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SOI 2007<br />
Survey Reveals: Top Products, Best Markets & New Opportunities<br />
h WWW.COUNSELORMAG.COM<br />
$10.00<br />
THE VOICE OF THE INDUSTRY<br />
State<br />
07<br />
of the<br />
Industry<br />
Everything You Need To…<br />
Achieve Double-Digit Growth ❉ Recruit Better Reps<br />
Land A Million-Dollar Account ❉ Build Business On The Web<br />
Squeeze Deadbeat Clients ❉ Sell Your Business, And Much More<br />
+<br />
The Exclusive Top 40
07State<br />
of the<br />
Industry<br />
36 State of the Industry<br />
2007<br />
Our how-to guide gives you<br />
all the information you need to<br />
drive your business.<br />
41 Profitable Business<br />
How Companies Measure<br />
Profi tability<br />
BY SHANE DALE<br />
46 Top Markets<br />
How To Penetrate<br />
The Pharmaceutical Market<br />
BY KEN HEIN<br />
50 Recruiting/Retaining<br />
Salespeople<br />
How To Hire And Retain<br />
Salespeople<br />
BY SHANE DALE<br />
54 Client Payment<br />
How To Get Reluctant<br />
Clients To Pay Up<br />
BY BETSY CUMMINGS<br />
58 Sales Volumes<br />
How To Sell A Business<br />
BY KEN HEIN<br />
24 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Counselor State<br />
of the Industry 2007<br />
Volume 54, No. 8, July 2007<br />
62 New Clients<br />
How I Nabbed<br />
A $2 Million Account<br />
BY BETSY CUMMINGS<br />
66 Incentive Programs<br />
How To Jump<br />
Into Incentive Programs<br />
BY SHANE DALE<br />
70 Creative Selling<br />
How I Use Creativity<br />
To Close Deals<br />
BY BETSY CUMMINGS<br />
76 Web-Based Business<br />
How To Increase Business<br />
On The Internet<br />
BY ELAINE WONG<br />
81 Purchasing Habits<br />
Why I Buy Products<br />
From Outsiders<br />
BY KEN HEIN<br />
84 Top Products<br />
How To Be An Apparel<br />
Sales Pro<br />
BY ELAINE WONG<br />
continued on page 30<br />
WWW.COUNSELORMAG.COM<br />
PUBLISHER, SR. VICE PRESIDENT<br />
Richard Fairfield, rfairfield@asicentral.com<br />
EDITOR IN CHIEF<br />
Melinda Ligos, mligos@asicentral.com<br />
EDITOR<br />
Andy Cohen, acohen@asicentral.com<br />
MANAGING EDITOR<br />
Joe Haley, jhaley@asicentral.com<br />
SENIOR EDITORS<br />
Michele Bell, mbell@asicentral.com<br />
Matthew Histand, mhistand@asicentral.com<br />
AWARDS EDITOR<br />
Karen Akers, kakers@asicentral.com<br />
ASSISTANT MANAGING EDITOR<br />
Joan Chaykin, jchaykin@asicentral.com<br />
SENIOR WRITER<br />
Betsy Cummings, bcummings23@nyc.rr.com<br />
EDITORIAL INTERN<br />
Elaine Wong<br />
CONTRIBUTING WRITERS<br />
Kenneth Hein, Shane Dale<br />
CREATIVE DIRECTOR<br />
Jim Lang<br />
SR. DESIGNER<br />
Pierre Schnog<br />
DESIGNERS<br />
Hillary Braubitz, Tim Dupnak, Monica Fisher<br />
PHOTOGRAPHER<br />
Mark Pricskett<br />
PHOTOGRAPHY ASSISTANT<br />
Christine Beaver<br />
EDITORIAL ASSISTANT<br />
Carole Seymour, cseymour@asicentral.com<br />
PRODUCTION DIRECTOR<br />
Haitham Barakat<br />
ASSISTANT PRODUCTION DIRECTOR<br />
Jodi Tashman<br />
PRODUCTION COORDINATOR<br />
Denise Iavecchia<br />
AUDIENCE DEVELOPMENT<br />
& ANALYSIS DIRECTOR<br />
Debra Brill<br />
E DITO RIAL ADVISO RY BO ARD<br />
DISTRIBUTORS<br />
Jo-an Lantz, Geiger<br />
Jack Levine, CorpLogoWare<br />
Robert Ross, Evigna<br />
Marc Simon, Halo Branded Solutions<br />
David Woods, Adventures In <strong>Advertising</strong><br />
SUPPLIERS<br />
Carol Constantino, Noteworthy<br />
Mary Ann Farmer, Magna-Tel<br />
Brandon Mackay, SnugZ USA<br />
Lon McGowan, iClick Promos Inc.<br />
Tom Riordan, Maple Ridge Farms<br />
COUNSELOR (ISSN 0011-0027) is published monthly, except<br />
semi-monthly in July. Subscription rates $75 per year in the United<br />
States and Canada; $90 per year in all other foreign countries.<br />
Publication offices are located at ASI • 4800 Street Road •<br />
Trevose PA 19053-6698. Periodical Postage Paid at Langhorne,<br />
PA and additional offices.<br />
POSTMASTER: Send address changes to: Counselor, 4800 Street<br />
Road, Trevose PA 19053-6698.<br />
Imprints, logos or trademarks displayed on products in this magazine<br />
are for illustrating purposes only; are not available for sale and<br />
do not represent implied or actual endorsement of the products on<br />
which they appear by the companies these logos and trademarks<br />
represent. Views expressed by columnists or interviewees are not<br />
necessarily those of Counselor or ASI.
07State<br />
of the<br />
Industry<br />
32 Contributors<br />
Catch The Fever<br />
34 Editor’s Letter<br />
The Road to Greatness<br />
89 Top 40 Distributor Charts & Stats<br />
The 2007 edition of Counselor’s exclusive listing of the<br />
distributors with the most industry revenues during 2006.<br />
97 Top 40 Supplier Charts & Stats<br />
The 2007 edition of Counselor’s exclusive listing of the<br />
suppliers with the most industry revenues during 2006.<br />
105 Top 40 Distributor Profiles<br />
Sales history and comments from the industry’s<br />
largest distributors.<br />
BY KAREN AKERS, ANDY COHEN, MATT HISTAND,<br />
SHANE DALE<br />
134 Top 40 Supplier Profiles<br />
Sales history and comments from the industry’s<br />
largest suppliers.<br />
BY KAREN AKERS, ANDY COHEN, MATT HISTAND,<br />
JAMES STURDIVANT<br />
169 Multimillion Dollar Roundtable – Distributors<br />
Complete listing of distributor companies with more than<br />
$2 million in sales.<br />
192 Multimillion Dollar Roundtable – Suppliers<br />
Complete listing of supplier companies with more<br />
than $5 million in sales.<br />
200 Quotables<br />
A selection of this issue’s sources.<br />
30 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
WWW.COUNSELORMAG.COM<br />
VICE PRESIDENT/SUPPLIER SALES<br />
Ron Ball, MAS (800) 546-1430<br />
rball@asicentral.com<br />
ADVERTISING DIRECTOR<br />
Edwin Koehler (800) 546-1261<br />
ekoehler@asicentral.com<br />
BUSINESS DEVELOPMENT DIRECTOR<br />
Judi Cavaliere, jcavaliere@asicentral.com<br />
ADVERTISING SALES<br />
Suzanne Bahnatka, sbahnatka@asicentral.com<br />
Vincent Deissroth, vdeissroth@asicentral.com<br />
Daniel Dienna, ddienna@asicentral.com<br />
Alice Higgins, ahiggins@asicentral.com<br />
Cindi Mann, cmann@asicentral.com<br />
Barry Melito, bmelito@asicentral.com<br />
Phyllis Mutnick, pmutnick@asicentral.com<br />
Henry Nagel, hnagel@asicentral.com<br />
Craig O’Connor, coconnor@asicentral.com<br />
James Padilla, CAS, jpadilla@asicentral.com<br />
Mary Sells, msells@asicentral.com<br />
Barbara Tepper, CAS, btepper@asicentral.com<br />
A DVERTISING SPEC IALTY INSTITUTE<br />
CHAIRMAN<br />
Norman Cohn<br />
PRESIDENT & CEO<br />
Timothy M. Andrews<br />
PRESIDENT OF ASI SHOW<br />
Matthew Cohn<br />
EXECUTIVE VICE PRESIDENT/<br />
GENERAL COUNSEL<br />
Steve Bright<br />
VICE PRESIDENT, SR. COUNSEL<br />
Charles Machion<br />
SR. VICE PRESIDENT OF SALES<br />
Christine Lovell, MAS (800) 546-1478<br />
SR. VICE PRESIDENT<br />
Vincent Bucolo Jr.<br />
SR. VICE PRESIDENT<br />
Dale Denham<br />
CHIEF FINANCIAL OFFICER<br />
Vincent Mendola<br />
VICE PRESIDENT OF HUMAN RESOURCES<br />
Carol Albright<br />
SR. VICE PRESIDENT OF DISTRIBUTOR<br />
& INTERNET SALES<br />
Dan O’Halloran<br />
VICE PRESIDENT OF MARKETING<br />
Susanne Curry
SOI 2007 CONTRIBUTORS<br />
By Melinda Ligos<br />
Catch the Fever<br />
Here in the editorial offi ces,<br />
we call it SOItis – the condition<br />
some of us get right<br />
at deadline as we’re putting<br />
together our annual mam-<br />
and was belting out, “You can dance if you<br />
want to. . .!” as we watched the bizarre<br />
collection of singers, which included – for<br />
no explicable reason – a guy with a rooster’s<br />
head. We went on to sing along with<br />
Intern Elaine Wong. Their work appears<br />
in our “how-to” guide in the fi rst half of<br />
this book. Take your time with this: There<br />
are lots of ideas and tactics to help you<br />
move your business forward.<br />
moth State of the Industry issue. The signs Squeeze (Remember Black Coffee in Bed?), d Simultaneous to the survey being con-<br />
are telltale: a tendency to giggle when Rick Springfi eld ( (Jesse’s Girl l,<br />
of course) ducted, Counselor r editors began research<br />
someone delivers bad news; marked and a once-scandalous, MTV-banned to identify the industry’s biggest compa-<br />
fatigue; punchiness; and, most notewor- version of Frankie Goes To Hollywood’s nies, blanketing the industry with Top 40<br />
thy, a great affi nity for ’80s music.<br />
Relax, which involved a sumo wrestler census cards and e-mails and following<br />
