Despite the new challenges 2021 has presented, the Spacesaver Group is off to a strong start. We are coming in just at plan two months in and expect our first quarter shipments to be at plan or slightly above.
As you know, we were proactive in announcing our price increase at the end of January. The industry has now followed our lead. My supply chain and engineering teams have done a fantastic job sourcing all the various gauges we consume. There are so many strict allocations in place, so we are using multiple vendors, sizes, and gauges to assure we have steel to fabricate your orders. It appears this dynamic will continue well into the third quarter of 2021.
Please be diligent in communicating date changes on orders so we can plan steel usage accordingly. Also, please continue to work with our Customer Service Team as you need.
A friendly reminder: you must place orders no later than March 9th to lock into current pricing, and those orders must ship on or before August 13, 2021.
Thanks for all you do, and I will provide you further updates next month.
Best personal regards,
Mark Haubenschild | President/CEO
Spacesaver Scorecard
After a less than exceptional January, the Spacesaver Group has started an upward trajectory in February. The team at Spacesaver Systems Maryland is at it again, leading the way for incoming orders by entering nearly $900,000 (380% of quota) in February. Bradford Systems wasn’t far behind, entering $700,000 (134% of quota) for the month. Collectively we had 10 PARs exceed their monthly quota for the month–Group total came in at 90% of quota. We now have 8 PARs over their YTD quota (AC Group total is at 75% YTD for incoming orders).
Our shipments in February were also an increase over January, coming in at 87% of quota for the month, bringing our YTD shipments to 83%. After claiming the title of 2020 Spacesaver World Champions, Systems & Space are looking for a back-to-back, as they sit atop the YTD standings by shipping over $1.5M (267% of quota) … $615,000 of which shipped in February. We have 4 PARs over 200% of their YTD quota, including: Systems & Space (267%), Spacesaver Storage Solutions Virginia (212%), Spacesaver Intermountain (202%), and Interior Solutions (200%). That brings a total of 10 PARs on pace to qualify for Challenge of Champions.
Spring is on the horizon, baseball is in the air, the NFL Draft is in a few weeks, and March Madness is about to bring the brackets…and the Spacesaver Group is heating up as we charge toward our goals!
mo·men·tum | noun The impetus and driving force gained by the development of a process or course of events.
One of our 2021 rally cry themes is momentum. And, just three short months into the year it is clear that our momentum is taking us in the right direction. The team at “The Fort” has been working on campaigns and product launches, developing sales tools and assets, engaging the AEC community more than ever, generating leads and converting opportunities for your sales teams, and helping you drive projects and close deals every single day. There’s a real energy in the air within the Spacesaver Group and we are a force to be reckoned with. Let’s work together to keep that momentum going…and keep those pedals to the metal!
Vertical Market Updates
Museum
Are your museum clients looking for a budget-friendly, versatile, and space-saving solution for collections storage? We’re excited to be rolling out a new product that is sure to make your customers look at storage solutions as if they’re “gazing out to sea.” Watch for details, coming in April, and “come aboard” as we take this new product to market.
We also continue to explore ways to connect with everyone in the field, facilitate interaction between teams, and share information on museum market trends, design challenges, solutions, and news about grants and contracts. We’re starting up a listserv to achieve this goal. If you’re interested in joining the group, email Ben Adamitus.
Monthly Museum Market Calls
Next call: March 16th (third Tuesday of every month)
Feel free to get in touch with Ben Adamitus if you have any questions about breaking into this market or expanding your client base.
Great Reputations
Hats off to Steve Ayoub at Fawcett File Systems, who worked with Spacesaver to get competitive pricing and land a large sale with the Indigenous Arts Centre in Ottawa. At first, the job seemed like a slam dunk: due to the excellent reputations of both Fawcett and Spacesaver, the client wanted to sole-source Spacesaver’s nested lateral art racks. But government regulations forced the project out to bid, and Steve worked with Spacesaver to see it through. The sale resulted in $80,158 Spacesaver net.
Agriculture
As part of Spacesaver’s effort to be THE one-stop shop for indoor cultivators, we’re expanding our product offerings to help growers integrate accessories like lighting and plumbing with our GROW Mobile System. Watch for an official announcement, updated and new sales tools, collateral, photo and video assets, and more to land in your inbox soon.
