The Grit Blueprint

Premium Pays, Here's Why: Future of Millwork Sales and E-Commerce with Terry Bailey, DW Distribution

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Want to make more margin where others see only risk? We sat down on the Do it Best Market show floor with Terry Bailey of DW Distribution to map out how independents turn the complexity of millwork into a durable, competitive edge. From deep inventory to guided e‑commerce and premium door systems, Terry shows how dealers can simplify ordering, avoid costly mistakes, and sell with confidence at the counter or the kitchen table.

We start with the big picture: a noisy market, fresh consolidation, and cautious optimism for 2026 as tariffs cool and rates potentially ease. Instead of hiding from that uncertainty, we lean into it. Commodities are easy to lose; millwork is earned. By pairing local expertise with a distributor’s scale, independents can stay light on inventory while delivering faster quotes, cleaner documentation, and on‑time deliveries that keep contractors loyal. Accuracy becomes the advantage, and the payoff is margin that sticks.

Then we get practical. Terry walks through DW’s eMerge configurator, designed to prevent the classic door order errors that wreck profit. We delve into upgraded pocket door systems, including all-aluminum cavity sliders with soft-close features, and explore why these details impact homeowner satisfaction. We also outline a training path for new sellers: start with narrow, proven configurations, utilize digital guardrails to reduce errors, and add premium options as confidence grows. Once contractors experience consistent success, they stop shopping the job for pennies and start trusting you for the whole package.

Topics we covered:

• Bridging commodities to millwork with deep inventory and logistics
• Why complexity creates margin and long-term customer stickiness
• E-commerce tools that make door ordering foolproof
• 2025–2026 outlook, rates, tariffs, and cautious optimism
• How independents compete during the 'Clash of the Titans'
• Practical steps to train teams and narrow error risk
• Why contractors value accuracy over small discounts

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Terry Bailey:

What we think about as a distributor is our dealer community today has a lot of one-step options. And that's where the dealers also have to realize how can a distributor help me run a better business? And it's because we can be in stock because you so you don't have to be, right? It's easy to do some of the larger uh commodity type products, but those are products that for a dealer you can lose tomorrow because the ease are the vast number of people who are selling it.

Stefanie Couch:

The scary thing and the amazing thing about these products is that if you mess them up, you lose a lot, which means that most people are not risk takers enough to do it. I believe that's how the independent, especially the independent dealer, wins against a big, huge player, is that they know the products. A lot of them have installed these products, they know exactly what it looks like and feels like in the real life scenario. Welcome to the Grit Blueprint Podcast, the playbook for building unmistakable brands that grow, lead, and last in the built world. I'm Stephanie Couch, the founder of Grit Blueprint, and I'm a lifelong building industry insider. I was raised here, built my career here, and now my team and I help others win here. The truth is, you can be the best option in your space and still lose to someone else who simply shows up better and more consistently. Each week on the Grit Blueprint, I'm going to show you how to stand out, earn trust, and turn your brand into a competitive advantage that lasts. If you're ready to be seen, known, chosen, and become unmistakable, you're in the right place. Let's get started. Welcome to the Grit Blueprint Podcast. I'm your host, Stephanie Couch. We are here today in Indianapolis on the show floor, and I'm here with Terry Bailey from DW Distribution. Welcome to the show.

Terry Bailey:

Good afternoon.

Stefanie Couch:

We have been at market for a few days now. It's been a busy market. We just finished a panel on how to sell millwork and make lots of margin.

Terry Bailey:

We did.

Stefanie Couch:

It's one of my favorite topics. I think it's one of yours too.

Terry Bailey:

Yeah, making money, selling millwork.

Stefanie Couch:

I love it. You actually have been in the business a long time, Terry. You are Texas born and bred.

Terry Bailey:

Yep.

Stefanie Couch:

You are at DW now, but you've been in the business. You worked at uh a big box for a little while. You've worked at another two-step distributor. And now at DW, you guys build doors. You sell lots of products. Tell me just a little bit about how you guys serve people in the market and what you actually sell.

