Diane Hendricks is a remarkable entrepreneur who co-founded ABC Supply, a major player in the wholesale distribution of roofing, siding, and windows in the US. She is a self-made billionaire, and her wealth is estimated to be approximately $13.7 billion, earning her the title of the richest self-made woman globally, according to Forbes.
Diane’s entrepreneurial journey began in the 1970s when she ventured into real estate investment. It was through her involvement in this industry that she was able to identify an unfulfilled need for a company that offered top-notch customer service and superior building supplies, especially in the roofing and building sectors.
In 1982, Diane and her late husband, Ken Hendricks, founded ABC Supply with a single store in Wisconsin. From the beginning, they focused on building strong relationships with contractors and builders. One of the key financial decisions that the Hendricks made when building ABC Supply was to reinvest profits back into the business. Instead of taking dividends, they reinvested profits into expanding the company and acquiring new locations. This allowed ABC Supply to grow rapidly, opening new locations throughout North America. Today, the company has over 800 locations and is one of the largest roofing and building suppliers in the United States.
Another important financial decision that Diane made was to diversify ABC Supply's product offerings. In addition to roofing and building supplies, the company now offers siding, windows, gutters, and other building materials. This diversification has helped ABC Supply weather economic downturns and fluctuations in the housing market. By offering a broad range of products, the company has been able to maintain its profitability and growth over the years.
Diane's business acumen was also crucial in ABC Supply's success. She identified opportunities to expand the company's footprint through acquisitions. For instance, she pushed for the acquisition of Bradco Supply Corp., a leading distributor of roofing and building supplies in the Northeast which enabled ABC Supply to gain access to new customers in the market. It also helped the company to achieve greater economies of scale, thereby allowing them to offer competitive pricing and remain profitable.
Finally, Diane's dedication to providing exceptional customer service has been a key factor in ABC Supply's success. She understood that satisfied customers are the lifeblood of any business, and she instilled this philosophy throughout the company. ABC Supply's commitment to customer service has earned it a loyal customer base and a reputation for excellence. This has helped the company grow through word-of-mouth referrals and repeat business.