Gemcell Australia

Going into business on April Fool’s Day may not be everyone’s idea of a sound business plan, but after 32 years building Mekolec into a most successful operation, John O’Neill has proven that his judgement was sound.

John launched Mekolec on Friday first of April 1977. As he jokingly says: “…only an Irishman would think of going into business on April Fool’s Day.” He remembers only too well peoples’ comments on how difficult the economy was then, but of course – compared with today – 1977 was positively utopian.

Like most people who start a successful business, John first served his apprenticeship. Firstly with a ten year stint at Cablemakers, and then eighteen months as Sales Manager with an electrical wholesaler in South Melbourne. One problem with working at this particular company was creditability (that is to say – obtaining credit from suppliers). Another was trying to stay credible with customers. The firm had trouble with both and eventually went broke. However, this provided John with an opportunity to strike a blow for freedom and start out on his own.

Having started in business at the age of thirty-two, John began by making up for lost time. “There was no stopping to smell the roses,” chuckled John. “We had fantastic help from everyone.

Suppliers were very supportive and those that weren’t – well, they were persuaded to be supportive,” says John (who is ever thankful for possessing the gift of the gab).

John remembered the lessons of his former employer in South Melbourne and figured if he did the exact opposite he would succeed. So, if a supplier rang looking for a cheque, John spoke to him and did not dodge the issue. “Aussies like a bloke to be up front and there’s a difference between bulldust and lies,” emphasized John. “A little ‘gilding of the lily’ is acceptable, but promising something knowing you cannot deliver is telling lies.”

John prides himself on Mekolec’s honest rapport with customers, their good credit rating and he is old fashioned enough to say that if he owed a debt, he would even sell his golf clubs to pay someone back.

“We have great support from customers too,” added John. “Yet undoubtedly a huge reason for our success is the professional skill and attitude of our staff - we believe in people. Most of our employees have been with Mekolec for over ten years, and many over twenty years. They are knowledgeable, experienced and genuinely want to help our customers,” John explained.

“There are twenty-one people employed at our South Melbourne store and our General Manager - Ric Levy - heads the team,” John continued. “Ric has been with Mekolec for twenty five years and has created a great atmosphere of camaraderie. I like to say that Ric does all the work and I take all the credit,” John added.

John said that many people ask where the name Mekolec came from. “Well I actually started out in partnership with an electrical contractor called Bill Mekken from Orbost in Gippsland," said John. “So Bill got the MEK, the O was for O’Neill and LEC was for electric. The partnership only lasted three months and, since stationery etc. had been organised, I simply kept the name.”

In addition to the South Melbourne operation, Mekolec has a branch in Adelaide, South Australia. Tom Harlow, an ex-Clipsal representative (which is a great training ground) started the branch in 1990 and has been very successful using the same formula as Mekolec in Melbourne.

Mekolec has always recognised that having good staff, helpful suppliers and supportive customers is not enough if you can’t be competitive, so when the opportunity presented itself to join a buying group and thus tap into all the advantages such as purchasing power, national branch networking, information, professionalism etc – they jumped at the opportunity. Mekolec joined Gemcell in February 1993 and the partnership has been a huge success.

John explained that apart from combined purchasing power, one of the main advantages is using the Gemcell branch network. “Gemcell has thirty four companies and over one hundred and thirty branches nationally. This allows Mekolec, or any other member, to supply materials anywhere in Australia. Mekolec can compete with the multi-nationals on price and service and, like all Gemcell customers, the client has the advantage of dealing with branch managers, who in many cases, share in the business,” said John. John also added that this is often underused and there is no reason why the Gemcell organisation could not go “toe to toe” with competitors for national contracts.

John believes there will always be a place for the independent wholesaler in the Australian market, or indeed any market. The secret is to secure purchasing power which means you can compete with any organisation, provide a consistent reliable service, keep your customers informed with new innovations, information, technology and stay committed.

Mekolec is run by a very professional team who use common sense and who know if they do not satisfy the customer then someone else will (a good incentive scheme). It’s a culture that has helped the company to remain focused for the last 32 successful years, and looking forward to the next thirty two years, John and the team have no plans to change that.