Such was the state many of us were wearing shaving cream.<br />
up with hundreds of phone calls. Once<br />
in one Friday night as we were putting Yes, we all had an acute case of SOItis, the Top 40 was identifi ed, a team includ-<br />
on the fi nishing touches to this issue. As the result of spending so much time ing Awards Editor Karen Akers, Senior<br />
I sat in my offi ce, I suddenly heard the collecting, reporting on and analyzing Editor Matt Histand, Andy Cohen,<br />
the most comprehensive Editorial Assistant Carole Seymour<br />
collection of data in the and Contributing Writers Shane Dale<br />
industry. Indeed, pulling and Jim Sturdivant worked to interview<br />
together this annual issue executives from all 80 companies.<br />
takes a lot of work by a lot Our editors’ and reporters’ work was<br />
of different people. This then envisioned by Editorial Designer<br />
year, the work began in Hillary Braubitz. “My goal was to create<br />
the fi rst quarter of 2007, a fun, easy read that fl owed well and<br />
when Counselor r mailed provided a consistent look,” Hillary says.<br />
out separate surveys to I believe she’s accomplished that with<br />
distributors and suppliers. the wonderfully user-friendly guide you<br />
Counselor r received a total have before you.<br />
of 583 usable distributor Once Hillary laid out these pages,<br />
surveys and 182 usable sup- our team of copy readers, including Joe<br />
plier replies.<br />
Haley, Assistant Managing Editor Joan<br />
The team that worked on the State of the Industry: y (bottom, left The surveys were then Chaykin and Karen Akers, pored over<br />
to right) Hillary Braubitz, Melinda Ligos, Andy Cohen, Monica tallied and analyzed by every page to make sure we got it right.<br />
Fisher; (middle, left to right) Jim Lang, Joan Chaykin, Pierre Larry Basinait, executive As readers, many of you also played<br />
Schnog, Matt Histand; (top, left to right) Larry Basinait, Karen director of membership an integral part in this issue, graciously<br />
Akers, Denise Iavecchia, Joe Haley, Elaine Wong, Carole Seymour services for ASI, and taking time to answer our phone calls and<br />
Marjorie Cooper, Ph.D., provide valuable insights into what makes<br />
song Safety Dance blaring from within the Business Education and Research, Baylor your businesses tick.<br />
department. Not one to ignore such a University. They provided us with two Of course, by the time you’re reading<br />
thing, I went to investigate.<br />
massive reports totaling more than 120 this, I’m sure all of us in the editorial<br />
What I saw was truly horrifying: Two pages of analysis. Once the reports are department will have fully recovered<br />
staffers, Managing Editor Joe Haley and given to Editor Andy Cohen, our writers from our once-a-year health condition.<br />
Senior Editor Michele Bell singing and hit the reporting trail in an effort to pres- But come next year, if you witness any<br />
shimmying their hearts out to the old ent the data to you in a comprehensive, of us singing something to the likes of,<br />
Men Without Hats video, which Joe meaningful form. Those efforts included “Cause your friends don’t dance and if<br />
found on www.youtube.com. Faster than the work of Senior Writer Betsy Cum- they don’t dance, well they’re no friends<br />
the bleach blond in the video could shout, mings, Contributing Writers Kenneth of mine. . .” you’ll know precisely what’s<br />
“And Sing!”, however, I too was transfi xed Hein and Shane Dale, and Editorial happened.<br />
32 STATE OF THE INDUSTRY 2007 www.counselormag.com
SOI 2007 EDITOR’S LETTER<br />
By Andy Cohen<br />
The Road To Greatness<br />
T<br />
here’s a fi ne line between<br />
greatness and mediocrity.<br />
Take Tiger Woods, for<br />
example. There’s no debating<br />
the fact that he’s a great<br />
golfer. He might even be the best ever<br />
to hit the links. However, for one Sunday<br />
in June, he was simply mediocre.<br />
At the U.S. Open last month, played<br />
at the exceedingly diffi cult Oakmont<br />
Country Club in Oakmont, PA,<br />
Woods went into the fi nal round one<br />
stroke behind the leader. He ended<br />
the tournament the same way, and you<br />
could tell how frustrated he was by the<br />
second-place result.<br />
“I didn’t get it done. I put myself<br />
there and I didn’t get it done,” he said,<br />
repeating the refrain for effect.<br />
Of course, he had one rather easy<br />
chance – easy, at least by his standards<br />
– to make up one stroke. It was on the<br />
13th hole of Sunday’s fi nal round. He<br />
had hit a perfect tee shot on the 183yard<br />
par three hole, which left him with<br />
a fi ve-foot putt for birdie. He makes<br />
these in his sleep. He eats these up. You<br />
could just imagine it: He sinks the putt,<br />
offers a stirred-up crowd his famous<br />
fi st pump, and proceeds to a Father’s<br />
Day victory in honor of his dad who<br />
passed away just over a year ago.<br />
Except, he missed. Woods’ fi ne line<br />
between mediocrity and greatness<br />
that day was about two inches. That<br />
was how far he missed that putt just to<br />
the right of the cup. He knelt down in<br />
agony just after seeing the putt slide<br />
past the hole, and tugged his Nike<br />
baseball hat over his eyes. He knew he<br />
had just blown the tournament. It was<br />
his best chance to make up any ground<br />
– even though he still had six holes left<br />
to play – and he missed. His day was<br />
34 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
defi ned by two inches. I bet he wishes<br />
he had a road map to success on that<br />
13th hole.<br />
What’s the difference between<br />
greatness and mediocrity at your company?<br />
Whether it’s revenue or profi ts<br />
or customer satisfaction or a motivated<br />
workforce, I’m sure there’s a fi ne line<br />
that determines success. And that’s<br />
where this issue comes in. This State<br />
of the Industry is designed as a how-to<br />
manual for advertising specialty practitioners.<br />
The front half of the magazine<br />
is based on our annual State of the Industry<br />
survey, which asks in-depth questions<br />
of both suppliers and distributors<br />
to fi nd out how the market is doing and<br />
where it’s headed.<br />
The data overwhelmingly reports<br />
that both distributors and suppliers<br />
believe the industry is thriving right<br />
now and is headed toward even better<br />
times ahead. And we’re here to help<br />
you take advantage of the wealth of<br />
opportunities in the industry today.<br />
We’ve broken up our coverage of the<br />
survey into 12 separate how-to sections<br />
that are sure to provide tips for success.<br />
It leads off with an article titled “How<br />
to Achieve Double-Digit Growth,” and<br />
has other pieces that offer strategies<br />
for selling to the number-one enduser<br />
market, measuring profi tability,<br />
recruiting top salespeople, and<br />
getting deadbeat clients to pay their<br />
bills. We’ve got you covered for just<br />
about any task you could take on in any<br />
given day.<br />
It even has articles for how to sell a<br />
business, how to gain a million-dollar<br />
client, how to set up an online presence,<br />
how to sell incentive programs,<br />
and how to make even more money<br />
from apparel – the number-one product<br />
segment in the market, representing<br />
Tiger Woods’ day was defi ned by two<br />
inches. I bet he wishes he had a road<br />
map to success on that 13th hole.<br />
about a third of the industry’s overall<br />
revenues. In short, it’s the type of roadmap<br />
to success for any situation – the<br />
kind of detailed strategy guide that<br />
Tiger Woods could have used at the<br />
U.S. Open last month.<br />
Of course, this issue also highlights<br />
the Top 40, Counselor’s annual ranking<br />
of the largest – as measured by 2006<br />
industry revenue – ad specialty distributors<br />
and suppliers. While we offer a<br />
variety of data about each Top 40 company,<br />
we also have profi les of the companies<br />
that explain the reasons behind<br />
their success – or in some instances,<br />
why they’ve faltered recently. For companies<br />
of all sizes in this market, these<br />
profi les add to the how-to-guide feel of<br />
this issue. No, everyone can’t be<br />
as big as the members of the Top 40 –<br />
or as good as Tiger Woods – but everyone<br />
can learn from their mistakes and<br />
their victories.
