There is a place for a strong regional, say the partners of NEVSCO

Seven years ago, a group of guys looked at the veterinary distribution landscape and saw what others did not – opportunity. True, industry consolidation was gaining steam, and showed no signs of abating. “But we still felt there was a great opportunity for a company that was able to put aside its own agenda and focus on and identify the agenda of the customer,” says George Rasi. Hence, in 2004, Northeast Veterinary Supply Company, or NEVSCO for short, was born. Today, the company is thriving, and its founding partners – including Rasi – are looking toward more growth.

The company’s roots lie with the late Bud Roeder, vice president of J.A. Webster (now Webster Veterinary Supply), who was instrumental in recruiting Rasi to Webster in 1979. “We chatted over the years about doing something on our own, but the circumstances were never right,” says Rasi. Then brothers Doug, Dave and Butch Roeder entered the business, as well as a long-time friend of theirs, Rob Boutelle.

“Friendships developed, and a mutual respect developed among us over the years,” says Rasi. Then, in 2003, the Roeders, Boutelle and Rasi decided to set aside the talk and take some action. They believed consolidation would continue, and that only a handful of very large distributors would be left. “Attrition became more and more evident, and we felt that aging regional distributors would most likely be bought,” he says. The men likened what was going on in the distribution industry to what happens to many veterinary hospitals, whose owners near retirement age. “Their options are limited, and the result usually is a corporate purchase,” says Rasi.

New perspective

“We all felt very strongly – and we still do – that there is tremendous value to regional distributors,” he says. The partners-to-be recognized that, unlike a large national company, they could never be a one-stop shop. “Instead of trying to be all things to all people, we decided we would focus on products that make sense for the customer. We could bring a perspective and thought process to the table that other companies might not be able or willing to.”

They also felt that they could offer something of value to mid-level manufacturers, who experience difficulty capturing the attention of much larger distributors. In fact, those mid-level vendors became the foundation of NEVSCO’s growth. They still are, “although the majors are now recognizing our importance also,” says Rasi.

At first, it was difficult for the new company to say “no” to customers who were coming to expect a one-stop shopping experience from their veterinary distributor, says Rasi. But the overwhelming majority of veterinarians do business with multiple distributors, not just one, he adds. “So our approach didn’t hurt our customers. They recognized, especially at our inception, that we weren’t going to be able to provide everything.”

Laying the groundwork

In 2004, Rasi became the first employee of NEVSCO. (The others had to wait until their various non-compete agreements expired.) “I laid the groundwork, acquired the facility and software, took care of the logo, and ultimately, went out and appealed to vendors for lines,” he says. He set up the warehouse, established accounts payable and accounts receivable processes, and even picked and packed orders. Roughly four months later, he was joined by Dave Roeder, then Rob Boutelle.

Today, the five men are equal partners in the business. “My partners are responsible for making sure the sales come in,” says Rasi. “My responsibility is to make sure they go out.” In other words, while they engage in field sales activities, he makes sure product goes out the door in a timely and accurate manner. “It is, however, on both ends not quite as simplistic as it sounds,” he adds.

As it has since its beginning, NEVSCO focuses on serving customers in the Northeastern part of the country. “The opportunities in this region are so abundant, we probably won’t expand beyond that,” says Rasi. The company now has 10 representatives in the field, with an inside staff of 16.

Growth for NEVSCO will come through adding product lines, increasing representation, improving its technology, and reaching out to a broader customer base, says Rasi. “But what is paramount to us is that our growth process be judicious and prudent. We want to make sure that each level we need to ascend to can be supported by the infrastructure we have in place.”

Today, “our company is everything we had envisioned – and then some,” says Rasi, whose only regret is that Bud Roeder isn’t alive to be part of it.

Market changes

That’s not to say that building the business has been without its challenges. The veterinary market has become more unstable since 2004, he says. For example, back then, veterinarians had yet to face the full brunt of Internet marketing organizations, which continue to threaten retail sales. And the economy itself is rockier than it was in 2004, when the home equity loan used to start a business went further than it does today. “And 2004 was certainly prior to the subprime debacle that has had such an impact on the economy,” he adds.

The veterinarian’s office itself has undergone changes. Many veterinarians have removed themselves from the purchasing process, electing to delegate it to someone else in the practice. By doing so, veterinarians may have deprived themselves of a valuable resource – the sales rep – “who can bring perspective to the table that can help veterinarians grow their business,” says Rasi.

But that’s no excuse to neglect building strong relationships with doctors and their staff, he adds. In fact, today, reps must work harder than ever to build relationships, and to demonstrate that they are an integral part of the practices they call on.

“People ask me, ‘What do you look for in a sales representative?’” says Rasi. “We’re not looking necessarily for sales experience. To this point, we have hired young people who remind us of ourselves when we were starting out. They are engaging, they have a good aptitude for business, they’re willing to learn and be mentored, and you get a positive sense of their character.”

It takes patience to build solid relationships with customers, says Rasi. In fact, patience is part of the infrastructure NEVSCO is counting on to ensure the company’s future growth.