Speaking of integrating accessories, have you seen our case study on Brad Lieber’s project with Presidential Garden Group? It showcases how our GROW Mobile System tripled the canopy in this Sacramento grow, and how our racking is optimized to quickly and easily accommodate lighting, irrigation, and ventilation systems from Hawthorne Gardening Co. The full case study is available online and in PDF form.
Persistent Prospecting
High fives to Dan Loreaux at Donnegan Systems, who put his prospecting skills to work to find a lucrative opportunity. When Massachusetts started awarding cannabis cultivation permits in 2018, Dan mined the permit application and awards data to find leads. “The publicly available data was pretty sparse, with just the site location and the company name,” he said. “I worked LinkedIn and anything else I could find to make connections.” One of his cold calls developed into a recent sale that resulted in $78,000 Spacesaver net. Dan said the client wanted to work with a local dealer to help with design, installation, and servicing the systems after they’re installed.
Military
Military personnel are more concerned than ever with increasing readiness, reducing footprint, and enhancing security – and our new Rapid Readiness Box does all three. Did you miss the recent product launch? Watch the webinar recording and check out the sales tools we’ve prepared for you.
Regarding the Spacesaver price increase that goes into effect on March 9th (incoming) and projects needing to ship by August 13, 2021, military opportunities will need to adhere to these parameters as well. We understand that some bids have been submitted with “old” pricing, and Spacesaver will consider those on a case-by-case basis. Be ready to provide bid dates, bid close dates, and award documentation. It is paramount that you circle back on all existing opportunities and update those potential contract prices with the new 2021 pricing when possible. Opportunities with our VAR partners (like ADS) will follow the same protocol. As of February 2, we have ensured that all quotes through Spacesaver to a VAR reflect the existing price increase.
Monthly Museum Market Calls
Next call: March 25th (last Thursday of every month)
As always, contact Pete Rooney to learn more about the military market and to develop your plan of attack.
Three Warehouses in One
Shout out to Nathan Wittig from Systemcenter, who helped the base at Pearl Harbor consolidate three warehouses into one. When military personnel were recently notified that construction of a new rail line would force the demolition of two warehouses, they contacted Nathan for help. Nathan met with the clients to understand their needs and provided multiple ActivRAC® Mobilized Storage Systems in one warehouse to increase its capacity while still giving full accessibility to stored items for rapid deployment. Nathan credits Systemcenter’s long-standing positive relationship with personnel on base as a driving force behind the opportunity and sale. This sale resulted in $151,441 Spacesaver net.
Library and Education
Spacesaver’s mobile systems are considered the gold standard in athletic equipment rooms, and last month we started building on our success in the athletics niche with the launch of our Day Use Lockers in Athletics campaign! We had more than 50 people sign up for our live webinar last week and we’ll continue to pass along qualified leads to your teams. Did you miss the details the first time around? Check out our sales tools and video trailer that you can use to help promote Day Use Lockers in any athletics program.
Our high-bay shelving systems are another tried-and-true solution, and we’re excited to offer a new AIA-approved presentation for you to offer clients and prospects in the A&D community. The presentation illustrates how high-bay shelving helps libraries, police departments, and museums free up valuable real estate while keeping materials safe, secure, and accessible. Watch for an invitation to be the first to watch this presentation.
Monthly Museum Market Calls
Next call: April 30th (last Friday of every month)
As always, you can contact Zak Hermans anytime with questions, comments, or insights.
A Flexible Investment
Congratulations to Bob Fanello at Bradford Systems, who leveraged Spacesaver’s reputation with an architecture firm to edge out a lower-priced competitor. The architects had recently worked with Bradford Systems on mobile cantilever shelving projects at two nearby high schools, so they invited Bradford to bid on a similar opportunity at another school. The competitor’s bid was lower, but Bob pointed out that their shelving would have no future flexibility, while Spacesaver’s cantilever shelving can be moved or reconfigured when the school’s needs change. “We were higher, but they liked the flexibility and aesthetics we provide,” Dave Bradford said. The project resulted in $37,686 Spacesaver net.
Marketing Minute
As the Spacesaver Marketing Team looks at 2021 and starts putting the details together for everything coming in Q2, the need for fresh and new photography and video assets is greater than ever. One of our priorities for the year is to beef up the video content we share with your teams and push out via our own channels. Do you have some cool photos and videos to share? Want one of your projects highlighted in our advertising campaigns? Then submit your photos and videos today!
Want to learn more about any of our campaigns or product launches? Join our Spacesaver Marketing Tribe and dial in for our next call on Friday, April 16. For details on how to connect, contact Amanda Wollin.
