 Overall FDM 300 sales against the direct retail competitor, but also directly against
40 Tan U.S. Group anyone who is manufacturing similar products.”
percent change
35 30 WoodCrafters is selling to major retailers in the United
25 29% States. The company makes proprietary brands for home
20 15 centers such as Home Depot, and this is currently one of the
10 strongest markets.
5
0 6% 6% The company produces brands such as Domani Total
-5 -10 -4% -2% Bath Solutions, and has introduced a furniture line called
-15 Home Office Solutions.
-20 2002 “With all the consolidation taking place at the retail level,
when you have an opportunity to align with one retailer
and to go out to the marketplace with a particular line, you
become a (unique part) of the marketplace, rather than
making the same product for two or three retailers, packing
it in different boxes, and allowing the retailer to set a price
that competes against the other retailer,” says Tanus.
“If we want to sell a product category in one store, we
will not sell it to anyone else that competes with that store,”
Tanus adds. “We offer product line exclusivity, rather than a
different brand name.”
Tanus thinks consumers are much more educated than
they are given credit for. “If we do this (offer the same product
to different retailers in different brands), we are deceiving
ourselves as manufacturers and doing a disservice to the
market when we go out there and sell the exact same product
to Wal-Mart, Costco and Target, with different brands.
Eventually the consumer realizes you’re not really offering
anything different. It’s the same product across the board with
different labels,” he says.
“We’ve chosen to do alliances where product lines are sold
through different markets. When we (enter) a market and give
them exclusivity, we’re truly competing against both the retailer
across the street and any other manufacturer that is doing a
similar product.”
The retailer is able to offer an exclusive product, Tanus
says. “If you’re going to sell at retail, you’re going to set a
value, and if you have a better product, you’re going to attract
2003 2004 2005 2006
February
Tan U.S. Group has been listed in the
FDM 300 for two years.
77Tan U.S.
Group Inc.
Main location: Weslaco, Texas
Annual sales: $110 million (‘05)
Rank last year: 91