B<br />
36<br />
$$<br />
Y<br />
FOR SALE<br />
38 41 46 50 54 58
S I v ˝ a<br />
62 66 70<br />
76 80 84<br />
37
SOI 2007 REVENUE RAMP-UP<br />
How To Achieve<br />
Double-Digit Growth<br />
Jaw-dropping growth. What distributor<br />
or supplier doesn’t want<br />
to see year-over-year growth of<br />
10%, 20%, even 500% or more?<br />
Yes, the industry averaged 4.5%<br />
growth between 2005 and 2006 – and its<br />
members overall are giving the industry<br />
a fairly high rating in terms of health<br />
– but there are some companies in the<br />
industry that are off the charts in terms<br />
of growth.<br />
Take Patriot Marketing Group<br />
(asi/291551 ( ). Two years ago, the company<br />
won a Counselor r Spirit Award as the<br />
Fastest-Growing distributor, growing<br />
by more than 900%. Last year, the<br />
BILLIONS<br />
$$<br />
Counselor State of the Industry survey. ©2007<br />
38 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
company grew another 100%, with<br />
more than $10 million in annual sales.<br />
The company’s secret: pressing hard<br />
on a new niche – advertising agencies.<br />
“We’ve been partnering with creative<br />
agencies, whose clients are moving away<br />
from traditional media campaigns and<br />
into logoed products,” says President<br />
Dennis Borst. “That’s where all of our<br />
focus has been this year.” The targeted<br />
approach has paid off for Patriot: This<br />
year, the company sold its biggest<br />
program in history, partnering with a<br />
creative agency to sell more than $1 million<br />
in logoed dogtags to a hair-cutting<br />
chain for a back-to-school promotion.<br />
Industry Revenue Soars<br />
The ad specialty market saw a revenue increase of 4.5% between 2005<br />
and 2006, to a record $18.6 billion.<br />
$16.5<br />
$16.9<br />
$18.6<br />
‘We’d never broken the million-dollar<br />
mark before for one sale,’ ” Borst says. In<br />
a second deal, Borst’s team worked with<br />
an advertising agency to provide 20,000<br />
gift bags – each containing $22 worth<br />
of promotional products – for the New<br />
York Auto Show.<br />
A similar strategy has paid off for<br />
Custom HBC Corp. ( (asi/47934).<br />
When<br />
it was founded in 2000, President Larry<br />
Wilhelm says, its mission was to only<br />
sell health and beauty products – and it<br />
hasn’t wavered from that core competency<br />
since. Wilhelm, who served<br />
in executive positions at Procter &<br />
Gamble, Colgate and Palmolive, and<br />
was the CEO of Soft Soft Enterprises,<br />
has gathered a team of executives from<br />
those and other health and beauty companies.<br />
“We have very deep experience<br />
in all facets of health and beauty care<br />
product development, manufacturing<br />
and sourcing,” he says. “That gives us a<br />
huge edge.” Apparently so. With sales<br />
over $5 million, the company grew<br />
more than 68% last year. The two previous<br />
years it was on Counselor’s Fastest-<br />
Growing supplier list as well, netting<br />
more than 800% growth in 2004 and<br />
more than 900% in 2005. Indeed, Wilhelm<br />
attributes the company’s exclusive<br />
focus on the health and beauty niche<br />
as one of its main secrets to success.<br />
“A lot of suppliers try to be all things<br />
to all people,” says Wilhelm, whose<br />
company’s hand-sanitizer pocket spray<br />
it its biggest seller. “We don’t pretend<br />
to do that.”<br />
Certainly, another strategy that is<br />
working for companies both in and out<br />
of the Top 40 is a focus on hiring top<br />
salespeople – and letting them do what<br />
they do best: sell. Many of those interviewed<br />
for Top 40 profi les indicated<br />
that giving salespeople more time in<br />
the fi eld was a key to growth this year.<br />
Ross Silverstein, president of distribu-
Industry Health Ratings<br />
This measure, which looks at the confi dence that distributors and suppliers<br />
have in the market right now, is at the highest level since 2000. Both<br />
suppliers and distributors are asked to provide a rating of the industry’s<br />
health. Each respondent chooses a number between 1 and 5, where 1<br />
equals “ailing” and 5 equals “robust.”<br />
3.86<br />
3.56 3.42<br />
3.26<br />
Counselor State of the Industry survey. ©2007<br />
torship iPromoteU ( (asi/232119),<br />
partially<br />
attributes his company’s 63% growth in<br />
2006 to his company’s efforts to provide<br />
back-offi ce support to its affi liates.<br />
“Distributors spend<br />
too much of their<br />
time participating in<br />
non-revenue-generating<br />
activities,” he says.<br />
iPromoteU’s services,<br />
which include following<br />
up on orders, gives reps more<br />
time in the fi eld, Silverstein says. Such<br />
services, provided at a fee lower than<br />
the industry norm, have also helped the<br />
company attract more affi liates, according<br />
to Silverstein. iPromoteU signed up<br />
114 distributor affi liates in 2006, for a<br />
grand total of 314.<br />
3.34<br />
Distributors<br />
Motivating reps in the right way can<br />
certainly be a catalyst for growth as<br />
well. Borst recognized this when this<br />
year he set up an incentive program<br />
called “Operation<br />
Agency” for his reps<br />
to go after creative<br />
agencies. The reps<br />
earn gift cards for<br />
every agency lead and<br />
sale they generate.<br />
But the real carrot is the end-of-year<br />
reward: Whoever brings in the<br />
most revenue from creative<br />
agencies wins a week-long trip to<br />
Europe, the Caribbean, Mexico or<br />
Hawaii. “It’s winner takes all,” Borst<br />
says, “and you can bet that’s a big<br />
motivator.” – Melinda Ligos<br />
Watch The Video!<br />
ndustry confi dence is at a near-record<br />
high. Go to asicentral.com/soivideo<br />
to watch Editor Andy Cohen discuss<br />
the reasons why companies are so<br />
enthusiastic about the present and<br />
future of this market.<br />
3.74<br />
3.52<br />
Suppliers<br />
3.83<br />
3.54<br />
Four Steps<br />
To Double-Digit Growth<br />
1Consider a new niche.<br />
Has your company seen an<br />
ptick in pharmaceutical<br />
sales – or perhaps reps are<br />
noticing new customers<br />
popping up in a<br />
previously<br />
untapped<br />
industry. Go<br />
after it quick<br />
– before your<br />
competitors do.<br />
2Focus on<br />
your core<br />
competencies. Don’t try<br />
to be all things to all people.<br />
Figure out what your company<br />
does best and capitalize on it.<br />
3Just sell, baby. Figure<br />
out how to give your<br />
salespeople more time on<br />
the street, doing what they<br />
do best.<br />
4Focus on incentives.<br />
Amp up your motivational<br />
programs to get salespeople<br />
jazzed about a new<br />
initiative. Offer an over-the-top<br />
prize for whomever has the<br />
most success. The payoff will<br />
be worth it.<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 39
SOI 2007 • PROFITABLE BUSINESS<br />
A gauge of business success<br />
How Companies<br />
Measure Profi tability<br />
Some distributors measure<br />
the profi tability of each<br />
client or the profi tability<br />
of each order. Many<br />
do neither. The latter,<br />
though, is a mistake that industry companies<br />
can’t afford to make.<br />
Craig Nadel, president of Top 40<br />
distributor Jack Nadel International<br />
(asi/279600<br />
( ), in Culver City, CA, says<br />
measuring by each order is his preferred<br />
method. “By client is diffi cult,”<br />
he says. “We fi nd many clients are more<br />
than one client. If you sell to two divisions<br />
of one company, we treat them<br />
separately and bill them under different<br />
client numbers.”<br />
Profi tability<br />
Uptick<br />
In 2006 the majority<br />
of industry companies<br />
– both suppliers and<br />
distributors – increased<br />
their profi tability from the<br />
prior year. Distributors<br />
who experienced jumps<br />
in profi tability averaged<br />
an increase of 17%, while<br />
suppliers averaged 18%<br />
profi tability growth. Translation:<br />
A whole lot of ad<br />
specialty companies saw<br />
double-digit increases to<br />
their bottom lines last year.<br />
Counselor State of the Industry survey. ©2007<br />
Nadel says JNI seeks a gross profi t<br />
margin between 35% and 40% for each<br />
order. From there, he then calculates<br />
expenses in terms of rent, salaries and<br />
payroll taxes allocated to the offi ce,<br />
before looking at the numbers. “Some<br />
distributors may not know where the<br />
costs, other than cost of goods, are in<br />
the business, and before you can cut<br />
rent, offi ce expenses and advertising,<br />
you should know how much is spent in<br />
each area,” he says. “The big expenses<br />
offer the better opportunity for big<br />
savings.”<br />
Jerry Kelley, CEO of Mirror Sales<br />
Inc. ( (asi/273703),<br />
in Knoxville, TN, has<br />
similar expectations in terms of profi t<br />
margin. “If our gross margin is less than<br />
30%, we didn’t make money on the<br />
job,” he says. “We try to take catalog<br />
prices and add 10% to the retail price.<br />
This is an administrative fee that helps<br />
cover our order processing cost. When<br />
we are working from a cost basis, we<br />
still add the 10%, even if we are calculating<br />
commissions.”<br />
But the question remains: Why is<br />
it important for a distributorship to routinely<br />
measure profi tability – or more<br />
basically, why is it important to understand<br />
