Paladin Data Corporation

By Wanda Lenoir

Growing up in a family that works in the lumber industry makes you appreciate hard work and the people you work alongside. Everyone comes together to solve problems and find a solution. The life lessons we learn as children often help us visualize the future. Dan and Judie Nesmith, owners of Paladin Data Corporation, recognized that independent hardware and lumber industry retailers needed a specialized software system. The couple made it their mission to develop one. As technology continues to evolve, so does the company.

CEO Mike Williamson understands the challenges faced by retailers and has equipped the Paladin team to provide the company’s clients with multi-level technical support. In this interview, Paladin’s team share insights about the organization with our readers.

What motivated the owners to start the business?
Before Dan and Judie Nesmith founded Paladin Data Corporation in their Bend, Oregon home, the company’s roots were sown in the sawmill towns of the Pacific Northwest during the lumber industry’s heyday.

“Lumber was the commodity of the time. I spent a lot of time in lumberyards and realized I had an affinity for people,” Dan recalls. His father and grandfather all worked in the lumber industry. “Even as a kid, spending time with my grandparents, I was in the house on the hill overlooking the mill where my grandfather was the superintendent.”

Dan discovered a talent for mathematics and pattern recognition in digital chaos, which allowed him to be creative, solve complex problems, help people, and simultaneously build a career and company.

From 1980 until 2000, Dan and Judie were Paladin Data Corporation. Dan developed his DOS operating system, and together, they built PCs and marketed, sold, and installed systems throughout the Pacific Northwest. They often traveled the region’s backroads, where the sawmills, lumberyards, and independent hardware stores were located, rather than the main highways.

“We had one car – a Mercedes 300 SE. Judie put 466,000 miles on that car, and it was our third one,” Dan explains. “It wasn’t uncommon for us to be away from home for four to six weeks at a time. We’ve seen the inside of more motel rooms than any human should.”

To expand their business beyond driving distance, Dan and Judie earned pilot’s licenses and bought a Beechcraft Sierra, roughly doubling the 300-mile range of their old Mercedes. This was the first of several aircraft that allowed the company to reach businesses nationwide.

For a few years, the company shared a hangar with its planes. In the early 2000s, Paladin staff worked alongside their aircraft at the Bend Municipal Airport while developing the Windows version of their software. The product’s popularity and staff expansion led to the purchase of Paladin’s Awbrey Butte campus in Bend, Oregon, in 2015.

Paladin’s air fleet eventually entered the jet age, inspiring the company’s logo. Currently, the company maintains two offices in Arizona and one in Bend Oregon. The original hanger is still used to house company jets and allows employees to travel. Judie is the company jet’s primary pilot and earned her Captain’s certification in 2023.

Is being a U.S.A.-based employee-owned company part of Paladin’s DNA?
Paladin Data Corporation was established to simplify retail processes for industry professionals. This includes creating an intuitive and user-friendly system for everyone, from cashiers to managers and owners.

People have always been the priority. For Paladin’s ownership and management, this philosophy extends to the company’s employees. In 2023, Paladin Data Corporation transitioned to an employee-owned model.

While Paladin has consistently focused on delivering exceptional products and support to its clients, Dan and Judie believe that employee ownership ensures every team member is invested in satisfying Paladin’s clients and the company’s success.

What is the tipping point when retailers recognize the need for retail technology?
Retail technology has become an essential tool for businesses today, helping stores operate more efficiently. Despite its long-standing presence, many stores still rely heavily on pens and paper.

By implementing a point-of-sale and inventory management system, these stores can streamline ordering and inventory management, enhance customer service, and boost profitability.

In recent years, finding and retaining staff has become increasingly challenging, particularly for independent stores in small towns. A POS system can help these stores achieve more with fewer employees, saving staff time by simplifying tasks from ordering products to final sales.

