Monday, February 27, 2012

Welding hub melding web site with service.(WeldersMall.com)(Brief Article)

A dot-com with a face.

That's the way the organizers of WeldersMall.com of Cleveland describe their new web site, which brings together manufacturers and distributors of welding equipment and supplies.

"Dot-coms are often nebulous when it comes to the details of handling a customer, and the welding market is one that needs customer service," said Donald L. Mottinger, president of Superior Products Inc., a small gas fittings manufacturer in Brooklyn and one of the prime investors behind WeldersMall.com.

"We will offer the convenience of the Internet and the personal touch in helping customers at the same time," Mr. Mottinger said.

WeldersMall.com to date has 16 investors who have raised about $2 million for development of a web site at www.weldersmall.com, which went online last month. The investors comprise 10 distributors and six welding products manufacturers, including Superior Products and industry giant Lincoln Electric Co. in Euclid. Mr. Mottinger said plans call for about 25 investors.

"Our distributors operate a total of 200 stores, and there is a distributor within 50 miles of every person in the United States," Mr. Mottinger said. He said the site offers same-day delivery and technical support for customers.

Site users can fill an electronic shopping cart with a range of products and then pay by credit card. Customers are given identification numbers by their distributors and can order products with pricing and order quantities based on buying histories.

Mr. Mottinger, who is chairman of WeldersMall.com's board, said it was too early to evaluate the site's reception among customers. He said plans to market the site more aggressively will be implemented next month.

The company's president is Nathaniel E. Leonard, a former insurance business unit manager for auto insurer Progressive Corp. in Mayfield Village. Mr. Leonard, who joined WeldersMall.com in May, said he is convinced it has the ingredients to work well.

"To be successful, web sites have to have a competitive advantage, and there have to be barriers to entry," Mr. Leonard said. "We have both because we offer service and technical support, and we have bricks and mortar."

Mr. Leonard was emphatic in distinguishing WeldersMall.com from other players in the dot-com world.

"We are not an Internet company. We are welding companies that happen to use the Internet," Mr. Leonard said. "Our distributors have 120 salesmen in the field. We don't have to go out and hire salesmen to promote the site."

Lincoln Electric, a major producer of arc welding machines and electrodes, didn't hesitate to become a tenant in the online mall.

"It's a cleverly designed concept, and there is a solid group of distributors involved. It was a natural for Lincoln," said Dick Smith, marketing manager for Lincoln. "I think WeldersMall is the initial move of its type in the welding industry."

Distributors are happy because it gives them a chance to embrace Internet technology, said Gary Armstrong, president of General Air Service and Supply Inc. in Denver. Mr. Armstrong said joining WeldersMall.com gave General Air a chance to combine resources with other companies and become part of a network that he could not afford to duplicate on his own.

"The Internet is customer-driven, and this enables me to continue to serve my customers as well as find new ones," said Mr. Armstrong, who operates six stores in Colorado.

Mr. Mottinger said he began working on the web site idea 18 months ago after organizing a meeting with several small companies in the industry to discuss possible threats and opportunities presented by e-commerce.

"We knew the Internet wasn't going away, and we wanted to be involved in using it to create a new channel of distribution," Mr. Mottinger said. "About eight months ago, we began putting a plan together to attack the market. The exciting part of this is that people are talking about the old way of doing business as being obsolete. But what we are doing is enhancing it."

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