the meaning of the word “profi t”?<br />
For one thing, Kelley, whose company<br />
has been in business for 35 years,<br />
says profi t margins will increase if<br />
measured routinely. “For individual jobs,<br />
we take cost of goods vs. retail price,”<br />
he says. “Make sure to fi gure markup on<br />
retail price and not on cost price. It will<br />
make a big difference in profi t.”<br />
To increase profi ts, Nadel takes an<br />
approach that includes trying to raise<br />
DISTRIBUTORS<br />
Increased<br />
Decreased<br />
Stayed the same<br />
SUPPLIERS<br />
Don’t know/Not applicable<br />
continued on page 42<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 41
SOI 2007 PROFITABLE BUSINESS<br />
prices and capitalize on value-added<br />
services. “Raising prices is the obvious<br />
way to increase profi t and sometimes<br />
can be done with the guts to ask,” he<br />
says. “In the simplest form, profi t is<br />
the difference between price and cost,<br />
so the only options are to get more on<br />
the price side, or pay less on the cost<br />
side. More on the price side is not<br />
limited to the item price, but could<br />
also include setups and other sell price<br />
aspects of the order. A hotel room is an<br />
Distributors<br />
achieved a<br />
35%<br />
gross profi t margin<br />
in 2006, an<br />
increase from<br />
34%<br />
in 2005.<br />
example where the fi nal bill is typically<br />
much higher than the room price, but<br />
most people only think about the room<br />
price. The other aspect of the equation<br />
is costs. Sometimes you can get a better<br />
net price from a supplier.”<br />
Other distributors also focus on<br />
reducing costs to improve their profi ts.<br />
Rick Martines, the owner of Custom<br />
Graphic Designs ( (asi/173159),<br />
who says<br />
he aims for a 50% gross profi t margin on<br />
every order and measures his company’s<br />
overall profi ts quarterly and annually,<br />
focuses on not giving things to custom-<br />
42 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
ers for free. “I used to give away free<br />
samples and sometimes free shipping,”<br />
he says. “Now, I show samples but I<br />
rarely give them away, and now I usually<br />
add on shipping costs to make money<br />
there also. You can’t worry about having<br />
the lowest price. Sell the features and<br />
benefi ts of doing business with you over<br />
others, and stand behind what you sell.”<br />
Kelley would agree with such an<br />
approach. He believes when a company<br />
is focused on improving its profi t<br />
margins, then it worries less about price<br />
and focuses more on how to service its<br />
customers. “We are not the cheapest<br />
business to deal with, but our customers<br />
know that we will do whatever it<br />
takes to meet their schedules,” he says.<br />
“We have worked many a weekend and<br />
many a night to meet deadlines, and<br />
most of the time, don’t charge extra<br />
for this service.”<br />
However, Kelley believes that suppliers<br />
in the industry should also have<br />
this type of service approach – and not<br />
always look to charge for it. “It’s so<br />
frustrating when one of our vendors<br />
says they can meet our deadlines, but it<br />
will cost an additional 25% or more,” he<br />
says. “My thoughts are, if you can meet<br />
my deadline, then do so; don’t gouge me<br />
because you may have to go out of your<br />
way a little. We treat our customers like<br />
we would like to be treated. If all businesses<br />
would keep that thought as the<br />
number-one goal, I’ll bet their income<br />
and margins will increase.”<br />
Nadel says that as with anything, good<br />
measurement tools are important, and a<br />
solid-as-steel measuring stick for profi t<br />
margin is essential – particularly for the<br />
promotional product industry. “This<br />
business is a low-margin business when<br />
all costs are factored in,” he says. “As a<br />
distributor, net profi t as a percentage of<br />
sales will always be quite low compared<br />
to some other industries.” – SD<br />
Four Steps<br />
To Measure Profi tability<br />
1Pick a number and stick<br />
to it. Whatever you determine<br />
– 35%, 40%, 50% – to<br />
be your optimal gross profi t<br />
margin, make sure all of your deals<br />
adhere to the goal.<br />
2Measure profi tability of<br />
each order. The more rigid<br />
a company is with its profi tability<br />
measurements, the<br />
higher that profi tability tends to be.<br />
3Figure in all costs. Many<br />
distributor fi rms are too<br />
focused on the cost of<br />
goods when calculating<br />
profi tability. This will give an accurate<br />
gross profi t, but distributors should<br />
have a regular and honest assessment<br />
of their net profi t by factoring in<br />
all of their costs to every order.<br />
4Raise prices and keep<br />
costs in check. It sounds<br />
simple, but more companies<br />
need to watch their<br />
expenses – stop giving<br />
things away for free<br />
– and ask for<br />
higher prices.
SOI 2007 TOP MARKETS<br />
Y They keys to the #1 market<br />
How To Penetrate The<br />
Pharmaceutical Market<br />
The brand manager for Zyrtec<br />
is a busy guy. He’s got his<br />
mind on fending off other<br />
prescription allergy medicines<br />
like Singulair while at<br />
the same time battling over-the-counter<br />
solutions like Claritin. “These people<br />
have a lot to do. They have to deal with<br />
a sales force, research people. There are<br />
legal considerations. If they are a publicly<br />
held company, they have to pay attention<br />
to what’s going on in fi nance,” says Joe<br />
Carey, vice president of Warjo Promotions<br />
Inc. ( (asi/355440),<br />
a distributor in<br />
New York. “The heavy promotional products<br />
buyer spends less than 5% of their<br />
time dealing with promotional products.”<br />
Marketers at some pharmaceutical<br />
companies spend less. So how can<br />
distributors get in and make the sale to<br />
companies in the number-one end-user<br />
market in the ad specialty industry?<br />
Those who have succeeded say distributors<br />
need to be willing to fi ght past the<br />
gatekeepers and that they must be prepared<br />
for the few precious minutes they<br />
have to sell. Then, of course, there are<br />
“price and logistics considerations,” says<br />
Sammy Lasker, president of Rushking<br />
Promotions ( (asi/315085).<br />
“You want to<br />
bend over backwards because they have<br />
the ability to order mega dollars worth<br />
and they usually do.”<br />
It’s no wonder. U.S. prescription drug<br />
sales alone were $274.9 billion last year,<br />
according to IMS Health. This was up<br />
8.3% from the prior year. And advertising<br />
by companies in the market totaled<br />
a staggering $11.4 billion, according to<br />
46 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Nielsen Monitor-Plus. This was up 12%<br />
from the prior year. GlaxoSmithKline<br />
($1.1 billion), Pfi zer ($642 million) and<br />
Johnson & Johnson ($618 million) are<br />
the biggest spenders. Promotional<br />
products are most often used as a leave<br />
behind for drug sales representatives<br />
visiting doctors’ offi ces or hospitals or<br />
attending trade shows.<br />
When visiting practices, the doctor is<br />
the central target for promotional products<br />
followed by nurses and nurse practitioners<br />
who can write prescriptions.<br />
Then there are the lab technicians, followed<br />
by the offi ce staff that actually get<br />
them time to see the doctors. “It’s hard<br />
enough to reach doctors as a patient<br />
continued on page 48<br />
TOP END-USER MARKETS<br />
The pharmaceutical market is the number-one target sector, as it accounts for more<br />
than 10% of overall ad specialty revenues. Here is the full list of markets and how<br />
much overall revenue each accounts for in the industry.<br />
1. Pharmaceutical<br />
Markets Percentage of Industry Revenue<br />
2. Financial<br />
3. Health/Medical/Hospitals<br />
4. Ad agencies/Full-service<br />
promotion marketing companies<br />
5. Education/Schools/Universities<br />
6. Other<br />
7. Associations/clubs/civic groups<br />
8. Manufacturing<br />
9. Automotive<br />
10. Nonprofi t/Not-for-Profi t<br />
11. Consumer products<br />
12. Restaurants/Travel/Lodging<br />
13. Technology<br />
14. Real estate<br />
15. Government<br />
16. Professional services<br />
17. Retail<br />
18. Utilities<br />
4.1<br />
3.7<br />
2.9<br />
2.8<br />
2.6<br />
2.5<br />
1.9<br />
1.7<br />
5.1<br />
7.4<br />
7.4<br />
7.3<br />
6.9<br />
6.8<br />
8.3<br />
10.2<br />
9.6<br />
9.0<br />
Counselor State of the<br />
Industry survey. ©2007
SOI 2007 TOP MARKETS<br />
Four Steps<br />
To Cracking The Pharma Code<br />
1Fight past<br />
gatekeepers. It’s a<br />
market built on<br />
relationships.<br />
Make the effort to get to<br />
decision-makers, and work<br />
past those responsible<br />
for protecting those<br />
decision-makers.<br />
2Be prepared. Buyers in<br />
this market don’t have a<br />
lot of time, so hone your<br />
pitch to even less than<br />
that of an elevator ride.<br />
3Think low-cost.<br />
Regulatory restrictions<br />
have caused<br />
pharmaceutical<br />
companies to pare back their<br />
marketing expenses, so they can’t<br />
spend lavishly anymore on bigtime<br />
giveaways.<br />
4Be creative. Marketers<br />
are willing to spend big<br />
dollars – large quantities<br />
of low-cost items – but<br />
they won’t dedicate<br />
