The Changing Auto Dealership

(ADV) Everything in the car business has changed. That’s nothing but good for consumers.

Get ready to be surprised at Holiday Chevrolet-Ford. From the sales department to service and parts, it is not business as usual in terms of wheeling and dealing for a new car. “We just want to do business differently than people are used to,” Holiday owner Matt Johnson said. “And that’s in a good way.”

To start with, Johnson has empowered his salespeople, managers and other employees to make their own decisions. That does not mean that Johnson is necessarily happy with each decision they make; some are learning
experiences for the staff at Holiday. “Every single employee I have has the ability to make a decision,” Johnson said. “They may not make the right one, but at least they made one. That way I can cultivate them to make the right decisions and they can learn from their mistakes.” General Sales Manager Tony Ventura said that it was a very different environment than other places he’s been employed, but that he appreciates Johnson’s trust. “Matt operates under the philosophy of asking for forgiveness rather than permission when we’re making decisions. That empowers everybody,” Ventura said.

What is the Holiday difference? Parts manager Howie Beste, a 28- year employee at Holiday, said that more than ever, employees are willing to go the extra step and take care of customers. For a working environment, Beste said that he liked the family atmosphere that is present at the dealership under Johnson’s ownership. But it all comes down to basic values in pinning down the Holiday difference. “Honesty, that’s the biggest thing with me,” Beste said. “I know this sounds like a cliché, but we want to treat people like we would want to be treated,” Johnson said. “Many are delightfully surprised and say that was the easiest transaction they’ve made when buying a car.” Holiday salespeople will take as little of the customer’s time as possible so that each party can get on with the business of life.

In explaining the Holiday difference, Johnson listed three misconceptions many have about car dealerships that do not apply to Holiday.

Misconception # 1 — My choices for a new vehicle are limited to what’s on the lot. And if what I want is not on the lot, I can’t have it. “People are under the impression that they can’t go in and ask for the car they want,” Johnson said. “They think they have to buy something that’s already on the lot. That comes from sales people who try to force people into thinking they have to buy something today, or something is a good deal because it’s purple.” Those salespeople do not work at Holiday. In an interview, a Holiday salesperson will ask a customer exactly what they want, find it and guarantee the lowest price. Even if that dream car happens to be in Michigan, Holiday will find it, and get it home. “There’s nothing as a Chevrolet or Ford dealer that we cannot do,” Johnson said. “We love getting people what they want.” Through the power of the Internet, Holiday not only finds the right car for community members, but for car-buyers throughout the country.

Misconception # 2 — Tires are cheaper at discount stores than at the dealer. Yes, discount stores may have the cheapest tires, but Johnson said that those tires are manufactured for that market, with different treads and lower tire life. Holiday Chevrolet can get you a better tire that will be a better deal for the money, with more miles. And Johnson is so sure his price is the lowest, the difference will be refunded if you find the same tire for a lower price.

Misconception #3 — When the dealer services your vehicle, you pay a premium. Most people would guess that taking their vehicle to a dealer to perform repairs is more expensive than taking it to a garage or chain repair shop, but once again, Holiday guarantees its service prices will be the lowest. And there is no charge for evaluating the problem. After technicians make a diagnosis, the customer has the option to have the problem fixed. If technicians need to keep the vehicle to make a diagnosis, Holiday will furnish a loaner. Holiday’s service department boasts four diesel master techs for diesel engine repairs. Two senior master technicians work at the Ford service center. “We will surprise you by the things we will do to make your life easier, and to get your business,” service manager Jimmy Kimbrel said. Holiday also will pick up customers, deliver vehicles and provide shuttle service. They honor all competitors’ repair coupons. In addition, Holiday has a maintenance loyalty program that offers discounts on service, vehicle purchases and a free fifth oil change. Beginning in January, the service department at the Ford location will be open Saturdays from 8 a.m. to noon.

