Brandon Dewan, the President and CEO of Eagle Pipe, grew his company’s revenue from $60 million in 2014 to $139.8 million in 2017, a 132% increase, and to around $300 million in 2018.
Eagle Pipe is a full service stocking distributor of oil field tubulars.
In this interview with Eversprint‘s Malcolm Lui, Brandon shares how he and his team accelerated their high value sales by:
- Diversifying into both the upstream and midstream markets, with a focus on adding value through market analytics and becoming a one-stop shop for their customers.
- Having senior management in the same 30-something age group as their peers on the customer side, which enables them to better engage and help them with latest technology developments.
- Developing and implementing a vision that everyone in the firm is accountable to and keen to go the extra mile to help the customer.
Malcolm Lui: Welcome to the High Value Sales Show of Eversprint.com. I'm Malcolm Lui, the Managing Member of Eversprint, and today we're speaking with Brandon Dewan, the President and CEO of Eagle Pipe, a full service stocking distributor of oil field tubulars. Welcome to the show Brandon.
Brandon Dewan: Hi Malcolm. Thank you for having me. Nice to be with you today.
Malcolm Lui: Brandon, you grew your company's revenue from $60 million in 2014 to $139.8 million in 2017, a 132% increase, and in 2018 you hit around $300 million. Before we talk about how you grew your company so fast, can you briefly share what your company does beyond my quick intro, and how your company differs from the competition?
Brandon Dewan: Absolutely. But equal pay does is we stock and distribute oilfield tubular is predominantly oil country tubular goods which is production casing that goes downhole for producing oil and gas wells line pipe which is for transmission and gathering. It's to take the product from the well site to market as well as poly pipe which is a HDP or or resin based type of material that is used a lot in the Midstream segment for Water Transmission predominantly and
Malcolm Lui: Go ahead
Brandon Dewan: So basically what we do is we work with both midstream and in upstream clientele. So midstream company is an ENP companies to establish pipe supply programs with them. We we stock we buy from our mill sources both both domestically and internationally we're predominantly a domestic supply company focused on our domestic mill sources however we also utilize import mill sources as well where it makes sense and we buy from them we stock material on behalf of our end user customers who we work with on forecast to understand what their drilling needs are gonna be and then what their midstream needs are going to be and we we developed these these pipe supply programs with them to where we supply their ongoing needs
Malcolm Lui: And how we. How do you different from the other distributors of two tubular out there
Brandon Dewan: That's great question so there's a couple of differentiating factors that we have one of which is when we were starting the company we were really focused on trying to bring a highly analytical nature to our business and what we've done is we we actually have a some market analysts and business analysts on staff here which are constantly analyzing the markets as well as our customer's business and we're supplying them with valuable information as well as implementing or utilizing that those market dynamics the market metrics to we implement into our supply programs to ultimately reduce costs increase efficiency we can also show them things in terms of how they're performing versus their peers in certain regions and identify ways for them to improve their performance integrate. Again it's about decreasing costs we can help them with strings on optimization etc.
Malcolm Lui: So selling some of these services you just mentioned are ones that normally the end consumer end buyer would have to do themselves.
Brandon Dewan: Exactly exactly so. So we're doing that for them now. We're also taking it all the way down the supply chain to where we're controlling the raw materials themselves. So you know one way to truly control your cost is to control the actual raw material. So that's what we've done. We've got strategies in place that control scrap for seamless type of pipe and we also control HRC which is the raw material component going into making your w product which makes up about 50 percent of our our market and then seamless makes up about the other 50 on the upstream side. And then on the midstream side your makes up about eighty seven percent seamless being the balance. So instead of just buying from the mills at a current day market price in a fluctuating cyclical market price we're controlling that cost and it's about it's about buying at advantageous cycles within the markets which is the point of our our business analysts and market analysts on staff is they're always following these different these different dynamics different metrics and understanding when the proper times to buy material are and then we can work with our mill sources to utilize our raw materials in a beneficial way that allow us to have a better than market type of cost
Malcolm Lui: Now you mentioned the acronym EA RW. What does that stand for
Brandon Dewan: Electric resistance welded. It's basically you take a flat A flat sheet a pipe and a mill will roll it up and weld it down the middle. And that makes a tubular product out of a out of a real coil as is the cup is the raw material
Malcolm Lui: Right. OK. Got it. Now you grew your business pretty fast the past four years. Right from 60 million in 2014 to 300 million in 2018. What were the three biggest drivers of your sales growth during that period.
