Premium Pays, Here's Why: Future of Millwork Sales and E-Commerce with Terry Bailey, DW Distribution
November 21, 2025 • 19 mins
Want to make more margin where others see only risk? We sat down on the Do it Best Market show floor with Terry Bailey of DW Distribution to map out how independents turn the complexity of millwork into a durable, competitive edge. From deep inventory to guided e‑commerce and premium door systems, Terry shows how dealers can simplify ordering, avoid costly mistakes, and sell with confidence at the counter or the kitchen table.
We start with the big picture: a noisy market, fresh consolidation, and cautious optimism for 2026 as tariffs cool and rates potentially ease. Instead of hiding from that uncertainty, we lean into it. Commodities are easy to lose; millwork is earned. By pairing local expertise with a distributor’s scale, independents can stay light on inventory while delivering faster quotes, cleaner documentation, and on‑time deliveries that keep contractors loyal. Accuracy becomes the advantage, and the payoff is margin that sticks.
Then we get practical. Terry walks through DW’s eMerge configurator, designed to prevent the classic door order errors that wreck profit. We delve into upgraded pocket door systems, including all-aluminum cavity sliders with soft-close features, and explore why these details impact homeowner satisfaction. We also outline a training path for new sellers: start with narrow, proven configurations, utilize digital guardrails to reduce errors, and add premium options as confidence grows. Once contractors experience consistent success, they stop shopping the job for pennies and start trusting you for the whole package.
Topics we covered:
• Bridging commodities to millwork with deep inventory and logistics
• Why complexity creates margin and long-term customer stickiness
• E-commerce tools that make door ordering foolproof
• 2025–2026 outlook, rates, tariffs, and cautious optimism
• How independents compete during the 'Clash of the Titans'
• Practical steps to train teams and narrow error risk
• Why contractors value accuracy over small discounts
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Terry Bailey (00:00):
What we think about as a distributor is our
dealer community today has a lotof one-step options.
And that's where the dealersalso have to realize how can a
distributor help me run a betterbusiness?
And it's because we can be instock because you so you don't
have to be, right?
It's easy to do some of thelarger uh commodity type
products, but those are productsthat for a dealer you can lose
(00:22):
tomorrow because the ease arethe vast number of people who
are selling it.
Stefanie Couch (00:26):
The scary thing and the amazing thing about
these products is that if youmess them up, you lose a lot,
which means that most people arenot risk takers enough to do
it.
I believe that's how theindependent, especially the
independent dealer, wins againsta big, huge player, is that
they know the products.
A lot of them have installedthese products, they know
exactly what it looks like andfeels like in the real life
(00:48):
scenario.
Welcome to the Grit BlueprintPodcast, the playbook for
building unmistakable brandsthat grow, lead, and last in the
built world.
I'm Stephanie Couch, thefounder of Grit Blueprint, and
I'm a lifelong building industryinsider.
I was raised here, built mycareer here, and now my team and
(01:11):
I help others win here.
The truth is, you can be thebest option in your space and
still lose to someone else whosimply shows up better and more
consistently.
Each week on the GritBlueprint, I'm going to show you
how to stand out, earn trust,and turn your brand into a
competitive advantage thatlasts.
(01:33):
If you're ready to be seen,known, chosen, and become
unmistakable, you're in theright place.
Let's get started.
Welcome to the Grit BlueprintPodcast.
I'm your host, Stephanie Couch.
We are here today inIndianapolis on the show floor,
and I'm here with Terry Baileyfrom DW Distribution.
(01:53):
Welcome to the show.
Terry Bailey (01:54):
Good afternoon.
Stefanie Couch (01:55):
We have been at market for a few days now.
It's been a busy market.
We just finished a panel on howto sell millwork and make lots
of margin.
Terry Bailey (02:03):
We did.
Stefanie Couch (02:03):
It's one of my favorite topics.
I think it's one of yours too.
Terry Bailey (02:06):
Yeah, making money, selling millwork.
Stefanie Couch (02:08):
I love it.
You actually have been in thebusiness a long time, Terry.
You are Texas born and bred.
Terry Bailey (02:14):
Yep.
Stefanie Couch (02:14):
You are at DW now, but you've been in the
business.
You worked at uh a big box fora little while.
You've worked at anothertwo-step distributor.
And now at DW, you guys builddoors.
You sell lots of products.
Tell me just a little bit abouthow you guys serve people in
the market and what you actuallysell.
Terry Bailey (02:31):
Yeah, so we're a full-line millwork distributor,
uh, but it doesn't stop there.
I what I like to do is I liketo brag about DW is the is the
only two-step postseller in theTexas market that is
successfully bridging the chasmfrom building material
commodities to millwork.
We have some competitors whoare dabbling in that here and
there.
But when you look at theoverall kind of big red wagon,
(02:52):
is what we call it at DW.
We I feel like we're the onlyguy that's successfully bridging
that total chasm from one tothe other.
Yeah.
So you've got building materialcommodities, millwork, and then
our door shop.
Stefanie Couch (03:02):
You have a lot of warehouse space there and
you've got big facilities.
I've seen them, never walkedthrough a lot of them, but you
are right in the heart ofLancaster and then DeSoto,
right?
Terry Bailey (03:13):
Yeah.
So uh DeSoto, which serves asour corporate office, once
served all three elements of ourbusiness.
It had millwork, doorfabrication, and build material
commodity business.
Because building materialscarries a smaller margin, you
have other branches because yourdelivery radius is at such a
smaller level.
So we had Oklahoma and RoundRock.
But as those businesses grew,Arlington became uh the the the
(03:36):
home for building materialcommodities, and it recently
moved to a new facility down inMidalothian, okay, which is 81
acres and 580,000 square feet.