Terry Bailey:

Yeah, so we're a full-line millwork distributor, uh, but it doesn't stop there. I what I like to do is I like to brag about DW is the is the only two-step postseller in the Texas market that is successfully bridging the chasm from building material commodities to millwork. We have some competitors who are dabbling in that here and there. But when you look at the overall kind of big red wagon, is what we call it at DW. We I feel like we're the only guy that's successfully bridging that total chasm from one to the other. Yeah. So you've got building material commodities, millwork, and then our door shop.

Stefanie Couch:

You have a lot of warehouse space there and you've got big facilities. I've seen them, never walked through a lot of them, but you are right in the heart of Lancaster and then DeSoto, right?

Terry Bailey:

Yeah. So uh DeSoto, which serves as our corporate office, once served all three elements of our business. It had millwork, door fabrication, and build material commodity business. Because building materials carries a smaller margin, you have other branches because your delivery radius is at such a smaller level. So we had Oklahoma and Round Rock. But as those businesses grew, Arlington became uh the the the home for building material commodities, and it recently moved to a new facility down in Midalothian, okay, which is 81 acres and 580,000 square feet.

Stefanie Couch:

Holy cow, I did not realize it was that big.

Terry Bailey:

So that's doing uh that's our building material commodities for the North Texas region. Okay. We still have Oklahoma, and then we're building out our facility down in Columbus.

Stefanie Couch:

Wow.

Terry Bailey:

Yeah.

Stefanie Couch:

Y'all are going crazy over there in Texas.

Terry Bailey:

It's going well. Yeah, it's going well.

Stefanie Couch:

Well, you have been in this business a long time, but what got you started in it? Because I know you wanted to be a game warden. Yeah. Which maybe some days you feel like that. I don't know as a sales manager. Sometimes. Um, but I know that was your dream. So what got you into this business and what kept you here?

Terry Bailey:

Yeah. So working, working at Lowe's uh in the Millwork department, I became familiar with my molding rep, my molding salesman. And so uh close to graduation, I realized uh, hey, I really enjoy the outdoors. I'm not sure I want this to be a job though, like because it's my hobby.

Stefanie Couch:

Yeah.

Terry Bailey:

And then I said, but I don't know what I want to do. Um, and so uh started up a conversation with my molding rep, and he said, Well, you should come sell molding for us until you figure it out. Well, you know, 20 years later, rest is history. But no, I I started working for Southwest as an outside salesman, found that, you know, there was a lot of opportunity in the business. Um, and then uh had a you know, right time, right place sort of opportunities with them and continue to elevate. Uh when I left there uh in 2016, I was the general manager and president of the company. Um, and then uh, you know, I competed against DW for that full 17 years, really respected them. So when I decided Southwest Molding was no longer the home that I wanted to be at, they were my first phone call. Yeah. And I said, uh, I remember telling Nathan, hey, we've been kicking each other in the teeth for like 20 years now. What do you say we joined forces? And he said, I like the idea. That's okay. And they gave me a place to stay there and started working with him and Aaron. And we've had a a lot of fun growing the business until now. And then we were acquired in 21 by SBP, which was a good transition for us.

Stefanie Couch:

Yeah, I used to buy a lot of stuff from US Lumber when I was at my dad's lumberyard. So it's a company I know well and obviously has specialty building products has grown since really like 2018, 2019. It's incredible to watch what they've done with Reeb and Amherhart and Alexandria, all the acquisitions, including DW Millwork sells. You guys are everywhere. You're here on the market floor. You guys are an LBM gold sponsor. Yeah, very big partner of Do It Best Group.

Terry Bailey:

Yep.

Stefanie Couch:

They really have a lot of options from you guys. Doors, uh, you have siding, you have trucks decking, you have lots of different things. What's the buzz been like this weekend on the market floor?

Terry Bailey:

You know, I it's been a lot of the feeling is a lot of that same cautious optimism. And we thought that 25 was going to be a pretty strong year. We had just come off the headwinds of the COVID supply crisis and some of the other things that were happening. And so everyone had like this optimism for 25. And then and then we have 25. And so we've had some new headwinds and changes that we're up against. But I think a lot of that is also we're seeing that settle down. The tariff conversation is settling down. We're looking forward to this uh this next change from the Federal Reserve. If there's a change to the overall market uh mortgage rates, hopefully that kind of encourages some things on the billing side. So again, I think there's some things that we're looking forward to in 26 that we can look uh in a positive light at. Um, and that's what kind of the spirit of the market is this this time around.

