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Its modest beginning led to growth that has made this company a force in the water well distribution industry.
INTRODUCTION
Preferred Pump & Equipment, LP, based in Fort Worth, TX, has enjoyed phenomenal growth over the past 14 years. It was founded in 1982 as a small distribution company in Texas and has evolved into a leading wholesale distributor of domestic water system products in the United States, with 30 branches.
SUPPLY HOUSE TIMES profiles this specialty distributor in a mini-section within these pages.
Preferred Pump was founded in 1982 when Randy Lyne left the ranks of a pump manufacturer to start his own distribution company.
"I had no money to start the company, but I had a number of friends in the industry," Lyne recalls. "I came to Texas to start the business because the area needed additional distribution. I didn't know anyone, but I ran ads in the paper to hire people. Texas was where I knew I could get the help I needed to start the business."
"Randy Lyne started off very lean," recalls Eddie Linnartz, group manager. "At one point he was living in his office. He started on a shoestring."
Lyne opened the first Preferred Pump branch in Dallas, and later relocated it to Fort Worth. After being in business four years Preferred Pump had a branch in Tyler, TX, and one in Fort Worth.
Through his contacts in the industry, Lyne learned of a large distributor in Minnesota that was closing its doors. The key Water Systems employees were about to be out of a job, although certainly because of no fault of their own, Lyne says. So he opened a Preferred Pump location in St. Cloud, MN, with a very talented group, in 1990.
"That is now our largest branch," Lyne notes. "That helped spur a lot of our growth. From that branch we expanded into Brainerd, MN, and Eau Claire, WI. As we built up cash equity, we opened more branches."
Preferred Pump continued growing with additional branches. Someone would contact Lyne or talk with him at a trade show and Lyne would say, "If you ever want to run a branch or get in business for someone on your own, call me." Sometimes three...