Got to work for a V.P. of Fastenal last week (trim & cabinet work on a remodel of his home)…anyways nice guy & we start talking about his work for Fastenal. He is in charge of real estate development for them.
He explains that they are now building much larger stores so they can stock 2-3 times as much stuff. More selection and less special orders or out of stock items. Basically, bigger store–better service. Their old model had 2/3 of stock in distribution centers and 1/3 in the stores. He said people hate to wait…so they are supersizing stores and turning their old model upside down. 2/3’s in the stores and 1/3 in the distribution centers.
Power to control items stocked is left up to the local store management–who stock what the local customers ask for.
Another interesting thing about Fastenal is how low they keep CEO and other higher-ups pay limited to a realtively small multiple of the pay the grunts get. When founder & CEO Bob Kierlin retired a few years ago he was making something like 300K/yr in a billion dollar business. Chump change compared to other CEOs in far less profitable businesses. Hmmm.
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I bet Bob Kierlin's stock option portfolio is nothing to sneeze at.
True. Also true of most CEOs. However, other forms of compensation (stock options, bonuses) are limited at Fastenal as well.Kierlin has also been very generous to the community. He did not like the local cable monopoly gouging the public. So he set up a non-profit cable competitor...all proceeds of this monopoly breaker go to providing computers and technology and tech support to the local schools and Universities. And we pay half what other cable monopoly towns around us pay.He endowed the school that had been closed in my town, so it could be re-opened.
Edited 8/28/2006 8:34 am ET by basswood
He did not like the local cable monopoly gouging the public. So he set up a non-profit cable competitor...all proceeds of this monopoly breaker go to providing computers and technology and tech support to the local schools and Universities.
He is more than welcome to come do that in my town, too. We have a number of charities that would be happy to be so benefited.
Only 'sticking point' is the doubled-up "last mile" problem under the various telco/cable acts--otherwise, I would have started my own cable co by now . . . Occupational hazard of my occupation not being around (sorry Bubba)
I like Fastenal. Never actually bought anything from them, but made a tidy sum off their stock.
I just discovered a Fastenal in my area - I'm hoping when they expand they will start carrying GRK in the store stock.Rebuilding my home in Cypress, CA
Also a CRX fanatic!