Stefanie Couch:

Well, also with new true value members, I think they're excited to have a really strong LBM type team because that was something before that they weren't, they didn't have a big team like this. So it it is great for them to be able to have options that maybe weren't available before.

Terry Bailey:

That's right. That's exactly right. Yeah.

Stefanie Couch:

Well, I want to shift a little bit because we just did a conversation for a learning session today on stage talking about people being scared or fearful to get into the millwork business because it is technical. There are a lot of things that could go wrong in the door business. You can order the wrong hand, you can order the wrong jam size, you can order the wrong style. But with that being said, with great fear comes possibility of great margin.

Terry Bailey:

That's exactly right.

Stefanie Couch:

And you at DW have made it relatively easy to get into the business and then to thrive in the business. So tell me a little bit about how you're working with dealers.

Terry Bailey:

Yeah, so I think it's really a complete adoption of the technology and the e-comm side of the business, which a lot of our competition is behind the behind the eight ball on. Uh, DW has done a really good job of embracing that side of the business. And so starting off with our business-to-business e-com tool, which was formerly known as 24-7. It's currently Magento. And then later this year or early 2026, we'll be launching another version of that online e-commerce and just making that really easy to do uh business with us. So uh up and down the uh the overall continuum of service, whether it be tracking my truck or finding availability or what's my price or uh ePODs and things like that. But then uh about four years ago, we launched eMerge, which is our online door configurator, which took a very, very complicated and dangerous process of ordering door units, and we simplified it by making it somewhat foolproof. I should say completely foolproof, answering every question along the way, not allowing the user to miss a step, uh, using um diagrams and pictures to explain what left hand versus right hand is, active versus passive panels, those sort of things. And so it's just revolutionized the way that people order doors and minimize the issues that we're that are inherent with that category of product.

Stefanie Couch:

And if you're a dealer and you have a tool like that, you can pull it up right with the homeowner there or with the contractor there, show them what's available. You can actually have their pricing set up on there so you don't have to worry about them seeing your costs on the computer screen. I used to I used to do some real movement around in the dad in my dad's lumbery or like trying to hide the cost for people. Um, you know, people are looking around. You guys don't have that problem. And it's made to sell at the kitchen table if you want to do that or at the lumber counter. And it helps people understand, like I said, what's even available because there are so many products out there. There are new products coming out every day. And I mean, I can't keep up and I know doors pretty well because I've been doing it for a long time. Someone who's new who maybe is straight out of college trying to sell doors, it can be very intimidating. So this tool really helps you be set up as an expert without having to have 20 years of experience.

Terry Bailey:

That's exactly right. And we look at other design features today, like so we know the the popularity of barn doors. You can incorporate that into these online configurators, making it easy to select the hardware and the doors that go with that or or pocket door frames. So DW's got a new product line called uh branded cavity sliders, which is a higher-end upgrade pocket door frame system. And we've incorporated that as part of an option in our e-merge system today. And uh, yeah, it just makes that super easy as well.

Stefanie Couch:

Does that pocket door hardware just have a heavier? You can put a heavier door in it and your kids can slam it a little bit harder and it doesn't come off.

Terry Bailey:

Yeah, it's a completely all-aluminum system. But then it's got uh, you know, some of the features of cavity sliders is you can get the soft close options all the way down to a 2-0 option, which is unique for pocket door frame systems, and it's automatically heavy duty. And some of the roller systems that they have just make it, you know, it's not your traditional grandma's pocket door frame anymore. It's a it's a product that you can that you can install and have confidence in.