a lot of time to<br />
thinking creatively<br />
about them. Be<br />
their creative<br />
outlet for ad<br />
specialties.<br />
48 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Step one for reaching the<br />
decision-maker at a pharmaceutical<br />
company is being able to get past<br />
the purchasing department and the<br />
services department.<br />
much less as a rep doing a sales call,”<br />
says Carey. “The average sales call time<br />
is 90 seconds. All these factors have to<br />
be thrown into the mix.”<br />
Step one for reaching the decisionmaker<br />
at a pharmaceutical company is<br />
being able to get past the purchasing<br />
department and the services depart-<br />
ment to get to the<br />
people who are making<br />
decisions on a marketing<br />
level. Hank Peacock,<br />
president of Canadian<br />
Connection ( (asi/156452),<br />
says, “Everything is so politically motivated.<br />
It’s a nasty, tough industry to<br />
break into. It’s all about who you know.”<br />
Along those lines, it’s often easier to<br />
get in early with smaller pharmaceutical<br />
companies that don’t have multiple layers<br />
yet, Carey says. And of course it helps<br />
to be located in their own backyard. Jean<br />
Rosenheck, president of Princess <strong>Advertising</strong><br />
Specialties ( (asi/299420)<br />
in New<br />
York, says location plays a role although<br />
the Internet has changed that of late.<br />
“You sell the same,” she says. “Find a<br />
product and adjust it to fi t their needs.”<br />
She’s sold numerous pill holders, thermometers<br />
and other products over the<br />
years to her clients. Other typical items<br />
include tissues, hand sanitizers, wall dispensers<br />
and calendars.<br />
Carey describes it as a very sophisticated<br />
sale. “There is a lot of preliminary<br />
work that has to go on,” he says. “You<br />
need to get in there early to talk creative<br />
at the onset just like ad agencies. You<br />
have to present creative ideas, versus<br />
asking them to pick out of a catalog.”<br />
Making the process eminently more<br />
complicated is the fact that the restrictions<br />
regarding the use of promotional<br />
products are tightening every year.<br />
“There used to be higher-end giveaways<br />
for doctors and other people, but the<br />
industry cracked down,”<br />
says Lasker. “Now it’s all<br />
lower-end products. They<br />
love paper … any paper<br />
products, scratch pads,<br />
notebooks, Post-its.”<br />
This is a far cry from the golden days<br />
when they wanted “everything leather,”<br />
Lasker says. “Leather bags, goods, golf<br />
bags. It was a tremendous business.”<br />
Today, the American Medical Association<br />
(AMA) offers guidelines, as do the<br />
“new PhRMA guidelines” – created by<br />
the pharmaceutical companies to police<br />
themselves. There are even watchdog<br />
groups like Nofreelunch.org.<br />
“It’s a very diffi cult industry to be<br />
involved in because the ground rules<br />
are frequently changing from a governmental<br />
standpoint,” says Carey.<br />
“Marketing is constantly being attacked<br />
as a major cost component in the cost<br />
of drugs. Because the industry is heavily<br />
regulated, some fi rms don’t want to<br />
give any impression at all of any improprieties.<br />
You have to be aware of the<br />
culture and category that you’re in. But<br />
the rewards can be very generous from<br />
a percentage standpoint. It’s a very<br />
large dollar sale.” – KH<br />
Watch The Video!<br />
Go to asicentral.com/<br />
soivideo. to see Editor Andy<br />
Cohen offer tips to capitalize<br />
on the number-one market.
SOI 2007 RECRUITING/RETAINING SALESPEOPLE<br />
Attracting the best in the business<br />
How To Hire And Retain<br />
Top Salespeople<br />
While many industry<br />
companies – both<br />
suppliers and distributors<br />
– say they’ll<br />
be adding to their<br />
head counts this year, most will fi nd the<br />
effort challenging. Indeed, ad specialty<br />
executives go through a lot of trial and<br />
error before attracting the right people<br />
to work for their companies.<br />
Count Jody Ferrer, owner of The<br />
Perfect Promotion ( (asi/293518 8),<br />
in West<br />
Hartford, CT, among the ranks of<br />
frustrated distributor principals when<br />
it comes to hiring the right salespeople<br />
immediately. She has had her share of<br />
struggles with her sales force, particularly<br />
in an area that is a common problem for<br />
ad specialty distributors: industry knowledge.<br />
“Training and getting them started<br />
Sales Hiring Trends – Distributors<br />
While distributors overall reported having an average of 8.8 salespeople<br />
(including part-timers and independent contractors), here is the breakdown<br />
of sales force size in 2006 by company size (small distributors had less than<br />
$250,000 in 2006 revenues and large had more than $1 million).<br />
1.2<br />
Full-time sales Part-time sales and independent contractors<br />
Counselor State of the Industry survey. ©2007<br />
50 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
5.7<br />
18<br />
10.6<br />
can be extensive, and they will not see<br />
the fi nancial benefi ts for a while,” she<br />
says. “That can be disconcerting to them.<br />
The challenge is to keep them motivated<br />
in the beginning.”<br />
How does she overcome this issue?<br />
Hire salespeople at the beginning of<br />
their careers. Ferrer has found success<br />
by roping in new and promising salespeople<br />
before they enter the real world.<br />
“I’m fi nding that by hiring interns while<br />
they are still in college, I’m able to teach<br />
them the business and capture their<br />
enthusiasm for the industry,” she says.<br />
“When they go back to school, they act<br />
as independent contractors selling on<br />
their campus. Combine the money and<br />
the enthusiasm with the right person,<br />
and you have the best salesperson.”<br />
Again, keeping sales reps content<br />
is vital, according to Ferrer. “I treat<br />
my salespeople as part of the team,”<br />
she says. “They are not just numbers<br />
people, and they are not a means to an<br />
end. I work with them to support their<br />
efforts.”<br />
That kind of environment can have a<br />
great effect on the motivation levels of a<br />
sales force – and in turn, helps to retain<br />
the best salespeople. Brian Gould, vice<br />
president of LSC Marketing ( (asi/321000)<br />
in Little Rock, AR, says he has never<br />
lost a salesperson to another distributor.<br />
One of the keys to keeping them isn’t a<br />
big secret: Treat them well. “We strive to<br />
treat everybody fairly – customers, vendors,<br />
employees – everybody,” he says.<br />
“Frequently, we’ll be contacted by people<br />
working with other distributors, but in<br />
exchange for being treated fairly, we’re<br />
also expected to set the curve inasmuch<br />
as work ethic is concerned. Many people<br />
are unhappy because of their workload.<br />
They wouldn’t fi t in here.”<br />
Gould’s fi ve salespeople have worked<br />
for LSC for fi ve, 10, 15, 22 and 24 years.<br />
continued on page 52
SOI 2007 RECRUITING/RETAINING SALESPEOPLE<br />
Four Steps<br />
To Hiring Top Salespeople<br />
1Start them early. Many<br />
industry distributors like to<br />
hire recent college grads so<br />
they can train them on the<br />
market and have a polished earlycareer<br />
salesperson. If you follow this<br />
strategy, make sure to have a solid<br />
training program in place and some<br />
clients signed up that they can easily<br />
work with to get started.<br />
2Network constantly. You<br />
never know where your next<br />
great hire will come from, so<br />
you have to have your eyes<br />
and ears open at all<br />
times. Even if you’re<br />
not currently looking<br />
to fi ll a position, network<br />
as if you are.<br />
3<br />
Start them slowly. Don’t<br />
let new hires start in the<br />
fi eld immediately. Have them<br />
work on inside sales fi rst –<br />
or even sales support – so they can<br />
get a period of training time before<br />
they’re actively calling on clients by<br />
themselves.<br />
4Keep them<br />
in the fi rst<br />
place. The<br />
best way to<br />
ensure you have top sales<br />
talent is to retain your<br />
best people. Provide the<br />
training, compensation<br />
and incentives necessary to keep<br />
salespeople motivated and satisfi ed.<br />
And remember: Motivation isn’t<br />
one-size-fi ts-all.<br />
52 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Sales Hiring Trends – Suppliers<br />
Suppliers report a sales force averaging 8.1 people (including independents).<br />
Here is the breakdown by size of company of the sales force head count for<br />
suppliers in 2006.<br />
89<br />
3.9<br />
Counselor State of the Industry survey. ©2007<br />
“We hire adults, we treat them like<br />
adults,” Gould says.<br />
Gould says three of his fi ve salespeople<br />
are “homegrown,” while one spent fi ve<br />
years with another distributor, and another<br />
is a former print broker who segued into<br />
the sales world. “Part of me thinks that<br />
you’re better off hiring an order coordinator,<br />
writer, researcher or inside salesperson,<br />
and that the principal of the distributorship<br />
should handle the heavy lifting as far<br />
as outside sales are concerned,” he says.<br />
“But if you have somebody who wants to<br />
just sell, take them on a trial basis fi rst.”<br />
