7 Nov 2017
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Medle companies

By EY Slovenia

Multidisciplinary professional services organization

7 Nov 2017

Experience gives them the edge

The family businesses Roletarstvo Medle, Senčila Medle and Medle IP, have a long tradition of manufacturing and installing blinds, insect screens and windows. The second generation of the Medle family is successfully continuing the vision of their innovative and ingenious father Alojz Medle. All three companies, based in Novo mesto, involve the broader family in managing day-to-day business, carefully controlling growth and maintaining a good working atmosphere – amongst the leadership as well as employees.

Profits are merely a side product and if a business is run correctly, they look after themselves.
Robert and Gorazd Medle
Director of the companies

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Complementary companies, satisfying exacting customer requirements

The entrepreneurial story of the Medle family started over 40 years ago, when Alojz Medle commenced business as an installer of blinds and then opened a small manufacturing plant in 1976. “This used to be a great logistical challenge, as the blades were manufactured solely in Ljubljana. At first, our father had to drive to the capital, where he would purchase finished blinds and then install them. Later it became easier, when he could rework the materials into final products at home,” his son Robert recalls. Even though some items were initially unfamiliar for local people, the business soon thrived within the region. Four years later, Alojz’s wife Marta joined him. “Our father spent a lot of time working with clients and he needed someone to take care of administration. Our mother, a medical technician by profession, took over the accountancy,” adds Robert. His brother Gorazd also has vivid recollections of the early days: “We attended many fairs linked to our field of work abroad, and searched for the most advanced and suitable material and system providers in Europe and beyond. It is much easier to access information today, for you can come across numerous ideas, discover how things are done abroad and see all the newest trends on the internet.”

It has been more than 10 years since Alojz and Marta took the decision to withdraw from the company; however, preparations for the new  generation to take over began well before. “In 1994, at the age of 26 and after consultation with my parents, I decided to open my own company, Senčila Medle. We started manufacturing different blinds from those made by Roletarstvo Medle, leadership of which my brother Robert  assumed roughly six years later, at the age of 30,” says Gorazd, recalling his entrepreneurial beginnings. While Senčila Medle, with €2.8m revenue in 2016, specializes in manufacturing insect screens, awnings, screen blinds and decorative interior shades, Roletarstvo Medle manufactures shades and windows. “We do not manufacture identical products, but complementary ones. Most of our clients know us as Medle and they do not differentiate between the two companies. We always cooperate and offer our clients the best combination of the two,” adds Robert. The two brothers place utmost importance on client satisfaction: “Our main goal is to keep our clients happy. Profits are merely a side product and if a business is run correctly, they look after themselves.” 

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Who can a man trust, if not his wife?

The Medle brothers grew up with the company and helped out with various chores from a young age. “We always had money, but we had to earn it. I was extremely thrifty with the money I earned, for I had to work hard for it. I was not given pocket money as some children were,” recalls Gorazd.A similar approach can be seen today with their children. Alongside their wives Vanja and Anastazija, who have both been employed in the company from the start, they have another four young people who can occasionally help out. “It is good to have at least a few people in the company you can trust unconditionally. And who can you trust if not your wife?” asks Robert. The brothers both agree that the children will decide their own futures. Regardless of wishes for them to continue in the family tradition, the children’s ambitions come first.

Fair payment for fair work

Roletarstvo Medle currently has 128 employees, working alongside Medle IP (offering employment opportunities for handicapped people) which has 12 and Senčila Medle has 33. Gorazd remembers how times were different in 1994, when Senčila Medle was just emerging: “In the beginning it was just my wife and me. Over the years as the company grew, new employees joined us. With growth, responsibility towards customers and employees also increased. I feel nostalgic looking back at the times when my wife and I, with a small baby at the time, spent all day in the workshop. It was difficult, but at the same time it brought us a great feeling of satisfaction.It was all manageable and simpler. Today, the responsibility is much bigger than it used to be.” Robert takes a contrary view and believes it was much harder when the company was smaller: “It was hardest when there were about 20 or 30 of us. We were already quite big, but on the other hand we could not afford someone to work just on the time schedules for the installations, or somebody who would work exclusively in the warehouse. All of us had to perform multiple tasks and had to be good at a vast array of them. It became easier with additional employees, because we could employ specialists for quality control, head of production, head of sales, etc..”

The Medle brothers strive to offer their employees the best possible working conditions, which is why they try their hardest to avoid the requirement for shift work, and they always want to establish a fair relationship. “We expect a lot from our employees, but we also pay them fairly. Our salaries are above average,” explains Robert, while Gorazd adds that they do encounter certain limitations. “Unfortunately we cannot stretch the season across the entire year, which is why we have to work longer hours during our busy time. However, the employees remain with us,” concludes Gorazd.

“Unfortunately we cannot stretch the season across the entire year, which is why we have to work longer hours during our busy time. However, the employees remain with us,” concludes Gorazd.

A mixture of innovation and experience

The Medle family advocates moderate and controlled growth and they believe that their expansion during the 2006 to 2008 period was too rapid. “We grew between 20% and 30% a year, which was impossible to control - financially as well as staff-wise. We did not intend this accelerated growth, but the market simply pulled us in. Since 2009 we have grown more sustainably, ranging between 5% and 15 % per year, which is manageable.We might not be increasing the number of orders dramatically, but we are managing to sell higher-class products and more electronics, which is also easier to control,” says Robert, summarizing their annual growth. They are aware of the importance of development, which is why they employ three developers: “We are constantly working on innovations and even though some are less visible, we pay attention to the details that enable easier and better operation.” In comparison to their competition, the Medle family have an additional ace up their sleeve. “There are numerous companies that could start manufacturing similar products to ours, but they lack experience. Without this experience they are not familiar with the details and they are therefore not competitive, i.e., they cannot offer a better product for the same price,” states Robert.

The goal is to preserve their market position

Both main companies are currently facing developmental and logistical challenges. “Sales growth is not our main goal. We wish to preserve our  position in the market, recognition amongst our customers, our quality, innovation and flexibility. If this means we also grow and obtain new  customers, that is great, but we do not wish to force it. We already have customers abroad, and we are constantly gaining new ones,” explains Robert, who also adds that they export approximately 60% of their products, mainly to the former Yugoslavia, Austria, Germany, Switzerland, Italy and Israel.

The Medle family strongly believes in social responsibility, primarily to their employees, but they also like to give back to their region: “We might not be as big as some of the pharmaceutical companies in our region, but we support numerous sports clubs as well as various events. This year we helped build a sports centre for the local community.”

Robert and Gorazd Medle owners
Company name: Roletarstvo Medle, d. o. o., Senčila Medle, d. o. o., in Medle IP, d. o. o.
Number of employees (2017): 173
Net sales revenue (2016): €20.2 million

 

Interviewees:

Robert Medle, Director of the companies Roletarstvo Medle and Medle IP d. o. o. 

Gorazd Medle, Director of the company Senčila Medle d. o. o.

Summary

Medle companies in five words: experience, quality, flexibility, honesty, innovation.

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By EY Slovenia

Multidisciplinary professional services organization