And the dealerships are expanding in other areas, too. Look for the Ford location to receive a face lift early this year. “It will be awesome by midyear,” Kimbrel said. Internet sales manager Kraig Clement said that expanding the Internet sales division was risky in these economic times, but under Johnson’s ownership, that department has flourished. “This is not like a normal dealership,” Clement said. “What other dealerships aren’t doing, we are.” For instance, when it comes to technology, Holiday is not just a “little country store.” If you don’t have access to  a computer you can just tap the touch screen on your iPhone. Holiday is the first Chevrolet dealer in America with its own iPhone application, which is available for download at the Holiday Website. You can set service appointments, ask questions, get directions, view inventory and check prices and availability of products and accessories all from your iPhone.

Clement credits Johnson’s accessibility and low-key management style with creating a work environment that contributes to the Holiday difference. “It is hard work, but you’ve got an owner that’s not afraid to take chances,” Clement said. Johnson has owned Holiday Chevrolet since 2003, and acquired the Ford dealership last July. With 47 employees, the dealerships are important assets to the community and Johnson understands the forces that drive its economy, such as agriculture and the equine industry. As a service to those groups Holiday gives discounts to members of the Texas Cattle Raisers Association, American Quarter Horse Association, National Cutting Horse Association and Farm Bureau.

Credit where credit is due. Holiday has a program where anyone with a guaranteed income can be approved for a car. Unlike some car dealers who “tote the note,” Holiday reports to all three credit bureaus, which repairs credit when payments are made regularly. A database matches a car to how much the client can pay, and caps the amount the dealer makes from the sale. That takes a commitment from the dealer, and from the bank. By making regular payments, within months the client may be able to upgrade vehicles. While some dealers may not want that type of client, Johnson does. “That’s exactly the customer I want to help because I will get their business for the rest of their lives,” Johnson said.

That is Johnson’s goal—to make lifetime customers. And with the ease of transactions at Holiday, customers are returning for the fair deals and the guaranteed low prices. “The bottom line is, we keep pushing ourselves until the customer is happy.” Johnson acknowledged that times are hard for the auto business but in spite of the tough times, Holiday’s 2009 sales topped 2008 sales. “I’m so proud of everybody that works here for that. But you know what? It’s not that tough to give somebody what they want. And that’s what we do. We give people what they want.”

Holiday Chevrolet-Ford
1009 Highway 82 West
Whitesboro, Texas 76273
Chevy 903-564-3551
Ford 903-564-3594
www.holidaychevyford.com

Pottsboro’s Wilson’s Farm

Just as the sun started to rise, Duke Wilson and his nephew Parker slid into their battery-powered golf cart and headed out across the property. They do this most every morning to check the health of their seasonal crops, as well as the functioning of several operation systems. “Let’s take a picture here,” Duke said, as the men examined precisely laid rows of cabbage and kale. The younger man pushed the brim of his cap up from over his eyes and snapped a digital image of the plants.

Cabbage and kale—sounds good, but these plants are not for eating. They are ornamentals, and along with a wide variety of other bedding plants just getting started, they are the Wilson’s crop. These and the pansies. Yup, pansies. Right now they have greenhouses full of pansies just waiting to find a new winter home.

“Pansies are tough,” Wilson said. “They like the cold.” Perhaps it’s time to reconsider the little flower’s image.

Located two miles west of Pottsboro on FM 996, Wilson’s Farm operates out of sixty-seven greenhouses spread across twenty-four acres. From their office in a large, orange, steel Conex shipping container with a door in the side, the images from that morning’s photo shoot were forwarded to Duke’s brother and Parker’s father, Tom Wilson. “He works out of the store in Dallas and has a real good knowledge of everything we grow,” Duke said.

The store in Dallas is Christina’s Flowers, named for Tom’s wife. It’s located on Mapleshade Lane, near US 289 and the George Bush Freeway. There, Tom and ten-year staffer Kelsey London, receive the flats and set them out for retail. The bulk of the Wilsons’ Pottsboro product goes to stock this store, but product from Wilson’s Farm reaches consumers from Oklahoma City to San Antonio, too,. “In a season, we can send out 600,000 flats of annuals,” Parker said.

The bunker-like office is headquarters for the farm, home to piles of paperwork, a computer monitor and a label making machine. Overhead, on a dry-erase board, a running list of maintenance projects grows as rapidly as the plants. “We’re the maintenance team, the plumbing team, the operations team. This is a family business and we do it all,” Duke said.

