Fastenal Company Q3 2009 Earnings Call Transcript

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2009-10-12 10:10:24.0

Tags: Call Transcript, Earnings, Sales Strategy, Sales Force Management, Sales, Seeking Alpha, Fastenal Co.

Question-and-Answer Session

Operator

Thank you. (Operator instructions) We will take our first question from David Manthey of Robert W. Baird.

David Manthey - Robert W. Baird

Hi guys, good morning.

Will Oberton

Good morning Dave.

David Manthey - Robert W. Baird

Just a quick question on outside sales reps, do you have a target for OSRs in 2010?

Will Oberton

We really aren’t putting out a number Dave. Right now it's going to depend on sales growth. As sales pick up, we'll move that number up and right now we're still historically high if you compare it to our daily sales rate.

David Manthey - Robert W. Baird

Just as a follow-up there Will -- can you then compare it maybe to the 7 to 10 range and just give us an idea if there is a multiplier or a different range that you might fall in to relative to the store openings?

Will Oberton

I am going to let Dan -- I didn't quite understand it. Go ahead Dan.

Dan Florness

If you look at the, you know, if we open 7% to 10% stores, each of those stores will have an OSP, and so an outside salesperson, excuse me, and assuming that the sales numbers trend out the way we were talking. I am shooting a little bit from the hip here, maybe 130% of our store openings will be our number for OSPs as far as -- if we are at you know, 7% maybe that number is more like 9% outside sales growth, but I don't want to get too far ahead of myself because we are really going to wait and see how that plays out because it is going to be driven. What's really going to drive that number is when you look our 5 plus and 10 plus year old stores, seeing the contraction drop and the growth pickup in that group because that's really what's going to drive it.

We believe that a lot of our growth in 2010 will just be our existing customers increasing their spend, which really doesn't require any more selling time. The really positive is we retain those customers through this difficult time.

David Manthey - Robert W. Baird

All right, thanks a lot guys.

Operator

We'll go to Sam Darkatsh of Raymond James.

Sam Darkatsh – Raymond James

Good morning Will and Dan, how are you?

Will Oberton

 

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