The Evolution of Ultra:

Ultra’s journey from a humble hardware store to a dynamic design center is a tale of transformation and growth. It all began in 2004 when the company, initially known as Finish Hardware, was acquired. Originally focused on hardware with a side of plumbing, the company’s name was updated to Ultra Hardware. As the plumbing segment gained prominence the name no longer fit, leading to another rebranding as Ultra Design Center in 2006.

Despite its new identity, the business remained small and stable but lacked the infrastructure to scale. It was at this crossroads that Kevin Castelo entered the scene. “At that point, the business was owned by my uncle Al,” Castelo recalls. “We came up with a deal where I would come in as a minority owner and take over day-to-day operations. In 2012, with my consulting and business background, I saw it as a turnaround opportunity.”

Castelo embarked on a comprehensive overhaul, revamping the software, processes and team structure. This pivotal move set the stage for Ultra’s expansion. By 2019, Ultra had outgrown its 3,500-squarefoot showroom and relocated to a spacious 15,000-square-foot facility. This expansion wasn’t just a physical change; it marked the introduction of lighting as a third product line, diversifying Ultra’s offerings. The most recent milestone came earlier this year when a partner buyout was completed, with Al stepping down, solidifying Castelo’s leadership.

A Culture Built on Empowerment and Customer Focus

Ultra’s distinct company culture is a cornerstone of its success. The company prides itself on being a non-micromanaging environment where independence and self-motivation are key. By aligning team incentives with business goals, Ultra ensures that employees think like owners and are empowered to make decisions that benefit both the business and its customers. This culture has fostered a loyal customer base and a strong market reputation.

Ultra serves three primary customer segments: retail, trade and distribution. Retail customers are individual homeowners, while trade customers include designers, builders and installers. Distribution focuses on B2B sales to other distributors, often focused on specialty products with limited distribution. Regardless of the customer type, Ultra places significant emphasis on the homeowner experience, acknowledging that even trade customers’ projects ultimately have a homeowner who will live with the product and is the end-customer paying the bill.

With a current product mix of approximately 70% plumbing, 20% lighting and 10% hardware, Ultra is strategically positioned for growth. Although lighting constitutes a smaller portion of sales currently, the company anticipates lighting has the potential to be as big as plumbing sales as Ultra takes market share from local lighting competitors. Ultra has chosen to focus on areas where it can excel, steering clear of segments like track homes, multi-family or commercial projects where different skillsets are required.

Strategic Partnerships and Technological Advancements

Ultra’s strategic partnership with Luxury Products Group (LPG)/ IMARK has brought significant advantages. Prior to joining, Ultra managed individual vendor contracts, a time-consuming process. LPG/IMARK’s expansive network allows for better-negotiated terms and streamlined vendor management, enabling Ultra to concentrate on its core operations. This partnership also provides the flexibility to select brands and products that best suit their market and customer base.

Looking ahead, Ultra is excited about the potential of technology to enhance its operations. From automating sales, accounting and purchasing processes with artificial intelligence (AI) to improving customer interactions, technology is seen as a key enabler of efficiency and superior service. Ultra aims to offer a frictionless customer experience, allowing clients to select products, track orders and manage payments seamlessly.

Navigating the Unique Colorado Market

Operating in Colorado presents distinct challenges and opportunities. While Denver is a significant market, the state’s expansive geography includes secondary home markets such as Aspen, Vail and Steamboat. A notable portion of Ultra’s business comes from these mountain regions, which are often challenging for competitors due to high operating costs. Ultra’s ability to serve these remote markets from Denver gives it a competitive edge, as many businesses struggle in vacation markets without a deep understanding of their unique demands.

In conclusion, Ultra’s evolution reflects a blend of strategic foresight, cultural integrity and adaptive innovation. From its origins in hardware to its current status as a design center selling plumbing, lighting and hardware, the company’s journey highlights its commitment to growth, customer satisfaction and market adaptability.