Every year there’s usually a naturally occurring theme that runs through the interviews within our annual top distributors list. While the questions we ask are open-ended and usually not aimed at creating any particular theme of answers, often the responses of companies interviewed will fall into a pattern on their own. It’s strange and interesting to see how those running the top companies in our industry all have the same thing on their minds. In years past, topics like the recession, product safety and government intervention have all been major focal points that have run throughout the entire feature. This year, the running theme is clear: technology.
Virtually every distributor interviewed named technology as what’s going to drive the most change in our industry. Whether it’s increased functionality for clients, easier access to overseas manufacturers, or something that’s going to drive mass consolidation in the industry overall-technology is on everyone’s minds.
See what some of the industry’s best minds had to say about technology, other changes coming to the industry, and how they got where they are today in the interviews below. After that, have a look at our annual Top 50 Distributors list, which ranks the highest-earning distributors for 2013.
1. Proforma
Principals: Greg Muzzillo, Founder, and Vera Muzzillo, CEO
www.proforma.com
Promo Marketing: How did you get your start in the promotional industry?
Greg Muzzillo: A college friend and I started the company one year after we graduated from college. He was working for a small distributor, I was working for a big five auditing firm. We each put in $100, bought a phone answering machine, some stationery and a used file cabinet.
PM: What changes do you see in the near future for the promotional industry, and what impact do you see them having?
GM: The Internet will continue to change our industry. Smaller businesses and independent (renegade) buyers in larger companies will increasingly buy from online companies. Most medium-size and larger buyers will continue to value relationships, but they will want those relationships enabled and enhanced with technology solutions, too.
PM: What’s one trait of your company that you think has made it such a success, and why do you think it’s had such an impact?
GM: One differentiator from all the other companies that say they can do what Proforma does … is that I built my own giant, $25 million distributorship. I know what it takes every step of the way to grow. It’s why Proforma has more million dollar and multimillion-dollar owners … and more members on the Inc. 5000 list of fastest-growing companies than any other distributor network in our industry.
2. 4imprint Inc.
Principal: Kevin Lyons-Tarr, CEO
www.4imprint.com
Promo Marketing: How did you get your start in the promotional industry?
Kevin Lyons-Tarr: I was a consultant in the area of contact management software and systems and was hired to do some troubleshooting on an IT project for the company that is now 4imprint. One thing led to another and I was offered a job-that was 23 years ago!
PM: What changes do you see in the near future for the promotional industry, and what impact do you see them having?
KLT: I’m not sure I see much in the way of “dramatic” changes in the near-term. It’s more continuous evolution and change driven by customers embracing the Internet, mobile, social, etc.
PM: What’s one trait of your company that you think has made it such a success, and why do you think it’s had such an impact?
KLT: Focusing on the culture. It means that we can attract and retain the best possible team-and they’re the ones who make it happen!
3. BDA Inc.
Principal: Jay Deutsch, CEO and Cofounder
www.bdainc.com
Promo Marketing: How did you get your start in the promotional industry?
Jay Deutsch: My cofounder Eric Bensussen and I got our start in the promotional products industry very early on-before we even really knew what promotional products were. As kids, we sold pins at local hydroplane races, and the more we delved into the industry, we noticed there was a need for a company like BDA. As teenagers, we began what we called Sports Marketing Inc., but later expanded beyond sports and we rebranded as BDA Inc. Our very first project was for our hometown Seahawks to create “Alaska’s Team” sweatshirts. The Seahawks are still a great partner today. In fact, we produced much of the in-stadium fan merchandise on their road to winning the Super Bowl this year.
PM: What changes do you see in the near future for the promotional industry, and what impact do you see them having?
JD: I seem to always come back to this, but technology has allowed us to make significant strides as far as the types of products we can produce, how efficiently we can produce them and how we incorporate them into larger ad campaigns. It has allowed us to stay creative, and I foresee the future of the industry living at the intersection of digital and tangible. We can no longer look at promotional products as a singular pillar; branded merchandise needs to be integrated as part of the larger advertising picture.