Brandon Dewan: Yeah. So we're doing a couple of things that allow us to kind of catapult there and one of which was during the during the downturn with from 14 to 15 and fifth in 16 we're we're one of the biggest depressions so they will field as ever experienced. So what we realize is that the rig count was gonna fall off dramatically and we needed to diversify one to survive and be profitable during the downturn and to to really set ourselves up to rebound once the market came back and what we what we realized and that is that the midstream held a lot of potential. We diversified from 100 percent upstream company into the midstream and started put strategies in place that will allow us to to do things a little bit different than what the competition in the midstream had done up to that point. And that allowed us to really take some market share and we leveraged our our upstream clientele to start supplying their midstream pipe as well. So what my focus was was to create a one stop shop that our customers could come to where there's not many companies in our industry that are doing both market segments upstream and midstream.
Brandon Dewan: So I thought that we could provide a one stop shop that would allow us to supply their pipe they use for producing their oil gas wells which is the CTG and then the the line pipe for the midstream as well as poly pipe to complement the midstream and valves and fittings and associated products to where they could leverage their buy with us. And from an efficiency standpoint as well their teams would have one person one company to deal with versus two three four. And so that end up proven up very well and that also helped us from our mil basis because our suppliers mills that manufacturer both types of product those CTG in line pipe that allowed them now for us to leverage our buys with them because it's all about placing tonnes on the mill. And that allowed us to to really impact the amount of material they could produce and that was beneficial for everybody was a win win.
Malcolm Lui: A couple of questions to clarify for the people who aren't energy and petrochemical analysts out there. Can you in layman's term define upstream in midstream
Brandon Dewan: Sure. So in general if you think upstream that's going to be your Exxon Mobile your Chevron that's drilling wells in the Permian are drilling wells in the Eagle Ford or that not what the upstream is is. Is the exploration and production companies you are drilling for the product and then the midstream is taking it to market. So once you've drilled it and you produced it that's the upstream then you go into the midstream which is taking it from that wellhead to market
Malcolm Lui: Okay. Got it. And for the biggest drivers so that you mentioned the far one is that you divide you diversified into the midstream during the downturn 2014
Brandon Dewan: Correct.
Malcolm Lui: Does not do it on a 50 because you saw an opportunity there that you can provide more value. And then did you mentioned a second driver in that in that discussion or
Brandon Dewan: Sure. Yeah. So we touched on once to the second one there is the age group of our company and what I mean by that is that our entire management team is mid to upper 30s and are the average age of our company is about 30 years old. So what that allows us to do is really connect with the younger generation that's now being promoted into sea level drilling manager midstream manager and we all we think about the business differently and we do things differently. So right now with our end users with our customer base it's all about analytics digital oilfield artificial intelligence efficiency etc.. So that's what we've really focused on as a company to bring to the market and the people that we're dealing with are our age now the decision makers. So we're able to connect with them much better than some of the older generation for example. Not that there's anything negative about that. It's just a new age of doing business in our our management group and our our company in general is at the pinnacle of being able to to operate modern day business with the decision makers of modern day business. So that's something that's really allowed us a competitive advantage over some of our competition that was started in the 70s and 80s which many of the people are much older now and the way their way of doing business is much older. So we kind of yourself as a speedboat in the market versus these big barges that take a long time to switch and and and changed the way they're doing things their decision making process et cetera
Malcolm Lui: Right. And you have a third driver of your growth
Brandon Dewan: Yeah absolutely. So the third driver overall is the vision and implementation that we have. So really everybody is held accountable and we set a very clear vision with the company we we communicate that internally and we're very transparent with our employees of what we're trying to accomplish how we're trying to accomplish it and where we stand. We have weekly meetings that address what our goals are as a company. And there's a there's a heavy focus obviously is where a sales organization on our our customer service. But to me you have to have a plan in place. You have to have a roadmap or you go nowhere and that's what I think we've done very efficiently is gotten everybody on board to pull as a team in the same direction to accomplish the same things. And through that that I think is really a competitive advantage because everybody here is really on the same page and in accomplishing what we set up to accomplish and exactly how we're going to accomplish it. Whereas I've seen and worked other places and organizations that the direction is not really there it's people are there they have a job but the passion is not there. The desire to grow the desire to take care your customer to go the extra mile is not there and that's something that we've implemented at Eagle pipe in some that's really helped us stand apart.