Of course, many industry distributors<br />
are family-oriented businesses, and<br />
they have a whole host of other problems<br />
when it comes to hiring and retaining<br />
salespeople. If David Puntney, president of<br />
Independent Forms ( (asi/230885)<br />
in Joliet,<br />
IL, treated his two sales reps in a negative<br />
2.8<br />
2.7<br />
Part-time sales and independent contractors<br />
manner, he would have family problems;<br />
his daughter and brother-in-law make up<br />
his sales team.<br />
Puntney says it’s vital that family and<br />
business be separated in this kind of environment.<br />
“When at work, it is work. Away<br />
from work, it is family,” he says. “In doing<br />
this, you minimize favoritism issues. Everyone<br />
knows that promotions are earned.”<br />
Though most distributorships don’t<br />
have immediate family in their sales<br />
department, it could be a bonus to have a<br />
family feel to the company, ensuring that<br />
sellers aren’t looking to climb the socalled<br />
ladder to larger companies.<br />
It also means that taking risks on new<br />
sales reps is unnecessary. “Everybody<br />
interviews well, but the demands of this<br />
job are such that one can only see how<br />
well a salesperson will do after they’re<br />
hired,” Gould says. – SD
SOI 2007 CLIENT PAYMENT<br />
Dealing with the deadbeats<br />
How To Get Reluctant<br />
Clients To Pay Up<br />
Brian Abrams can wield<br />
power when he needs<br />
to. The former lawyer<br />
turned ad specialty<br />
purveyor knows that bill<br />
collection is one of the most thankless<br />
– and important – parts of being<br />
a promotional products owner. Still,<br />
Distributors Tighten Billing …<br />
54 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Abrams, president of Corporate Imaging<br />
Concepts Inc. ( (asi/168962),<br />
doesn’t<br />
take his legal prowess out on just any<br />
old client – only those deadbeats who<br />
push him to the brink. A few years<br />
ago, Abrams phoned up a customer to<br />
remind him he hadn’t paid a $1,000<br />
bill. The client’s response? “Go F off,”<br />
The State of the Industry y measurement that evaluates how well distributors<br />
are getting their clients to pay invoices is days of sales outstanding. This<br />
looks at how many days on average a distributor waits before clients pay<br />
their bills. In 2006, distributors were able to reduce this number to the lowest<br />
level in the last fi ve years, an average of 34 days.<br />
2002 2003 2004 2005 2006<br />
AVERAGE NU<strong>MB</strong>ER OF DAYS SALES OUTSTANDING<br />
… But Play The Float<br />
Suppliers historically have had to wait longer than distributors to receive<br />
payment for invoices. However, this is also getting better, as distributors are<br />
receiving payments quicker from their clients and are, in turn, paying their<br />
vendors a bit quicker.<br />
2002 2003 2004 2005 2006<br />
42 39 43 42<br />
AVERAGE NU<strong>MB</strong>ER OF DAYS SALES OUTSTANDING<br />
Counselor State of the Industry survey. ©2007<br />
43 36 36<br />
Abrams says, “you’ll never collect it.”<br />
That was a fatal fl aw. “That only excited<br />
me more,” Abrams says. “I enjoyed it,<br />
quite frankly.”<br />
Abrams, a University of Michigan<br />
Law School grad, practiced for fi ve<br />
years before walking away to a more<br />
enjoyable career in ad specialties, he<br />
says. Now, going after the infrequent<br />
client who won’t pay is almost an<br />
amusing pasttime – something Abrams<br />
says he does with less than one tenth<br />
of his clients, but which he pursues<br />
wholeheartedly when he does. “It takes<br />
me about fi ve minutes to draft a new<br />
lawsuit,” Abrams says. “I have the form<br />
sitting in my computer.” Representing<br />
himself means he pays no legal fees<br />
– not true for his defendants.<br />
In this case, the wayward client<br />
thought he’d ditched Abrams and the<br />
bill, only to see the sheriff visit his<br />
offi ce three times to serve him with<br />
legal papers. Unwilling to accept, the<br />
deadbeat customer went conveniently<br />
missing each time the sheriff showed<br />
up. Aware of his games, Abrams concocted<br />
a scheme to fool the client. “I<br />
had my father appointed as a special<br />
process server,” Abrams says, then<br />
sent him to the client’s offi ce with a<br />
pizza box, posing as a grateful supplier<br />
bearing food as thanks. “When the<br />
guy came up to get his pizza, my father<br />
served” the complaint to him, Abrams<br />
says. “I got my money about three days<br />
later.”<br />
Not every distributor, however, has<br />
a law degree to fall back on when trying<br />
to make deadbeat clients pay. That<br />
doesn’t make them any less powerful.<br />
Just ask Michael Reisbaum. During<br />
the dot-com boom Reisbaum started<br />
ProCon Marketing Inc. ( (asi/299836 6),<br />
a<br />
distributorship in New Jersey, just 30<br />
minutes outside Manhattan, where an<br />
continued on page 57
SOI 2007 CLIENT PAYMENT<br />
Four Steps<br />
To Getting Deadbeat<br />
Clients To Pay<br />
1Get your systems in<br />
order. Make sure bills are<br />
going to the right person<br />
at your client’s company.<br />
Often, invoices go unpaid because<br />
they end up on the wrong desk.<br />
2Follow Up Frequently.<br />
Immediately after an invoice<br />
due date, pick up the phone<br />
or send an<br />
e-mail. At this point,<br />
it should be a<br />
friendly message<br />
– almost a way<br />
to expand the<br />
relationship<br />
– but you’ll<br />
make a point<br />
as well.<br />
3Show Up In Person.<br />
With true deadbeat clients,<br />
phone messages and<br />
e-mails simply won’t work.<br />
Don’t be afraid to show up on their<br />
doorstep asking for payment.<br />
4Use Fear. Nobody wants<br />
to incur the extra cost of<br />
legal representation, but a<br />
simple lawyer’s note<br />
can go a long way<br />
toward your receiving<br />
at least a piece<br />
of what is owed<br />
to you.<br />
exploding online gaming<br />
company couldn’t<br />
blow cash fast enough on<br />
promotional products to<br />
build their brand. “They<br />
had a huge influx of cash,” Reisbaum<br />
recalls – so much that the pens,<br />
T-shirts, cups, softball jerseys, squeeze<br />
balls, and van wraps custom built to<br />
encase company vehicles, resulted<br />
in more than $100,000 in sales for<br />
Reisbaum’s fledgling company. “I got<br />
wrapped up in the romance of the<br />
sale,” Reisbaum says. And then the<br />
ax fell.<br />
After a few months, “numerous<br />
phone calls, passionate conversations<br />
and veiled threats of collection agencies,<br />
I realized I was getting nowhere<br />
over the phone,” says Reisbaum. So<br />
he went in person – every Friday for 15<br />
months. “I showed up every Friday at<br />
8 a.m. and would camp out in front of<br />
the accounts payables director’s offi ce<br />
and wait,” he says.<br />
Anywhere between 8:15 a.m. and 9<br />
a.m. the fi nance director would stroll<br />
by and see Reisbaum sitting with an<br />
offering – a cup of coffee and a bagel<br />
in exchange for a check. “Sometimes<br />
I would get a check at 9:30,” he says,<br />
“and sometimes it would be 2:00 or<br />
even 4:30 in the afternoon,” though<br />
thankfully only a couple of times.<br />
Sometimes the CFO would say, “I<br />
don’t have any money for you, and I<br />
Watch The Video!<br />
would say, ‘You will have<br />
to call security then,<br />
because I’m not leaving<br />
without my check,’”<br />
Reisbaum says. That<br />
line always worked. Inevitably, usually<br />
by mid-morning, Reisbaum was<br />
handed a check. The amounts varied<br />
– $300 some weeks, $700 on others, as<br />
much as $1,200 on the most generous<br />
days – but the balance the client owed<br />
slowly whittled downward.<br />
Reisbaum, who skipped only two<br />
Fridays in those 15 months, admits<br />
now he missed conducting initial due<br />
Want to collect from<br />
deadbeats? Watch the video<br />
on the best ways to do it at<br />
asicentral.com/soivideo.<br />
“I showed up every Friday<br />
at 8 a.m. and would camp out in<br />
front of the accounts payables<br />
director’s offi ce and wait.”<br />
– MICHAEL REISBAUM, PROCON MARKETING INC. (ASI/299836)<br />
diligence on the client. “I got swept up<br />
in the emotion of writing the business,”<br />
he says. When such large bills<br />
went unpaid, “I felt I owed it not only<br />
to myself ” – not to mention his wife<br />
and kids counting on that income for<br />
food and housing – “but to the people<br />
who worked for me, because I didn’t<br />
want to get beat.” He didn’t want his<br />
staff, he says, to lose respect for his<br />
leadership or lose sight of what he<br />
thought to be one of his company’s<br />
most important credos: “We don’t<br />
accept clients who don’t pay.”<br />
Today he’s still fired up about<br />
his bold move to collect. “Of the<br />
$125,000 they owed me I got well over<br />
$100,000. I was convinced that if I<br />
had sent e-mails or made phone calls<br />
I wouldn’t have gotten a third or even<br />
10% of it.” – BC<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 57
SOI 2007 SALES VOLUMES<br />
FOR SALE<br />
Capitalizing on big sales increases<br />
How To Sell A Business<br />
Richard Francis at Francis<br />
& Lusky Co. ( (asi/197700)<br />
sold his business to Halo/<br />
Lee Wayne (asi/356000 ( )<br />
in November. Like many<br />
business owners in the advertising specialty<br />
industry, he was more than happy to<br />