Stefanie Couch (03:45):
Holy cow, I did not realize it was that big.
Terry Bailey (03:47):
So that's doing uh that's our building material
commodities for the North Texasregion.
Okay.
We still have Oklahoma, andthen we're building out our
facility down in Columbus.
Stefanie Couch (03:55):
Wow.
Terry Bailey (03:55):
Yeah.
Stefanie Couch (03:56):
Y'all are going crazy over there in Texas.
Terry Bailey (03:58):
It's going well.
Yeah, it's going well.
Stefanie Couch (04:00):
Well, you have been in this business a long
time, but what got you startedin it?
Because I know you wanted to bea game warden.
Yeah.
Which maybe some days you feellike that.
I don't know as a salesmanager.
Sometimes.
Um, but I know that was yourdream.
So what got you into thisbusiness and what kept you here?
Terry Bailey (04:15):
Yeah.
So working, working at Lowe'suh in the Millwork department, I
became familiar with my moldingrep, my molding salesman.
And so uh close to graduation,I realized uh, hey, I really
enjoy the outdoors.
I'm not sure I want this to bea job though, like because it's
my hobby.
Stefanie Couch (04:31):
Yeah.
Terry Bailey (04:32):
And then I said, but I don't know what I want to
do.
Um, and so uh started up aconversation with my molding
rep, and he said, Well, youshould come sell molding for us
until you figure it out.
Well, you know, 20 years later,rest is history.
But no, I I started working forSouthwest as an outside
salesman, found that, you know,there was a lot of opportunity
in the business.
Um, and then uh had a you know,right time, right place sort of
(04:56):
opportunities with them andcontinue to elevate.
Uh when I left there uh in2016, I was the general manager
and president of the company.
Um, and then uh, you know, Icompeted against DW for that
full 17 years, really respectedthem.
So when I decided SouthwestMolding was no longer the home
that I wanted to be at, theywere my first phone call.
Yeah.
(05:16):
And I said, uh, I remembertelling Nathan, hey, we've been
kicking each other in the teethfor like 20 years now.
What do you say we joinedforces?
And he said, I like the idea.
That's okay.
And they gave me a place tostay there and started working
with him and Aaron.
And we've had a a lot of fungrowing the business until now.
And then we were acquired in 21by SBP, which was a good
transition for us.
Stefanie Couch (05:35):
Yeah, I used to buy a lot of stuff from US
Lumber when I was at my dad'slumberyard.
So it's a company I know welland obviously has specialty
building products has grownsince really like 2018, 2019.
It's incredible to watch whatthey've done with Reeb and
Amherhart and Alexandria, allthe acquisitions, including DW
Millwork sells.
You guys are everywhere.
You're here on the marketfloor.
(05:55):
You guys are an LBM goldsponsor.
Yeah, very big partner of Do ItBest Group.
Terry Bailey (06:00):
Yep.
Stefanie Couch (06:00):
They really have a lot of options from you guys.
Doors, uh, you have siding, youhave trucks decking, you have
lots of different things.
What's the buzz been like thisweekend on the market floor?
Terry Bailey (06:13):
You know, I it's been a lot of the feeling is a
lot of that same cautiousoptimism.
And we thought that 25 wasgoing to be a pretty strong
year.
We had just come off theheadwinds of the COVID supply
crisis and some of the otherthings that were happening.
And so everyone had like thisoptimism for 25.
And then and then we have 25.
And so we've had some newheadwinds and changes that we're
(06:34):
up against.
But I think a lot of that isalso we're seeing that settle
down.
The tariff conversation issettling down.
We're looking forward to thisuh this next change from the
Federal Reserve.
If there's a change to theoverall market uh mortgage
rates, hopefully that kind ofencourages some things on the
billing side.
So again, I think there's somethings that we're looking
forward to in 26 that we canlook uh in a positive light at.
(06:57):
Um, and that's what kind of thespirit of the market is this
this time around.
Stefanie Couch (07:00):
Well, also with new true value members, I think
they're excited to have a reallystrong LBM type team because
that was something before thatthey weren't, they didn't have a
big team like this.
So it it is great for them tobe able to have options that
maybe weren't available before.
Terry Bailey (07:13):
That's right.
That's exactly right.
Yeah.
Stefanie Couch (07:15):
Well, I want to shift a little bit because we
just did a conversation for alearning session today on stage
talking about people beingscared or fearful to get into
the millwork business because itis technical.
There are a lot of things thatcould go wrong in the door
business.
You can order the wrong hand,you can order the wrong jam
size, you can order the wrongstyle.
But with that being said, withgreat fear comes possibility of
(07:38):
great margin.
Terry Bailey (07:39):
That's exactly right.
Stefanie Couch (07:40):
And you at DW have made it relatively easy to
get into the business and thento thrive in the business.
So tell me a little bit abouthow you're working with dealers.
Terry Bailey (07:49):
Yeah, so I think it's really a complete adoption
of the technology and the e-commside of the business, which a
lot of our competition is behindthe behind the eight ball on.
Uh, DW has done a really goodjob of embracing that side of
the business.
And so starting off with ourbusiness-to-business e-com tool,
which was formerly known as24-7.
It's currently Magento.
(08:10):
And then later this year orearly 2026, we'll be launching
another version of that onlinee-commerce and just making that
really easy to do uh businesswith us.
So uh up and down the uh theoverall continuum of service,
whether it be tracking my truckor finding availability or
what's my price or uh ePODs andthings like that.
(08:30):
But then uh about four yearsago, we launched eMerge, which
is our online door configurator,which took a very, very
complicated and dangerousprocess of ordering door units,
and we simplified it by makingit somewhat foolproof.