Malcolm Lui: Now. When we began our conversation you talked about how you have a team of business analysts to analyze the market work with the customers to help the forecast. When you shared that with me I said yes. It just got to be one of your key drivers of your success but you didn't really mention it as a standalone driver
Brandon Dewan: Well that goes into the point one about the highly analytical nature and you know that that's something that is really if I was going to say what our number one differentiator is is our focus on the high analytics and those market analysts the business analysts that we have on staff. They are very focused on what's occurring in the markets where the market you're going these days one of the one of the really the driving factors because we really we understand supply demand raw material costs et cetera. But one of the major things now to understand is geopolitics the geopolitics side is really swaying markets these days which is hard to predict. So that's the challenge that they have to understand is what's happening in the US in certain parts of the world. That's going to drive the geopolitics. And if we can get ahead of that and try to get as good of understanding as possible we can help put that missing piece of the pie together to figure out where the market's going.
Malcolm Lui: Right.
Brandon Dewan: And so that's the importance. Well that's one of the importance of the business analysts that we have. But the other side is to be able to give our customers a full analysis of their business on an ongoing basis and identify areas for them to reduce costs increase efficiency really our help outperform their peer group through the analytics that we're able to apply to their business. And there's there's not a lot of that that's been done in the past. That's what that's something that I'm very happy about that we've been able to do it equal is bring that to the forefront.
Malcolm Lui: Right now we still have 14 employees working for you now.
Brandon Dewan: No no we don't now we're up to almost 30 now
Malcolm Lui: Ok so you almost doubled your company over the past year.
Brandon Dewan: Correct.
Malcolm Lui: Now your revenue per employees is huge writes about 10 million roughly per employee. Is that normal in your business or are you exceptionally high.
Brandon Dewan: Ours is ours is pretty good. I mean I think that there's definitely some others out there that are that are close to that. But overall I think that we have a very high performing company and in the numbers the numbers speak to that to where anytime you have that kind of revenue per employee you're doing you're doing something right from efficiency standpoint a productivity standpoint. And I believe that where we fit that category
Malcolm Lui: Right now do you actually have. Owned the inventory that's that you're holding for your customers.
Brandon Dewan: Yes we own we own the inventory we stock it in our inventory that we pay for and we have stocking locations around the country. We have about 20 main stocking locations around the country and the they're predominantly located in the major shale play areas. So we stocked their requirements their pipe out there. So we'll work with them on a forecast and typically we'll try to our our goal is to try to have about two to three months supply of inventory for them and that's and we turn that inventory. Our goal for inventory turns is six times. So last year we got five point eight. So just below six and that's that's kind of our goal so I think as an industry norm company shoot for 4 which is turn your inventory once every quarter and this is our. We try to get as close to six possible now means we have to manage our inventory very good
Malcolm Lui: Yeah definitely. Now the way your business works. Are you able to get working capital funding loans to cover the costs of carrying inventory or in your industry. You
Brandon Dewan: Yes.
