Success is in the details, especially when you compete in the tourism jewelry industry, according to Brad Wheeler, president of Wheeler Jewelry Manufacturing, located in this remote prairie community of about 1,400 people.
Providing customers with quality, low-cost jewelry items is the company's specialty.
Wheeler Jewelry products are found at tourist and other outlets in all 50 states, according to Wheeler.
"We have a good business in airport gift shops and good business in casinos right now," he added.
The business was started by Wheeler's father R.B. Wheeler, who bought a Montana agate-jewelry business in Lemmon in the mid-1940s because he thought the area would be a good place to raise a family.
"He paid $5,000 for it, and the rest is history," Brad Wheeler said.
Wheeler Jewelry started out selling to jewelry stores, then gradually migrated to where the bulk of the business is -- tourist and gift shops.
Brad Wheeler and his brother, Rob, have operated the company since 1979, but their 90-year-old father still takes an occasional walk through the manufacturing plant.
The family owns about two-thirds of the business. The remaining one-third is owned by seven company supervisors, a policy implemented by the elder Wheeler who recognized the value of having employees with a vested interest in the company.
"That's been a very good move for us," Wheeler said. "It makes them part of our team. When you get into a tough situation and need to get something done, you can get it done because they're involved. They own the business."
In an era where cheap, foreign labor has allowed overseas manufacturers to swallow huge segments of the jewelry market, most of Wheeler's jewelry is still produced in Lemmon.
"It's a real anomaly in the jewelry business to have 75 percent of your volume where you're actually making it in the states, Wheeler said.
The Wheelers clearly believe the global pressure, especially since the company serves a clientele that wants inexpensive jewelry, he said.
"Our big customers need products under $10 and $20," Wheeler said. "You either provide it or someone else will."
Wheelers sell directly to gift shops and emphasize their flexibility in filling small orders, which limits the company's ability to automate production.
Shop orders typically average between 50 and 300 pieces. A 300-piece order is a big order, Wheeler said.
Wheelers pride themselves on their customer service. If they need it, customers can order one of an item.
"We treat our customers very well, we have very good relationships with them," Wheeler said.
That's important in a business where there is not a lot of room for growth.
The company recently introduced a new line of imported poua shell and bone jewelry that is going to be popular. Since September, more than 350 customers have placed orders.
"About 750 will get you most of the tourist gift shops," Wheeler said.
The Wheelers work with several jewelry designers to try to stay ahead of market trends.
Brad Wheeler's daughter, Jacey Messer, is about to begin designing jewelry for the company from her home in Bozeman, Mont.
"That will be neat to have her on board, taking over some of that," he said.
The Wheelers recognize their role in the local economy, but have to balance that with the need to stay competitive in the industry.
So far, the company has avoided layoffs by growing the business and trading out-sourced production positions for packaging and customer-service jobs.
Production costs are much lower for Chinese jewelers paying employees 35 cents an hour, Wheeler said.
Wheeler Jewelry employs approximately 120 people, making it a vital part of the community's economy, according to Mayor Walter Dauwen, who works at Wheeler Jewelry.
"It's something that keeps Lemmon on the map," Dauwen said. "It's something that's definitely needed here in Lemmon."
Not only does the company contribute to community activities, but having a stable employer has helped the community continue to thrive, the mayor said.
In the past five years, Lemmon has seen a return of young families and several new businesses have opened.
"The economy is on the right track to getting back to where we want to be," Dauwen said.
And, part of the community's success is due to Wheeler's work force and the money they spend in the town, he said.
The average hourly wage at Wheeler's is more than $10 an hour with benefits.
Wheeler's health insurance and other benefits attract many farm and ranch women to the company.
Health insurance is probably the most significant, but the company has 401(K) and profit-sharing plans.
"We have quite a few people that come quite a distance," Wheeler said. "A group of ladies come from Elgin (N.D.)."
So many employees have been with the company for more than 25 years that the company has the anniversary celebration down to an art, Wheeler said.
"But that tells you a bigger story," Wheeler said. "People don't turnover a lot."
Cathy Rook has been with the company for 30 years. Lemmon is fortunate to have the company, she said.
"They're very good to their employees," Rook said.
Employee work ethic and careful management continue to be the key to the business' success, Wheeler said.
In an industry that uses gold and silver in the manufacturing process, watching inventory and buying tends is critical.
"We have some really good people that run a really sophisticated computer system. We make very few inventory mistakes," Wheeler said. "That can be significant."
Being located "out in the middle of nowhere" is an obstacle for the company, according to Wheeler. So finished items are small and relatively easy to ship.
Items manufactured overseas usually take about four days to arrive in Lemmon once they are shipped.
"There was a time when we thought of going to the Hills," Wheeler said. "I don't see that happening. The cost of our buildings and the taxes are a clear advantage.
"Plus, I have a lot of shareholders that like to pheasant hunt," he added with a wink.
Source: rapidcityjournal
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