"Creating value rather than maximizing profit"
Interview with Michael Bader, Managing Director and owner of magnetic GmbH & Co. KG
With a clear attitude, a keen sense for market changes and a deep understanding of the needs of the craft sector, Michael Bader, Managing Director of magnetic GmbH & Co. KG, has made his company a successful player in the SHK sector. In the interview, he talks about growth, internationalization, and corporate culture – and about his very personal motivation.
Wirtschaftsforum: Mr. Bader, magnetic GmbH & Co. KG has been developing for over 30 years. Which milestones have been particularly significant for you?
Michael Bader: An important turning point was in 2007. At that time, we decided to stop selling to end consumers and to sell exclusively to craftsmen. This was a clear commitment to two-tier distribution – direct, without wholesale. In 2014, we then took the step towards in-house production. Previously, we had been exclusively dealers. With our own manufacturing, we could better control our product quality. And since 2016, we have been actively expanding our international business. This has developed very positively.
Wirtschaftsforum: How is your company structured today?
Michael Bader: Our headquarters, including warehouse, production, and administration, are located in Untermünkheim. Our field staff are active throughout Germany. We have also had a branch in the United Kingdom for two years. Currently, we employ about 50 staff in total.
Wirtschaftsforum: What was the deciding factor for establishing the branch in the UK?
Michael Bader: It actually came about through a good contact. A former client wanted to set something up there – we implemented this project together. The British market is exciting, and so we took the plunge.
Wirtschaftsforum: What is your export share and what does the overall sales development look like?
Michael Bader: We export between 12 and 15% of our products – with an increasing tendency. Especially good performances are currently seen in Spain, Sweden, Norway, Slovakia, Poland, the Czech Republic, and Belgium, as well as Estonia, Latvia, and Lithuania, also Northern Italy, Croatia, and Austria. We are also active in France. Furthermore, we have partners in Mexico, New Zealand, Slovenia, Romania, and Switzerland. We have been growing by an average of about 20% annually since 2007, with no year in the minus. There have been quieter years, but also peaks with 50% growth. Our goal is to continue to grow in double digits – however, with substance, not just in numbers, because growth for me means reinventing oneself every year. As Reinhold Würth said: Anyone who wants to grow by double digits must constantly reinvent themselves. That drives me.
Wirtschaftsforum: These are impressive figures – what, do you think, sets magnetic apart from other providers, what are the reasons for the company's success?
Michael Bader: Our success is primarily based on three pillars: Firstly, product quality is standard for us, not a unique selling point. Our USP lies in service: Our field staff bring time for the customer. We support craftsmen in the introduction of new products – even directly on the construction site. In addition, we offer free water analyses with clear recommendations for action. And we protect the craftsman: Our products are not available on internet platforms, but exclusively in specialist trades. This creates trust. Another important point is innovation: Heating water is often the weak point in energy efficiency. Our products optimize existing heating – by cleaning and treating the water. This allows customers to save measurable energy. We develop solutions that make heating circuits more efficient and durable – even for older systems. And last but not least, values are important to us: Maximizing profit is not our goal. We focus on maximizing benefits – for customers and employees. Only if all parties benefit, is it a good business.
Wirtschaftsforum: Given this context, how are you doing with recruiting new employees?
Michael Bader: Unlike others, we do not feel the shortage of skilled workers. In fact, we currently even have a hiring freeze in our sales department! Our intensive training process limits the number of new employees per year; for us, it’s about quality over quantity. For us, motivation is key: Our people need to be eager to make a difference.
Wirtschaftsforum: What are your expectations from politics?
Michael Bader: I would prefer less interference. Companies should be market-oriented, not subsidy-oriented. Subsidies create wrong incentives and distort business economic actions. We want to convince with quality – not with subsidy programs!
Wirtschaftsforum: Finally, a personal question, Mr. Bader: What motivates you in your job?
Michael Bader: Certainly: the desire to create utility. I am delighted when our actions help others – customers, employees, partners. Of course, I want to be successful myself. But real fulfillment comes when you look back and see what has grown. Healthy growth is important to me, both in Germany and internationally. But above all, I want to preserve the values of a family business – that is our most important asset. My wife and I built the company, and with our daughter Jessica and our son-in-law Daniel, we know that the company culture will continue in the next generation.