Malcolm Lui: Have to
Brandon Dewan: Yes
Malcolm Lui: Own it
Brandon Dewan: Good
Malcolm Lui: Yourself
Brandon Dewan: Question. So when we started out we started out with no line of credit and we had after about six months. So what we did is we started no line of credit. We had an initial investment by me and my partner small investment and then essentially we were vendor finance which means we are working with our are kind of two key vendors and we were paying them once we got paid from our customers. We were very transparent with them to to explain to them who our customer base was. As long as they were comfortable with the credit risk of the customer was then we were able to do business with them through that channel and so we just had an understanding that don't go around us or we'll never do business with you again and that was respected. And so Bank of Texas which is where we open an account are our focus. There was we didn't want to go to a J.P. Morgan or a Bank of America or some because we knew we would not be important to start out. So we went with a more regionalized bank that would also allow us to grow. And so we went with Bank of Texas. And so after six months they came and said look you guys have outperformed 99 percent of the startup companies we've ever banked. So we want to establish a line of credit with. So we've established a three hundred fifty thousand our line of credit with them which quickly grew from there. And long story short we you know we've grown that credit line very efficiently over the years. We've switched banks a couple times and now we have one hundred million to our credit line with U.S. Bank
Malcolm Lui: Nice. That's financing one of the key drivers of your business is about
Brandon Dewan: Absolutely. That's that's the number one key driver right there because we're in a very capital intensive business. And so you have to have a strong line of credit and access to capital to be able to fund the business properly and that's something that that's that's been an immense amount of work is keeping up is not just getting access to capital but keeping the growth of the capital up with the growth of our business. And that's taking a lot of my time and my partner's time is is really focused in on on growing our capital structure as a company and keeping up with the growth. And we've been very effective in doing that but it definitely did not come easy.
Malcolm Lui: Right now you're in a very cyclical industry. So how are you handling that
Brandon Dewan: You know that's one of the that's one of the keys for the business analysts and for us to understand what the markets are going to do because one reason we try to maintain six inventory turns is because that means that you're never getting too far extended to your inventory position because there's two things that can really cause you issues in our business and that's either bad debt you have customer that doesn't pay or you have bad inventory and it's sitting on inventory in the market in the market is devalued 20 percent for example that's that can be millions millions of dollars. So it's very important to follow your inventory manager inventory match it up to what your customers forecasts and and consumption is. And that's something we focus on a lot
Malcolm Lui: Now for a retail store right. If they have some inventory that slow moving they just cut the price and then eventually someone's gonna buy. How do you dispose of inventory that you make a decision. Yeah this is a move to unload it. How do you unload it
Brandon Dewan: So we can. There's a couple different methods. One it can be as simple as the same thing. OK look let's just cut this price and move it into the market. We're going to break even or even take a little bit of a loss to move it but it makes it makes the most sense to move in turn into cash dependent what what's happened in the market where it's going. The other is to buy your way out of it. And what I mean by that is that if you've got high cost material in the markets really taken a hit then you can buy new product cost average it and utilize some of your new product with your old product and ultimately bring your cost down. And the third the third way to do it is by trading and we establish a trade value and we can do this with end user customers or we can do it with their suppliers. And it's to trade out of items into items that you need so for example if we have product a that has X cost in it and we we we need product B and someone else need product day we establish a trade value and essentially we can get out of that product and sometimes with spending no money because you're trading for something. So there's a couple unique ways to go about it with third being the most unique. So
Malcolm Lui: Dna is very unique now. Is this what you describe it those three things something you do on a monthly basis because this is your choice. You know you're on top of the inventory you don't want to be stuck with anything. It's a once in a while occurrence when you have to turn to these three
Brandon Dewan: Yeah
Malcolm Lui: Avenues.