Wilson’s Farm got started forty years ago when Tom and Duke’s father, R.C. Wilson, purchased the Pottsboro property. The boys took a liking to the country life and at one time lived there. Tom and Duke have both been a little of this and a little of that—landscapers, concrete workers, and sprinkler-system installers. As a hobby, Tom began putting his horticulture education to use and began planting on the farm. “He’s always had a knack for working with plants,” his brother said.

Over time, they built six wood-framed greenhouses, and the Wilsons began taking their crops to market. They also sold plants on the street. “We would go to Florida and pick up a truck load of plants and sell them on corner lots in Dallas,” Duke said. The brothers found that they could unload a truck full of exotic house plants within hours.

“We just sat down one day and talked. We realized we were selling a lot of plants and that we couldn’t keep our jobs and continue to do this. So we made a decision to get in the greenhouse business. Then we hired some people and made it work,” Duke said.

The Wilsons built more greenhouses, with metal frames instead of wood to provide greater durability, and called on friends and a small staff to run the place. “As we got the money for them, we continued putting up new houses,” Duke said. “That way we didn’t owe on anything.”

There are sixty-seven houses now, lined up in rows and covered in a layer of heavy-gauge Visqueen® poly sheeting. At both ends of the houses sit large turbine fans, used to exhaust the warm interior air during the summer. If the temperatures soar, the Wilsons use shade cloths to cut the heat.

Too hot in the summer, too cold in the winter has always been the farmer’s challenge. “When we get a real hard freeze, I have to get out here and check the heaters in every house. It’s worth getting up at 1 a.m.,” said Duke.

A deep freeze on begonias will wipe out an entire crop. “We may only have $20,000 in it,” said Parker, who has grown up in the business, “but if you think about what that could create, on the back end, in a greenhouse full of plug trays…” He grabbed the calculator and punched a series of numbers. “That’s a loss of $250,000.”
Planting is a continuous operation at Wilson’s Farm. Truckloads of peat moss arrive in bundles, and seeds are purchased from various suppliers. Most of the plants are grown from seed.

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The automation process begins once the tightly compacted bundles of peat moss are dropped into a bail busting machine and reduced into a workable medium. A machine that definitely has the “shakes” sifts the peat into 384 pinky-sized plug holes on a plastic tray as it moves along a conveyer. Each tray is watered, seeded, and packed. A fine layer of vermiculite coats the finished trays, which are then stacked on rolling racks to be organized in greenhouses.

Once they are in a greenhouse, water for the plants is channeled through an irrigation system. It comes from an on-site well and runs through a reverse osmosis machine. “We get a lot of sodium from the well, and the system purifies the water,” Duke said. The cleaned water is stored in tanks and dispersed through a maze of PVC pipes. An automated humidity meter reads the moisture in the air and turns on misters to water the seedlings as needed. “For seed planting, a direct spray washes them out of the flats, so we use a fine mist.”

Under ideal conditions, and depending on the crop, buds will poke out of the moss in three to four weeks. Once the buds have made a leafy appearance, they are then replanted from the plug trays into eighteen-cell finish flats.

Through the years, and after attempting several different procedures to perfect the replanting process, the Wilsons’ found that a crew of six replanting along a conveyor is ideal for production and cost. “We had an automated machine some time ago doing this for us, but once the machine went down, we were left with a whole lot of crop and no home for them,” Wilson said.

Now they employ six young women, who sit alongside the conveyor wearing latex gloves to keep their hands from drying out, and as flat after flat moves past, they delicately but quickly replant the sprouts into finish trays. The women laugh and talk as they work, but if something goes amiss, the straw boss—or would that be moss boss—Raquel Vargas steps in and makes it right. “This is a family operation, but she’s the boss,” Duke said of Vargas, who has been with the Wilsons’ for more years than she or Duke can quickly recall.

Cabbage and kale are winter favorites and for color—remember those pansies—well, the Wilsons sell 100,000 flats of pansies each year. Spring sees traditional favorites such as marigolds, petunias, and periwinkle. But their cash cow, as they’ve come to find over the years, is the red-leaf begonia. “We’ve tried a lot of different things, but our number one seller is the red-leaf begonia,” Wilson said.

