The Top 50 Distributors List recognizes the top-performing distributors each year, and as a whole this year, distributors have exceeded expectations. The list’s totals have crossed the $4 billion mark ($4.2 billion to be precise), increasing the total revenue of those appearing on this list by about $350 million. The threshold to join the list also rose. Last year, $18 million in sales earned a Top 50 spot, while more than $24.5 million in sales was needed this year.
The top earners and biggest climbers were eager to share their thoughts, so we interviewed a selection of them about their ascents to becoming top distributors, their 2014 accomplishments, the biggest challenges facing distributors and the industry’s future.
#1 4imprint
Kevin Lyons-Tarr, CEO
www.4imprint.com
Promo Marketing: What is the key to becoming (and remaining) a Top Distributor?
Kevin Lyons-Tarr: [The key is] finding and retaining the right team so that they can focus on finding ways to deliver constantly improving value to customers.
PM: What was your company’s biggest accomplishment in 2014?
KLT: We don’t really think in terms of “biggest accomplishment” as much as setting challenging targets for ourselves and then achieving them. So, I guess I’d say I’m pleased with our performance against the targets we set for 2014.
PM: What is currently the biggest challenge a distributor faces?
KLT: Every distributor is different, so I’m not sure there is a broad-brush answer. Keeping up with the pace of change in terms of technology, demographic shifts [and] changes to the advertising and marketing landscape are probably some challenges we all share. In effect, staying relevant.
PM: How can distributors stay relevant in the industry?
KLT: Listen to your customers. Seek their input. Look at industries outside of our own.
PM: How has the industry evolved since you started? What do you think the future will entail?
KLT: The obvious answer is the shift towards the Web, which is still ongoing. Going forward the demographic shift of the B2B buyer, combined with the rapid change in technology, will give us all plenty to think about.
#2 Proforma
Vera Muzzillo, CEO, and Greg Muzzillo, Founder
www.proforma.com
Promo Marketing: What is the key to becoming (and remaining) a Top Distributor?
Greg Muzzillo: I do not believe that there is only one key to becoming and remaining a top distributor. […] Business models of top distributors include: Internet sales models, sales rep models, large account/account manager models and business-owner empowerment models like Proforma. […] The key for us are two key strategies:
- Recruit and retain great distributor owners.
- Help our owners build great businesses.
PM: What was your company’s biggest accomplishment in 2014?
GM: We are proud of all the million and multi-million dollar successes our owners experienced in 2014.
PM: What is currently the biggest challenge a distributor faces? How can one overcome that challenge?
GM: Since there isn’t just one business model in our industry, there also isn’t one single business challenge. That said, most distributors are smaller (under $5 million), owner-operated direct-selling companies. My observation about most of these smaller distributors is:
- The owner doesn’t dream big enough.
- The owner spends too much time on nonrevenue generating [and] nonwealth building activities.x
- The owner lacks the time, tools and resources to sell larger accounts, and to attract and retain great sales talent.
- The owner lacks the capital to fund great growth.
- The owner lacks the technology solutions to sell larger accounts and programs.
#3 BDA LLC
Jay Deutsch, CEO
www.bdainc.com
Promo Marketing: What is the key to becoming (and remaining) a Top Distributor?
Jay Deutsch: Your ability to challenge the status quo and diversify your business is key to becoming an industry leader. Being at the forefront of technology and design is how you remain at the top. Then it’s about your people. We’ve been blessed to be surrounded by a collection of talented people who never settle. Our company is constantly pushing the boundaries and we have fun while doing it.
PM: What is currently the biggest challenge a distributor faces? How can one overcome that challenge?
JD: Stagnation and maintaining the industry standard. It’s easy to sit back and react to the needs of the business. To overcome this challenge, you must outpace creativity and take proactive risks for your clients. If your mindset is to always seek out new technology, service offerings, forward-thinking partners and visionary personnel, then you will never settle for the standard and continuously grow.
PM: How must distributors adapt to stay relevant in the industry?
JD: The key to adaptation is being able to outpace the industry and the expectations of our clients. It’s about aligning yourself with suppliers and business partners who have the best technology, product offering, customer service and desire to push the limits. If you come to your clients with a solution before they even know there is a need, you will always be the one setting the standard.