I should say completelyfoolproof, answering every
question along the way, notallowing the user to miss a
step, uh, using um diagrams andpictures to explain what left
(08:53):
hand versus right hand is,active versus passive panels,
those sort of things.
And so it's just revolutionizedthe way that people order doors
and minimize the issues thatwe're that are inherent with
that category of product.
Stefanie Couch (09:06):
And if you're a dealer and you have a tool like
that, you can pull it up rightwith the homeowner there or with
the contractor there, show themwhat's available.
You can actually have theirpricing set up on there so you
don't have to worry about themseeing your costs on the
computer screen.
I used to I used to do somereal movement around in the dad
in my dad's lumbery or liketrying to hide the cost for
people.
Um, you know, people arelooking around.
(09:27):
You guys don't have thatproblem.
And it's made to sell at thekitchen table if you want to do
that or at the lumber counter.
And it helps people understand,like I said, what's even
available because there are somany products out there.
There are new products comingout every day.
And I mean, I can't keep up andI know doors pretty well
because I've been doing it for along time.
Someone who's new who maybe isstraight out of college trying
(09:50):
to sell doors, it can be veryintimidating.
So this tool really helps yoube set up as an expert without
having to have 20 years ofexperience.
Terry Bailey (09:57):
That's exactly right.
And we look at other designfeatures today, like so we know
the the popularity of barndoors.
You can incorporate that intothese online configurators,
making it easy to select thehardware and the doors that go
with that or or pocket doorframes.
So DW's got a new product linecalled uh branded cavity
sliders, which is a higher-endupgrade pocket door frame
system.
And we've incorporated that aspart of an option in our e-merge
(10:19):
system today.
And uh, yeah, it just makesthat super easy as well.
Stefanie Couch (10:23):
Does that pocket door hardware just have a
heavier?
You can put a heavier door init and your kids can slam it a
little bit harder and it doesn'tcome off.
Terry Bailey (10:30):
Yeah, it's a completely all-aluminum system.
But then it's got uh, you know,some of the features of cavity
sliders is you can get the softclose options all the way down
to a 2-0 option, which is uniquefor pocket door frame systems,
and it's automatically heavyduty.
And some of the roller systemsthat they have just make it, you
know, it's not your traditionalgrandma's pocket door frame
anymore.
It's a it's a product that youcan that you can install and
(10:51):
have confidence in.
Stefanie Couch (10:53):
This episode of the Grit Blueprint Podcast was
sponsored by Do It Best Group.
Do It Best Group is the largestco-op in the world, and they
help independent hardware andlumber yards all over North
America win.
Do It Best offers services,products, and people that can
help you win long term.
They are the champion ofindependence.
(11:15):
One of the things we've talkedabout a lot are what I'm calling
the clash of the Titans.
So there's a lot of big dogsout there fighting for the pro
contractor with a lot of moneyand a lot of technology.
Brad Jacobs with QXO, HomeDepot.
Now they've bought, you know,uh SRS, they bought GMS.
(11:36):
Everybody has letters.
You have letters too.
We do.
Um, so I guess I I should havenamed my business like some some
ABC deal.
But at the end of the day,there is a lot of noise in the
market right now.
And it's really hard tounderstand how does the
independent dealer still competeand not only just compete, but
how do they win?
(11:56):
Yeah, and you have a lot ofthoughts about that.
So share those with me.
Terry Bailey (12:00):
Yeah, absolutely.
I think it's a prime time.
You know, you shouldn't beafraid of it.
You should embrace the factthat there is chaos and noise in
the market, and that you, as anindependent dealer, for
example, uh can circumvent allof that noise for the contractor
who just wants good qualityproduct at a good price and good
service.
That's really all they want atthe end of the day.
And while you have these thesetitans that are trying to figure
(12:22):
it out, the independent'shalfway there.
They've got the service prop.
They just have to have thesupply side.
And that's where I think ifthey embrace what we do as
distributors and wholesalers, ifthey embrace and understand
that we can help them run thatbetter business, uh, they can
really start to take someserious share and along the way
make some serious money withthese millwork products.
Stefanie Couch (12:40):
Absolutely.
Yeah.
All right, are you ready forthe door lightning round of
questions?
Terry Bailey (12:45):
Let's do it.
Stefanie Couch (12:46):
This was not planned.
All right.
What is your favorite doorstyle?
If I was gonna give you anunlimited budget, you're gonna
put something on the front ofyour house, any house, dream
house, what would you pick?
Terry Bailey (12:57):
Oh, that's a good question.
It's gotta be uh it's gotta bea fiberglass door.
It's gotta be uh a, you know, alighted door.
Uh I love the wrought ironfeatures.
I know that that's still alittle bit more.
Stefanie Couch (13:08):
That is the most Texas answer I've ever heard,
Terry.
The only person in the whole 49states otherwise would never
say wrought iron.
I should have known that's whatyou're gonna say.
Terry Bailey (13:19):
Absolutely.
Stefanie Couch (13:20):
I love it.
What style of wrought iron?
Like something, a Texas star?
Terry Bailey (13:23):
Yeah, Texas Star for sure.
Yeah.
Stefanie Couch (13:25):
Are you eating brisket when I open the door to
come into your house?
Hopefully, it's good brisket.
Terry Bailey (13:30):
Yeah.
Stefanie Couch (13:31):
I know we have a difference of opinion also on
the best brisket in Texas.
I think Terry Back Black'sbarbecue is the best, and you
actually like Heart eight.
Heart eight.
Heart eight is pretty good.
Yeah.
I have to wash my hairimmediately after because you
smell like it.