Stefanie Couch:

This episode of the Grit Blueprint Podcast was sponsored by Do It Best Group. Do It Best Group is the largest co-op in the world, and they help independent hardware and lumber yards all over North America win. Do It Best offers services, products, and people that can help you win long term. They are the champion of independence. One of the things we've talked about a lot are what I'm calling the clash of the Titans. So there's a lot of big dogs out there fighting for the pro contractor with a lot of money and a lot of technology. Brad Jacobs with QXO, Home Depot. Now they've bought, you know, uh SRS, they bought GMS. Everybody has letters. You have letters too. We do. Um, so I guess I I should have named my business like some some ABC deal. But at the end of the day, there is a lot of noise in the market right now. And it's really hard to understand how does the independent dealer still compete and not only just compete, but how do they win? Yeah, and you have a lot of thoughts about that. So share those with me.

Terry Bailey:

Yeah, absolutely. I think it's a prime time. You know, you shouldn't be afraid of it. You should embrace the fact that there is chaos and noise in the market, and that you, as an independent dealer, for example, uh can circumvent all of that noise for the contractor who just wants good quality product at a good price and good service. That's really all they want at the end of the day. And while you have these these titans that are trying to figure it out, the independent's halfway there. They've got the service prop. They just have to have the supply side. And that's where I think if they embrace what we do as distributors and wholesalers, if they embrace and understand that we can help them run that better business, uh, they can really start to take some serious share and along the way make some serious money with these millwork products.

Stefanie Couch:

Absolutely. Yeah. All right, are you ready for the door lightning round of questions?

Terry Bailey:

Let's do it.

Stefanie Couch:

This was not planned. All right. What is your favorite door style? If I was gonna give you an unlimited budget, you're gonna put something on the front of your house, any house, dream house, what would you pick?

Terry Bailey:

Oh, that's a good question. It's gotta be uh it's gotta be a fiberglass door. It's gotta be uh a, you know, a lighted door. Uh I love the wrought iron features. I know that that's still a little bit more.

Stefanie Couch:

That is the most Texas answer I've ever heard, Terry. The only person in the whole 49 states otherwise would never say wrought iron. I should have known that's what you're gonna say.

Terry Bailey:

Absolutely.

Stefanie Couch:

I love it. What style of wrought iron? Like something, a Texas star?

Terry Bailey:

Yeah, Texas Star for sure. Yeah.

Stefanie Couch:

Are you eating brisket when I open the door to come into your house? Hopefully, it's good brisket.

Terry Bailey:

Yeah.

Stefanie Couch:

I know we have a difference of opinion also on the best brisket in Texas. I think Terry Back Black's barbecue is the best, and you actually like Heart eight. Heart eight. Heart eight is pretty good. Yeah. I have to wash my hair immediately after because you smell like it. I mean, it's like a three shampoo cycle to get that out of your hair.

Terry Bailey:

Absolutely.

Stefanie Couch:

I love it. Okay.

Terry Bailey:

I don't have that problem.

Stefanie Couch:

Question number two. If you were going to go with a wood door, what species is your favorite wood species?

Terry Bailey:

Oh, it's got to be one of the mahoganies, the kume's, the sepiles, the the you know, the mahogany feature, just because the the richness of the wood and yeah, it's gorgeous.

Stefanie Couch:

It is beautiful. And when they stand it up, I'm a walnut girl, black walnut for me all the way.

Terry Bailey:

Beautiful door, too.

Stefanie Couch:

Of course, it's like the most expensive grain. My husband loves that about me that I can obviously pick the most expensive thing in any store, any product. Yeah. All right. If you were going to remodel your house, what is one feature that you absolutely couldn't live without?

Terry Bailey:

Good question. Um, you know, I think, you know, when we talk about pocket doors, they there's a lot of things that they do that allow you to change the makeup or the flow of a house because you're not having to accommodate for the swing. And I would definitely upgrade all of those systems with soft clothes features and all of that. So that's something that I couldn't live without.

Stefanie Couch:

That's a great answer. My granddad's house was built in 1977, and he had these double pocket doors that were going into like the living room, to the hallway, to back to the bedrooms, and they were off track my entire life. Yeah, and like we would just leave them open because they wouldn't work, but you don't really see that as much now with great hardware like what you guys have, and it can handle the heavy duty. But there is pocket doors are awesome because no matter what you're doing, you get more space, closets, bathrooms, all those things, and you can lock them. So and you can do like a little touch on a creative walnut or mahogany in one or two places in your room. Yeah, I would want a butler's pantry. That's my thing right now. So you could just put all the mess away and not have to worry about it with a pocket door, of course. Absolutely. Um, maybe like a white oak door. All right. So last question is what do you wish that people in our industry knew about our business? That what do you think people are missing? And how does that affect the next generation of our ambitious next generation?