Brandon Dewan: It's a once in a while occurrence. We try to utilize the trade method very frequently but the other methods are really about you know we're buying. Typically we buy inventory for what our customers need. Now we also buy speculative inventory to sell in a spot market basis to the general market. But the majority of what we're buying is for specific customer specific requirements and that's kind of how we try to manage our inventory as best as possible is to understand what our customers consumption is going to look like and then tailor our inventory purchase accordingly.
Malcolm Lui: Right now you grow your company extremely fast. Right. 60 million to 300 million in four years. Your revenue per employees is among the highest in the nation at 10 million per employee. What's to keep you from setting up shop myself and do what you're doing
Brandon Dewan: Well it's a very specialized business that there's a lot of things to know in our business. So it'd be very hard for someone that didn't have the expertise to come in and do it from scratch. One of the main things that you have to understand is the markets and the products which a lot of people think OK well you're all steel pipes steel pipe you put it down hole and it's that easy but it gets in the middle surgical composition of the steel the connections that make the connect the pipe together gas tight sealing high torque ratings et cetera. So there's a lot of technical expertise as well as the network. You have to know the end user community you have to have the customer bases to sell to and then you've got to be able to bring a fresh perspective because you're gonna be competing with with huge companies. I mean we started out from scratch competing with billion dollar companies in our in our business. So it's hard to do unless you are able to bring some things to the market that are unique. So there's there's a few different things that you would have to do to scratch the surface of being able to just open up shop and start doing it.
Malcolm Lui: Right. Sounds like a capital side is also a challenge.
Brandon Dewan: Capital you have to have money behind you. Or you can start small and grow from there but the capital side it's very capital intensive business to where you have to have a lot of money to be able to participate in this game. Now you can be a pie broker and that's not very capital intensive. It's where you're you know you're buying from a and selling it to be back to back type business and things like that. But that's not you're not gonna be in them. You're not going to be mainstream if you're doing that. You know you can be a pie broker that's that's doesn't require as much capital and things like that. But if you're really gonna be a stocking distributor and participate in business with the largest companies out there that goes Exxon Mobil's Yogi's et cetera you're gonna have to have strong financial backing and be able to carry the product that they need.
Malcolm Lui: Right. Cause these guys can afford to not get their pipes delivered on time.
Brandon Dewan: You know they can. They absolutely cannot
Malcolm Lui: Yeah.
Brandon Dewan: Afford that. And the other side is if you wanted to gamble and do it and put a hundred million dollars where the inventory in place and then you didn't understand the market dynamics then all of a sudden you're you know market decreases 10 or 15 percent. Well you just lost twenty nine dollars or devalued your inventory about twenty nine dollars anyway. A It's a risky game.
Malcolm Lui: Yet would you be happy to help them out if you trade with them.
Brandon Dewan: There you go
Malcolm Lui: Okay. What are your thoughts on 2090. What are your plans. What are your targets.
Brandon Dewan: For 2019. Yeah we're in terms of revenue basis. We're shooting for about four hundred million dollars this year. We've got some big things in the pipeline so to speak that could push that higher than that. But that's kind of our basis right now is going to 400 million we're going to be expanding our business in some alternative markets be it structural be it municipalities etc.. So we're going to continue to evolve the company diversify and grow our our market share of the market segments that we're currently participating in. We're working on some some some new technical components that we're going to be bringing to the market that are going to be something that the market hasn't seen before which we believe it'll help push our push for our business as well.
Malcolm Lui: By technically you're referring to more and more or different analysis services.