To a large extent, what Duke and Parker plant depends on what Tom Wilson and Kelsey London, who field questions and get feedback from customers, decide. “It takes several years to establish a core group of crops,” said London. “We’re the loop between here and the farm, and this is where we gauge what customers are looking for.”

As they stay on top of customer trends, the Wilsons see the fluctuation in consumer purchases. Pots of wisteria occupy a small space now, remnants of a trend that was popular five years ago. In 2009, the potato vine emerged as a hot-selling item. “We’ve gradually refined what people are looking for,” London concluded.
Back at the farm, Duke and Parker, after a long day babysitting baby plants, turned the golf cart back to the barn. They put away their tools, added a couple of new items to the never shortening list of maintenance chores, and checked the computer for updates. Parker Wilson lifted the brim of his cap and squinted into the sun hanging low on the western horizon. It was time to go home.

Trenton Publisher Celebrates 100 Years

On October 22, 1909, the people in the southwest corner of Fannin County first got a look at their new newspaper, The Trenton Tribune. One hundred years later, folks still find out what’s going on in that part of the world with a weekly copy of the Tribune. Last month, on the paper’s one hundredth birthday, the newspaper office was packed with well-wishers to help the owner, publisher, editor, reporter, layout man, photographer, copy boy and janitor—Tom Mac Holmes wears all those hats—celebrate the birthday.

Texoma Living! was on hand and joins the chorus offering congratulations with—Happy Birthday Trenton Tribune!

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For ACT Communications Business is Booming in Bonham

Just off the square in Bonham, a little miracle is unfolding. ACT Communications, a local success story in the 1980s and 90s, is on the rise again. Focused on the design and manufacturing of electrical and electronic products for the commercial, industrial and residential markets, the company is achieving double-digit growth during the worst economic downturn in decades. But financial results are not the whole story; old-fashioned business values and practices, such as listening to the customer and rapid deployment of solutions, are the foundation of their success.

In the early 1980s, James A. Glaser, a Washington state native, settled in Ector, Texas, his wife’s hometown. He established ACT Communications in 1983. Initially, Glaser was a manufacturer’s representative for electrical products designed and manufactured by third parties. He sold primarily to distributors, value-added resellers (VARs), original equipment manufacturers (OEMs), and directly to some accounts. The products he sold were used all over the world by telecommunications companies and others. A year later, the telecommunications industry in America underwent a sea change, and for Glaser, the change opened unexpected opportunities. (Left: Brothers Ron and Greg Glaser have taken over the family business that’s booming in Bonham.)

In January 1984, AT&T divested their local phone services and spawned seven new Regional Bell Operating Companies (RBOCs). The RBOCs, as well as new entrants in the long-distance telephone business such as Sprint and MCI, were now in the pool of potential customers for ACT Communications.

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Chasing competive advantages (higher capacity, higher reliability, lower cost), it wasn’t long before the the RBOCs and long-distance telephone companies started the fiber optics revolution. Fiber optic technology had been available from Corning since the 1970s, but AT&T, with no real competitors in the telephone business had not yet moved to the new technology, so the RBOCs inherited copper wire networks. Fiber optic cabling offered one thousand times more bandwidth over one hundred times farther distance than copper wire cables. Glaser quickly discovered gaps between requirements driven by fiber optics initiatives and the copper wire technology that he represented. If he didn’t change his business strategy, he could be left in the backwater.

His brother, William “Bill” Glaser, joined the firm in 1984. For two years, they were road warriors, spending weekdays calling on telecom customers all over the country. They were united in common purpose, working for stock in lieu of salary, responsible for their own expenses.

With its solid background in electrical engineering, ACT focused on cable location and surge protection. Because it is free from corrosion and not subject to electrical interference, fiber optic cable can be laid in the same trenches as copper wire, but first, the trenches have to be located, and during the process, employees must be protected from copper wire power surges. ACT designed surge arrestors whose primary function was to protect buried cable and personnel from high-energy surges. Building on the surge arrestor, they offered another solution to increase cable locating efficiency, allowing more than 50 miles of cable to be located with one transmitter.