#4 Integrated Merchandising Systems LLC
Rick Remick, CEO
www.imsfastpak.com
Promo Marketing: What is the key to becoming (and remaining) a Top Distributor?
Rick Remick: In our experience, it is about three things. First, it starts with listening—understanding the client’s business objectives, and collaborating with stakeholders to develop terrific programs and products. Second, innovation is critical—both the products offered and the programs they support. Third, IT excellence is critical for field end-users to order/participate in the programs and the back-end systems that support program execution. And, of course, the pricing must provide value to individual clients and the enterprise.
PM: What is currently the biggest challenge a distributor faces? How can one overcome that challenge?
RR: The biggest challenge we embrace is providing clients’ true insight into the vast array of product offerings to keep programs relevant and cutting edge. A disciplined approach and curious, passionate people are the keys to staying ahead of the curve.
PM: How must distributors adapt to stay relevant in the industry?
RR: Listen to clients, the marketplace and manufacturers, so you can proactively drive engagement with the program.
#5 HALO Branded Solutions
Marc Simon, CEO
www.halo.com
Promo Marketing:
What is the key to becoming (and remaining) a Top Distributor?
Marc Simon: Develop a consistent, sustainable and competitively attractive value proposition that is consistent for your account executives, clients, suppliers and employees. Remain true to that value proposition at all times.
PM: What is currently the biggest challenge a distributor faces? How can one overcome that challenge?
MS: Keeping up with the latest technology and complying with the myriad of product safety requirements we all face are among the greatest challenges distributorships face today. To address those challenges, the distributor must dedicate competent resources to technology and to product safety, and continually invest in anticipating and responding to market trends.
PM: How must distributors adapt to stay relevant in the industry?
MS: The business world is changing rapidly, and no area is changing more quickly than marketing. Use of social media, communication with the millennial generation, electronic data exchanges with business partners, and product and supplier knowledge all require an infrastructure that is flexible, aware and adaptable.
#6 National Pen Company
Dave Thompson, President/CEO
www.pens.com
Promo Marketing: What was your company’s biggest accomplishment in 2014?
Dave Thompson: We spend a lot of time on continual process improvement, which all starts with finding the right measurements, doing an analysis of the biggest opportunities for improvement and then executing on plans to improve.
PM: What is currently the biggest challenge a distributor faces?
DT: Distribution has been a big problem with the West Coast port issues. Hopefully, that is now behind us. In parallel, attempting to improve our forecasting will really help as well.
PM: How has the industry evolved since you started?
DT: While a great deal has changed, our industry is still largely built on personal relationships and our creativity to continually find new ways to add value.
#7 AIA Corporation
David Woods, President/CEO
www.aiacommunity.com
Promo Marketing: What is the key to becoming (and remaining) a Top Distributor?
David Woods: The desire to become and remain a Top Distributor must be at the core of the company’s culture. It rarely happens by accident. One must constantly focus on growth, and develop a business plan, key initiatives and the resources necessary to drive that growth. Flexibility and a willingness to embrace change are also critical factors. Building a strong team spirit, a sense of shared vision and attracting a community of people who share those values will help to ensure success.
PM: What was your company’s biggest accomplishment in 2014?
DW: For the third year in a row, AIA achieved the highest level of sales and success in its history.
PM: How has the industry evolved since you started? What do you think the future will entail?
DW: The industry has grown from approximately $5 billion in annual sales to over $20 billion in sales over the time I’ve spent in it. There has been a great deal of consolidation in both suppliers and distributors. The most successful companies now tend to be much larger, and I believe are more professionally managed. Technology, innovation and speed are now key factors for achieving and maintaining success, driving a much higher and continuing need for investment. I think these trends will only intensify. Nonetheless, I don’t think there has ever been a better time to be in our industry. The future looks very bright, indeed.
#9 iPROMOTEu
Ross Silverstein, President/CEO
www.ipromoteu.com
Promo Marketing: What was your company’s biggest accomplishment in 2014?Ross Silverstein: iPROMOTEu’s most important accomplishment in 2014 was successfully supporting our nearly 600 independent distributor affiliates in the same manner of excellence as in prior years—by financing and processing their orders, by providing them with business/accounting, sales/marketing and technology tools; by providing back-office administrative support; [and] by serving them and addressing their needs promptly, professionally, courteously, and with the utmost respect.