PM: What’s one trait of your company that you think has made it such a success, and why do you think it’s had such an impact?
JD: Tenacity. This year we’re celebrating 30 years in business and it’s been quite a ride. We do our best to continually innovate and provide the best service for our clients, no matter the economic condition, state of the promotional products industry, or changing advertising trends. We founded BDA with just $500 in our pockets, and through a lot of hard work have built BDA to what it is today.
5. National Pen Company
Principal: Dave Thompson, CEO
Questions answered by
Gregg Kornfeld, Senior Vice President
www.pens.com
Promo Marketing: How did you get your start in the promotional industry?
Gregg Kornfeld: Like many in the industry, my father had a direct marketing distributorship, and I worked during the summer stuffing pens into envelopes. I eventually took over management of the business, sold the business and then joined National Pen.
PM: What changes do you see in the near future for the promotional industry, and what impact do you see them having?
GK: Two observations: The lines between supplier, distributor and end-user will continue to blur. Every day, China becomes more accessible as a reaction to margin compression. In addition, the number of players moving to the Web is increasing, creating even more price competition and further driving the blurring of the lines.
PM: What’s one trait of your company that you think has made it such a success, and why do you think it’s had such an impact?
GK: National Pen has proprietary full-color decoration and USA manufacturing that creates a unique offering in the industry.
6. HALO Branded Solutions
Principal: Marc Simon, CEO
www.halo.com
Promo Marketing: How did you get your start in the promotional industry?
Marc Simon: [I was] outside counsel and a board member from 1992 to 1995. I Joined HALO as CEO in February 2001.
PM: What changes do you see in the near future for the promotional industry, and what impact do you see them having?
MS: Product safety: There is a rapidly growing emphasis on product safety at both the federal and state levels, both in law and in regulation. As industry participants come to understand their responsibilities, the supply chain will become more sophisticated. Cut-rate, lesser quality imports will be avoided and a more level playing field will emerge. All of this will benefit the larger suppliers, who can more readily invest in the processes necessary to assure compliance.
Consolidation: As the promotional products industry matures, the highly fragmented industry is now consolidating. Companies of size, scalability, [having a] proven managerial track record of successfully integrating acquired businesses and deep capital resources will lead the distributor side of this consolidation phase. The supplier community is consolidating at an even faster rate. As consolidation continues, sourcing advantages will further increase for the larger players, and their value proposition to clients will become more compelling.
PM: What’s one trait of your company that you think has made it such a success, and why do you think it’s had such an impact?
MS: HALO began with the most elementary question in Marketing 101-Who is your customer? For HALO, the answer was clear. Our customer is the account executive servicing her or his end-user customers. HALO has reason to exist only if it is adding value to these customers. And we do so in many ways. We serve as their bank, with as deep and liquid a capital structure as any company in the industry. We provide efficient, responsive and effective order management, processing orders quickly and accurately. Our scale gives us sourcing advantages that we share with our account executives, both in special pricing from 400 suppliers and in rebates from more than 60 suppliers. We have the full gamut of marketing tools and sales training tools to help our account executives more nearly maximize their potential. As a result, the interests of HALO and its account executives are fully aligned, all the way down to the customer service representative on the front line-we all know who our customer is and why we are here.
7. Geiger
Principal: Gene Geiger, CEO
Questions answered by Jo-an Lantz, MAS,
Executive Vice President, Geiger
www.geiger.com
Promo Marketing: How did you get your start in the promotional industry?
Jo-an Lantz: I started at Geiger right out of college. I had no idea what Geiger did, it was simply the very first job I could find in Lewiston, Maine 36 years ago. Geiger is such a terrific company to work for. I soon realized I never wanted to leave.
PM: What changes do you see in the near future for the promotional industry, and what impact do you see them having?
JL: We are blessed to be working in an advertising and incentive medium that involves the sense of touch. How we communicate and obtain information has changed our interactions because of the plethora of devices that are available. When a person receives a valuable or useful item, they appreciate it. The medium becomes timeless in an environment of change in communications.
