Homegrown Southeastern Marketing building new quarters
Published 12:15 am Wednesday, May 19, 2021
- Construction equipment sits at the site of the new Southeastern Marketing and Distribution headquarters on the corner of Vanderbilt Drive and Chester Court in Bowling Green on Tuesday, May 18, 2021. (Grace Ramey/photo@bgdailynews.com)
A self-described “trunk slammer” who worked his way up in the wholesale distribution business by hyping sunglasses, toys and other merchandise out of his car, John Peay is opening doors of a different sort these days.
Nearly three decades after starting Southeastern Marketing and Distribution out of his house, Peay has grown that business to the point that he is ready to build a 12,600-square-foot headquarters on Bowling Green’s Vanderbilt Drive.
Peay and business partner Dave Freeman broke ground for the new headquarters in April, giving them room to increase their current workforce of 10 full-time and two part-time employees and expand their warehouse space.
“It will all go under one roof,” said Peay, who has separate offices and warehouse space currently. “The new facility will allow us to expand our customer base and workforce.”
Not that Peay hasn’t already been doing that. From those beginnings as a one-man show, he has grown the business into its current offices on Shive Lane and to where trunk-slamming is a distant memory.
“We’ve come a long way,” Peay said. “I used to be a one-man show. I would get the accounts, service the accounts and order the product.”
Dealing with a customer base that is largely convenience stores and truck stops, Peay and then Freeman have methodically grown both their product offerings and their customer base.
“We went from five product categories to where we deal with thousands of products now,” said Freeman, a friend of Peay’s from their days at Western Kentucky University in the late 1980s who has been with Southeastern for 16 years.
That growth in product categories mirrors the company’s growth in customers and in revenue.
Cultivating relationships with the likes of Houchens Industries and Minit Mart, Southeastern has expanded steadily from Peay’s beginnings.
“When I started I had a customer base of 30 to 40 accounts,” Peay recalled. “Now we have 700 to 800 accounts.”
From that start serving customers strictly in Kentucky, Southeastern has expanded into Tennessee, Alabama, Indiana and Ohio.
“My first year in business, I did about $100,000 in sales,” Peay said. “We did upwards of $7 million in sales last year. It has been controlled growth, but we have increased our revenue every year.”
Even during a global pandemic.
Always adjusting to seasonal trends and looking for the latest fidget spinner or other popular gadget, Southeastern has been able to thrive even during the coronavirus pandemic.
“We’re always looking for trending items, and we’re able to provide those faster than larger companies,” Peay said. “We’re pretty quick on our feet.
“When COVID-19 hit, we started providing PPE (personal protective equipment) like masks and wipes. We couldn’t buy enough product. We had to adapt to the conditions and provide the items that were needed.”
That adaptability has led Peay’s company into such product categories as cellphone accessories and energy drinks, and it is now among the largest distributors of 5-hour Energy products.
Like consumers of those products, Southeastern is poised for an energy boost of its own as it moves into its new headquarters before year’s end.
“I think we could add three or four employees in 2022,” Peay said.
Both Peay and Freeman expect their company to stick with its current five-state territory, but they see plenty of growth opportunity in the region.
“There’s still enough business in our territory now to allow us to continue growing,” Freeman said.
– Follow business reporter Don Sergent on Twitter @BGDNbusiness or visit bgdailynews.com.