I mean, it's like a threeshampoo cycle to get that out of
your hair.
Terry Bailey (13:47):
Absolutely.
Stefanie Couch (13:47):
I love it.
Okay.
Terry Bailey (13:48):
I don't have that problem.
Stefanie Couch (13:49):
Question number two.
If you were going to go with awood door, what species is your
favorite wood species?
Terry Bailey (13:55):
Oh, it's got to be one of the mahoganies, the
kume's, the sepiles, the the youknow, the mahogany feature,
just because the the richness ofthe wood and yeah, it's
gorgeous.
Stefanie Couch (14:04):
It is beautiful.
And when they stand it up, I'ma walnut girl, black walnut for
me all the way.
Terry Bailey (14:08):
Beautiful door, too.
Stefanie Couch (14:09):
Of course, it's like the most expensive grain.
My husband loves that about methat I can obviously pick the
most expensive thing in anystore, any product.
Yeah.
All right.
If you were going to remodelyour house, what is one feature
that you absolutely couldn'tlive without?
Terry Bailey (14:24):
Good question.
Um, you know, I think, youknow, when we talk about pocket
doors, they there's a lot ofthings that they do that allow
you to change the makeup or theflow of a house because you're
not having to accommodate forthe swing.
And I would definitely upgradeall of those systems with soft
clothes features and all ofthat.
So that's something that Icouldn't live without.
Stefanie Couch (14:44):
That's a great answer.
My granddad's house was builtin 1977, and he had these double
pocket doors that were goinginto like the living room, to
the hallway, to back to thebedrooms, and they were off
track my entire life.
Yeah, and like we would justleave them open because they
wouldn't work, but you don'treally see that as much now with
great hardware like what youguys have, and it can handle the
heavy duty.
(15:04):
But there is pocket doors areawesome because no matter what
you're doing, you get morespace, closets, bathrooms, all
those things, and you can lockthem.
So and you can do like a littletouch on a creative walnut or
mahogany in one or two places inyour room.
Yeah, I would want a butler'spantry.
That's my thing right now.
So you could just put all themess away and not have to worry
(15:24):
about it with a pocket door, ofcourse.
Absolutely.
Um, maybe like a white oakdoor.
All right.
So last question is what do youwish that people in our
industry knew about ourbusiness?
That what do you think peopleare missing?
And how does that affect thenext generation of our ambitious
next generation?
Terry Bailey (15:45):
Yeah.
So I think um uh, you know,what folks miss the most is what
we've talked about.
It's it's you you gotta getbeyond the veil of that
intimidation of these products.
They there's a lot of options,there's a lot of features, but
you can start to skinny thatdown pretty quick.
Stefanie Couch (16:02):
Yeah.
Terry Bailey (16:02):
Um, and and you got to get away from you know
what we think about as adistributor is uh our dealer
community today has a lot ofone-step options.
And uh, and that's where thedealers also have to realize
what you know, how can a de howcan a distributor help me run a
better business?
And it's because we can be instock because you so you don't
(16:23):
have to be, right?
And so I think um it's easy todo some of the larger uh
commodity type products, butthose are uh products that for a
dealer you can lose tomorrowbecause the ease are the the
vast number of people who areselling them.
With Millwork products, there'sbecause they're a little more
complicated, you have feweroptions, you can uh you can kind
(16:44):
of kind of dial that in with uhwho's supplying you and who
you're selling to.
Stefanie Couch (16:48):
The scary thing and the amazing thing about
these products is that if youmess them up, you lose a lot,
which means that most people arenot risk takers enough to do
it.
I happen to just, I guess, bethe jump off a cliff girl.
Yeah.
And door doors is where Idecided to jump off the cliff, I
guess, in my career mostly tostart.
And that shows me that if youcan get really good at that, I
(17:11):
believe that's how theindependent, especially the
independent dealer wins in 2026,2027, 2028 against a big huge
player, right?
Is that they know the products,they're experts.
A lot of them have installedthese products, they know
exactly what it looks like andfeels like in the real life
scenario.
And you can make a lot ofmargin selling those.
(17:31):
Yeah, so if you can get itright and train your people, you
can win big dollars from this,you know, sell these.
Absolutely.
Terry Bailey (17:38):
Yeah.
Stefanie Couch (17:39):
And like you said, distribution, you guys do
this every day and it's all youdo.
If you're selling hardware oneminute, plumbing the next, you
got, you know, doors, windows,all the products, you don't have
to know every detail about itbecause you have your team to
support that and the do-it-bestteam.
Terry Bailey (17:55):
Yeah, traditionally with Millwork
products, it's it's not a bid-byscenario.
Once a general contractor or adealer finds a supplier that
does it consistently with greatuh success, yeah.
It's not something that you'regonna find.
Uh they they flip you for adime on.
Stefanie Couch (18:10):
Yeah, I absolutely agree with that
wholeheartedly.
Well, thank you so much forjoining me today.
I'm hoping we get to come downand eat some heartache barbecue
soon together.
And uh, I would love to cometour your beautiful door shop.
I know it's immaculate, so I'veheard lots of good things.
Terry Bailey (18:24):
Well, I I've really enjoyed this when I told
my daughter that I was doing apodcast this week and she goes,
Ooh, dad, you podcast.
So my self-esteem was a littlerattled, but I enjoyed it.
Stefanie Couch (18:33):
I mean, I'm gonna send this to her and make
sure she gives you two thumbsup.
You crushed it.
You crushed it.
Terry Bailey (18:38):
Okay, good.
Stefanie Couch (18:39):
What would her lightning round question be for
dad?
Terry Bailey (18:41):
Oh, I uh I don't know, something about how I'm
antisocial.