Brandon Dewan: Yeah what I'm referring to here is things that are going to complement what we're currently doing in terms of the business that we're running on on both the upstream and midstream. A lot of upstream focus right now in terms of the material that we're supplying. How do we track that downhole. How do we let the end user know exactly what material is where they're well and that helps them from a risk profile and if there is any issues in the well they know exactly what material is at what location what depth in that well and digital bills of Lane things like that that they're really going to be real time in terms of. For example if if you're delivering material to a well and you get a signed bill of lading and signed by by the company man at the rig and then he gives it to the truck driver and the truck driver a couple days later hopefully that he's he scans it or takes a picture and sends it in and then you get that to your customer a week later and I mean it just it slows down the whole process and customers are really looking for efficiency right now. And so this is these are things you're going to be doing to to really digitize their their experience with us
Malcolm Lui: Right. Okay. What problems or challenges do you foresee that you have in 2019 that you need to eliminate to get to your goal of 400 million.
Brandon Dewan: Well. So in two thousand and seventeen so coming out of 16 going into 17 the market was pulling out of a downturn in the rig count was was increasing faster than what new supply entering the market could catch up to that rig count that was increasing because of that the market price increased well over 20 percent that year in 2018. What happened was the announcement of Section 2 32 which essentially is the implementation of quotas and tariffs on steel imports into the USA that the Trump administration implemented in that that that made the market increase about 20 percent and 18 this year it's a more normalized year. We don't see anything on the horizon right now that's going to that's going to majorly push up the market or push down the market. We think it's going to be relatively flat year. So with that that means there is going to be a lot of competition. We think there's going to be some as it currently is right now there's been some downwards pressure some light downward pressure on pricing in first quarter and that means that people are competing fiercely over over the business that is available. That means you've got to be very aggressive price was working with your suppliers to make sure that you're buying competitively. And so I think the real challenges are going to be the margin compression that's going to take place with people really fighting over business and a market that is not experiencing huge price increases. So that's going to be a challenge and then also we're monitoring the political situation very closely to determine if something does change with the current trade the tariffs and the quotas in place. How is that going to affect the market and how fast is he gonna do it and what what moves do we need to make when that happens. So there's a couple of challenges right now that we're making sure that we're we're ahead of as much as possible that could affect the market this year.
Malcolm Lui: What about finding new customers or do you pretty much know everyone who's out there who's buying pie and you're already working with them.
Brandon Dewan: No there's always there's always business development that's occurring and that's that's what we mean over the years if you look at where our customer list was of a handful of customers to I mean hundreds of customers. Now it's all it's always business development. There are so many customers out there on the market that you always have to be targeting new customers and bringing on your business because you're always going to have some business fall off for whatever reason either either good contacts that customers leave and the new people that come in you're not aligned with as well as somebody else. So they're bought. There's consolidation in the market and if they're bought by somebody who has a contract or agreement and with somebody else then I'll send your businesses is is has gone away. And so you always have to be adding new business because you're always going to have some kind of fallout of your current business. And so that's what we're doing. We actually do not currently have relationships with everybody in the industry now we know a lot of them. We know most companies in the industry. But we can always improve on the relationship we have with them in bringing on new clients
Malcolm Lui: Okay. What are the challenges on that front.
Brandon Dewan: Well the challenges on developing your customers are just the competition that is currently at play. I mean there's a lot of this is a very competitive cut throat type of business that your people are going hard after these customers and you have to figure out how to differentiate yourself. What competitive advantages you can add value to their supply chain at real value. And those are the type things that we're doing. So you know that it's really just about trying to outperform your competition and set yourself apart from what everybody else is doing. And
Malcolm Lui: Right
Brandon Dewan: That's the knowledge that's the challenge to constantly to overcome
Malcolm Lui: Is it pretty easy to engage the people out there who you don't have relationships with so far.
Brandon Dewan: You know not really it's a challenge because most people currently have a supplier they have they have somebody supplying them what they what they need. And that means that it's harder for somebody just to walk in and say hey let me tell you about our company. Let us show you how we can do things differ because a lot of people especially in their busy these days everybody's busy is
Malcolm Lui: Yes.
