Start Small, Think Big: How Mike Stolte Built 406 Blinds from Scratch
Description
Guest Profile: Mike Stolte
Introduction:
In a recent episode of Marketing Panes, we had the pleasure of sitting down with Mike Stolte, the driving force behind 406 Blinds, Montana’s top-rated window treatment business. Mike’s journey from managing satellite TV installers to leading a thriving local business is a testament to grit, strategic local marketing, and a deep commitment to community. His story is an inspiring example of turning challenges into opportunities.
Summary:
Mike Stolte’s path to success with 406 Blinds began with a pivot out of necessity. As the satellite TV industry declined, he saw an opening in the construction-driven window treatment market. Starting with just a $5 Craigslist ad, Mike built his business through grassroots efforts, community involvement, and a laser focus on customer service. His story highlights the power of local connections, smart marketing, and a resilient entrepreneurial spirit.
From Decline to Opportunity: The Birth of 406 Blinds:
In 2019, Mike faced a turning point. With the satellite TV industry on the decline, he recognized an opportunity in the growing window treatment market. This wasn’t a glamorous transition, but a strategic shift driven by necessity.
Early Hustle and Organic Growth:
With limited resources, Mike took a hands-on approach. He donned branded shirts, joined the Chamber of Commerce, and engaged in grassroots marketing—emailing builders, calling realtors, and going door-to-door. His first major breakthrough came from a simple $5 Craigslist ad, which surprisingly led to a contract with Lowe’s.
The 406 Blinds Advantage: Local Roots, Local Trust:
What sets 406 Blinds apart is its deep connection to the community. Unlike franchises, Mike and his team are Montanans serving Montanans. Their local roots and lower overhead allow them to offer competitive pricing and exceptional customer service.
Diversified Revenue Streams:
Beyond residential installations, 406 Blinds handles large commercial projects and maintains strategic partnerships, including a Costco dealership in North Dakota, expanding their reach and revenue.
Smart Marketing, Simple Systems:
Mike employs a blend of traditional and digital marketing strategies. From radio spots to geofencing ads, he’s gradually embracing digital tools while still valuing the power of chamber networking and community volunteering.
Measuring What Matters:
A key metric for Mike is his closing ratio, which he aims to keep between 60-70%. This helps him gauge pricing, value perception, and sales performance, ensuring sustainable growth.
Growth Strategies That Scale:
Mike’s approach to expansion is cost-efficient. Instead of investing in warehouses, he uses UPS store boxes for North Dakota deliveries, keeping costs low while scaling operations effectively.
Community Involvement as Marketing:
Mike is deeply involved in his community, participating in food drives and supporting local sports. This not only builds goodwill but also strengthens relationships, which are vital for his business.
Mike Stolte’s Top Business Lessons:
- Don’t Give Up: Resilience is crucial in the face of challenges.
- Track Your Money: Good accounting software is essential for financial health.
- Think Like an Entrepreneur: Always seek solutions and opportunities when challenges arise.
Conclusion:
Mike Stolte’s journey with 406 Blinds is an inspiring story of turning adversity into success through hard work, community focus, and smart business strategies. His insights offer valuable lessons for any entrepreneur looking to build a thriving business from the ground up.
Video
https://youtu.be/qDFfndgb274
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TRANSCRIPT
Will Hanke (00:00 )
All right. Hello, everyone. Welcome to another episode of Marketing Panes, the podcast where we talk with real window treatment and awning service providers and business owners about their successes and struggles related to marketing their business. Today, we have a guest with some great insights, and I’m very happy to have Mike on today. So Mike Stolte is the owner of 406 Blinds. He has grown his business every year since launching in 2019.
As a premium partner with Graber, 406 Blinds operates in Montana and Bismarck, North Dakota, securing major installs, including 20 plus apartment buildings in Bozeman. Voted Montana’s best window treatment company in 2024. The company is also a Costco partner with Graber in North Dakota. And when not working, Mike enjoys the outdoors with his wife and three kids. Mike, thank you so much for being on.
