Established in 1937, GNH Lumber serves Greene County and upstate New York from four locations. Over the years, the family-owned and operated company has expanded to include a Home Planning Center to help draft custom plans and create project estimates, as well as a modern drive-through warehouse facility featuring lumber and hardware lines. In 2013, GNH opened its fourth location in Latham that includes a kitchen and bath design center showcasing top brands of windows, doors, cabinetry and more.
In early 2008, GNH had just opened its third location, and company president Stan Ingalls had the foresight to bring in BlueTarp before the recession hit. That decision helped GNH weather the economic downturn and left the company well-positioned to capitalize on the economic recovery.
"BlueTarp is our peace of mind - we have consistent cash flow to plan and grow."
-Genn Hagen, 4th Generation, GNH Lumber
BlueTarp helps GNH Lumber focus on growth:
- Predictable cash flow supports planning and expansions
- Flexible terms and rewards grow customer base
- Financial confidence for next generation
Financial freedom to move the business forward
Collecting money had always been a challenge for GNH Lumber, and Stan knew that even a company with a great P&L could go out of business in a hurry without cash flow. That desire to secure the company’s cash flow led him to partner with BlueTarp.
“If it wasn’t for BlueTarp collecting our receivables, providing cash flow and taking on our credit risk, it would have been a real struggle to get through the recession,” says Stan. “Not only did the housing bubble break and the economy crash, I had just bought my third yard in 2008 and I was really hanging out there. BlueTarp helped us get through it all.”
With BlueTarp handling their credit program, GNH was able to keep its doors open, its payroll going and stayed profitable. Maintaining solid financial footing also allowed GNH to preserve business relationships with its bank and vendors. Keeping their credibility intact with these important partners meant GNH was ready to move forward and capitalize on the economic recovery.
Flexible terms and rewards grow customer base
Genn Hagan, Stan’s daughter and the sales and marketing manager for GNH, believes that the flexibility of the BlueTarp program is part of the reason it is so successful. From the start, GNH wanted control over certain decisions, and BlueTarp allowed them to look at each account and make choices around terms and rewards.
“BlueTarp gives me the ability to work with my customers and decide whether I give them extended terms, standard terms or rewards points,” notes Genn. “That flexibility helps me sell the program to our contractors and lets them know that we aren’t stepping away and that they’re still our customers.”
Focused on growth and the next generation
Stan, Genn, brother John and Cousin Edward are the 4th generation that is currently training the 5th generation to join GNH Lumber. As a family-owned business, they appreciate that they can focus on growth instead of worrying about where their income is coming from and when. Instead of chasing people who owe them money, GNH can use that time helping customers. GNH has found that the reliable cash flow from BlueTarp has also given them a competitive advantage.
With BlueTarp’s guaranteed payments, they can buy inventory at the rate they need to be competitive with big box stores and other independent dealers. They can also easily plan seasonal and bulk purchases and take advantage of vendor discounts.
“BlueTarp has helped us plan and expand knowing that we have guaranteed cash flow,” observes Genn. “That consistent, reliable cash flow is a big reason we were able to add a fourth location recently and it’s a big part of our confidence for the future of GNH and the next generation.”