seize the opportunity to become part of<br />
a larger, more powerful company. Others,<br />
like Fred Goldstein of Tasco Promotions<br />
(asi/341700 ( ), decided it was time to cash<br />
out and start his retirement.<br />
Acquisitions are about as common<br />
to the ad specialties market these days<br />
as missed payments from customers.<br />
“There is a large number of deals happening<br />
right now on both the supplier<br />
and distributor sides,” says John Schimmoller,<br />
a partner with the industry<br />
brokerage Certifi ed Marketing Consultants<br />
in Huntertown, IN. “Merger and<br />
acquisition activity is as high as we’ve<br />
seen it; 2005 and 2006 were very good<br />
years. Indications are that 2007 will be<br />
as good or better.”<br />
Companies like Halo have been<br />
extremely aggressive on the acquisition<br />
front. It has made four acquisitions in<br />
the last 12 months, including its purchases<br />
of Francis & Lusky and Tasco<br />
Promotions.<br />
But, how exactly does one sell a<br />
distributorship? Experts say a number<br />
of factors come into play. First and<br />
foremost is sales volume. Strong sales<br />
volume will help draw the eye of a<br />
potential suitor. Profi tability is helpful<br />
but not altogether necessary, as bigger<br />
players factor in their own economies of<br />
scale for pricing and superior customer<br />
service technologies when making a<br />
decision. Where a business is located<br />
58 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
and the ways in which the company goes<br />
to market are also crucial. “We focus on<br />
the quality of the sales force and the client<br />
base,” says Halo CEO Marc Simon.<br />
“Revenue retention is a key element of<br />
an acquisition for us. It leads us to look<br />
at our compatibility with the sales force<br />
and our ability to add value to the sales<br />
force.”<br />
Francis says having sales volume of $2<br />
million to $4 million is the baseline for<br />
a large distributorship’s being interested<br />
in acquiring a smaller business. Once<br />
you have that kind of revenue, then<br />
continued on page 60<br />
A Volume Game<br />
Merger-and-acquisition experts say that consistent sales volume growth is the<br />
number-one criteria for acquiring fi rms. Using that measurement, there are a lot<br />
of attractive distributorships right now in the industry. When asked whether they<br />
increased their sales volume in 2006, more than 70% of distributors said yes.<br />
Increased<br />
Decreased<br />
Stayed the same<br />
Don’t know<br />
The amount that distributors say their sales increased is also impressive,<br />
as the average increase was more than 25% in 2006:<br />
Sales Volume<br />
Increased 27%<br />
Counselor State of the Industry survey. ©2007<br />
Sales Volume<br />
Decreased 17%
SOI 2007 SALES VOLUMES<br />
Four Steps<br />
To Selling A Business<br />
1Focus on increasing<br />
sales volume. Many<br />
believe that<br />
profi tability<br />
is the key to selling<br />
a business, but<br />
volume is what’s<br />
coveted in the ad<br />
specialty market.<br />
2Gross margin is job-one.<br />
Big distributors can take<br />
care of operating expenses<br />
when acquiring smaller<br />
companies, so they’ll be looking<br />
at the ones with impressive gross<br />
profi t margins, not net profi ts.<br />
3<br />
Know the<br />
value of your<br />
company.<br />
Factors such as<br />
cash fl ow, capitalization<br />
of earnings<br />
and liquidation<br />
value will lead<br />
an owner to get<br />
an accurate assessment<br />
of his company’s worth.<br />
Don’t go into the process blind.<br />
4Don’t look desperate.<br />
Experts say that a company<br />
that’s seeking a buyer tends<br />
to get 25% less in a deal<br />
than companies that are sought<br />
after. Focus internally on growing<br />
sales volume and gross margins,<br />
and make key relationships in the<br />
industry.<br />
60 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
the focus will turn to profi t margins.<br />
“You have to have good margins,” he<br />
says. “The company that acquires you<br />
can take care of operating expenses,<br />
but they can’t do much to change gross<br />
margin.”<br />
Because Francis says his business was<br />
generating strong volume for a consistent<br />
period of time, a broker working on<br />
Halo/Lee Wayne’s behalf contacted him<br />
and the acquisition deal came together<br />
rather quickly.<br />
Bruce Walter, founder of Business<br />
Evolution LLC, a small business training<br />
and development company based in<br />
Morristown, NJ, says being courted is<br />
the ideal situation for a seller. In fact,<br />
he believes that a seller can lose up to a<br />
quarter of the value of their business if<br />
they’re actively seeking a buyer. “Take<br />
25% off the value of the company once<br />
you hire someone to sell your company,”<br />
Walter says.<br />
For distributors who are considering<br />
the possibility of searching for a<br />
buyer, Schimmoller says the fi rst step<br />
is to determine the real value of their<br />
companies. “People know the value of<br />
their home and the value of their car,<br />
but many times their business is the<br />
biggest asset they have,” he says. “You’d<br />
be surprised, though, that they have no<br />
idea what their company is worth. Even<br />
if it’s two, three, four years before you<br />
sell the business, you want to have it in<br />
the back of your mind what your company<br />
is worth and do things to enhance<br />
the business between now and then.”<br />
Distributors can get a rather clear<br />
valuation of their businesses by using<br />
appraisal methods including discounted<br />
cash fl ow, industry comparables, capitalization<br />
of earnings and excess earnings<br />
and/or liquidation value or adjusted<br />
book value.<br />
One of the biggest considerations<br />
a buyer may make is how the company<br />
A seller can lose<br />
up to a quarter of<br />
the value of their<br />
business if they’re<br />
actively seeking<br />
a buyer.<br />
will function without the owner should<br />
he decide to retire. A proprietor should<br />
have an exit strategy in place that shifts<br />
many of the responsibilities onto the<br />
employees who will remain with the<br />
company. “Spreading out some of the<br />
dependency helps enhance the value of<br />
the company,” says Schimmoller.<br />
Having low turnover is also helpful,<br />
as fl eeing talent is a red fl ag. “Turnover<br />
is more of a refl ection of management<br />
and leadership than the employees<br />
themselves,” says Walter. “It smells of<br />
deep distrust in the organization. No<br />
one wants to acquire that bag of rocks.”<br />
Next, the potential buyer will try<br />
to determine if the two companies are<br />
a good fi t fi nancially, geographically<br />
and whether they are a sales employee<br />
model or independent contractor<br />
model. If you have a potential buyer that<br />
uses an independent contractor model,<br />
then companies with actual employees<br />
may not be a good strategic fi t, says<br />
Schimmoller.<br />
Terry McGuire, senior vice president<br />
of marketing and communications for<br />
Halo, says that in the case of Tasco,<br />
Halo looked at two factors: the similarities<br />
of their respective business models<br />
as well as the likelihood of being able to<br />
retain the salespeople who derive all of<br />
the revenue. “Fred wanted to fi nd a good<br />
home for all of his employees. It was a<br />
good fi t philosophically.” – KH
SOI 2007 NEW CLIENTS<br />
The secret to closing big deals<br />
How I Nabbed<br />
A $2 Million Account<br />
David Gray knows that<br />
sometimes to make a<br />
million dollars, you have<br />
to start off with nothing.<br />
“They’re tough,” Gray<br />
says of landing large accounts, “especially<br />
living in Florida, as opposed to up<br />
north where big companies are. If it’s a<br />
$100 piece of business, I’ll take it. I treat<br />
everybody the same.”<br />
Still, Gray is nobody’s fool. He knows<br />
the key to huge windfalls in this business<br />
is landing a few giant accounts rather than<br />
a vast quantity of little ones. But turning<br />
down anything can mean missing out on a<br />
Competitive Threats<br />
So, who are you facing in the fi eld to get that prized big client? Here is the ranking of<br />
the biggest competitive threats, and the percent of distributors that chose each one.<br />
62 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
large opportunity down the road.<br />
With one $2 million account, Gray<br />
started small. The fi rst order? Three<br />
hundred portfolios, for which Gray, who<br />
owns David Gray Enterprises ( (asi/213025 5),<br />
made only $300. That, he says, was a<br />
windfall. On other orders he broke even.<br />
Ask any distributor, and they’ll tell you<br />
the same thing: Large orders are sometimes<br />
a waiting game, nudging a small<br />
client up into bigger and bigger orders,<br />
making sure to be on hand as the go-to<br />
person when a client grows and moves<br />
toward the seven-fi gure mark.<br />
But the key to reaching the million-<br />
Competitive Threats Percentage of Distributors Selecting<br />
1. Other local distributors 30<br />
2. Web sites selling ad specialty items<br />
3. Mail-order distributors/catalogers<br />
4. Crossover distributors, offi ce products,<br />
trophy dealers, screen printers, business forms<br />
