The reccession—after two years of near-constant media coverage, it’s become something that comes off as filler content from press outlets. Another story about high unemployment numbers. More foreclosures. Wall Street scandals. The Dow is up. The Nikkei is down. Coffee sales predict this, but toy sales predict that. After a while, it all becomes a dull pessimistic hum, annoying you as you try and move on with your day.
Regardless of media-saturation, the reality of how central the recession was to our industry in 2009 can’t be ignored. The worst economic situation our country had seen in years, 2009 brought huge losses across our industry, both to the big distributorship networks and smaller independent companies. Many businesses lost millions in revenue, and a large handful even decreased at the tens of millions scale. Certainly though, the bulk of these losses were not a result of poor management or leadership.
The recession blindsided almost everyone, drying up credit and crushing many reliable end-buyer markets, like banking and real estate, before anyone could realize what was happening. Not to mention the global impact of the recession causing problems with overseas manufacturing, industry supplier mainstays declaring bankruptcy and most businesses in general cutting back severely on money spent on marketing. If anything, the fact that our industry not only survived the recession, but also had companies increase in size, is a testament to the willpower, adaptiveness and skillful leadership of every distributorship out there.
It’s difficult to pinpoint the source of this strength, and to be sure, it comes from different places for different people and different companies. What’s easy to see is what these sources bring: an optimism and courage that has been undeniably valuable in fighting though the economic miasma until the better times arrive.
The interviews that follow with the top 10 distributor companies are reflective of this strength. There is a sense of hopefulness in each, often accompanied by an equally important steadfast attitude and finely tuned pragmatism. As we all prepare for a better and brighter 2010, it may be of benefit for those looking for motivation, encouragement or just a sense of not being alone to read on, think about what is being said, and focus on moving forward.
Proforma
Cleveland, OH
www.proforma.com
Principals: Greg Muzzillo, founder, and Vera Muzzillo, CEO
Promo Marketing: Do you see anything happening in the industry’s future that others might not be anticipating? Why is it going to matter?
Greg Muzzillo: I think there are some companies, both suppliers and distributors, that are hanging on by a thin thread. There will be more business failures this year that may be a surprise to some. It will only matter to those people who get hurt, particularly good employees and suppliers.
PM: What’s one of your worst sales or management memories, and what did you learn from the experience?
GM: When we were a very small company, I needed to fire a salesman. I asked to meet with the salesperson after hours so the firing wouldn’t be disruptive. He showed up in the offices with his doberman pinscher. I still fired him.
PM: If you could rewind time two years to just before the recession, would you do anything differently with your company?
GM: We wouldn’t do anything different. We are a very fiscally conservative company. I am thankful that we had instituted our free credit insurance for our members a few years earlier. Since the downturn, our free credit insurance has paid out more than $1 million dollars to our members. I can think of a few members that may have gone out of business without the credit insurance payout.
IMS/GroupII (Integrated Merchandising Systems)
Morton Grove, IL
www.imsfastpak.com
Principal: Rick Remick, CEO
PM: Do you see anything happening in the industry’s future that others might not be anticipating? Why is it going to matter?
Rick Remick: We believe that most industry organizations are dialed into future “hot buttons.” That said, the eco-friendly or “green” trend is here to stay based on our experience with client partners. Sustainbility initiatives are now part of client organizations’ DNA. “Green” products/ eco-friendly programs/solutions are no longer a “nice to have” or an afterthought, but integral to client offerings (as they should be).
PM: If you could rewind time two years to just before the recession, would you do anything differently with your company?
RR: Not really. Experience over time has taught us that delivering the basics of great customer service is critical before, during and after a recession (or downturns for specific client businesses). If anything, the recession highlighted the importance of delivering excellent customer service day-in/day-out as client organizations worked through this difficult period.
3. Bensussen Deutsch &
Associates Inc.
Woodinville, WA
www.bdainc.com
Principal: Jay Deutsch, CEO
PM: Do you see anything
happening in the industry’s future that others might not be anticipating? Why is it going to matter?
Jay Deutsch: One of my biggest concerns is a massive product recall in the industry that could jeopardize or even cost lives. … Without systematic third-party accreditation, dangerous products from self-certified companies will continue to enter the marketplace undetected. End-buyers want to purchase with confidence and know our industry can control its supply chain. They need hard proof that the promotional products they buy won’t land their companies on the six o’clock news.
PM: What’s one of your worst sales or management memories, and what did you learn from the experience?
JD: Well, I think the worst business advice I’ve ever got is, “It’s not personal, it just business.” I don’t buy it—we’re human, it is always personal. Make good business decisions, absolutely, but there is a correct way to treat people with respect and honesty.
4imprint Inc.
Oshkosh, WI
www.4imprint.com
Pricipal: Kevin Lyons-Tarr, president
PM: Do you see anything happening in the industry’s future that others might not be anticipating? Why is it going to matter?
