200 | Business World Magazine |
May 2013
the sales mark-up typically incorporated in
the pricing of components. Since he would
be serving as the salesperson for the jobs he
would deliver, this ultimately meant the sup-
pliers weren’t losing anything in the transac-
tion; in fact, they were actually getting more
business. For the manufacturer, who typi-
cally absorbs the sales fee when purchasing
products, Hunstad was able to provide parts
for the same price they would have paid in
the first place. Yet there was another advan-
tage. Hunstad refers to the range of compo-
nents utilized in the manufacturing of rec-
reational vehicles unique to a company the
size of Polaris. Given the range of rubber or
plastic applications within each product line,
the company is forced to work with a range
of different suppliers, which results in time,
energy and cost to keep track of it all. That
problem is ultimately eliminated by working
with one company from which all materi-
als can be sourced. This is the genius behind
Stern Companies.
As companies have increasingly
moved to gain efficiencies from consolida-
tion, Stern Companies has prospered by be-
coming a one stop source for practically any
kind of rubber or plastic component. From
industrial implements and waterworks to
snowmobiles and other forms of engineered
innovation, Stern Companies has facilitated
the components needed by manufactur-
ers which suppliers need to sell. And ironi-
cally, that’s a very transparent process. As
Tom Caouette - Plant Manager
Roto Facility in Brainerd