The telecommunications companies embraced ACT’s solutions, but each company required proprietary implementations. The Glasers listened to their customers’ problems, took notes, often on paper napkins over lunch, went home and developed a solution and, after further refinement, a prototype.

The telecommunications industry’s efforts to reduce costs and improve productivity were hampered by an average concept-to-manufacturing cycle of two years. ACT Com-munications delivered consultative sales, engineering expertise, rapid prototyping and deployment, exactly what the telecommunications companies needed, and they did it with an alacrity that was unusual in the industry.

It paid off. From 1985 to 1993, ACT, by then relocated to Bonham, grew steadily from a only a handful of employees to more than seventy.

The industry “buzz” about ACT Communications grew, too. With its patents, product catalog, more than 150 customers, and depth of engineering and manufacturing expertise, ACT was a winner, benefiting from the wave of telecom investment in fiber optics (estimated at $14.6 billion in 1999). By 2000, ACT had two hundred employees, and several companies expressed interest in purchasing the company. General Electric (GE) walked off with the prize, purchasing the company in December 2000.
The Buyout

Reorganizing as GE-ACT Communications, the new management apparently valued the company for its existing products and patents more than anything else. Almost immediately, they signaled an end to local product development and technical support by laying off or transferring twenty-five of ACT’s engineers. This wealth of expertise was scattered to the four winds, with some of the engineers finding employment within GE, some with competitors such as Thomas & Betts Corporation, and some in other parts of the telecom industry. Remaining employees strained to maintain customer good will without the technical backup that once was at the heart of the company.

Over seven years, three more corporate reorganizations at GE resulted in the breakup of the ACT product catalog and re-assignment of products to different GE divisions. Following the then-current thinking (and tax advantages), decentralization was the rule. Product management was often delegated to division headquarters, sales and support to call centers, product engineering to India and manufacturing to China. Local employment drifted lower with every step.

The Discovery

Ronald and Greg Glaser, sons of Bill Glaser, joined ACT Communications in the mid 1980s. The experience of working within a closely held corporation left an indelible impression on them, both professionally and personally. As an electrical engineer, Ron Glaser was given a unique opportunity to particpate in product design and development, sharing credit for the company’s nine patents. “As late as 2000, ACT was still a start-up. Employees considered themselves stake-holders in the success of the company,” said Greg. “Everyone worked hard and was excited to work for a growing company.”

After the buyout, Ron and Greg held progressively responsible executive positions in other businesses. When they saw each other on family occasions, they would reminisce about ACT. “The contrast between the working environments at ACT versus other companies is what I remember,” said Greg Glaser. “At ACT, all of us were usually rowing in the same direction. At other companies, I sometimes wondered if everyone was even onboard.”

In early 2007, Greg and Ron had a conversation about their futures. Wistfully, they agreed they would love to work together to start another company just like ACT. Greg was certainly ready to come home to Texas. With time on his hands, Ron poked around the Texas Secretary of State’s Web site, where he was flabbergasted to discover that the company name was no longer registered and had reverted to the state. “The State of Texas had owned the ACT Communications name since 2005. Ron and I agreed to start the registration process immediately,” Glaser said, with a smile.

Their curiosity piqued, they also started investigating the status of ACT Communications’ trademarks. For weeks, they were consumed by the task. Eventually, they found that many of the ACT trademarks registered with the United States Patent and Trademark Office had expired also, so they started the process to regain control of those important assets once more.

Family members were skeptical and begged caution when the brothers told them that ACT was to be reborn. The terms of the GE sale included a seven year non-compete clause, which everyone had scrupulously honored, but the restrictions were about to expire, so that did not appear to be a significant problem.
There were other barriers, but one by one they were overcome. “Bringing ACT Communications back to life was a measure of our pride in the accomplishment of our uncle and other family members who contributed to ACT’s success over the years,” said Greg. “It was also our vow to renew the legacy for future generations.”