Stefanie Couch (18:49):
Well, um, that's okay because you're pretty
social at these shows, andthat's all that really matters.
Yeah, I mean, I love it.
And you did great on stagetoday.
So what's your daughter's name?
Terry Bailey (18:58):
Madison.
Stefanie Couch (18:59):
Madison.
Hi, Madison.
Dad crushed it.
Make sure you give him a bighug and tell him how awesome he
is.
I know that's what you're gonnado at the end of this, so I
love that.
Well, I will see you on themarket floor and we will see you
on the next episode of the GripBlueprint Podcast.
Thank you for listening to theGrit Blueprint podcast.
If this episode helped youthink a little differently about
(19:22):
how to show up, share it withsomeone in your building world
who needs it.
If you're ready to turnvisibility into growth, then
head to gritblueprint.com tolearn more and book a call to
talk to us about your growthstrategy.
Until next time, stayunmistakable.
What we think about as a distributor is our
dealer community today has a lotof one-step options.
And that's where the dealersalso have to realize how can a
distributor help me run a betterbusiness?
And it's because we can be instock because you so you don't
have to be, right?
It's easy to do some of thelarger uh commodity type
products, but those are productsthat for a dealer you can lose
(00:22):
tomorrow because the ease arethe vast number of people who
are selling it.
Stefanie Couch (00:26):
The scary thing and the amazing thing about
these products is that if youmess them up, you lose a lot,
which means that most people arenot risk takers enough to do
it.
I believe that's how theindependent, especially the
independent dealer, wins againsta big, huge player, is that
they know the products.
A lot of them have installedthese products, they know
exactly what it looks like andfeels like in the real life
(00:48):
scenario.
Welcome to the Grit BlueprintPodcast, the playbook for
building unmistakable brandsthat grow, lead, and last in the
built world.
I'm Stephanie Couch, thefounder of Grit Blueprint, and
I'm a lifelong building industryinsider.
I was raised here, built mycareer here, and now my team and
(01:11):
I help others win here.
The truth is, you can be thebest option in your space and
still lose to someone else whosimply shows up better and more
consistently.
Each week on the GritBlueprint, I'm going to show you
how to stand out, earn trust,and turn your brand into a
competitive advantage thatlasts.
(01:33):
If you're ready to be seen,known, chosen, and become
unmistakable, you're in theright place.
Let's get started.
Welcome to the Grit BlueprintPodcast.
I'm your host, Stephanie Couch.
We are here today inIndianapolis on the show floor,
and I'm here with Terry Baileyfrom DW Distribution.
(01:53):
Welcome to the show.
Terry Bailey (01:54):
Good afternoon.
Stefanie Couch (01:55):
We have been at market for a few days now.
It's been a busy market.
We just finished a panel on howto sell millwork and make lots
of margin.
Terry Bailey (02:03):
We did.
Stefanie Couch (02:03):
It's one of my favorite topics.
I think it's one of yours too.
Terry Bailey (02:06):
Yeah, making money, selling millwork.
Stefanie Couch (02:08):
I love it.
You actually have been in thebusiness a long time, Terry.
You are Texas born and bred.
Terry Bailey (02:14):
Yep.
Stefanie Couch (02:14):
You are at DW now, but you've been in the
business.
You worked at uh a big box fora little while.
You've worked at anothertwo-step distributor.
And now at DW, you guys builddoors.
You sell lots of products.
Tell me just a little bit abouthow you guys serve people in
the market and what you actuallysell.
Terry Bailey (02:31):
Yeah, so we're a full-line millwork distributor,
uh, but it doesn't stop there.
I what I like to do is I liketo brag about DW is the is the
only two-step postseller in theTexas market that is
successfully bridging the chasmfrom building material
commodities to millwork.
We have some competitors whoare dabbling in that here and
there.
But when you look at theoverall kind of big red wagon,
(02:52):
is what we call it at DW.
We I feel like we're the onlyguy that's successfully bridging
that total chasm from one tothe other.
Yeah.
So you've got building materialcommodities, millwork, and then
our door shop.
Stefanie Couch (03:02):
You have a lot of warehouse space there and
you've got big facilities.
I've seen them, never walkedthrough a lot of them, but you
are right in the heart ofLancaster and then DeSoto,
right?
Terry Bailey (03:13):
Yeah.
So uh DeSoto, which serves asour corporate office, once
served all three elements of ourbusiness.
It had millwork, doorfabrication, and build material
commodity business.
Because building materialscarries a smaller margin, you
have other branches because yourdelivery radius is at such a
smaller level.
So we had Oklahoma and RoundRock.
But as those businesses grew,Arlington became uh the the the
(03:36):
home for building materialcommodities, and it recently
moved to a new facility down inMidalothian, okay, which is 81
acres and 580,000 square feet.
Stefanie Couch (03:45):
Holy cow, I did not realize it was that big.
Terry Bailey (03:47):
So that's doing uh that's our building material
commodities for the North Texasregion.
Okay.
We still have Oklahoma, andthen we're building out our
facility down in Columbus.
Stefanie Couch (03:55):
Wow.
Terry Bailey (03:55):
Yeah.
Stefanie Couch (03:56):
Y'all are going crazy over there in Texas.
Terry Bailey (03:58):
It's going well.
Yeah, it's going well.
Stefanie Couch (04:00):
Well, you have been in this business a long
time, but what got you startedin it?
Because I know you wanted to bea game warden.
Yeah.
Which maybe some days you feellike that.
I don't know as a salesmanager.
Sometimes.
Um, but I know that was yourdream.
So what got you into thisbusiness and what kept you here?
Terry Bailey (04:15):
Yeah.
