HUDSON -- Reputation is everything in business.

Companies don't survive and grow for nearly 60 years without keeping customers happy. Hudson Hardware Plumbing and Heating must have done something right.

What started out as a three-man operation in 1949 in the basement of the community's hardware store has grown to nearly 40 employees grossing about $4.5 million in sales. Owner Tom Petersen said focusing on customer needs, providing excellent service, submitting accurate estimates and controlling costs are the keys to success.

"A satisfied customer will tell one person (about your company), but a dissatisfied one will tell 10," Petersen said.

Judging by the growth of the company's customer list since its inception -- from a few farmers to more than 7,000 residents primarily within a 30-mile radius of Hudson -- the former has happened much more than the latter.

The Cedar Valley's recent bout with flooding is a prime example of putting customer needs first. Employees worked around the clock to replace broken sump pumps, remove water and clear clogged drains.

Even Petersen joined the act. When a long-time customer called in the middle of the night because his sump pump failed, Petersen went to the shop at 520 Main St., picked up a new one and installed it himself.

To employee Amy Scott, that lead-by-example mentality motivates co-workers.

"Tom actually works. He doesn't call anybody else to take care of it," Scott added.

Petersen credits his parents, Robert and Margaret, for his work ethic and with showing him the proper way to run a business. Robert handled the service work and Margaret took care of the books. In 1975, the hardware portion of the business was sold but the name stayed the same.

Often helping in the shop and on service calls growing up, installing furnaces and faucets and running the backhoe become part of Tom Petersen's life. Plumbing and helping people became his passion.

"When your parents both run the company, it becomes your second home," Tom Petersen said.

The 45-year-old started buying into the family business in 1981, learning on the job and attending intense factory training.

"You learn more in a week there than six months at a trade school," he said.

The business has grown steadily since the early 1980s. A branch office was opened in Reinbeck in 1983.

Robert and Margaret retired in 1998, with Tom and brother David each owning half of the company. It grew considerably after Tom took sole ownership in 2002 after his brother was forced to retire due health reasons.

However, success does have its drawbacks. Petersen was getting too much work. As a result, 70 to 80 hour work weeks weren't uncommon. At times, customers were waiting months for service.

Plus, he got re-married and became a stepfather of two as well.

Something had to give. Expansion was the answer.

Two years ago, Petersen purchased Russ Foth Plumbing, Heating and Cooling of Cedar Falls. In March, Mark Konrardy Heating and Cooling closed and joined forces with Hudson Hardware.

"I like to work, but I needed to be home more. Now I have more experienced people to rely on for help," Petersen said. "I didn't want to give away work."

Hudson Hardware acquired new customers and an office in Cedar Falls.

While some plumbers concentrate on homes or businesses, Hudson Hardware does it all. It does excavating, drain cleaning, remodels, geothermal, wells and septic systems and heating and cooling.

Variety is a major reason Petersen loves his job.

"It's never the same day. Every day is a challenge," he said.

Dave Krejchi, owner of Dalton Plumbing, Heating and Cooling, can see why Hudson Hardware is successful. While their companies are competitors, Krejchi said, he and Petersen are good friends. He admires Petersen's work ethic, and the friend often rely on each other for advice.

Plus, Krejchi said, the business climate locally is healthy enough that there's plenty of work to go around.

"He's a good competitor. He knows how to make a profit in this business," Krejchi said. "Tom is one of the best backhoe operators around and isn't afraid to get dirty as the owner to make sure things get done."

Contact Matthew Wilde at (319) 291-1579 or matt.wilde@wcfcourier.com.