Charles H. Gamarekian of Cambridge Pavers Inc: Counter-Cyclical Marketing and Double-Digit Growth Outperform Economic Uncertainty

Inflation is taking its toll on us and there is talk of a potential recession, while the tech industry is currently shedding tens of thousands of jobs. Is it possible to grow a business in these conditions? What steps should an entrepreneur take to grow their business during unpredictable times?

As part of our Strategy Series, Kage talks with fellow successful business owners and growth experts to help you discover new ways to grow your business during challenging economic times. Today, we had the pleasure of interviewing Charles H. Gamarekian.

Charles H. Gamarekian is the Chairman/CEO of Cambridge Pavers Inc. He is one of the founders and a current board member of the Interlocking Pavement Institute. Mr. Gamarekian is recognized worldwide as an expert in his field and is a frequent speaker on properly installing paving stones, wall stones, and many outdoor living products.

Thank you so much for your time! I know that you are a very busy person. Our readers would love to “get to know you” a bit better. Can you tell us about your “backstory” and how you got started?

It was the early ’80s when I came across an ad in a concrete products magazine that would ultimately change the entire trajectory of my life. At the time, residential and commercial real estate development was my focus.

The ad was for a paver-making machine, and for some reason or another, I found it fascinating and needed to learn more about this machine and the durable concrete products it could make. I contacted the company that made the machine and scheduled a tour of their facility in West Palm Beach, Florida.

After I spent the day looking at these behemoth machines and asking every question under the sun regarding pavers and manufacturing, I flew home with a fire in my belly. When I got home, I devised a plan involving getting my hands on no-name pavers and setting up shop at home improvement trade shows to see if there was any genuine interest from homeowners and contractors regarding paving stones bringing added value to the property.

After this six-month experiment and a lot of interest shown at these shows, I knew I wanted to manufacture pavers, and went on to do so from 1984 to 1994 as the president of another paver manufacturer. I got that company up and running regarding the paver end and, after 10 years, decided to venture out on my own to create Cambridge Pavingstones.

ArmorTec® is a facemix process that has now become synonymous with Cambridge. This unique face mix process has been perfected over the years by each employee who has had a hand in the mix design that consists of super fine sand granules and cement of the highest quality.

In 2006, my two sons and current Vice Presidents of the company, Chris and Charles Junior, joined Cambridge and brought their ideas and innovations to the table regarding products, colors, manufacturing, and the overall growth of the company. Whether sitting together at the conference table or in the car on the way to a trade show, there is always a balance between business and bonding.

Today, Cambridge consists of over 350 dedicated employees and five production facilities, which include locations in Lyndhurst, South Amboy, and Lakewood, New Jersey, and that is something we are very proud of being a privately owned family company.

My dream was to change America’s landscape with paving stones and wallstones. I want towns all over the United States to upgrade their sidewalks, downtown areas, and municipalities with products outperforming concrete and asphalt.

This business is about something more significant than a pretty driveway or patio. It is about an investment that makes people feel good about coming home or walking in their local community.

Can you share with our readers a story from your own experience about how you were able to grow your business during a challenging economy?

We have maintained growth at or near double-digit rates most years by keeping a sense of urgency for production, shipping, stocking, and customer support. We are all about quality and consistency. From batch and machine operators to quality control technicians to office staff, our message is:

“We don’t pay your salary. You pay it with the product you deliver.”

2008 was a tough time — predictions of a worldwide financial collapse, including banks and the stock market. I added 20 new products to our offerings, added production capacity, and, most importantly, doubled my marketing budget. My competitors pulled their marketing, kept their same product offerings, reduced their shifts, and laid off their team members.

Because of Cambridge’s actions, we had to run our plants 24/7, and our Cambridge brand quickly surpassed the 20 other manufacturing brands we compete with.

We have always looked at difficult times as opportunities to outwork our competition and take market share. Companies that invest and push forward during the hard times will reap the benefits through customer satisfaction, brand awareness, and future success when times are not as tricky.

Did you ever consider giving up? Where did you get the motivation to continue through your challenges? What sustains your drive?

I never considered giving up. My motivation comes from my passion for this industry, which I have been in since 1984. The love for my business, my drive, and Cambridge’s team members have helped grow us into who we have become today. This industry is still in its infancy. The growth for our products has not scratched the surface when compared to the per capita rates on pavingstones installed in Europe.