PM: What is currently the biggest challenge a distributor faces? How can one overcome that challenge?
RS: A distributor’s biggest challenge is to continually generate meaningful sales volume at above-average margins. In the midst of increased competition (seemingly, from all directions) and more knowledgeable and scrutinizing buyers, this is a difficult challenge, indeed. One needs to regularly prospect for new customers, maintain strong relationships with existing customers and work tirelessly to develop creative ideas. In addition, distributors need to stay on top of all the paperwork, all the details, and all the mind-numbing non-revenue generating activity.
PM: How must distributors adapt to stay relevant in the industry?
RS: Read the book “Who Moved My Cheese.” Change happens. Anticipate change, monitor change, adapt to change quickly, change, enjoy change [and] be ready to change again.
#10 American Solutions for Business
Justin Zavadil, Executive Vice President
www.americanbus.coms
Promo Marketing: What is the key to becoming (and remaining) a Top Distributor?
Justin Zavadil: A distributor needs to be able to change directions on a dime in order to fit the customers’ changing needs. This is done through flexibility and innovation. We put the majority of our investment into the technology tools needed to secure enterprise business and large program sales associates.
PM: What is currently the biggest challenge a distributor faces? How can one overcome that challenge?
JZ: I would say that “speed to market” is one of the biggest challenges we face. Customers are accustomed to being able to order in the middle of the night and see those orders arrive in 24 to 48 hours. You need to leverage technology and broaden your supply chain in order to have the options needed to fit your customers’ needs, and have the flexibility to get custom products in your customers’ hands in the timing they are used to in today’s market.
PM: How must distributors adapt to stay relevant in the industry?
JZ: To adapt, we need to continue to innovate with e-commerce and integrated technologies, and understanding the changing product mix. We need to stay on top of what is relevant in the marketplace and have those offerings in front of customers before the competition does.
Biggest Climbers
#26 ePromos Promotional Products Inc.
Jason Robbins, CEO
www.epromos.com
ePromos Promotional Products Inc. moved up four spots and increased sales by about 40 percent.
Promo Marketing: What was your company’s biggest accomplishment in 2014?
Jason Robbins: Training more and more excellent team members who are passionate about helping our customers be the best they can be with promotional merchandise.
PM: What is currently the biggest challenge a distributor faces? How can one overcome that challenge?
JR: Building a brand name, so you don’t have to find one client at a time. It’s not easy for smaller players to build a brand that works for them.
#34 Mercury Promotions and Fulfillment
Jon Sloan, Managing Partner/CEO
www.mercuryfs.com
Mercury Promotions & Fulfillment moved up six spots and increased sales by about 44 percent.
Promo Marketing: What was your company’s biggest accomplishment in 2014?
Jon Sloan: Wow. So much was accomplished at Mercury in 2014. We had a record year. We received contract extensions from our top clients. We secured over 10 new clients through RFP initiatives and opportunity identification. We supported a top client in [its] largest new product launch in over 50 years. For me and my executive team, a great accomplishment was paying out the largest employee bonuses in the last 10 years (of which every year bonuses were distributed).
PM: What is currently the biggest challenge a distributor faces? How can one overcome that challenge?
JS: The biggest challenge a distributor faces is trying to keep a current client from going back out to RFP at the end of the contract term. … You can understand a client wanting to go out to RFP if the services you are providing are subpar. You even deserve to be fired if your service is bad. However, when the distributor is proving extraordinary creativity, service and fiscal economies, well, you will achieve much more greatness together by signing a contract extension instead of trying to find a low bidder.
#43 MadeToOrder Inc.
Barbara Brown, CEO
www.madetoorder.com
MadeToOrder Inc. moved up four spots and increased sales by more than 47 percent.
Promo Marketing: What is the key to becoming (and remaining) a Top Distributor?
Barbara Brown: MadeToOrder finds ways to retain and incent top revenue producers. We constantly find methods to satisfy and provide opportunities for growth and autonomy. The best producers have an entrepreneurial business spirt in their personality.
PM: What was your company’s biggest accomplishment in 2014?
BB: It was our highest sales revenue year since inception and digesting an acquisition [of Jams Marketing, Costa Mesa, Calif., in May 2013].
See the entire 2015 Top 50 Distributors list here.