So working, working at Lowe'suh in the Millwork department, I
became familiar with my moldingrep, my molding salesman.
And so uh close to graduation,I realized uh, hey, I really
enjoy the outdoors.
I'm not sure I want this to bea job though, like because it's
my hobby.
Stefanie Couch (04:31):
Yeah.
Terry Bailey (04:32):
And then I said, but I don't know what I want to
do.
Um, and so uh started up aconversation with my molding
rep, and he said, Well, youshould come sell molding for us
until you figure it out.
Well, you know, 20 years later,rest is history.
But no, I I started working forSouthwest as an outside
salesman, found that, you know,there was a lot of opportunity
in the business.
Um, and then uh had a you know,right time, right place sort of
(04:56):
opportunities with them andcontinue to elevate.
Uh when I left there uh in2016, I was the general manager
and president of the company.
Um, and then uh, you know, Icompeted against DW for that
full 17 years, really respectedthem.
So when I decided SouthwestMolding was no longer the home
that I wanted to be at, theywere my first phone call.
Yeah.
(05:16):
And I said, uh, I remembertelling Nathan, hey, we've been
kicking each other in the teethfor like 20 years now.
What do you say we joinedforces?
And he said, I like the idea.
That's okay.
And they gave me a place tostay there and started working
with him and Aaron.
And we've had a a lot of fungrowing the business until now.
And then we were acquired in 21by SBP, which was a good
transition for us.
Stefanie Couch (05:35):
Yeah, I used to buy a lot of stuff from US
Lumber when I was at my dad'slumberyard.
So it's a company I know welland obviously has specialty
building products has grownsince really like 2018, 2019.
It's incredible to watch whatthey've done with Reeb and
Amherhart and Alexandria, allthe acquisitions, including DW
Millwork sells.
You guys are everywhere.
You're here on the marketfloor.
(05:55):
You guys are an LBM goldsponsor.
Yeah, very big partner of Do ItBest Group.
Terry Bailey (06:00):
Yep.
Stefanie Couch (06:00):
They really have a lot of options from you guys.
Doors, uh, you have siding, youhave trucks decking, you have
lots of different things.
What's the buzz been like thisweekend on the market floor?
Terry Bailey (06:13):
You know, I it's been a lot of the feeling is a
lot of that same cautiousoptimism.
And we thought that 25 wasgoing to be a pretty strong
year.
We had just come off theheadwinds of the COVID supply
crisis and some of the otherthings that were happening.
And so everyone had like thisoptimism for 25.
And then and then we have 25.
And so we've had some newheadwinds and changes that we're
(06:34):
up against.
But I think a lot of that isalso we're seeing that settle
down.
The tariff conversation issettling down.
We're looking forward to thisuh this next change from the
Federal Reserve.
If there's a change to theoverall market uh mortgage
rates, hopefully that kind ofencourages some things on the
billing side.
So again, I think there's somethings that we're looking
forward to in 26 that we canlook uh in a positive light at.
(06:57):
Um, and that's what kind of thespirit of the market is this
this time around.
Stefanie Couch (07:00):
Well, also with new true value members, I think
they're excited to have a reallystrong LBM type team because
that was something before thatthey weren't, they didn't have a
big team like this.
So it it is great for them tobe able to have options that
maybe weren't available before.
Terry Bailey (07:13):
That's right.
That's exactly right.
Yeah.
Stefanie Couch (07:15):
Well, I want to shift a little bit because we
just did a conversation for alearning session today on stage
talking about people beingscared or fearful to get into
the millwork business because itis technical.
There are a lot of things thatcould go wrong in the door
business.
You can order the wrong hand,you can order the wrong jam
size, you can order the wrongstyle.
But with that being said, withgreat fear comes possibility of
(07:38):
great margin.
Terry Bailey (07:39):
That's exactly right.
Stefanie Couch (07:40):
And you at DW have made it relatively easy to
get into the business and thento thrive in the business.
So tell me a little bit abouthow you're working with dealers.
Terry Bailey (07:49):
Yeah, so I think it's really a complete adoption
of the technology and the e-commside of the business, which a
lot of our competition is behindthe behind the eight ball on.
Uh, DW has done a really goodjob of embracing that side of
the business.
And so starting off with ourbusiness-to-business e-com tool,
which was formerly known as24-7.
It's currently Magento.
(08:10):
And then later this year orearly 2026, we'll be launching
another version of that onlinee-commerce and just making that
really easy to do uh businesswith us.
So uh up and down the uh theoverall continuum of service,
whether it be tracking my truckor finding availability or
what's my price or uh ePODs andthings like that.
(08:30):
But then uh about four yearsago, we launched eMerge, which
is our online door configurator,which took a very, very
complicated and dangerousprocess of ordering door units,
and we simplified it by makingit somewhat foolproof.
I should say completelyfoolproof, answering every
question along the way, notallowing the user to miss a
step, uh, using um diagrams andpictures to explain what left
(08:53):
hand versus right hand is,active versus passive panels,
those sort of things.
And so it's just revolutionizedthe way that people order doors
and minimize the issues thatwe're that are inherent with
that category of product.
Stefanie Couch (09:06):
And if you're a dealer and you have a tool like
that, you can pull it up rightwith the homeowner there or with
the contractor there, show themwhat's available.
You can actually have theirpricing set up on there so you
don't have to worry about themseeing your costs on the
computer screen.
I used to I used to do somereal movement around in the dad
in my dad's lumbery or liketrying to hide the cost for
people.
Um, you know, people arelooking around.
(09:27):
You guys don't have thatproblem.
And it's made to sell at thekitchen table if you want to do
that or at the lumber counter.