Brandon Dewan: Saying well you know look I've got I've got some in place right now. I don't I don't have time to really think about changing it and there'd be a lot of effort if I didn't buy the block so you really have to be able. The best thing to do is if you can get in front of people. It's much more effective. And what I've noticed is that when we get in front and present to people that does us a lot in pushing the ball forward and bringing them on as a client or getting an opportunity with them at the least. And so you know these days it's all about e-mail and everything else but people get hundreds of e-mails a day and you're just sending one more e-mail that's going to go into their inbox and I'll try to mess with. So figure out creative ways to get in front of them and secure that in-person meeting is really the goal.
Malcolm Lui: Right. Exactly how he has gone about getting those in-person meetings
Brandon Dewan: Well one of the major things that we have done is we have brought a lot of information market information to our customer base and to potential clients. So we do about a 50 page deck per month. And we send it out every single month to both customers as well as prospective clients. And it covers global oil and gas as well as so global energy and then CTG in line pipe specific and really goes through and details market trends market dynamics. We do summaries of each section of all three sections with bullet points that appeal enough to look at these these graphs and charts and try to draw their own conclusions we're drawing conclusions and market doing the market analysis for them. So this is something that is there try to understand where costs go and how is it gonna affect my business. What are the things I need to be doing in the purchasing strategies that I need to have in place this year. We do that for them and we present that to them and they can utilize that to have a better understanding as well as present up to their management. Anything is very helpful. So that's something that we typically provide on the front side of asking for an in-person meeting. And explain to them that we can give them a presentation on the market and the most effective personal strategies for this year. And so that's something that you need that they don't typically see there's a lot of people that'll reach out and say hey I'm so-and-so from ABC pipe company want to come talk to you. Well I won't have lunch with you. Well people are busy and they will have time just have a meeting with somebody these days so if you're not going to be able to add value somewhere then people probably don't have time. But if you can if you're one of the few that actually does have something that adds value to what they're doing their job to their business then there's a very there's a very good chance that you're going to be able to secure that meeting
Malcolm Lui: Right now the people you're sending it to the 50 page dagger are you saying to the C Suite folks are you sending it to the
Brandon Dewan: Yeah absolutely. It goes it goes all the way from a lower level you know brand new person in the business to CEOs. I mean there's such a wide range of who our audience is on it and that's just over the years it's just through. There's just a different levels and need to know and there is there's people on low levels that need to know what's happen in the market and there's people in sea level that need to know it's out in the market. So it's a very wide range. It's not focused at just one level of person or clientele it's focused on providing as much and as beneficial as information as possible to our wide variety of customers.
Malcolm Lui: Right now. I took a a look at some of your online marketing I didn't see you running any paper ticket campaigns. I'm not a huge SVOD presence. Is this something that not on your radar screen right now to develop
Brandon Dewan: Well you know we have run the SVOD campaigns before and we've we did it for a couple of years and we just got to the point that you know this you know campaigns are not cheap and we were spending. We spent at least amount of money doing the SVOD campaigns and it did it did it did work to help promote us online and things like that. But we weren't a very established business. So once we did the SVOD campaign for a while we got our name out there through different different industry functions and online and et cetera. We just we decided that we did enough to get us to where we wanted to be. And it's a little bit different than say a technology business or you're trying to sell a product or or something like that that's that's you know you would need just a super aggressive online campaign. So the majority of our business is done through relationships and fewer people are not typically the end user is not typically googling Oh CTG Houston to figure out where to buy pipe. They have those relationships those contacts you know they they know who for the most part the people in our industry and the companies they know who sells the product and that's the importance about getting in front of people. Those initial meetings familiarizing them with your company. And that was a challenge as we were as we were new to you know we were we were a little fish competing with these these real billion dollar companies is real big people out there and we have to be very aggressive and creative and unique in how we are doing business in order to start taking market share from them so that you know that that's something that that we were that we were really focused on and so that's kind of a little bit of how we did it.
