Step by Step

Pat DeVries, the founder, owner and president of DeVries Business Services, a full-service records information management (RIM) firm headquartered in Spokane, Wash., has seen the business change significantly since he started his company more than 25 years ago. And, like many entrepreneurs, the path to the present has not been a straight line. A willingness to adapt and diversify has been a key to his company’s success.

DeVries Business Services serves clients in eastern Washington, western Montana and part of Idaho. Pat calculates that his company’s coverage area measures 150 miles.

He says relying on services and methods that have worked in the past won’t necessarily be a formula for success in the future. Therefore, DeVries Business Services continues to add services to reflect the needs and interests of its customers.

In addition to organic growth through expanded services, the company also has grown through acquisitions. In late 2010, DeVries Business Services purchased the Spokane-area storage assets of the moving company Bekin Northwest and the records storage business of Kees Filing Systems, a Spokane-area firm.

As a result of these acquisitions, the company now has three buildings for records storage, representing nearly 100,000 square feet of storage capacity.  

Pat says DeVries Business Services remains focused on staying true to its core beliefs that a successful company needs to strive to provide the best service while remaining humble in its customer interactions.

A MODEST START

DeVries Business Services began in 1985 when Pat, who had worked as a truck driver for the moving company Wheaton Van Lines, purchased a small moving and storage company. While his days as a truck driver may be over, Pat proudly points out that during his time with Wheaton Van Lines he was the runner up for the company’s Driver of the Year Award. “I tried to do everything I could to meet the expectations of our customers,” Pat says.

At a Glance: DeVries Business Services

Headquarters: Spokane, Wash., with three locations in the Spokane area Owner: Pat DeVries Employees: 30 Equipment: 20 vehicles, including three Shredfast shred trucks and more than a dozen vans that are used for courier, storage and moving services; an auto-tie baler; and an Ameri-Shred hard-drive shredder Services Provided: Document management and storage, information destruction, secure courier service and commercial moving

 

This attitude, he says, has carried over into his ownership of DeVries Business Services.

After acquiring the moving company, Pat says he attended a conference where speakers discussed the importance of diversification as a business strategy. Pat put that advice into practice by expanding his business into records storage. Continuing on its path toward diversification, DeVries Business Services added shredding to its list of services in 1995.

The company operates three shred trucks from Shredfast, Airway Heights, Wash. To meet its RIM and courier service needs, DeVries Business Services operates three box trucks, 10 delivery vans and four moving vans. The company also operates a baler that it purchased from Summit Equipment, a Post Falls, Idaho, equipment supplier. And, in keeping with its Northwest focus, DeVries Business Services works with a Spokane area paper broker to market its paper.

The company also offers a drop-off shredding services for smaller companies, which Pat says helps to convey the his company’s local presence.

DeVries Business Services continues to reinvent and expand its portfolio of services to meet its customers’ needs. Recognizing the growing interest in digital security, the company is purchasing a hard-drive shredder from Ameri-Shred, Alpena, Mich. Pat says the company will use the unit to provide on-site service.

Pat estimates that the company’s courier service steadily contributes nearly 30 percent of DeVries Business Services’ revenue. He estimates that his company makes roughly 400 courier stops per day.

STAYING CURRENT

Records storage also is a steady business segment, but Pat says failing to stay up to date with regulations, laws and trends is a mistake. Companies are storing less printed information, he says. Rather, they are relying on commercial records centers to help manage their information. This means service providers have to offer more than just a locked, climate-controlled environment to safeguard boxes of paper records.

To meet its customers’ needs, Pat says DeVries Business Services offers a bar-code tracking system to manage records, which ultimately gives its customers better access to their stored documents.

“There is a real push from CEOs on down to provide a range of solutions,” Pat says. “There are plenty of tools out there. We are constantly trying to find out the best solution for our clients.”

He adds, “We also are doing more scanning-on-demand conversions.”

A large menu of services may be a competitive advantage for DeVries Business Services, but Pat stresses that a key to the company’s success is the level of security it provides. To demonstrate its diligence in protecting the information entrusted to it, the company has been certified to the standards established by the National Association for Information Destruction (NAID) for five years. This, Pat says, differentiates his company from startups that can’t or won’t demonstrate their commitment to security.

“Any certification is something we should jump on,” he says.

Additionally, Pat says two members of the company’s staff have been studying to take NAID’s new Certified Secure Destruction Specialist (CSDS) accreditation test later this year.

NAID says the CSDS test has been designed to promote and acknowledge a comprehensive understanding of the broad range of disciplines related to secure destruction. The exam consists of more than 200 questions from seven separate areas.

HEALTHY COMPETITION

When it comes to the information destruction segment of his business, Pat says he sees significant changes. “The shredding business has rapidly evolved,” he says.

While many shredding companies are enjoying high prices for their shredded paper currently, Pat has been in the business long enough to know market volatility can cause havoc to a company’s balance sheet. He cautions that while some shredding companies may be getting $200 per ton for their shredded paper, those prices can and will drop, perhaps without any warning. As an industry veteran, Pat cautions many smaller shredding companies against “giving away” their shredding services with the intent of profiting on paper sales.

This reality can be another reason for business diversification. “People who are just in the shredding business are susceptible to new entries that may be charging less for the service and hoping to make money on the back end,” Pat says. “You need to diversify your offerings. If you can bundle services, you will be that much stronger and you will be less susceptible to low-cost providers.”

Competing with startup firms that offer low prices is one challenge. A second challenge comes in the form of national operations that are moving into the company’s service area. While this might have been a huge concern for Pat several years ago, now he says the trend is toward companies seeking to do business with other local and regional service providers.

“We are local and we are involved in the community,” he says. “I am always answering my phone. People like that.”

Pat adds, “Our hook is going after the relationship angle. A company says ‘We know them, we like them and we trust them.’ That keeps us in the game.”

DeVries Business Services still ensures that it puts it best foot forward by providing uniforms for its employees and operating clean, logoed trucks, which Pat calls moving billboards. These steps and more convey a professional image to customers and potential clients, he says.

DeVries Business Services also partners with other independent NAID-certified companies to provide consistent service to companies operating outside of its service area, Pat says. One key advantage that these independent companies have, he points out, is that “small companies are nimble.”

FUTURE PLANS

While changes may be roiling the records management industry, Pat remains bullish about the future, particularly about the records and information management services his company offers. However, he adds, “The business is not just storing boxes. There is a generational shift. There are different attitudes. Paper needs to be stored, but in a dynamic state. Scan-on-demand and conversion-on-demand are very important.”

As for the company’s shredding business, Pat says the outlook also is sunny, though challenges exist. “You need to pay attention to the details. It is more sophisticated than it was 20 years ago.”

As DeVries Business Services continues to evolve, Pat says he hopes to expand with the possible acquisition a plant-based firm, which he says will complement his company’s mobile shredding operation. The company has an acquisition target it has been investigating.

Pat says his company’s ability to keep and grow its account base illustrates the success of DeVries Business Services’ business philosophy.

He adds, “We want to provide exceptional service with the highest level of security. We need to listen to our customers, help them achieve their goals and develop good and strong relationships.”

The author is senior and Internet editor of Storage & Destruction Business and can be contacted at dsandoval@gie.net.