PM: What’s one trait of your company that you think has made it such a success, and why do you think it’s had such an impact?
JL: The ability to continue to evolve and attract bright, professional individuals.
8. AIA Corporation
Principal: David Woods, President and CEO
www.aiagearedforgrowth.com
Promo Marketing: How did you get your start in the promotional industry?
David Woods: An investment group had acquired the Lee Wayne Company. I was brought in as CEO to lead and build the company. Hard to believe that was 23 years ago! The promotional products industry has been a very exciting place to be. I’ve never wanted to be anywhere else!
PM: What changes do you see in the near future for the promotional industry, and what impact do you see them having?
DW: We are in the early stages of some of the most disruptive innovation in all of history. With great companies like Google, Amazon and Facebook announcing new billion dollar investments on an almost weekly basis, the impact on our industry will be almost unimaginable. The rate of change in technology, communication and people’s expectations for the way business is done will constantly challenge all of us.
PM: What’s one trait of your company that you think has made it such a success, and why do you think it’s had such an impact?
DW: AIA has demonstrated remarkable flexibility and adaptability over its entire life. We have a great culture and a young and eager workforce that thrives on challenges. At AIA, we are geared for growth, and we see our future as very bright!
10. iPROMOTEu
Principal: Ross Silverstein, President and CEO
www.ipromoteu.com
Promo Marketing: What changes do you see in the near future for the promotional industry, and what impact do you see them having?
Ross Silverstein: While niche product suppliers will continue to enter the industry, in general, I see more suppliers merging while others [leave] the industry altogether. In the end, I see fewer suppliers in total but more very large suppliers with considerable breadth and depth in their product lines. Despite the fewer number of suppliers, there will still be a sufficient number of remaining suppliers to ensure strong price competition.
PM: What’s one trait of your company that you think has made it such a success, and why do you think it’s had such an impact?
RS: Apart from our amazing platform that we feel is the very best in the industry, one trait that really distinguishes iPROMOTEu and contributes significantly to our success is the fact that we care. We care about our affiliates. Without question, they are our No. 1 priority. Our affiliates are our customers and we work for them. We answer our phones, we listen and we try to say “yes.” At iPROMOTEu, we go out of our way to express to all affiliates that each of them is important and that we genuinely care about them and their business.
13. Kaeser and Blair
Principal: Kurt Kaeser, CEO and President
Questions answered by Kurt Kaeser [left] and
Gregg Emmer, CMO, Vice President
www.kaeser-blair.com
Promo Marketing: How did you get your start in the promotional industry?
Kurt Kaeser and Gregg Emmer: Kurt is the third generation of the family to run the business. It has been family-owned since the early 1920s. Gregg started in the industry with a distributor in New Jersey in 1970.
PM: What changes do you see in the near future for the promotional industry, and what impact do you see them having?
KK&GE: The Internet has and is having an impact, causing many to adopt a commodity-product-oriented approach to the industry. This has been exacerbated by those that call the industry the “promotional products” industry. We work very hard to remind our dealer organization that it is the “promotional advertising specialty” industry, and the delivery of messages is what we sell. The products that carry the messages are important, but are not where the investment is being made. We see more clients looking for the marketing and advertising our organization provides, and are seeing that the ideas we develop for them are where the value is.
15. Jack Nadel International
Principal: Craig Nadel, CAS, CEO
www.nadel.com
Promo Marketing: What changes do you see in the near future for the promotional industry, and what impact do you see them having?
Craig Nadel: There are so many things going on. I think there will be more online buying and interaction. It has been going that way already and we need to incorporate the efficiencies of that while still keeping the consulting aspect of the job. I also think China will decrease as the primary producer of goods. They will still be No. 1, but by less.
PM: What’s one trait of your company that you think has made it such a success, and why do you think it’s had such an impact?
CN: People. It is easy to say but difficult to complete, of course, but this is a people business. We have many wonderful people here!