Mike Stolte (00:58 )
absolutely, thanks for having me.
Will Hanke (01:00 )
I appreciate it. noticed when I was reading through that that I said North Dakota and that’s a very Midwest thing to say. anyway, thanks so much for being on. I really do appreciate it. You are you’re in the North Dakota area and Montana. So do you have two separate locations?
Mike Stolte (01:05 )
you
Yeah.
Yeah, well, we started in Bozeman, Montana, kind of expanded to West Montana. So we’re strategic in Montana where we can cover a lot of estate. And then North Dakota came because I had the opportunity to go with Costco. So we’re basically on the I-90-94 corridor east to west.
Will Hanke (01:41 )
Okay. Awesome. Cool. So before we got started, obviously we talked about some different things. And one of the things that you told me is that you managed satellite TV installers for 20 years before starting 406 blinds in 2019. What inspired you to transition to the window treatment industry?
Mike Stolte (02:00 )
Well, I wish I could say I was inspired. It was out of necessity. DirecTV, I was with DirecTV 13, 14 years, managing installers. Before that I was with Sprint. And so I had 20 years management experience. And DirecTV was great until the end. Do you know how like the cell phone kind of took over the landline? This thing called the internet.
Will Hanke (02:05 )
Okay.
Yeah.
Mike Stolte (02:30 )
and streaming put us, DirecTV, putting old school satellites on roofs, kind of, it turned it into a declining market. And it’s not completely obsolete, but close to it. At the time I saw one of my colleagues get laid off and I saw the writing on the wall that I was probably next. So, wanted to leave a declining market and…
Will Hanke (02:51 )
Yeah.
Mike Stolte (02:54 )
move into like an expanding market and the building industry was just booming here at the time. It still is in some ways, but it’s changed a little bit, but that is how I started 406 Blinds.
Will Hanke (03:09 )
Interesting way to get into it. Yeah. So tell us a little bit more about 406 blinds. What kind of separates you from some of your competitors?
Mike Stolte (03:10 )
Thank
Well, we’re not a franchise and I’m not knocking a franchise, believe me, a lot of my peers and networking groups are in a franchise. But what’s great about that is I don’t have any monthly fees. We operate at really low monthly costs. We’re local, local homegrown business. I’ve stepped foot in this valley in 1993. My Jeremy.
Who helps me run the western part of the state is born and bred Montanen. We’re local. And that just gives us an opportunity to give really good high class customer service. We respond right away. And I feel like that’s a pretty, a lot of people, especially Montanens, even though we’re super widespread geographically.
There are still less than a million people. So it is a small town feel and a lot of people love homegrown local businesses.
Will Hanke (04:15 )
Yeah, yeah, that’s always a really nice point to have that local flavor to it. It gives you an advantage in some ways.
Mike Stolte (04:23 )
For sure. Yeah, absolutely.
Will Hanke (04:25 )
Yeah. So how are you positioning 406 to attract customers who are who are obviously valuing quality window treatments in a growing market like Bozeman?
Mike Stolte (04:34 )
Yeah, no, that’s a really good question. And I think the word is out now. When I first started even six years ago, it was me and a couple of the brand names that you probably know. But now there’s seven or eight, nine companies on Google that will show up. The word is out now in town here. I can’t speak for everywhere. But if you call a blind person, you’re going to probably pay a little more and get a little better quality. So I don’t have to do anything proactive positioning.
But once we do get in the home, some people do have a little sticker shock. And that’s when it comes into where you have to explain the value of what you’re offering. That we are much different than going to big box store and buying a blind there. We have a limited lifetime warranty. They’re going to last you 20 years. The energy efficiency, you just really explain the value to the customer.
Will Hanke (05:28 )
Yeah, so the word is out, that’s great. What kind of marketing are you guys doing ongoing?
Mike Stolte (05:34 )
It’s changed since the beginning. In the beginning, ju
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