For Halford Hide, simplicity has been the secret to success. Its core values have stood the test of time, allowing expansion from local trader to global retailer – and the trend’s set to continue
Written by Ben O’Hanlon and Produced by John Bilodeau
Since it was established in 1927, Halford Hide & Leather Co. has supplied the world with leather and craft products, based on its simple, yet effective, core values of good service, quality and dependability. The company offers catalogue and in-store retail from Edmonton, AB and Calgary, AB. An extensive line of products includes leather and leather crafting goods, butcher supplies and trapping (animal control) supplies.
“These are not everyday items so we’re not in competition with the likes of Walmart,” says Jeff McNish, CEO of Halford Hide, “Competition is still strong, but we carry very unique, top end, good quality products. If you provide the best stuff at a fair price then you tend to have loyal clients – it’s a simple principle but it seems to work.”
Jeff has an impressive history at Halford, spanning the last 30 years. He began driving trucks and working in the hide warehouse shortly after his father purchased the company in 1976 and has worked his way up – becoming head of a department and eventually buying his father out. Over that time there’s been a shift away from the curing of hides and an increase in the retail side of the business.
The ‘Kiss’ Theory
An increase in customer contact, and therefore an increased focus on customer needs, has gone hand-in-hand with this shift. “Serve the customer like they’ve never been served before!” says Jeff, summarizing the company’s philosophy on dealing with its customers. Providing a personal ‘local shop’ customer experience – something that, he says, has been lost by many of the larger chain retailers – is something that Halford’s has valued highly over the past 75 years.
This is strongly connected to the company’s unique customer base – largely farmers and land owners from rural communities throughout Canada. When it was established by the Halford family it began buying raw cattle hides from, and otherwise trading with, local farmers and has enjoyed close community ties ever since. Over the years, Halford’s has been careful to remain true to its core values; planning for growth but trying not to complicate things in the process.
This ‘Keep It Simple, Stupid!’ (KISS) principle has served the company well, explains Jeff: “If it’s a win-win for you and the customer, then you’ll always do business together. If only one side is winning then there will never be a long lasting relationship. By keeping things simple we’ve developed some strong ties.”
This has led Halford’s to a unique way of handling cattle hides. Rather than trimming and grading it before selling it as a finished product, the hide is sold untrimmed. This reduces labor costs, meaning that the product can be sold at a far lower cost and that the customer can trim it to their required specification – a perfect ‘win-win’.
Global Trading
Halford’s achievements in ‘keeping it simple’ are particularly impressive when set in the context of its comparatively complex international operations. The company exports to Mexico, Indonesia, Vietnam and China, where it sends most of its cured cattle hide. Many of its retail products are manufactured worldwide in the US, China and Europe and then imported to Canada.
“There are obvious challenges trading in global markets,” says Jeff. “Individual Government regulations, freight issues and custom controls to name a few. But once you educate yourselves about how to overcome those challenges it’s not hard to get a slick process. We’ve been doing this for so long that we know how to get it right.”
With plans to open an online store, this is a confidence that Halford’s will be pleased to keep. Web based trading will allow the company to trade worldwide around the clock and is seen as key to the future of the business. The system will be powered by a new Great Plains software package, currently being installed to increase technical capability.
It is anticipated that the new web-store will increase sales by between ten percent and 20 percent per year (compared with the current annual increase of five to seven percent).
The new software will also allow Halford’s to bar-code all its products to increase transactional efficiency and sales analysis. This should provide a clearer understanding about the comparative success of products – allowing for unpopular ones to be replaced.
Invoice Paid!
Just as Halford’s values have forged strong customer relationships, a commitment to paying early and staying on good terms with suppliers has also served it well. In 1989 the company was in the process of moving location. Its new office was mid-construction when the old one burnt to the ground, destroying all stock.
“We called our suppliers asking for more stock and told them up-front that they might have to wait for our insurance payment to come through,” explains Jeff. “They all sent the products through and we were up and running again within three or four days. We have always tried to treat our suppliers well and when we really needed them they were there for us. Looking back through the finances you can’t even see a dip for that period.”
This is an approach that also extends to staff – there’s a commitment to keep employees happy, investing a little extra to develop productive, lasting relationships. For example, staff can participate in a flexible working scheme where they work longer on days where it is more convenient and ‘bank’ hours for the days where it is not.
Clearly, Halford’s has put a lot of work into developing the systems and relationships that will enable it to succeed. With plans to expand through acquisition and the much anticipated online store, Jeff explains that the company isn’t about to sit on its wealth: “No matter what you do, there’s probably a better way of doing it. We’re always looking to improve, always looking for a better way to build the mousetrap.”