Why does Paladin focus on partnering with Independent Hardware and LBM retailers?
Paladin Point of Sale was developed specifically for the hardware and LBM industry. Dan Nesmith, company founder and president, grew up in the Pacific Northwest and was the son and grandson of men who worked in the lumber industry. His deep connection with the people in this field inspired him to develop Paladin Point of Sale, a tool designed to simplify and enhance their work efficiency. For over 44 years, Paladin has remained dedicated to supporting independent store owners.

Technology can feel overwhelming. How does Paladin simplify the installation/implementation process?
“Powerfully simple point of sale” was the company’s first slogan, and it remains true to this philosophy over four decades later.

“I’m someone who appreciates elegant solutions to complex problems. For me, elegance means simplicity, ease, and brevity. Since the birth of the electronics industry, it seems to have moved in the opposite direction, creating overly complex solutions for simple problems. Who benefits from that? I prefer simplicity and finding the easiest solution to any given situation,” says Dan.

Paladin’s goal is to make everything as straightforward as possible—setup, training, and operation. We achieve this by understanding a retailer’s specific needs and goals and crafting a tailored solution. Paladin is not a one-size-fits-all solution; we work closely with retailers to meet their unique requirements.

Why should retailers choose to partner with Paladin rather than a competitor?
Paladin Point of Sale equips hardware and LBM dealers with the essential tools to streamline operations and achieve success. Integrating with major suppliers simplifies ordering, inventory management, sales, customer incentives, bookkeeping, and more. Paladin Point of Sale offers complete business management solutions tailored for independent retailers and Paladin’s unmatched support is dedicated to customer success.

What is the role of research and development?
Paladin Point of Sale is continually improved and tested, with new features and integrations added regularly. Clients always receive the latest version at no additional cost, as updates are included in the monthly Paladin subscription.

Is customer feedback helpful in generating new ideas?
Paladin Data Corporation collaborates closely with its clients to ensure their success by actively incorporating their feedback. As an employee-owned company, Paladin can swiftly implement changes and enhancements without board approval, making it easier to respond to customer needs.

“We listen to our customers and respond to their feedback. We understand their pain points and needs. Our product is dynamic and continuously evolving,” says CEO Mike Williamson.

Discuss the training retailers receive after installing a POS system.
Our training begins even before a store decides to implement Paladin Point of Sale. By the time a retailer chooses Paladin, our customer relationship specialists have already identified the store’s hardware, software, and service needs and have communicated how Paladin can benefit their specific store.

Our setup process includes a dedicated account specialist who supports the store owner or project manager throughout the process. Our trainers work directly with store staff to ensure they are well-versed in Paladin operations and set up for success before the store goes live.

Paladin also offers an extensive Help Portal with training videos, knowledge base articles, educational webinars, and more. Additionally, Chat Support is available directly within the Paladin Point of Sale software, eliminating the need to visit another website or make a phone call for simple questions.

How do Paladin’s POS systems expedite Inventory Management?
Paladin Point of Sale seamlessly integrates with all major industry suppliers, simplifying ordering through electronic data interchange (EDI), an industry standard. With multiple EDI connections, stores can easily order from various suppliers. Paladin also offers a range of tools, features, and integrations to maintain optimal stock levels:

• Market Driven Inventory Management™: Uses your data to forecast future customer purchases.
• Paladin Nsight™ Dashboard: Monitors inventory performance in real-time, providing actionable insights.
• Suggested Order™ and Order Analyst™: Tools designed to reduce inventory investment and maintain the right product mix.
• Remote Stock Check: Provides real-time stock checks of products available at supplier warehouses, enabling more efficient ordering.

Does the company support any community organizations/causes?
Being founded with aviation, Paladin Data Corporation actively supports AOPA, sponsors the annual Airshow of the Cascades and youth recreational activities. Additionally, we have established an endowment for the Mayo Clinic.

What is the most important thing retailers should know about Paladin?
We simplify the implementation of Paladin Point of Sale for stores, offering low upfront costs and no long-term contracts. Our goal is to earn our clients’ trust through superior solutions and exceptional support.

We collaborate closely with stores to ensure Paladin is the ideal solution for their success. We also provide comprehensive guidance on utilizing Paladin’s features and integrations to optimize store operations.