Creating new products (colors, textures, shapes, outdoor living kits) is motivating to stay a leader and provide products that help homeowners everywhere enjoy the outdoors with their family and friends. The fact that we have customers in Colorado who incur freight costs from the East Coast says a lot about our quality, service, and product innovation. Hardscape unit production is driven by trends and consumer tastes.

We overhaul our product catalog every year and conduct market research to see what unit colors, styles, and sizes dealers, distributors, and their customers are looking for. Every building season we renew the paver, wall, and outdoor or assembled kit lineup. We have color capability like no other plant in the world and sell the most face-mix products in the Northeast.

Our manufacturing plants allow us to achieve in wall units what we have in pavers. Besides keeping up with product demand, we are able to develop and patent hardscape unit concepts and this keeps all of Cambridge driven and motivated.

What would you say is the most critical role of a leader during challenging times?

Stay disciplined and adhere to your company’s culture, which, in our case, starts with me — motivating, training, and showing a career path to all your team members. As the founder and CEO, finding and cultivating our team members has proved to be the most critical role. Longevity is apparent in each of our departments.

Our company philosophies and mission include mutual respect and promotion from within. One of the main points made in a new hire interview is,

“We will support your growth, but it is up to you to take ownership and succeed. Should you do that, your role will only continue to grow.”

In regard to leadership in the field, whether that be one of my distributors or loyal contractors, I always stress best practices for sales, installation, and job site efficiency. We underwrite project software development and help train contractors to use design programs in their sales efforts.

Our marketing support includes coop programs that allow our dealers to advertise in print, on billboards, buses, television, and social media. If contractors decide to exhibit at home shows, we give them paver and wall units for displays and to use afterward.

Cambridge Pavers’ mission is to help all of our customers grow, and we will do whatever we can to make that happen, so I would say that is pretty critical in terms of leadership.

When the future seems so uncertain, what is the best way to boost morale? What can a leader do to inspire, motivate, and engage their team?

We have had success during difficult times when the economy or future projections could have been better. Providing those examples and keeping our team focused on what we can control versus the outside world have always paid dividends.

For instance, we have an external sales force of 15 guys from different states, but we hold monthly in-person sales meetings, which are imperative for morale and motivation. In a world that has embraced Zooms and remote work, there is nothing quite like face-to-face interaction and discussions.

These meetings cover everything from sales numbers to new product ideas, as well as an open discussion where everyone has a chance to ask questions or express their feelings, good or bad, about the last month in terms of work or the company.

This exchange opens up an honest dialogue among us all, and we walk away every time with a renewed sense of what we can accomplish.

How can a business leader make plans when the future is so unpredictable?

I’m afraid I have to disagree with an unpredictable future. But having said that, the knowledge of your industry and your customer base is a must. I recognized that customers don’t need me, but I need them, and I treat them all accordingly.

As an owner, I keep my pulse on the industry by being a part of numerous hardscape associations that hold meetings throughout the year. This active role allows me to have the most up-to-date data, research, and forecasts for the industry and, in turn, helps guide my decision-making and plans.

I also make it a point to attend trade shows in person and stand in the booth from open until close so I can hear from dealers and contractors about their businesses. Are contractors booked out months in advance? Are dealers running low on stock? Every conversation helps me gain real-time insight instead of relying on sales alone, which is the apparent indicator.

Strong leadership comes from needing to be completely Cambridge-centric. By surrounding myself with our leaders and customers in the field, I learn every day, and that is what it is ultimately all about in business to achieve perpetual growth. I do not know everything and have never claimed to, which is a characteristic all good leaders should share.

What can a company do to avoid losing clients or customers who say, “I just can’t afford it now”?

Treat your customers as if each order is their first order. My marketing model is selling our products through an authorized dealer network only, which, in turn, sells to professional installation contractors and homeowners.

Based on ongoing research, our products have continued to be in high demand since 1984 to improve the homeowner’s surroundings. My authorized dealers are Landscape and Masonry Supply retail outlets. Their customers demand my product; therefore, my distributor must have it along with all his offerings to maintain his business. We have developed many beneficial programs over the years by listening to our customers.

One of the most successful programs is our Early Buy, which allows them to stock material now and pay later. I have always told my dealers that “just-in-time inventory” never works, so having a program like this in place makes it possible for them to have stock, which in turn means sales.

What lead generation strategies work best during a difficult economy?

Prospecting should continue aggressively in good economic times as well as bad economic times. As a company, we collect leads in various ways, including but not limited to forms on our website, cold calling, and boots on the ground with our outside sales force, which are eyes and ears in the field, which is invaluable.

