from national distributors – who were, historically, our biggest customers – and sold directly to dealers and retail customers. From 2012-2015, we successfully navigated this ‘channel pivot’ and today we obtain around 70 percent of our business directly from retail customers. The ‘direct to consumer’ business model has allowed DiamondBack to build lasting relationships with our customers while produc- ing sustainable financial margins. To weather the storm of the recession, that’s impressive. I mean, changing your business model, taking that leap – you must have a lot of faith in your product, Ethan. How have your truck covers evolved over the years? DiamondBack truck covers are in a constant state of evolution because we’re always seeking ways to make improvements on an already great, steady product. We’ve made improve- ments by lowering the weight of the cover while increasing its strength. We’ve improved our locking system, our hinge and weather seal designs, and our top coatings as well. The covers shipping today are the best quality covers we’ve ever made and we have ongoing plans to improve even more. I don’t think it’s a stretch to say that many truck owners and lovers are skeptical at first glance of many accesso- ries, even ones that come with a lifetime warranty. What makes your product so reliable and so revered? David, it’s design and simplicity. The covers are designed to handle immense top loads. In fact, we’ve never had a DiamondBack HD cover broken by anything put on top of it. If you drastically overload it, the truck itself will break at some point but the cover won’t. One time a customer who was stuck in mud while off-road in Canada used one of his DiamondBack panels to shove under his tire for traction. The other parts of the cover like our locking system, for example, are just designed to be simple. We use a dead bolt style locking system that pushes steel rods under the bed of the truck. This doesn’t have quite the refined automotive styling with specially designed brackets or latches as some of our competitors, but it’s rugged and hard to break. Our covers have always outlasted the trucks they’ve been on. By offering a lifetime warranty, we’re really just telling customers about that fact. They will last you as long as you own your truck or we’ll fix or replace it. The truck culture I was referring to earlier is the one that’s undeniably ‘Made in the USA’ and embraced by hardworking, fun-loving people around the world – as you suggested. It must mean so much to you and your customers to see that label on the DiamondBack product. For sure. But building a manufacturing company that can provide high value to customers and good, stable wages to employees is an incredible challenge when making After he got out, he slid the panel back on the cover and relocked it down, good as new.
products in the USA. The low cost of labor and materials from overseas markets is a reality that any business has to face. Ultimately DiamondBack found it was unable to pursue the traditional manufacturing model of three-step distribution and be able to achieve our goals. We believe strongly that for manufacturing to succeed in the USA, companies have to innovate. For us, this took the form of innovating our business model to be mostly direct to consumer. Creating individual invoices, packing slips, shipping bills, and managing tens of thousands of indi- vidual customers is a challenge most manufacturers don’t want to embrace. We found that it was the key to building a brand that would continue to be made in the USA. Additionally, customers who wish to keep jobs in the USA will often need to make buying choices that reflect that desire. This can sometimes result in higher priced products which many customers do not want to pay. Our industry is fortunate in that our customers, mostly hard working American truck owners, have a great desire to buy from US-based companies. You’ve navigated a solid and popular product through one of the biggest storms in modern economic history, came out stronger from the storm, and you’re business plan is consumer and employee centric before anything else – and it works. What does the future hold for DiamondBack? Today, DiamondBack’s vision is one of long term stabil- ity, growth, and profit generation for its employees, the founders and investors. Our mission is to continue to build one of the best manufacturing companies in Pennsylvania, one that employees love to work for and customers love to buy from. By using the internet to find, connect, and com- municate with new customers through Facebook, Twitter – that reminds me to encourage people to check out #Dia- mondBackReady where customers can also submit and add to the album of photos you asked about earlier, Diamond- Back is building lifetime value and a brand that customers trust and purchase from again and again as they replace their trucks. The company is committed to pioneering a new kind of direct-to- consumer manufacturing, which allows for high wages and high profits through connecting directly with their end users. I know we’ve touched on this, but again the results of this effort have created growth that has placed Diamond- Back on the Inc. 5000 list from 2013-2017 and are projected to continue to succeed in the markets of the future. I’ve got to say that while the classroom to corporation is a good story – and we like to tell it – that the company today is where it is because of the absolutely incredible team of employees we have. I’m sure many people say that, but we seriously have one of the best teams of people I’ve been around. They love the company, they love DiamondBack. They work with a passion and determination that exceeds just working for a paycheck. Myself and Matt, at this point, are largely along for the ride with our employees as we all together see where the DiamondBack ship will take us.
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AUGUST 2017 • SPOTLIGHT ON BUSINESS MAGAZINE
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