The Opportunity

As soon as the new company was rolling, the Glasers started the search for new revenue opportunities. They found one with S-Industries in Campbell, Texas. S-Industries is in the business of selling and installing insect misting systems. “Our systems protect people and pets from being bitten by disease-carrying insects, such as mosquitoes, flies and ticks,” said owner Gene Sullivan. “Over the twenty years we’ve been in business, our applications have become increasingly complex. Our misting systems are now installed at locations throughout the United States, from front porches to elegant resort areas and show-horse barns. We were in need of new equipment when we contacted ACT.”

Ron Glaser delved confidently into the problem, analyzing customer requirements and evaluating current equipment, and then he re-designed the system from scratch, improving functionality, reliability and security. ACT was in back in business. And it is still in business with S-Industries, still providing key components for the company’s Automatic Insect Misting System. “ACT provided a product that gave us a real advantage in the marketplace,” said Sullivan.

ACT 2

The new ACT Communications, Inc., was formally incorporated in September 2007. “We are an engineering driven company,” said Ron Glaser, who is ACT’s, vice president and heads up engineering and sales. “Many of our competitors no longer have our design capability or flexibility to rapidly design and prototype. This is our competitive advantage and our opportunity.”

Before the buyout, ACT had 150 customers who purchased more than one million components. Many of their products were still operational, long past their two year warranty, but definitely near end-of-life, a perfect time to recover customers. Ron and Greg Glaser began knocking on doors, discovering both old and new needs.
The engineers, led by Director of Engineering Fred M. Siebenthall, another ACT alumnus, were able to re-engineer legacy products, incorporating new customer requirements and evolved industry standards. In June 2009, the Fiber Hardware product line was introduced, providing the form, fit and function of all legacy fiber products. Three new patents are pending: a residential energy-saving device; a commercial application of surge protection and power filtering; and a device for converting wind energy to usable energy. Reflecting confidence in the quality of their sixty-plus products, all ACT Communications products carry a ten year warranty.

As president, a post Greg recently took over from brother Ron, who decided he was needed more in engineering and sales. Greg Glaser’s nickname could be “E & E” (everything and engineering). He located a building near downtown Bonham and personally remodeled it to keep expenses down. He recruited employees, wrote policies and procedures, chose business systems, wrote product sheets, doing whatever needed to be done to get the start-up off the ground.

Through their combined efforts, new markets are open. Working through commerical construction companies, ACT is now Wal-Mart’s only supplier of surge protection and power quality products. (Power quality is a concept dear to the hearts of electrical engineers, but beyond the scope of this story. If you want know more, ask an engineer.) The company has newly-minted Government Serivces Administration numbers, qualifying them as a military and government supplier. Phase Services, a sister company, has been established to assist electrical contractors with product specifications, installation and support. OEM opportunities continue to be uncovered by ACT’s manufacturer representatives. With more than $700 million in equipment damage claims being filed with North American insurance companies by home owners each year, the residential market for energy-saving devices, surge protection and power quality is an emerging market for the company.

In 2008, ACT’s efforts paid off with more than 60 percent revenue growth. The future looks even brighter with more than 100 percent revenue growth forecast for 2009.

“We manage the company very conservatively, with an eye to sustained growth,” said Greg Glaser. “One hundred years from now, we want ACT Communications to still be in business in Bonham, Texas. We want future generations to be educated here and to find meaningful work here.”

Sometimes It Pays to Think Small

Since 2004, developers Ron Barton and Becky Lund have been building small homes. But it may be where these homes are built that has made Cupid Homes, the duo’s home building and home sales company, a surprise success. Instead of subdivisions dotting the outskirts of town, Barton and Lund have focused on urban areas in Sherman and Denison with their downsized domains.

Building the smaller homes was not an afterthought for Barton and Lund. When they started Cupid Homes, they made the decision to build houses for what they called a “forgotten segment” of people—those looking for a nice new home, but in a price range that is closer to $70,000 than to $90,000. “We wanted to come up with a product that was a great alternative for people who lived in urban areas,” Barton said.

Their customers come in all types, from young people just starting out to the elderly, from empty-nesters who are downsizing to blue-collar workers with steady jobs, but not quite enough income to support a home in the more expensive suburban developments. Whatever the reason for looking inward to the community’s older neighborhoods, Cupid buyers do not have to settle for less. Instead of skimping on quality features to bring the price down, Cupid uses a low-pricing system, which keeps contractors competitive. Using this approach, Cupid has built about 150 houses in urban areas such as East Sherman in the last five years.

