CAP-IT DRIVES TRUCK ACCESSORY BUSINESS INTO NEW TERRITORY It Takes Diversification -- And More… By by David Herrmeyer

Like a bright beacon on dreary day, a yellow F150 sits proudly angled outside a Cap-It Genuine Truckware location.  Sporting a 6-inch lift system, chrome plated stainless grille guard, and Mickey Thompson 32-inch tires, it’s hard to believe that just 20 years ago the truck accessories market was next to non-existent. Today the light truck accessory retail sector alone has climbed to earn over $10 billion, and from the early days of this increasingly popular product segment Cap-It Genuine Truckware has been leading the way.

In 1977 the first Cap-It location opened in Abbotsford, British Columbia, founded by a young entrepreneurial couple with a taste for adventure. Hank and Elaine Funk first began their career in truck accessories opening a small retail location named Rover Recreation. The company initially sold everything from ultra-light aircrafts to trampolines. While sales were healthy and growth was on the rise, Hank Funk began to observe the changing interests of his customers. As a Chevrolet truck owner, Hank Funk recognized the demands placed on these hard-working vehicles. Funk also observed a new segment of consumers interested in outfitting their vehicles with a range of equipment from tires to truck canopies. As one of the first professional automotive retail accessory businesses, the once-small operation grew to become the largest in the province of British Columbia. By 1990, the company renamed itself Cap-It Genuine Truckware and began franchise expansion across western Canada.

“What we saw very early on in our business is that the market had shifted to a place where stores could no longer remain profitable just selling one product. So for us the diversification beyond just truck caps (canopies) was critical,” says Hank Funk, CEO and founder of Cap-It International Inc.

Cap-it’s keen observation of what would soon become exponential growth in the light truck accessories sector helped lay the foundation to what would eventually develop into one of the most admired truck accessory retail concepts.

As growth and eventual franchise expansion entered Cap-it’s growth strategy, so did years of trial and error to create and perfect an operating system that offered a profitable and sustainable business opportunity to franchisees. By 1999 new Cap-It store openings were suspended until more efficient operation and supply systems were developed. During these critical years of growth, Cap-It developed a determination that would change the face of the once small truck accessory business. Through several astute investments in a centralized distribution warehouse and updated technology Cap-It soon solved their biggest business challenge -- the ability to supply stores directly with inventory. The development of direct sales to the jobber market not serviced by Cap-It generated needed profits to fund further growth. From this critical demand, Western Warehouse was born.

As an affiliated business to Cap-it, Hank and Elaine Funk’s two sons Andrew and Mason Funk soon took the helm of Western Warehouse and focused on providing a two-step distribution system, supplying and shipping necessary inventory to Cap-It stores previously left to the mercy of inconsistent suppliers. Western Warehouse is supported by state-of-the-art construction, seismic engineered racking, equipment, computers, and systems, all designed to provide superior service. The development of Western Warehouse offered a 50 percent improvement of product shipping almost immediately.

Operationally they have adapted their systems to that of the auto parts industry; each store has their 26,000 part number inventory at Western Warehouse live on screen. Large market stores are 8,000–11,000 square feet allowing them to display truck canopies indoors unlike any other competitor, another first for the industry leaders. No other competitor’s showroom displays the huge variety of lifestyle, work, and play truck accessories under one roof so professionally.

Now housed in a brand-new, family-owned warehouse and office complex in Langley adjacent to Western Warehouse, Cap-It overcame its largest operational hurdle, and the company was soon poised for rapid franchise growth. 

Truck enthusiasts soon started approaching Cap-It for franchise opportunities partially because of the growing market but also because of the lifestyle that came along with owning a Cap-It store. Eventually a new store concept allowed owners to start at their own pace and choose between a Cap-It Express Store, Cap-It Stand Alone, or a larger retail concept, Cap-It Signature Stores. To make owning a store even easier, the company encouraged adding the Cap-It brand to an existing business that would carry the full range of Cap-It products.

Taking a page from the Harley Davidson success manual, Cap-it’s new store concept has become very profitable for franchisees, making Cap-It the most attractive truck accessories store in the industry. They have the best retail catalog and together with the new branding, have transformed their image, taking the industry to a new level.

Cap-It has a very low turnover of franchisees:, some having been with the company for over 18 years. The new branding and image has become so successful that in most cases it has dramatically outperformed the older format. Association (SEMA) members agree that no other truck accessory chain is as cohesive and professionally represented as Cap-it.

“One of our largest franchises in Alberta is owned by a GMC Auto Dealer, and it is this model that is the area of potential expansion for us in large and small markets,” says Funk. “We have assembled a team of experienced franchise executives who are now gearing for the opening of 10 more stores in the next three years. After 30 years in the business it feels like we are just now beginning.” Funk’s vision to take the fragmented truck accessory business currently operating as independents, mostly Ma & Pa facilities, to a new level is actually happening.

Today Cap-It has 13 state-of-the-art retail locations across Western Canada and offers only the best brands in automotive accessories and outdoor recreation.

While the company and its products are continually adapting as technology advances, one thing hasn’t changed: Funk’s commitment to provide professional service and premium products to his customers. “There’s nothing I enjoy more than seeing a customer’s face after we’ve outfitted their truck with new suspension or tires,” explains Funk while visiting the latest Cap-It location in Red Deer. “Truck enthusiasts love their vehicles and it’s a great feeling to help create something for them to take on new territory and challenges.”

Whether it’s Cap-It truck accessories or outdoor adventure equipment, the company’s motto is “life is an adventure” and they do what is necessary to provide customers with tools to enjoy the ride.