And it helps people understand,like I said, what's even
available because there are somany products out there.
There are new products comingout every day.
And I mean, I can't keep up andI know doors pretty well
because I've been doing it for along time.
Someone who's new who maybe isstraight out of college trying
(09:50):
to sell doors, it can be veryintimidating.
So this tool really helps yoube set up as an expert without
having to have 20 years ofexperience.
Terry Bailey (09:57):
That's exactly right.
And we look at other designfeatures today, like so we know
the the popularity of barndoors.
You can incorporate that intothese online configurators,
making it easy to select thehardware and the doors that go
with that or or pocket doorframes.
So DW's got a new product linecalled uh branded cavity
sliders, which is a higher-endupgrade pocket door frame
system.
And we've incorporated that aspart of an option in our e-merge
(10:19):
system today.
And uh, yeah, it just makesthat super easy as well.
Stefanie Couch (10:23):
Does that pocket door hardware just have a
heavier?
You can put a heavier door init and your kids can slam it a
little bit harder and it doesn'tcome off.
Terry Bailey (10:30):
Yeah, it's a completely all-aluminum system.
But then it's got uh, you know,some of the features of cavity
sliders is you can get the softclose options all the way down
to a 2-0 option, which is uniquefor pocket door frame systems,
and it's automatically heavyduty.
And some of the roller systemsthat they have just make it, you
know, it's not your traditionalgrandma's pocket door frame
anymore.
It's a it's a product that youcan that you can install and
(10:51):
have confidence in.
Stefanie Couch (10:53):
This episode of the Grit Blueprint Podcast was
sponsored by Do It Best Group.
Do It Best Group is the largestco-op in the world, and they
help independent hardware andlumber yards all over North
America win.
Do It Best offers services,products, and people that can
help you win long term.
They are the champion ofindependence.
(11:15):
One of the things we've talkedabout a lot are what I'm calling
the clash of the Titans.
So there's a lot of big dogsout there fighting for the pro
contractor with a lot of moneyand a lot of technology.
Brad Jacobs with QXO, HomeDepot.
Now they've bought, you know,uh SRS, they bought GMS.
(11:36):
Everybody has letters.
You have letters too.
We do.
Um, so I guess I I should havenamed my business like some some
ABC deal.
But at the end of the day,there is a lot of noise in the
market right now.
And it's really hard tounderstand how does the
independent dealer still competeand not only just compete, but
how do they win?
(11:56):
Yeah, and you have a lot ofthoughts about that.
So share those with me.
Terry Bailey (12:00):
Yeah, absolutely.
I think it's a prime time.
You know, you shouldn't beafraid of it.
You should embrace the factthat there is chaos and noise in
the market, and that you, as anindependent dealer, for
example, uh can circumvent allof that noise for the contractor
who just wants good qualityproduct at a good price and good
service.
That's really all they want atthe end of the day.
And while you have these thesetitans that are trying to figure
(12:22):
it out, the independent'shalfway there.
They've got the service prop.
They just have to have thesupply side.
And that's where I think ifthey embrace what we do as
distributors and wholesalers, ifthey embrace and understand
that we can help them run thatbetter business, uh, they can
really start to take someserious share and along the way
make some serious money withthese millwork products.
Stefanie Couch (12:40):
Absolutely.
Yeah.
All right, are you ready forthe door lightning round of
questions?
Terry Bailey (12:45):
Let's do it.
Stefanie Couch (12:46):
This was not planned.
All right.
What is your favorite doorstyle?
If I was gonna give you anunlimited budget, you're gonna
put something on the front ofyour house, any house, dream
house, what would you pick?
Terry Bailey (12:57):
Oh, that's a good question.
It's gotta be uh it's gotta bea fiberglass door.
It's gotta be uh a, you know, alighted door.
Uh I love the wrought ironfeatures.
I know that that's still alittle bit more.
Stefanie Couch (13:08):
That is the most Texas answer I've ever heard,
Terry.
The only person in the whole 49states otherwise would never
say wrought iron.
I should have known that's whatyou're gonna say.
Terry Bailey (13:19):
Absolutely.
Stefanie Couch (13:20):
I love it.
What style of wrought iron?
Like something, a Texas star?
Terry Bailey (13:23):
Yeah, Texas Star for sure.
Yeah.
Stefanie Couch (13:25):
Are you eating brisket when I open the door to
come into your house?
Hopefully, it's good brisket.
Terry Bailey (13:30):
Yeah.
Stefanie Couch (13:31):
I know we have a difference of opinion also on
the best brisket in Texas.
I think Terry Back Black'sbarbecue is the best, and you
actually like Heart eight.
Heart eight.
Heart eight is pretty good.
Yeah.
I have to wash my hairimmediately after because you
smell like it.
I mean, it's like a threeshampoo cycle to get that out of
your hair.
Terry Bailey (13:47):
Absolutely.
Stefanie Couch (13:47):
I love it.
Okay.
Terry Bailey (13:48):
I don't have that problem.
Stefanie Couch (13:49):
Question number two.
If you were going to go with awood door, what species is your
favorite wood species?
Terry Bailey (13:55):
Oh, it's got to be one of the mahoganies, the
kume's, the sepiles, the the youknow, the mahogany feature,
just because the the richness ofthe wood and yeah, it's
gorgeous.
Stefanie Couch (14:04):
It is beautiful.
And when they stand it up, I'ma walnut girl, black walnut for
me all the way.
Terry Bailey (14:08):
Beautiful door, too.
Stefanie Couch (14:09):
Of course, it's like the most expensive grain.
My husband loves that about methat I can obviously pick the
most expensive thing in anystore, any product.
Yeah.
