SUCCESS WITH NICHE PRODUCTS
A small companys strategy

By Lenore Hume

As economic trends come and go, skilled craftsman find ways of evolving to rise above the trends and create new specialty products that attract and keep clients. Such is the story of Dimo Karamichalis, a tool and die maker who started Dimos Tool and Die in Winnipeg 30 years ago. Now in his late sixties, Karamichalis is passing on his small operation, which generates about $1 million annually in sales on the skills of five employees, to a second generation.

This small family company is a shining example of the many like it in Manitobas private sector. These companies create specific jobs in a close-knit group of employees where there is nowhere to hide. Organic growth and community involvement with specific clients is among their traits.

Karamichalis says of his start, I was making good money at home, but a friend of mine applied for a work visa to come to Canada, as he had friends here. I applied just to see if I could get in and I was accepted. After arriving and looking around, he liked Winnipeg and decided to stay and go into business using his highly sought-after skills.

Tool and die makers produce custom parts and tools for the manufacturing and agriculture sectors. Dimos has focused its services by specializing in grain harvest-related equipment such as sampler probes, dockage sieves, and grain funnels.

It also makes highly sophisticated temperature-measuring equipment and small weigh scales. Dimos has made a name for itself internationally as the only company in North America licensed to manufacture and sell an advanced grain-moisture tester, which has become the standard for quality in harvest technology.

The Model 919 Moisture Meter helps farmers learn the moisture content of grain during harvest and storage periods, which is key to its grading. Its use is sanctioned by the Canadian Grain Commission, giving the apparatus a reputation for accuracy and serviceability.

The company is in the throes of a generational transfer to his daughter, Karla, and son-in-law, 35-year-old Jason Diehl. Karla has worked with her father since she was young and is now an integral part of decision-making at the company. Diehl completed his agriculture degree with Masters in entomology, working in various agriculture-related jobs before coming aboard full time at Dimos ten years ago.

An example of the depth of the companys capacity for specialization is an important but esoteric product for the honeybee industry, which is big in Manitoba. Bees can become infested with varroa mites. The bees rub off the parasites using a special Varroa-nator screen tray designed by Diehl and installed on the hive. Diehl worked with the chief provincial apiarist on the project. Another product is a specially designed golf ball washer, which is installed in the ubiquitous wash boxes at many of the greens at gold courses.

When Karamichalis started the business, all of the dimension drafting and design work was done by hand and calculator, guaranteeing top-notch craftsmanship. But when computer technology loomed on the horizon, Karamichalis had the foresight to see the benefits and incorporated the new technology, ensuring business was kept in house and that they stayed at the top of the industry.

And its working the numbers dont lie. Diehl says that their gross sales have nearly doubled during the last three years and they see even better times ahead. The secret to their success? Diehl says its a combination of being a family run business, offering strong customer service, and finding a niche market to target. Each customer is given personalized attention and a customized experience.

Being a part of a family business is all the more incentive to put in the hours that we need to put in to make it work. Customer service is huge, and providing superior customer focus is a main philosophy for us, says Diehl. To me this is not a job, its a way of life. Its not work for me, because I love doing it.

(Lenore Hume is a freelance writer) MBM