September 2000 - Posts

Beyond Numbers -- September 2000 Point2.Com Takes dot-com World To New Heights

After topping the charts at number 1 in a recent Toronto Globe and Mail - published survey of the 200 most successful e-businesses in Canada, the Saskatoon-based brother team, Wendell and Barry Willick, are taking the dot-com business to new heights.

Being recognized as the No. 1 best managed and most promising "dot-com" company in all of Canada was an honor for the Willick brothers who say this is something they will remember for the rest of their lives.

"To stand out from our competitors in the dynamic dot-com world is a real tribute and reward to the hard work, diligence and vision that we and our entire team have shared since going into business a few years ago," adds the brothers.

When the brother team identified an opportunity to use the Internet to connect buyers and sellers of heavy equipment, Point2.com was founded in the fall of 1996. As development proceeded, Willick and Willick realized that the technology could be pushed further, allowing sellers to leverage their data to produce many marketing opportunities.

The Point2 Heavy Equipment System is a user-friendly Internet interface software application that enables users to maintain and coordinate inventory, sales and marketing and can be accessed and maintained from anywhere in the world.

Wendell Willick, CEO, says as he tried to introduce the listing service to heavy equipment dealers, he realized that most of them were not technologically savvy. "Most of these people were not zooming around the Internet. To have them use the Internet to plug in data, take photos with digital camera, resize them and then save as a compressed format so it wouldn't be too big to send over the Internet, was too much to ask for," says Willick.

Wendell and his brother Barry Willick, President, knew the only way they were going to make their online business work was if they developed software applications that simplified the work for their clients and that's precisely what the brothers did.

It didn't take long for the business to take flight. "All of a sudden we became a development house of world-wide heavy equipment applications that helped non-technical people interface with the Internet," Willick explains.

"Barry is an incredible programmer. He was really the original architect of our technology and he was the one who put all the grunt work into the programming and did a fabulous job at it," Willick (Wendell) enthuses.

Willick says most clients utilizing the software application are U.S. companies with $100 to $200 million dollars in revenues. These companies include heavy equipment giants such as Holt Company of Texas, Hoss Equipment Co., and RDO Equipment Co.

In addition, Willick notes they have also licensed their technology into a new sector to be used in the emergency vehicle re-sell market. "This is actually a co-venture as the licensing agreement stipulates we receive 25 per cent of the company. This is a great example of how our software application can be used in other vertical markets," says Willick (Wendell).


The Idea

In 1993, long before the Internet was thriving, Willick kicked back with a mining friend over a couple of beers. That's when the idea hit him: there's money to be made with the re-sell of heavy equipment. "My friend, who was a senior executive for a mining company in Manitoba, was telling me that a mine he knew of was shutting down and they were just leaving millions of dollars worth of mining equipment in the ground. There was no other use for it locally and they didn't know how to market it," says Willick.

Willick (Wendell), an entrepreneur living in Saskatoon, spoke with his brother Barry, an Ottawa-based computer programmer, about the possibility of using computer technology to move this equipment. But the technology simply wasn't there at the time.

With innovations in technology, the brothers discussed the possibilities again, and in 1996 Point2 Internet Systems was born. The Willicks formed a partnership with three other men, including Wendell's mining friend, and two others from the forestry and agriculture industries. Point2 Internet Systems was the first company ever to do online auctions of heavy equipment.

"Although Point2.Com is not the only exchange that auctions heavy equipment today," says Willick, "we established a strong presence in the niche before the emergence of serious competition, and we are well ahead of the game. When it comes to inventory, sales and marketing management and the interface technology, we don't see anyone coming close to us quickly."

Point2 currently employs 25 full-time professionals in two locations. Head office is located in Saskatoon, with a sales office in Vancouver. More than half of their employees are systems development professionals.


MNP and Point2 Get Wired
As the business grew, the partners saw the need for a highly qualified CA firm and people who had the vision and expertise to guide us them through their rapid business expansion process. MNP, particularly Peter Clark, had initially provided Willick with services in the past, so the choice was obvious. Saskatoon MNP partners Les Wall, CA and Les Cannam, CA, quickly joined the team.

"The initial services MNP rendered for the company dealt with assistance with incorporation, design and implementation of accounting systems, CCRA registrations, year end un-audited financial statements, personal and corporate tax planning and corporate tax returns, along with ongoing weekly business consulting advice on a number of different issues," adds Cannam.

And Willick says that Wall and Cannam have been instrumental in assisting the firm to reach new heights.

"They helped us with the preparation of a substantial business plan and financing proposal to take our firm to the market, assisted us with the negotiation and deal structuring process with interested investors to optimize tax and financing strategies, reviewed and recommended changes to all legal documents before execution and prepared various interim audited financial statements to comply with the SEC regulations related to international reporting," says Willick.

As for the future, The Point2 Heavy Equipment Systems has also captured the attention of the European market. "We've started to sell our system in Europe and have a couple of major clients already," says Willick, who adds that they are now hiring some people in Europe to further enhance their market share.

Willick concludes, "Our business partnership with MNP has been exceptional and we would not be where we are today without their continued ongoing expertise."

Meyers Norris Penny Publications, Beyond Numbers, September 2000.