Kevin Lyons-Tarr: There are an enormous number of changes occurring in our industry and the speed with which those changes are happening is unprecedented. I’m not sure any of the changes I see are things that others on this list aren’t thinking about, we might only differ on the timing or the size of the impact.
PM: What’s one of your worst sales or management memories, and what did you learn from the experience?
KLT: My worst memories come when I reflect on my early management assignments when I clearly didn’t know there was a difference between being a boss and being a leader. Still not where I’d like to be, but at least I know there is a difference between the two—and it’s important.
Cintas
Mason, Ohio
www.cintas.com
Principal: Scott Farmer, CEO Questions answered by Dan Barr, vice president, promotional
products (pictured)
PM: What’s one of your best sales or management memories, and what did you learn from the experience?
Dan Barr: I once had a sales rep who thought he knew everything. He was successful in spite of his penchant for talking too much about the things he wanted to say. I finally convinced him to use a concise “elevator speech” instead of rambling on and to use some specific probing questions. He called me after using this new approach for a few days to say this was like magic and apologized for having wasted so much time with his old approach.
PM: If you could rewind time two years to just before the recession, would you do anything differently with your company?
DB: Put less inventory on the shelves.
HALO/Lee Wayne
Sterling, IL
www.haloleewayne.com
Principal: Marc Simon, CEO
PM: What’s one of your best sales or management memories, and what did you learn from the experience?
Marc Simon: Several years ago when I joined HALO, the company had placed itself in a very challenging situation—far worse than I was told at the time I took the job. The response of our current management team and sales force to correct course and return to profitable growth is one of the more rewarding memories I’ve had in business. I learned a simple truth—great people, given the opportunity, can achieve great things. I believe we have achieved great things, and have many more ahead of us.
PM: What’s one of your worst sales or management memories, and what did you learn from the experience?
MS: The situation mentioned above. It was a valuable lesson on growing too fast and losing focus on your customers.
Geiger
Lewiston, ME
www.geiger.com
Principal: Gene Geiger, CEO
PM: What’s one of your best sales or management memories, and what did you learn from the experience? What’s one of your worst?
Gene Geiger: The best and worse memories tend to emanate from the same key place—the people we hire and work with. When we have made a hiring mistake, the pain and the cost have been significant and took a long time to admit and fix. When we have chosen well, the talent infusion has lifted the entire company.
The lesson is always to go through a very thorough process of defining the job clearly and vetting the candidates thoroughly, and don’t settle for whomever is available if he or she does not really impress. When you make a mistake, deal with it quickly and humanely. It’s best for both parties.
Amsterdam Printing
Amsterdam, NY
www.amsterdamprinting.com
Principal: Tim Broadhead, president
PM: What’s one of your best sales or management memories, and what did you learn from the experience?
Tim Broadhead: I could name so many! I’ve been fortunate to manage and work alongside some great people over the years with several different organizations. I will say that I’ve learned the key is to surround yourself with quality at all levels. You need people in the boat with you that care about rowing as much as you do. If you can get to that point, you can accomplish a lot.
PM: If you could rewind time two years to just before the recession, would you do anything differently with your company?
TB: I’m not one to look backward on what could have been done—I’d much rather look forward. But that being said, I’m certain we would have made efforts to reduce our inventory levels more aggressively.
American Solutions for Business (ASB)
Glenwood, MN
www.americanbus.com
Principal: Larry Zavadil, CEO
PM: Do you see anything happening in the industry’s future that others might not be anticipating? Why is it going to matter?
Larry Zavadil: Probably nothing not anticipated. The promotional advertising market will continue to grow with traditional print vendors increasing their efforts to replace decreasing print revenue. Through the use of fully integrated e-commerce technology, companies will be able to manage and process smaller transactions, which happened in the print industry during the 1980s when the average order size decreased.
PM: What’s one of your worst sales or management memories, and what did you learn from the experience?
LZ: The process of our ERP* selection and implementation. I earned a Ph.D. from the “University of Hard Knocks” from this process over the last 18 months. I would gladly help anyone that is looking at going through this process to help them avoid what we had to do.
Editor’s note: ERP stands for “Enterprise Resource Planning,” and references a computer-based system that is used to manage a business in some capacity.
AIA Corperation
Neenah, WI
www.aiagearedforgrowth.com
Principal: David Woods, CEO and president
PM: Do you see anything happening in the industry’s future that others might not be anticipating? Why is it going to matter?
David Woods: In the short run, I expect supply chain disruptions creating more inventory shortages based on labor unrest and other issues in China, also more limited problems resulting from the Haitian earthquake. There will be significant pressure by manufacturers to raise prices.
PM: What’s one of your best sales or management memories, and what did you learn from the experience?
DW: I’ve had the pleasure to lead two successful distributor companies over the last 20 years. My happiest memories are watching the wonderful careers I’ve seen develop for people, and the individuals and families whose lives have been changed so positively by this wonderful industry. I’ve learned that hard work and perseverance will usually be rewarded!
