About Us
My Kind of Merchant
MKM was formed as a start up business in 1995 by David Kilburn and Peter Murray, who both had experience
of trading with one of the national merchant chains. Their vision for MKM, was to create a business where
knowledgeable, local people, served the local industry. Recognising the fact that customers always have
the option to shop where they want, MKM aims to differentiate itself by delivering unprecedented levels of service
by employing and retaining the very best staff, underpinned by excellent relationships with suppliers and
customers. It is the belief of the Group Directors of MKM that "it is people that make the difference" and the
key message to our staff is "give customers what they want".
To understand what customers want, MKM went to the effort of videoing various customer types, from the contract
developer, to the jobbing builder and even the retail consumer, in an effort to understand their different
requirements and expectations of their preferred builder's merchant.
The business quickly grew from its humble birthplace on Clough Road and in 1997 MKM moved to a purpose built
site on Stoneferry Road. Not content with a one branch operation, and with the realisation that the model
could by repeated elsewhere, the Directors set about developing a strategy that would attract and retain
key individuals in other areas. Whilst the company could develop relationships and negotiate with suppliers
that could feed other areas, the key was seen to be the relationship with customer. There are thousands of
builders merchants branches around the country, but the successful ones were the ones of most interest to MKM. These all
had one thing in common, a local person with great knowledge of the industry and excellent relationships with
their customers. The challenge for MKM was to develop a strategy that would attract these people away from
the stability of their current job to the uncertainty of setting up a new outlet with a relatively unknown
competitor. That's when the idea of an equity stake for new branch managers formed. New managers
would receive an equity stake in the new branch, which allowed them the opportunity of capital growth and
a share in the profits through dividend payments. This initiative proved to be a key element of MKM's
growth by attracting and retaining entrepreneurial branch managers. Since 1997 the business has added 30
branches.
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MKM Strategy
The key elements of MKM's retail strategy are straightforward;
- recruiting & retaining the best local people
- offering customers expert knowledge
- fostering close customer relationships
- passion for service
- sound financial planning
- recognising that each member of staff plays a part in delivering the best results
- rewarding everyone for achievement of goals ensures 100% participation of staff at every branch
- working as a team to achieve the overall aim of the company which is to grow sales profitably
MKM works on the principle that if you have the right people with a great attitude, carrying out the right
activities, with the appropriate skills, that you will get the right result. MKM developed its goal
deployment program with the aim of focusing all the employees on the results that company would like to
achieve. This consists of five key goals that are;
- Increase the number of purchasing customers
- Improve gross margin
- Reduce the ratio of costs to sales
- Eliminate discontinued stock
- Open new branches
The first four of these goals are measured on a monthly basis and displayed graphically at each branch,
along with the improvement trend in sales and net profit.
To bring the goals to life a series of road shows were arranged where the goals were explained in detail.
Initiatives were developed with all functions to drive improvements and every new starter to MKM also attends
an induction day where a director presents the goals. To ensure continued focus, all staff within a branch
would receive an annual payment of £50 for each goal that shows improvement over the previous year. In addition
to this bonus payment MKM also operates a generous profit share type arrangement where every member of staff
receives a percentage of salary determined by the level of company profit growth.
By delivering on the companies key initiatives of improving gross margin through implementing an innovative
supplier strategy and structured pricing policies coupled with tight control on cost ratio's, the business
has been able to grow net profits ahead of the significant sales growth. During the past
10 years MKM has achieved a compound annual growth of 148%.
Significant investment has been made by MKM to increase the branch network to the 30 branches that
exist today. Branches in place now are; Alnwick, Anlaby, Berwick on Tweed, Beverley, Bridlington, Darlington, Driffield, Edinburgh, Goole, Grimsby, Hull, Kirkcaldy, Malton, Morpeth, Redcar, Scarborough, Whitby, Withernsea, Hexham, Skegness, Sheffield, Peterlee, Chelmsford, Lincoln, Sheffield (South) and Ripon plus MKM Leisure, a
specialist supplier to the caravan industry.
View the Annual Turnover (This link opens up a new window) in PDF format.
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Press Cuttings & Industry Awards
In 2005, at the industry equivalent to the Oscar ceremony held at the Savoy Hotel, London, MKM won "The
Best Independent Builders Merchant of the Year" for the third successive year. In 2004 MKM "Best Marketing
Initiative of the Year" and finished runners up in "The Best Partnering Initiative" plus "Best Personality
of the Year" in 2003.
MKM were also pleased to be recognised in 2004 as winner of the Hull Daily Mail Business Awards.
In 2002 and 2003, MKM was also recognised as an 'Inner City Top One Hundred' business at the government
sponsored business awards, dubbed by Gordon Brown as the "Enterprise Oscars".
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Support and the Community
From a business perspective the business employs over 440 people and has a "Buy local" policy for goods
and services.
MKM is only to keen to support private sector business initiatives, examples of this are; sponsorship of the
KC Stadium, Home of the Hull Tigers, bond holders of Hull City Image, co sponsors of the Yorkshire International
Business Convention and representation on various business forums, such as Hull Chamber of Commerce, Humber
Construction Partners, etc.
With the founding directors of MKM originating from Hull the business is always keen to reinvest in the area
and support positive local initiatives regardless of whether they have a business payback.
MKM are also active in the social inclusion arena, promoting public/private/voluntary alliances. Board members
attend the "common purpose" program.
Our directors are also happy to give up their time to support good causes, David Kilburn sits on the LSP
board, Linda Clarke has sat on the Preston Rd Community board and Keith Eames sits on the EBLO business
forum group.
We are also proud to support our local charity "CASE" providing training and support to over 100 people with learning disabilities, some whom also suffer multiple disadvantages.
In partnership with St Mary's school we have worked together to allow disaffected children the opportunity
of continuing their learning in a work place environment, with St Mary's winning an award for the work
experience program.
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