Dutyman Combines International Sourcing and Domestic Service to Help Uniform Dealers

By Susan Derby

When a business starts in a hotel room, there is little else for it to do but grow. Thats exactly what Dutyman did in its 17 years of existence. From very modest beginnings, Dutyman has transformed itself into a major contender for supplying leather and nylon accessories to the law enforcement industry.

The story of the manufacturer/wholesaler is a very interesting one that spans two continents. Kelly Smith was working for a few other companies, covering sales to retail uniform stores in Texas and the border states. He found the work to be enjoyable, and the human contact grew between him and his customers. What was posed as a routine question by one of Smiths customers one day sparked an idea and concept that would eventually become Dutyman, Inc.

As I went around calling on my uniform customers, one of my large customers said, We need another line of leather that we can make a little money on. They wanted an alternative that was less expensive for certain customers that they could make a decent mark up on. Smith happened to have a friend who was making civilian belts. He asked his customer what items he would like produced at a lower cost and took some sample items to his friend.

As Smith tells it, a few weeks later, he and his friend were in Hong Kong meeting with Mr. Chow, the owner of a leather manufacturing company, and discussing an agreement to make, import and distribute leather goods for police, security, safety and service officers. Dutyman was formed under the umbrella of a parent company.

Mr. Chow owned many factories across China, several of which were leather factories. Mr. Chows factory had never made uniform products, Smith says, but it was big into civilian belts that they sold to U.S. department stores and other retail stores. Mr. Chow liked the idea, so we started the company that day in a hotel in Hong Kong.

Smith returned to the United States to begin planning the warehousing and distribution of the leather goods that would be arriving in a few months time. Being from Texas, he found an Austin warehouse and began talking up the new line to his retail customers.

When we started, it was all leather and it was very simple, just a few belts and a few accessories that were needed in the law enforcement area, Smith says, estimating that Dutyman has close to 500 SKUs and close to $1 million of wholesale inventory in the warehouse. Weve also moved into law enforcement outerwear and all the nylon products. Now everything we make in leather we also make in nylon. We also went into bags, badges and wallets.

But it wasnt a simple growth. The company had a series of relocations and difficulties throughout its history.

Mr. Chow retired two years after the company was formed. Since then, Smith has enjoyed a partnership with his son Wing Chow for more than 10 years. As a new co-owner, Wing moved the factory so the company could separate from its parent company that it had been operating under. In just three years, Dutyman was running out of room in the production factory, so it needed a new place. A 12-acre piece of land was leased from the Chinese government (as is customary there), and the first factory was built. With the factory came a dormitory, as is required under Chinese law. The workers have a place to live within walking distance of their work. Since then, the factory has expanded into western wear and civilian products, but the priority for the factory is still Dutyman and law enforcement equipment. Unlike many other substandard factories in China, says Chow, the factory has ample space, clean floors and good facilities to cater to the needs of the workers daily life. The factory also has received a Satisfactory Factory Award in 2002, which is a survey of all the factory workers done by the local city government on how the workers feel about the factory in which they work.

The space problem was the same here in the States. The Austin warehouse was quickly becoming too small to handle the growing product line and increased inventory. Austin was also becoming a more popular, and thus more expensive, location. When the rent reached a level that Smith and Chow had previously set as the maximum they would pay, they looked to nearby Maxwell, Texas, for the new location.

Smith says, About four years ago, we moved out near San Marcos and bought 50 acres down there. We built our first building there at 20,000 square feet, but we have the capability of doubling our size just by adding a floor. That will likely happen within the next year or so because the inventory has grown to fill the entire first floor.

Dutyman has enjoyed success for a few key reasons, according to Smith. First, it is in charge of the entire production line, so quality is always up to its specifications. Dutyman purchases raw leather mostly from Texas has it tanned in Mexico and ships it to China for manufacture into finished products. Instead of subcontracting or simply purchasing from a producer, Dutyman has its own factory with warehouses and land. It also can control the output, so higher demand is easy to respond to.

Second, Dutyman provides a quality product at a lower cost than many competitors. Because many security guards have to purchase their own equipment and most police departments have very tight budgets, Dutyman is a favorite to provide a full range of accessories within financial limitations.

Third, because it has full control, it can make custom orders and small quantities if necessary.
If our customer asks us to make something in leather, we will usually do that. We can make something in a small amount, and we had that service early on, says Smith. We didnt need an order of 3,000 to make it; we can just do it in small numbers. That helped us be successful in the beginning because most stores dont need 1,000 of something custom. They need smaller numbers so they can stock it and a quick delivery when they order.

Smith says he can send a sample with a customers suggestions or modifications to China where a specific employee creates a custom sample and sends it back. The sample can sometimes reach the customer within a week to see if it meets the needs of the end-user. Some are right on the first attempt, but others are sent back to China for more modifications and another round of approval.

Thats the important part of the evolution of this product line the people that wear it are the guys that really know how they want the items to look and function. This isnt rocket science; they tell us what they need to make their job easier, and we make it, says Smith.
Dutyman is a wholesaler strictly to retail stores. Though some individuals want so badly to buy direct that they call trying to pass themselves off as retailers, its not likely that the company will start selling direct any time soon. As Smith says, its the retail stores and outlets that got the company going, so the loyalty has been earned and established.

Smith says, We have not tried to grow fast. In fact, we have held it down a little so we could take care of the customer and grow more slowly. That way we can keep the inventory in so we can ship as fast as we are able to. And everyone seems to be very happy.
New customers come from advertising in magazines like Made To Measure and trade shows. Any leads that come to the main office are passed to the individual territory representatives. With 12 across the country, the reps make face-to-face contact with the retail stores and help promote new products in their territories. Many of the sales reps worked with Smith at other companies. They are people that he knew and came to count on, so he brought them on board when Dutyman began.

They are responsible for each of their own territories, Smith says. They run it the way that they want to, and we dont really get into dictating to them what they need to do. I think most of the guys are like me Im 64 and Ive been in the business around 30 years. They all know their customers to the point that the customers are also friends.

Of the 12 reps and the eight employees of the Texas warehouse, most have been with the company for a majority of its existence. The factories in China employ about 300 people. Wing makes five to seven trips to China every year to visit the factories and meet with the employees. As the production manager, he keeps the line running smoothly, making sure there is always some product on its way to the States. Deliveries to the warehouse are almost weekly, and Chow is always thinking months out to be sure enough leather is tanned and on its way to China to fill orders and anticipate needs.

Though Chow and Smith make it look easy now, starting Dutyman was a big risk to take 17 years ago. Orders are filled in every state of the U.S. and many non-U.S. countries as well. It is a company whose success has reached across borders to deliver low-cost, quality products and custom orders.

The simplest words of wisdom is just dont give up, Smith says. When you are first starting, it just looks tough and everything may be going wrong. Thats what happened to us, but we kept doing it and getting better. Sometimes, we would send a customer an order and every bit of it was wrong, so we would redo it and keep trying. But you just cant give up.

Thats certainly the motto of this company that started in a hotel room and has grown to have an international impact.

Dutyman, Inc.
P.O. Box 39
6460 Camino Real
Maxwell, Texas 78656
512-357-2968