Terry Bailey:

Yeah. So I think um uh, you know, what folks miss the most is what we've talked about. It's it's you you gotta get beyond the veil of that intimidation of these products. They there's a lot of options, there's a lot of features, but you can start to skinny that down pretty quick.

Stefanie Couch:

Yeah.

Terry Bailey:

Um, and and you got to get away from you know what we think about as a distributor is uh our dealer community today has a lot of one-step options. And uh, and that's where the dealers also have to realize what you know, how can a de how can a distributor help me run a better business? And it's because we can be in stock because you so you don't have to be, right? And so I think um it's easy to do some of the larger uh commodity type products, but those are uh products that for a dealer you can lose tomorrow because the ease are the the vast number of people who are selling them. With Millwork products, there's because they're a little more complicated, you have fewer options, you can uh you can kind of kind of dial that in with uh who's supplying you and who you're selling to.

Stefanie Couch:

The scary thing and the amazing thing about these products is that if you mess them up, you lose a lot, which means that most people are not risk takers enough to do it. I happen to just, I guess, be the jump off a cliff girl. Yeah. And door doors is where I decided to jump off the cliff, I guess, in my career mostly to start. And that shows me that if you can get really good at that, I believe that's how the independent, especially the independent dealer wins in 2026, 2027, 2028 against a big huge player, right? Is that they know the products, they're experts. A lot of them have installed these products, they know exactly what it looks like and feels like in the real life scenario. And you can make a lot of margin selling those. Yeah, so if you can get it right and train your people, you can win big dollars from this, you know, sell these. Absolutely.

Terry Bailey:

Yeah.

Stefanie Couch:

And like you said, distribution, you guys do this every day and it's all you do. If you're selling hardware one minute, plumbing the next, you got, you know, doors, windows, all the products, you don't have to know every detail about it because you have your team to support that and the do-it-best team.

Terry Bailey:

Yeah, traditionally with Millwork products, it's it's not a bid-by scenario. Once a general contractor or a dealer finds a supplier that does it consistently with great uh success, yeah. It's not something that you're gonna find. Uh they they flip you for a dime on.

Stefanie Couch:

Yeah, I absolutely agree with that wholeheartedly. Well, thank you so much for joining me today. I'm hoping we get to come down and eat some heartache barbecue soon together. And uh, I would love to come tour your beautiful door shop. I know it's immaculate, so I've heard lots of good things.

Terry Bailey:

Well, I I've really enjoyed this when I told my daughter that I was doing a podcast this week and she goes, Ooh, dad, you podcast. So my self-esteem was a little rattled, but I enjoyed it.

Stefanie Couch:

I mean, I'm gonna send this to her and make sure she gives you two thumbs up. You crushed it. You crushed it.

Terry Bailey:

Okay, good.

Stefanie Couch:

What would her lightning round question be for dad?

Terry Bailey:

Oh, I uh I don't know, something about how I'm antisocial.

Stefanie Couch:

Well, um, that's okay because you're pretty social at these shows, and that's all that really matters. Yeah, I mean, I love it. And you did great on stage today. So what's your daughter's name?

Terry Bailey:

Madison.

Stefanie Couch:

Madison. Hi, Madison. Dad crushed it. Make sure you give him a big hug and tell him how awesome he is. I know that's what you're gonna do at the end of this, so I love that. Well, I will see you on the market floor and we will see you on the next episode of the Grip Blueprint Podcast. Thank you for listening to the Grit Blueprint podcast. If this episode helped you think a little differently about how to show up, share it with someone in your building world who needs it. If you're ready to turn visibility into growth, then head to gritblueprint.com to learn more and book a call to talk to us about your growth strategy. Until next time, stay unmistakable.

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Stefanie Couch

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