The most critical strategy is follow-up. It is said that, on average, it takes seven to eight interactions with a prospect to get a sale. Therefore, we handle every lead and inquiry with a sense of urgency. If it comes through the website, we will research the company and logistics, and if they cannot become a dealer due to location, we will set them up as a sub-dealer if they are qualified.

All of this is happening before the end of the day of that initial email. No matter the economy, time is of the essence regarding response time and will always make a positive impression.

Are there specific marketing approaches that work best when times are tough?

When times are tough, that is the time to spend your marketing dollars smartly and keep your budget the same. You cannot be a secret when selling a product. Therefore, I have always believed in the power of marketing and would never look to cut the budget from something vital for our business.

Decision-making regarding where to shift the budget when it comes to a television buy and so forth is based on sales and forecasted growth in a particular location, but in all honesty, we continue to increase our budget every year.

Brand recognition is essential in every business, especially when not selling directly to consumers like us. We have such a strong presence through our television commercials that homeowners will walk into their local authorized dealer and ask for us by name, and that comes from years of marketing through various mediums.

What are the most common mistakes you have seen other businesses make during difficult times?

Common mistakes are changing policies and procedures within the company and to customers, reducing marketing, and increasing product pricing. Just don’t do it.

Now over to the primary question of our discussion: Based on your experience and success, what are the five most important things a business should do to grow during a challenging economy?

1. Stay the course: In other words, business as usual is my motto. Successful businesses withstand the winds of change by sticking to their mission statement during tough times.

Therefore, whether it is the example I set as the CEO in the office or meetings or how my outside sales force conducts themselves in the field during their interactions with customers, we must lead by example.

Ebbs and flows are inevitable, but how we handle them and present ourselves makes all the difference. Employees and customers want to feel secure, and consistency is critical.

2. Increase your marketing: We increase our marketing every year without fail because branding is everything in business.

Sure, you must also provide a quality product and outstanding customer service, but you only get to those two touch points once a consumer knows what you are selling.

In 2020, we could have pulled back on marketing or scrapped the campaign since we were in uncharted waters, but we went full steam ahead, and we hit record-breaking sales. We were the brand people saw advertising, so when they decided to invest in their staycations, Cambridge Pavers was top of mind.

3. Enhance your product offerings: Referencing 2020 again when people were not traveling and instead reinvesting in their homes, we were sure to offer products to help create a space beyond their four walls.

In business, you have to be all in all the time, and this situation meant anticipating what might make people feel they have everything they could need right outside their backdoor.

It helps that as a consumer and homeowner myself, I, too, was experiencing the same fears and anxieties of the unknown, but I also knew that home is a safe space for many people. Therefore, our mission was to provide products to help create that surrounding.

4. More engagements with your customers: It is imperative to interact with customers during times like these.

Whether that means a phone call, lunch, or dinner meeting, attending a trade show, or putting on an educational seminar, you have to show up. You have to be an active listener and hear their concerns or worries and be able to help them problem solve or at least offer solutions to help alleviate some of that uncertainty.

Just sharing the same space with someone is enough to convey we are here and not going anywhere, and we will help you navigate this time as best we can with our years of experience.

5. Reinforce your culture with all your team members: Meet your team to remind them that the “sense of urgency” we live by at Cambridge Pavers is more crucial than ever.

When customers are facing tough times in their business, they need someone loyal, consistent, and who is going to be there. Return that phone call ASAP, be of assistance in any way that you can, and show up on-site to show them that they are a priority.

It all comes down to the relationship, and you have to nurture it and be present through the good and bad times, and that goes a long way personally and professionally.

We are blessed to have some very prominent names in Business, VC, Sports, and Entertainment read this column. Is there a person in the world who you would love to have a private lunch with?

According to Jamie Dimon, CEO of Chase, true leaders don’t just show they care but do care. As leaders demand employees to be productive, they must also be part of that production.

I am still in the office six days a week because I still love what I do. Still showing up and “doing the job” is a testament to not only my work ethic but my passion for this company and all those I am responsible for employing.

I want to lead by example. I want every employee to know that Cambridge is where it is today because of each one of them showing up. We are only as good as the people we surround ourselves with, and that is the ultimate secret to our success and longevity in this business.

Thank you for sharing your insights with our audience today.

Kage Spatz is a Forbes-ft Entrepreneur — growing companies since 2012. Win revenue faster with Fortune 500 specialists who guide your marketing team or do it all for you. Request a free look at winning campaigns in your market today.