Philadelphia Business Journal - PHILLY 100 Edition
October 25-31, 2002

Firm Finds A Way With Wood - and Windows
No. 41 Timberlane, Inc.
By: Natalie Kostelni

North Wales- Rick Skidmore knew practically nothing about making wooden shutters seven years ago, but he needed several sets for an old house he was renovating in Doylestown.

He had spent his short working career in sales and marketing with Metropolitan Life Insurance Co. but tinkered with wood on the weekends as a hobby. Unable to find replacements for the fixer-upper’s vintage shutters, Skidmore went on a mission that eventually led him forming Timberlane, Inc.

He figured that if he couldn’t find what he wanted for his house, then no one else could either. In other words, he believed he had discovered an untapped market.

Tired of his day job (“I hated the industry” he said), the Philadelphia native who grew up in East Oak Lane pulled about $100,000 in savings out of his 401(k) to start his own business.

While he knew nothing about wood shutters, he was familiar with woodworking. He had learned the skill from his father, a master carpenter who worked at the Philadelphia Naval Shipyard. Skidmore’s father would craft wooden replicas of various vessel parts that were then used to make a mold for the finished product.

Combining both his sales and marketing skills gained from working at the insurance company and find with his woodworking background, Skidmore set out to make his own brand of classic wooden shutters. So far, the risk he took has paid off.

Timberlane, operated out of a 20,000 square-foot plant in North Wales, Montgomery Count, having started out in a 1,500 square-foot facility. Last year, the company rung in more than $4.6 million in sales. He expects to recording roughly $7 million in revenue for this year. The company employs 42 people, nearly double from 1999.

The company makes 28 styles of shutters that are, for the most part, historically and architecturally accurate. If a homeowner has a old shutter that Timberlane doesn’t make, the company will conduct its own research and try to duplicate it.

Timberlane, a name that Skidmore decided upon so it connoted wood and not just shutters, uses red cedar imported from British Columbia to make the shutters. The wood, which accounts for about 20 percent of annual expenses, is difficult to get. Timberlane needs to maintain a six-month lead-time to order the wood.

Challenges aside, the special wood is worth it because it mills well, is light in weight and durable, Skidmore said.

Aside from making the shutters, Timberlane supplies customer with reproduction wrought iron hardware that also adheres to historical and architectural designs. The hand-forged hardware is difficult to keep in stock because of the lengthy time it takes for each piece to be made. Because of that, Timberlane keeps a storeroom filled with about $500,000 worth of the pieces.

The company does the bulk of its sales through a catalog that it updates annually. The process of ordering a set of shutters begins with Timberlane salespeople who aim to make certain that customers get exactly what they want, since each shutter is custom-made to fit a customer’s windows and preferred style.

While he briefly entertained the idea of selling shutters at a retail store, Skidmore figures that his business works better without dealing with the middleman. He does sell the product through a few select, high-end retailers.

Since he limits how he hawks his product, Skidmore relies heavily upon advertising to drum up business, paying to be in 40 to 50 publications. He also finds many orders coming by word of mouth from satisfied customers. “We explored all those options,” he said. “We are a self-contained business model and maintain very high margins by taking out the middleman.”

Of note is Skidmore’s managerial style. He has open-book and employee profit-sharing policies. So far this year, a month hasn’t gone by where each employee hasn’t made a little extra money. The shutters are sent to customers unpainted. Skidmore had dabbled in sending customers painted shutters. But after having invested thousand of dollars in paint technology, he decided not to that route. The company will, however, prime the shutters before shipping them out. Customers are responsible for installing them.

Skidmore realizes his product appeals to a select clientele. “People who buy these shutter are trying to achieve a type of look and they’re willing to spend a lot for it,” Skidmore said. That has shielded Skidmore’s business during the downturn and helped bring what he expects to be a record year in sales, he said.

He views the shutters he makes as part of a lifestyle for his current and potential customers, most of whom might be considered affluent.

“They aren’t looking to keep up with the Joneses,” he said.