Building success through relationships and trust

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With over 40 years in the industry, Doug Keeling at Castle Building Centres Group shares how cultivating strong relationships and empowering teams have been key to his success, while simultaneously driving growth and member satisfaction

DOUG KEELING has been in the industry for 42 years and counting. From a high school job at Canadian Tire, to launching his own renovation business, to his current role as director of business development at Castle Building Centres Group, it’s the people that make him passionate about his chosen career. “Throughout the industry, whether it’s our members, prospective members, vendors, or the Castle staff, it’s a pleasure to work with them,” Keeling says. “It truly is a community.” Keeling attributes the network he built up over the years as the reason he saw greater and greater opportunities come his way,

Castle is a member-owned and member-directed, not-for-profit Lumber and Building Materials buying group. Our focus is on the success of our independent retailers, and we deliver on the promise of exceptional value, prosperity, and an unwavering dedication to our members. Our members make up a national network of retailers who are the pillars of their communities. Our connection to these members, our vendor partners, and our industry has positioned Castle for continued growth. Together … We Build Communities. www.castle.ca

Doug Keeling, Castle Building Centres Group

as well as his “say yes” attitude to anything new. After seven years as a buyer with Castle, Keeling’s interest was piqued by a long-time acquaintance on the vendor side; although he stepped away for a brief time, he found himself back at Castle in less than a year. It felt like going home to him. Eight years later, Keeling heads up a business development team of eight, from coast to coast, and recently spearheaded a newly launched initiative offering centralized estimating and design services for its Castle members. “As the director of business development, I love the fact I’m able to coach and develop people again,” Keeling says, adding that while he is content in his career, he’s far from complacent. “My competitive nature likes what I call ‘the hunt’: finding opportunities to listen and understand the needs of potential new members and develop a strong relationship; the months to years down the road finally getting that dealer to make the move. Then hearing the words ‘I wish we had done this sooner’ makes it all worthwhile. Selling a business model is very different than selling a product, and it takes time to gain their trust and get them to realize the benefits of making a change.”

Established in 1963, Castle is the longest-operating LBM buying group in Canada and operates on a not-for-profit business model. The company is owned by its members, who share in the profits of the business. Castle’s primary focus is creating a platform that supports its members’ success, whether it’s quoting a large project or explaining how to better utilize resources. “Every decision we make has one goal in mind: ‘How do we make our members more successful?’” Keeling says. Another unique feature is that Castle doesn’t lock members into a long-term contract: a member can walk away with 60 days’ notice. Most other groups lock a member in with onerous contracts that aren’t for the benefit of the dealer, but Keeling believes that Castle’s approach is the best option for true independent dealers.

If you don’t want to just take his word for it, he also has the stats to back up that conviction. “The value that we deliver, day in and day out, is what makes our members stay,” Keeling says. “Our members can walk away, but they don’t. We still have three of the original six with us after 60-odd years, and that speaks volumes about the value we deliver.” Keeling adds that while he’s confident they have a great platform, it might not be the right fit for everyone. Castle’s members are independent, running their businesses their way and asking for support when needed. Others may want more hands-on guidance, such as set direction or flyer programs, and he encourages dealers to do their due diligence before making a move. Talk to every group out there, look at the pros and cons of each opportunity, and ensure your goals align.

“We’re not selling a product; we’re selling a business model. It’s very reflective of how this industry is built on relationships. We don’t walk in and say come to Castle and if you aren’t satisfied, we’ll give you a refund. You build the trust, cultivate the relationships, and take the time.” Most of the BDM team comes from the vendor side, which works well when seeking out new members that would be a good fit, but even better with the internal strategy that keeps BDMs and the members they onboard working together throughout the latter’s tenure. BDMs often spend weeks, months, or years cultivating these relationships.

This is reflective of his team’s grit and passion for their role, Keeling says, adding that he trusts each of them to manage their territories the way they see fit. With five out of eight being new since Keeling started in the role, the “new blood and fresh eyes” have levelled up the group, and he says he’d put his team toe-to-toe with any other team out there. Overall, he says it’s their commitment and focus plus their deep desire to see their members and themselves be successful that makes them great. “I recently asked my BDM in BC what stood out to her most after almost two years with us, and she said she’d

heard about Castle’s business model before, but realizing it was all true has been the biggest revelation,” Keeling recalls. “We’re transparent. I set expectations, make sure they have a clear understanding of where we’re going, and all the information I get from above is put in their hands as well. I empower them with the knowledge of what’s coming so they’re prepared. That’s my mark on things.”

Supporting members’ success

Published 15 Oct 2024

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“Regardless of what banner you fall under, we’re all part of a large family, and the future bodes well for the industry as a whole”

Doug Keeling, Castle Building Centres Group

Castle’s history

Across the country

Founded in 1963

At 61 years, the longest-operating Buying Group in Canada

330 Castle member locations

Growing every month across Canada

At work at Castle

Castle always takes the long-game strategy, and that approach requires a high level of adaptability. But Castle is agile without a high level of bureaucracy. With just 32 employees in head office, “it’s not hard to move the ship when we need to and adjust direction based on what’s happening,” Keeling notes. “In times where the economy is strained and there’s a widespread decline in business, Castle can weather the storm – and because of the profit-share model, its members fare better, with a stronger bottom line as well.” “Based on feedback throughout the industry, we’re outperforming other groups out there,” Keeling says. “We’re comfortable where we are and believe the tides will turn soon.” Looking ahead, he predicts as interest rates drop, “a run will start and go for a number of years.” The national shortage of housing is a pressing problem that needs to be addressed, and as the market reactivates and Canada’s immigration levels remain high, “they’ll have to put people somewhere,” Keeling notes. “Regardless of what banner you fall under, we’re all part of a large family, and the future bodes well for the industry as a whole,” he says. “But specifically with our business model, we’re poised to see continued growth and take advantage of this shift.” Overall, the goal is to continue to capitalize on Castle’s strong presence in the Canadian market and expand into areas where it may be underrepresented, such as Quebec and BC. The latter is a difficult province to penetrate outside of Vancouver given the remote locations and great distances between communities, but Keeling is unerringly optimistic that Castle is ready for any challenge. Recently meeting with prospects in BC, Keeling says the most common question he gets is, What’s the catch to Castle’s business model? They have a hard time believing it’s all true, he says, but he urges them to go onto Castle’s website, pick a member or two, and give them a call then and there so that they can hear the truth for themselves. “I’m 100 percent certain that regardless of who you speak to, our members will talk about the benefits of being part of Castle. We are confident in where we’re at and where we’re headed, and my team is more than happy to connect with those who want more information.”