Barton and Lund met in 1998, when she tried to sell him advertising, which he did not buy. It was the beginning of a great friendship, and after more than a year of being friends, the two took the leap to make their relationship a romantic one. When they decided that they would go into business together in 2003, they started with a color—hot pink.

Barton had used the color in previous marketing campaigns, and he knew that it stood out and caught people’s eye. Because of their romance, the name Cupid followed naturally. “Since we did this together, we had to come up a name that fit pink. We had the love story to go with it, and Cupid it was,” Lund said. Cupid Homes was incorporated in early 2004, and just like the pink color, the name has worked well. “People ask why we named the company Cupid,” Barton said. “And I answer, ‘Because you remembered it.’” The “Think Pink” theme extends beyond just a sign. In the office, pink name tags and business cards are part of Cupid’s MO. Barton even wears a pink name tag, and the trash can is wrapped with shiny pink paper. They like pink.

Barton was a fourth-generation builder, with knowledge handed down from fathers to sons, and Lund had considerable experience in sales. Still, Cupid’s beginning was a learning experience. With a “nothing’s gonna stop us attitude,” Barton and Lund beat the odds and made a name for Cupid with their small homes.

Style on a Budget

“We didn’t have a choice,” Lund said. “It was going to work, or it was going to work.” They were sure in their analysis that a need was there for the smaller homes, because they knew the market. “I was in that market,” Lund said. “I knew what was out there in the $70,000 price range, and it wasn’t good. Nobody else was doing this.”

What Cupid has put out there are new homes that are full of nice touches usually seen only in higher-priced homes, such as rounded corners on the walls, custom cabinets with hidden hinges, beveled-edge countertops, moldings, six-panel interior doors, and neutral two-tone paint schemes on the walls—all standard in a Cupid Home. Most of the houses have three bedrooms and two baths in their 1,100 to 1,200 square feet floor plan.

Cupid builds energy-efficient houses for the sake of “going green,” but Barton sees another angle to that choice. “Everything is geared toward energy efficiency, because the monthly bill that comes in from the electric company or the gas company or the water company is all part of the house,” Barton said. “If you build a house that’s seventy or eighty thousand dollars, you’ve got to have your utilities coming in low too.”
A Cupid Home starts with a technology that has been proven for fifty years—Hardie board cement siding. To that, add thirty-year shingles, maxed-out insulation, radiant barrier house wrap, energy efficient heat and air systems, and low-E windows. The company will use brick or other exterior material, even build a garage if a customer wants it, and they will change floor plans to meet customers’ needs. All homes have a ten-year warranty.

Building Neighborhoods

The 2009 Parade of Homes held in May awarded the Cupid Homes entry at 1610 S. Montgomery in Sherman the “Judges’ Choice of Excellence Award for Outstanding Performance under $250,000. “They were amazed at the quality in a $70,000 house,” Barton said, adding that the Parade of Homes brought many people in to see a Cupid home who might not have seen one otherwise.
Equally important with what is inside a Cupid Home may be what happens outside in the neighborhood, where having a nice home has created a sense of community pride. Not only do the customers keep their yards up, but neighbors in older homes have begun cleaning up also. “It’s a pride thing. It’s contagious,” Lund said.

Throckmorton Street resident Christy Franklin understands. “Everybody keeps their homes’ appearance up,” she said. “We’re very much an old-style neighborhood where everyone waves at each other, everyone says ‘Hi’ or helps you carry in your groceries. They’ll say, ‘Hey, your flowers are looking good’ or compliment something about your yard.” Franklin said that she feels blessed to be where she is, in a culturally mixed neighborhood, where everyone respects boundaries and children feel safe. “They’re looking out for you, and you’re looking out for them,” she said. The laughter of children playing has eased Franklin’s missing her grandchildren in Florida.

