David Dreyer
“We were among the first companies in Israel to open a website, back in the 1990s, and today we have two sales websites—one for Weber products and one for the other products that we import. Throughout the pandemic we saw a steady increase in turnover, partly because restaurants were closed and people were stuck at home and quickly realized that if they didn’t upgrade their grills, they would have to survive off omelettes. In the end, not only did we not furlough a single worker, we even had to hire more staff to cope with demand. In one case, a man in his eighties called us on the eve of Passover and said: ‘I’ve been wanting to buy a Weber grill for years, but I was always reluctant to treat myself. Now, because of the lockdown, I want to do something to cheer myself up, so I want the grill I ordered to arrive in time for the holiday’, and we made it happen.
“My father-in-law opened the business 50 years ago, and my wife Dorit and I joined it in 1981. Today Dorit is the owner, I’m the CEO, and we have around 40 employees in the different departments, including our daughter, our son-in-law, our daughter-in-law and 15 Palestinian workers. Some of our team have been with us for 15, 20 and even 40 years. We have 15 different categories of technical support and maintenance products that we import—mostly from China and the Netherlands—including paints and painting accessories, gardening tools, ladders, drainage equipment, toolboxes, taps and more.
“We supply products to 1,300 locations around Israel, and we take pride in the service we provide. When COVID-19 started, we were worried that the home maintenance sector would come to a halt, but then it turned out that it was not impacted at all and that we were classified as a vital sector. On the contrary—over the course of the pandemic, we even saw an increase in our activity, because people were spending long periods of time at home and they had the time and need to paint and maintain their immediate environment, so we found ourselves needing more stock.
Three years ago we launched a new brand, GreenWorks, to offer garden maintenance solutions using a renewable power source—one battery that fits a range of powerful tools such as leaf-blowers, chainsaws and lawnmowers, and removes the need to change oil, fill up petrol and all the pollution that goes with it. Today, the younger generation is leading our business development, including maintaining our online store, and the new brand is a significant growth engine. As importers, however, we are encountering serious difficulties with production delays in countries that are still in lockdowns and with shortages and increases in the costs of raw materials and shipping unlike any I have seen before—and that impacts our supplies and our profits. This is a dangerous period, and I hope it passes as quickly as possible.”
“In the old digital world, searches usually started with Google. Nowadays, things are different, and people want to receive recommendations and feedback from other people. They want pictures that give them a sense of how the products might look in their own home, and to receive lots of information about the store they are thinking of buying from before they visit it. A world of digital communities has opened up dedicated to home-styling, interior design, garden furniture and design, which business-owners in the outdoor market cannot ignore. The best advice I can offer for such groups is not to take an overly aggressive approach to marketing—publish examples of items with descriptions, ideas for how to arrange tools and products for the home and garden, sources of inspiration and any other information that will enrich people who come across it. New customers in these digital communities who are looking for the exact products that you are offering but are not yet familiar with you will quickly come to realize your worth and will get in touch with you.”
“The return to normal is a good time to carry out a periodic review of the business. The pandemic has brought about changes in demand for products and services, payment conditions, the financial health of clients and suppliers, prices of raw materials and shipping costs for clients in the import sector. All of these impact the company’s cash flow, and the credit needs may change as a result. After analyzing the financial situation, it is worth meeting with your banking advisors and specialist consultants to examine the balance and credit needs to enable smooth, uninterrupted business development. This is an important time to manage your cash flow, until business returns to pre-pandemic levels, even taking into account the new and different business opportunities that have opened up. It is also important to consider increasing stocks of products that are in-demand and to minimize products that are no longer as relevant. In addition, online sales are of particular importance at the moment, so it is important to ensure the business is equipped to handle sales through these channels by setting up or upgrading an existing online store.”
As the economy gradually begins to emerge from the outbreak of COVID-19, Ma’ariv and Bank Hapoalim are running a special feature, sharing and following stories of businesses in different regions and sectors and offering insight and support in coping with the current crisis and uncertainty. Every week, we will share practical tools, as well as offering insight and guidance into opportunities for financial and business development and growth in this challenging environment. The information contained herein is accurate as of the day of publication and should not be understood as an alternative to professional consulting services that take into account the specific circumstances of the individual and are tailored to meet their needs. The aforementioned should not be understood as an offer for credit, loan provision and/or deferred repayments, subject to the terms and conditions and approval of the bank. Inability to keep up with payments may incur charges on interest in arrears or repossession proceedings.