All right.
If you were going to remodelyour house, what is one feature
that you absolutely couldn'tlive without?
Terry Bailey (14:24):
Good question.
Um, you know, I think, youknow, when we talk about pocket
doors, they there's a lot ofthings that they do that allow
you to change the makeup or theflow of a house because you're
not having to accommodate forthe swing.
And I would definitely upgradeall of those systems with soft
clothes features and all ofthat.
So that's something that Icouldn't live without.
Stefanie Couch (14:44):
That's a great answer.
My granddad's house was builtin 1977, and he had these double
pocket doors that were goinginto like the living room, to
the hallway, to back to thebedrooms, and they were off
track my entire life.
Yeah, and like we would justleave them open because they
wouldn't work, but you don'treally see that as much now with
great hardware like what youguys have, and it can handle the
heavy duty.
(15:04):
But there is pocket doors areawesome because no matter what
you're doing, you get morespace, closets, bathrooms, all
those things, and you can lockthem.
So and you can do like a littletouch on a creative walnut or
mahogany in one or two places inyour room.
Yeah, I would want a butler'spantry.
That's my thing right now.
So you could just put all themess away and not have to worry
(15:24):
about it with a pocket door, ofcourse.
Absolutely.
Um, maybe like a white oakdoor.
All right.
So last question is what do youwish that people in our
industry knew about ourbusiness?
That what do you think peopleare missing?
And how does that affect thenext generation of our ambitious
next generation?
Terry Bailey (15:45):
Yeah.
So I think um uh, you know,what folks miss the most is what
we've talked about.
It's it's you you gotta getbeyond the veil of that
intimidation of these products.
They there's a lot of options,there's a lot of features, but
you can start to skinny thatdown pretty quick.
Stefanie Couch (16:02):
Yeah.
Terry Bailey (16:02):
Um, and and you got to get away from you know
what we think about as adistributor is uh our dealer
community today has a lot ofone-step options.
And uh, and that's where thedealers also have to realize
what you know, how can a de howcan a distributor help me run a
better business?
And it's because we can be instock because you so you don't
(16:23):
have to be, right?
And so I think um it's easy todo some of the larger uh
commodity type products, butthose are uh products that for a
dealer you can lose tomorrowbecause the ease are the the
vast number of people who areselling them.
With Millwork products, there'sbecause they're a little more
complicated, you have feweroptions, you can uh you can kind
(16:44):
of kind of dial that in with uhwho's supplying you and who
you're selling to.
Stefanie Couch (16:48):
The scary thing and the amazing thing about
these products is that if youmess them up, you lose a lot,
which means that most people arenot risk takers enough to do
it.
I happen to just, I guess, bethe jump off a cliff girl.
Yeah.
And door doors is where Idecided to jump off the cliff, I
guess, in my career mostly tostart.
And that shows me that if youcan get really good at that, I
(17:11):
believe that's how theindependent, especially the
independent dealer wins in 2026,2027, 2028 against a big huge
player, right?
Is that they know the products,they're experts.
A lot of them have installedthese products, they know
exactly what it looks like andfeels like in the real life
scenario.
And you can make a lot ofmargin selling those.
(17:31):
Yeah, so if you can get itright and train your people, you
can win big dollars from this,you know, sell these.
Absolutely.
Terry Bailey (17:38):
Yeah.
Stefanie Couch (17:39):
And like you said, distribution, you guys do
this every day and it's all youdo.
If you're selling hardware oneminute, plumbing the next, you
got, you know, doors, windows,all the products, you don't have
to know every detail about itbecause you have your team to
support that and the do-it-bestteam.
Terry Bailey (17:55):
Yeah, traditionally with Millwork
products, it's it's not a bid-byscenario.
Once a general contractor or adealer finds a supplier that
does it consistently with greatuh success, yeah.
It's not something that you'regonna find.
Uh they they flip you for adime on.
Stefanie Couch (18:10):
Yeah, I absolutely agree with that
wholeheartedly.
Well, thank you so much forjoining me today.
I'm hoping we get to come downand eat some heartache barbecue
soon together.
And uh, I would love to cometour your beautiful door shop.
I know it's immaculate, so I'veheard lots of good things.
Terry Bailey (18:24):
Well, I I've really enjoyed this when I told
my daughter that I was doing apodcast this week and she goes,
Ooh, dad, you podcast.
So my self-esteem was a littlerattled, but I enjoyed it.
Stefanie Couch (18:33):
I mean, I'm gonna send this to her and make
sure she gives you two thumbsup.
You crushed it.
You crushed it.
Terry Bailey (18:38):
Okay, good.
Stefanie Couch (18:39):
What would her lightning round question be for
dad?
Terry Bailey (18:41):
Oh, I uh I don't know, something about how I'm
antisocial.
Stefanie Couch (18:49):
Well, um, that's okay because you're pretty
social at these shows, andthat's all that really matters.
Yeah, I mean, I love it.
And you did great on stagetoday.
So what's your daughter's name?
Terry Bailey (18:58):
Madison.
Stefanie Couch (18:59):
Madison.
Hi, Madison.
Dad crushed it.
Make sure you give him a bighug and tell him how awesome he
is.
I know that's what you're gonnado at the end of this, so I
love that.
Well, I will see you on themarket floor and we will see you
on the next episode of the GripBlueprint Podcast.
Thank you for listening to theGrit Blueprint podcast.
If this episode helped youthink a little differently about
(19:22):
how to show up, share it withsomeone in your building world
who needs it.
If you're ready to turnvisibility into growth, then
head to gritblueprint.com tolearn more and book a call to
talk to us about your growthstrategy.
Until next time, stayunmistakable.
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