Malcolm Lui: Right. I go back at Liberty. Your 2019 plans. We talked about your opportunities you talk about the problems that you need to eliminate. What about the strengths that you have that need to be maximized. Can you share some color on what you think your strengths strengths are that you'd like to leverage further into doesn't Lincoln
Brandon Dewan: Sure yeah. So the strengths. I think one of the main things about Eagle is that we have created that one stop shop to where you can come to us and get all the products that you're going to need for your tubular needs. Whether it's the production casing which is called oil country tubular goods or your line pipe or your poly pipe or your ballads your fittings. That stuff is all something that we have been able to establish company that can do all of that. And so we're going to continue to build that out and expand the products that we are offering to where we just continue to draw the customers in because they can they can get all their products in one place which which is unique to our industry and how how things are typically done. So
Malcolm Lui: Write
Brandon Dewan: That's something that we're definitely going to be focused on and we're gonna be also focused on some of the unique things that we're doing on. On a. For example controlling the raw materials we're going to continue to do that. And these are these are really things where the customers look back at the. Over the course of the year and they say OK what was my savings and how did my pipe program perform. We can we can show them the most amount of savings through an active supply program which is how we run things. We don't typically come in and then general in our industry it's that people will come in and they'll adjust a price per quarter so they'll establish a quarterly basis pricing with the customer and then they'll just change it every single quarter. So we do as we do actively manage programs to where we utilize our our business analysts in our our market analysts and we were we're looking at what the market is doing and how do we most advantageously do our pricing models and our program models for our customers. We might have a firm price for three months we might extend that to nine months we might do a year we might draw back to six months three months so we're constantly changing based off what the market's doing. And that's another thing that's unique is is really that actively managed program that's focused on what is best for our customer and how do we bring them a pricing structure that is going to continuously be changing in their favor to keep them as far below market as possible on their cost.
Malcolm Lui: Right. Awesome of three last questions for you. If you had a billboard along a fast moving freeway for eco bike what would that billboard say. Keep in mind that people only have six seconds before they drive by a billboard. So it has to be a short to the point message. So what would be your billboard message.
Brandon Dewan: That's a that's a good question. If I had a billboard. Well I think that I think that you have to communicate quickly in this tense situation like that. But you know I think you'd have to touch on the top things. I mean bringing a highly analytical approach to your pipes supply business or something. Something of that nature that gets the point across that look we're going to work we're going to bring a very highly analytical approach to what you're doing and that's going to really change the way that you're able to conduct your business and that's really been the focus of evil. And so communicating something along those lines on a billboard I think would be what we would be after. Now the exact wording I'd have to think about would it be somewhere along those lines.
Malcolm Lui: Right. Yeah this probably something clever you can think of. That's the pipe back there or something like that.
Brandon Dewan: There you go.
Malcolm Lui: And to ask questions Who are your ideal clients and what's the best way for them to contact your teen
Brandon Dewan: Yeah. Ideal clients are ENP so exploration and production companies and the upstream that are drilling oil and gas wells and midstream companies who are building our pipelines and then anybody that needs water transmission tubular. So we do all those segments and the best way to contact our team is either directly at our our home corporate office in Houston Texas 7 1 3 4 6 4 7 4 7 3. And that's again that's 7 1 3 4 6 4 pipe is what 7 4 7 3 spells so easy way to remember it. And then we also have our online word. W w w dot Eagle pipe dot net
Malcolm Lui: Brandon. It's been awesome having you on my show today. I really enjoyed hearing how you grew your company so fast
Brandon Dewan: Thank you. Thank you for having me I enjoyed talking with you as well.
Malcolm Lui: We've been speaking with Brandon Dewan, the President and CEO of Eagle Pipe, about his company's rapid growth. For interviews with other fast growing, high value sales companies, or to learn how we can accelerate your firm's high value sales through automation, visit Eversprint.com.
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