The story of Carolina Wholesale goes back to the early seventies, when a couple of guys were selling typewriters and calculators out of the trunk of their car.
Scott Lewis
Today Carolina Wholesale is one of the largest distributors in the country of copiers, fax machines and calculators and the largest distributor of typewriters. They are also the primary wholesale distributor of Copystar segment one copiers in the U.S.
They currently have distribution centers in Atlanta, Charlotte, Chicago, Los Angeles and Philadelphia and offer over 10,000 products representing more than 100 manufacturers. They serve all 50 states plus Canada and Puerto Rico.
Scott Lewis, National Sales Manager, Carolina Wholesale Group, notes that although the technology (and the car) has changed over the years, one philosophy has remained constant.
“What we are most proud of is nearly half a century of taking care of our customers – of what we call ‘fulfilling the promise,’” he says.
That promise, according to Lewis, is going from point A to point B quickly, and making it a pleasant experience for their dealers.
Despite the big step from typewriters to high-tech office equipment and computer peripherals, probably the most significant leap forward for Carolina Wholesale was the acquisition of Arlington Industries 13 years ago.
“That was what put Carolina Wholesale on the map,” says Lewis. “Carolina Wholesale, up to that point, was more of a regional wholesale distributor.”
The purchase of Arlington greatly increased the capabilities of Carolina Wholesale. It added three sizeable distribution centers in strategic locations across the U.S.; it more than doubled the staff, and it significantly expanded the product selection.
California Location
“It was during those years, right after the purchase, that we saw our largest growth,” says Lewis.
Not only did the Arlington acquisition expand the footprint and diversify its product offerings, it enabled Carolina Wholesale to pursue important strategic partnerships.
“We took on new OEM partners and we took on new buying group partners,” states Lewis. “That was really a significant part of the genesis of what we now call the Carolina Wholesale Group.”
In an increasingly competitive and commoditized space, Lewis notes several key factors that differentiate Carolina Wholesale from its competitors.
“We like to think we can provide a one-stop solution for our dealers,” he says. “Whether they are seeking office products or imaging equipment, OEM supplies or compatible toner, we can provide the dealers a single wholesale solution and we have the distribution that’s coast to coast.”
Georgia Location
“With our five distribution centers we can reach most places within one day,” adds Lewis.
Carolina Wholesale also has a fully-trained technical support staff to assist customers on a wide selection of products – not just imaging equipment.
“For example, our technical support team can support 3D printers,” says Lewis. “We feel that’s a niche that not a lot of our competitors have.”
Most importantly, what Lewis feels differentiates Carolina Wholesale the most is its staff.
“We have a tenured staff with very little turnover,” he says. “People have 10-15 years average experience. We have some people who’ve been in this business for 25-30 years.”
Illinois Location
Lewis notes how this experience translates to increased customer satisfaction.
“You could talk to most of the dealers in the industry and they would [relate] a pleasant experience when talking about dealing with the Carolina Wholesale Group,” he says.
In the past year, the Carolina Wholesale Group acquired three more companies from a non-traditional space. They included Smoltz Distributing, Unesco and Central Office Machines.
Smoltz specializes in dictation and transcribing equipment, Unesco is a leader in cash management machines and laminating equipment, and Central Office Machines does a variety of post-print products such as binding machines, paper folders and shredders.
Lewis notes that in 2015 the owner of Carolina Wholesale decided to look toward acquisitions as a way of continuing to stabilize and grow the business.
North Carolina Location
Although the products from the new acquisitions fall outside the category of Carolina Wholesale’s typical offerings, Lewis explains that the plan was strategic.
“It increased the diversity of what we can offer to our base dealers,” he says. “We can also introduce the imaging products to a whole different type of customer.”
Carolina Wholesale sees more consolidation opportunities available, and Lewis believes it will continue to expand.
“We just finished our 2016 planning session and I asked Mr. Huneycutt (the owner) if acquisitions were going to continue to be a part of what we do, and he says he thinks it is. To be clear, let’s face it: people aren’t printing as much as they used to. A company with strong financials like we’ve got might have some opportunities to look for acquisitions.”
Asked what part of the business is growing most, Lewis cited the niche products from the recent acquisitions.
Pennsylvania Location
“We did see an uptick in paper finishing products, cash management and dictation,” he says. “Imaging equipment and supplies – that side of the business – hasn’t grown that much in recent years. I think that’s pretty much industry wide.”
With the downward trend in printing, Lewis notes the company has been more focused on other categories to seek out new opportunities and continues to go in the right direction.
“It’s going to be vital to us to continue to diversify our product, and [consider] solutions offerings,” he says.
Lewis mentions how the distribution channel has changed dramatically in the last several years, citing OEM partners working directly with e-tailers to provide promotions to end users that compete directly against dealers.
“It’s challenging for the dealers and us,” he says. “A distribution partner has to continue to add value to dealers.”
Lewis states that, from his experience, logistics is not a core competency of the OEMs and he hopes that they see it the same way.
“My hope is that the OEMs continue to see great value in companies like the Carolina Wholesale Group, as we can enhance the way that they do business,” he says.
Despite the many challenges, Carolina Wholesale sees even more opportunities in the industry.
“We see dealers maintaining inventory levels that are little to none in the imaging equipment and supplies arena,” says Lewis. “A partner like us who has the product in stock and does a great job getting the product from point A to B – I think it’s good for us.”
A solid financial standing is important to the growth of any business, and Lewis cited Carolina Wholesale’s stability as a key factor in enabling them to move forward and expand.
“I think we are in a financial position where we can look for other acquisitions down the road that can further improve our offerings,” he says.
With so much talk of disruption, Lewis cautions against the “culture of trends” where every new buzzword is treated as a harbinger of doom.
“Look at all the verbiage that was out on MPS,” he says. “The worry was if you’re not in MPS, in a couple of years you’re out of business. That’s not true. As important as MPS is in this business – the doomsayers were wrong. Now it’s 3D printing. If you’re not into 3D printing you’re going to be out of business. I think that’s wrong too.”
Lewis expects to see Carolina Wholesale continue to evolve and be relevant to their dealers.
“This business is about people,” he says. “As long as you can fulfill a promise you’re going to have a place in this industry.”