Romancing the Loan

Barton and Lund’s enthusiasm for their homes is catching. They truly see what they do as more than just building a house. They work with customers who do not have good credit to improve their scores. They help them obtain loans. They see that clean neighborhoods and helping people envision something better  touches other generations by helping children grow up in a clean environment. “It’s making better citizens,” Lund said. “I’d love to see every house on the east side new. That would tickle me to death. Keep in mind I have rose-colored glasses and would like to see the houses as a symbol of a better world.”

Barton said Cupid’s mission is not intended for historic areas of towns, but for those areas found in most cities where the houses have fallen into disrepair, where brush and weeds have taken over lots. “Every little town has an area that needs to be redone,” Barton said. “We’re not afraid to do that. We’re not afraid to tear houses down, also.”

Partnering with Cities

Some of these urban areas inside Sherman are designated as redevelopment zones. “Redevelopment zones are designed for just what Ron’s using them for,” said Sherman Mayor Bill Magers. “Ron’s doing a great job in targeting these areas for infill development.”

Infill development takes place where infrastructure already is in place and provides a deeper tax base for the city. “It’s a win for the city and a win for the homeowner,” said Magers. “Ron provides affordable housing for families who couldn’t otherwise afford a home.” Cupid’s Corner at East Sycamore and Throckmorton, is one such zone. Homeowners pay no taxes for the first five years; then, over the next five years, their taxes gradually rise to the appropriate rate. To encourage building, sewer and water tap fees and permit fees are reduced for the builder.

The City of Denison is developing a similar reinvestment system. The city’s chief building official, Glenn Northcutt, said he was pleased with the mini-division of Cupid Homes built on Munson Street. “The houses beautify the city, and they’re affordable,” Northcutt said. “It’s a good deal for everybody. Ron does build a good, tight little house for the money.”

Barton said that both the Sherman and the Denison officials have been “fantastic” to work with. “I’m grateful that the cities are proactive in this. Denison will be a long-term project and will be exciting. They’re going to clean it up, and it will be awesome.”
Although Cupid was created with the smaller home as its primary product, customers began to see the quality in the little houses and wanted it in larger ones. “The bigger houses were an accident,” Barton said. The larger custom homes are built using the same low cost pricing as the small houses, usually in more rural locations near Bells, Pottsboro, Tom Bean, and Whitewright. The larger homes have helped Cupid continue its success with the smaller homes.

Buying land ahead of time is also key to Cupid’s urban success, and Barton said he’s willing to sell to other builders who want to come into the urban areas, also. “Our whole purpose is to develop the urban area.”

It may not matter whether their business cards and billboards are pink or pea green. Barton said that Cupid’s biggest billboard is customer-service referrals. Take Christy Franklin, for example. Before her move from Florida, her brother, Steve Garrett, saw a Cupid sign and checked the company out before finding some houses for his sister to look at when she arrived. That’s when they fell in love with their house and with the neighborhood.

“We love our home,” she said. “This is where we’re going to be. I miss Florida every day, but wouldn’t leave our house.” After two years in Sherman, Franklin said they still find things they love about their house, and after two years, she has not had to have Cupid come out to fix anything at the house. “There’s not even a crack in the walls.” Garrett was so impressed with Cupid that he is having a 2,600 square-foot Cupid Home built in Bells.

Working together does not seem to have affected Barton and Lund’s relationship. They banter back and forth about schedules and dates, their mutual admiration for each other obvious. He talks up her energy and sales ability, and she praises his judgment on building matters. “She’s more fast paced and I’m more laid back so we balance each other,” Barton said. They even carried the Cupid theme to their vehicles, with her license plate reading “1 Cupid.” Barton is “Cupid 1.”

There may not be any “Cupids 2, 3, or 4,” but both principals credit the others on their staff, Forrest Francis, Sheryl Gilbride, Lindsay Wright, and Greg Pierson, as another reason that Cupid has worked so well. Francis has been in the real estate business for forty years.
Ron Barton lost a daughter to a drunk driver in 2001, and that tragedy has made him more aware of what others go through that may not be obvious on the surface. “You never know what anybody’s been through, so you’ve got to be kind,” he said. “You’ve got to smile and most importantly, you’ve got to do the right thing by people. Be nice to them. Build ’em good houses; give ’em something that nobody else has given.”

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