5. Large distributors selling in your territory<br />
6. Industry suppliers that sell direct<br />
7. Other/Don’t Know<br />
8. Ad agencies/full-service promotion<br />
marketing companies<br />
9. Non-industry suppliers that sell direct<br />
6.8<br />
6.1<br />
9.4<br />
9.0<br />
3.1<br />
1.4<br />
10<br />
13<br />
22<br />
*Totals more than 100%<br />
due to multiple responses<br />
10. Client in-house distributorships Counselor State of the Industry survey. ©2007<br />
dollar mark – aside from relentlessly<br />
following up on cold calls, which is how<br />
Gray landed this particular million-dollar<br />
client – is to yield profi t for quality.<br />
“I care about my client’s image,” says<br />
Gray, who has been in the business for<br />
49 years. “I’ll have the opportunity for<br />
the next order because I made them look<br />
great. That’s what I do, and I’ve done<br />
that all my life.”<br />
That advice may seem daunting in a<br />
business where the stress of landing the<br />
next order can overshadow all else. But<br />
it’s also a tactic reserved for the industry’s<br />
most ambitious players. How does Gray<br />
help clients look good? For starters, he<br />
steers them away from poor quality products,<br />
toward comparably priced, higher<br />
quality ones – information that anyone<br />
outside the industry wouldn’t be privy to.<br />
On their second order, the client, a<br />
management consulting company, wanted<br />
pens. “Inexpensive pens,” Gray<br />
says. “I know inexpensive pens<br />
just aren’t right.” Instead, he sold<br />
them higher-quality pens, but at<br />
the same price. “I broke even,”<br />
he recalls. But his credibility<br />
skyrocketed. Ultimately, “I lose<br />
business if they want something<br />
inexpensive, and I tell them, ‘I<br />
can’t afford to sell it to you,’ ”<br />
Gray says. “It’s not the money,<br />
it’s a matter of my image. If I sell<br />
something that’s not going to<br />
look good, I may have met your<br />
budget, but you’re not going to<br />
remember it.”<br />
Next came another order for<br />
portfolios. This time the company<br />
wanted a cheaper version,<br />
one with sharp edges – a detail<br />
some may not notice, but one<br />
Gray knows is the sign of a lowerquality<br />
product. Gray brought<br />
them what they requested, then<br />
continued on page 64
SOI 2007 NEW CLIENTS<br />
Number Of New Clients Gained<br />
Here is the average number of new clients that distributors of varying sizes<br />
gained in 2006.<br />
21<br />
Counselor State of the Industry survey. ©2007<br />
he brought his own ideas – actual products<br />
they could touch, feel and compare.<br />
The key, he says, was not bringing catalogs<br />
but actual products, which are far<br />
more impactful in person. “It made the<br />
purchasing guy look very good, because<br />
he got stuff that was really nice, but I kept<br />
it within the budget,” Gray says.<br />
Time and time again Gray curried<br />
favor with the company’s buyer, nudging<br />
their orders slightly higher with a product<br />
a step above their original request. When<br />
a client would ask for pens or coffee<br />
mugs, for example, Gray didn’t see the<br />
request as an opportunity for easy cash<br />
as some distributors might – taking the<br />
order over the phone and collecting on an<br />
invoice a month later. Instead, Gray got<br />
busy searching for the best-quality pens<br />
at that price point, then he took such<br />
orders one step further. He would suggest<br />
the next best pen at a price point still<br />
well within the client’s range but at a level<br />
that would deliver a product that much<br />
64 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
46<br />
93<br />
more durable and reliable. Again, he told<br />
himself, it’s the quality, not the price, that<br />
keeps this burgeoning business returning<br />
to Gray’s door.<br />
That line of thinking paid off as the<br />
company grew to trust Gray as a source<br />
that could fi nd them reasonably priced,<br />
high quality goods. As a result, orders that<br />
called for a few hundred items eventually<br />
grew to 10,000 once he’d gained<br />
the company’s confi dence with quality.<br />
Purchases that high boosted his profi t<br />
margin to well over 30%. And the account<br />
grew to more than $2 million a year.<br />
His strategy, Gray says, involved<br />
constantly showing top-quality products,<br />
even if it meant slimmer margins. And<br />
increasingly larger orders meant Gray,<br />
over time, could reduce his costs with<br />
suppliers by guaranteeing certain-size<br />
orders. “I’m very cautious about quality,”<br />
Gray says. “I want to keep my customers,<br />
and the best way to keep them is to sell<br />
them the best.” – BC<br />
Four Steps<br />
To Closing a<br />
Million-Dollar Deal<br />
1Start small. You can’t sign<br />
up a large client with one<br />
order. Gain their confi dence<br />
by starting off with smaller<br />
orders before you go after the bigtime<br />
business.<br />
2Yield profi ts for quality.<br />
When shooting for big<br />
deals, distributors often<br />
have to yield profi ts in favor<br />
of quality. Don’t be afraid to bid<br />
low in the hopes of winning a big<br />
client’s favor.<br />
3Be creative. Big clients<br />
often say they know what<br />
they want, but they also<br />
need creative ideas. This will<br />
help to sell your company’s services,<br />
and will position you as an expert in<br />
the minds of big clients.<br />
4Offer superior service.<br />
The biggest clients have a<br />
lot of purchasing choices,<br />
so it’s important for a<br />
distributor to wow them with great<br />
customer service. It may take more<br />
time, and you’ll have to give up some<br />
profi ts to do it, but excellent customer<br />
service will lead to a valuable<br />
long-term partnership in the end.
SOI 2007 INCENTIVE PROGRAMS<br />
S<br />
Selling clients on motivation<br />
How To Jump Into<br />
Incentive Programs<br />
If your distributorship isn’t in the<br />
incentive program business, it<br />
should be. After all, the payoff<br />
can be huge.<br />
This comes from Russ<br />
Remaley, owner of A to Z Promotions<br />
(asi/101588 ( 8).<br />
“Everyone has a differ-<br />
ent perspective on what an incentive<br />
program is,” says Remaley, who has done<br />
heavy business in incentives during his<br />
12 years in the industry. “There’s no real<br />
set formula on how you do incentive<br />
programs. You see if you’re dealing with<br />
a tech company, for example, and they<br />
have a sales force. We might do something<br />
every four months for them if<br />
they’re hitting their numbers.”<br />
Remaley says A to Z has helped its<br />
clients set up incentive programs for<br />
employee longevity recognition. “How<br />
it works out is for every year of service,<br />
you want to spend about $10 to $15<br />
per year, so a guy who’s been there for<br />
20 years, his gift is going to be $200 to<br />
$250,” he says. “The upper-end gifts are<br />
maybe a brand-name watch on which<br />
you engrave the back, and for fi ve-year<br />
people, it could be an embroidered blanket<br />
with a travel mug. It’s an easy way to<br />
sell it when the customer comes to you<br />
and says, ‘We want to do an incentive<br />
program for years of employment here.<br />
How can we do it?’ The fi rst question we<br />
ask is, ‘What’s your budget?’”<br />
Remaley says keeping with a theme,<br />
such as safety products for safety programs,<br />
is important when selling a client<br />
on an incentive plan. “An example would<br />
be if power companies go X amount<br />
66 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
of hours without an accident,” he says.<br />
“Safety kits, fl ashlights, jumper cables,<br />
they might get something like that, or<br />
a nice fi rst-aid kit. I’ve done fi re extinguishers,<br />
CO2 detectors – something<br />
safety-related for a safety program.”<br />
Like Remaley, Bob Walker, president<br />
of JMA Promotions ( (asi/268680),<br />
is a<br />
big fan of higher-end items for such<br />
programs. “The goal of an incentive<br />
program is to motivate someone to do<br />
something they would not normally do<br />
on their own,” Walker says. “Based on<br />
this, the perceived value of the incentive<br />
item must be high enough to motivate a<br />
change in behavior. Usually, the greater<br />
the desired change in behavior, the<br />
higher the perceived value of the incentive<br />
item must be.”<br />
Walker says JMA has used a smorgasbord<br />
of promotional products as<br />
incentives for end-users. “I have worked<br />
on incentive programs to one degree<br />
or another from the beginning 23 years<br />
ago, and they come in all shapes and<br />
continued on page 68<br />
Room For Growth<br />
While many distributors are profi ting from big sales in the incentive market,<br />
a little more than a third of all distributors reported no revenue from incentive<br />
sales in 2006. However, it seems larger distributors are having more<br />
success with incentives than are their smaller counterparts. Here is the<br />
percent of distributors who claim varying amounts of annual revenue coming<br />
from incentive programs.<br />
6%<br />
13%<br />
34%<br />
% of Small<br />
Distributors<br />
5%<br />
15%<br />
48%<br />
% of Medium<br />
Distributors<br />
Counselor State of the Industry survey. ©2007<br />
16%<br />
55%<br />
6%<br />
% of Large<br />
Distributors<br />
None 1-10% 11-25% Over 26%<br />
14%<br />
6%<br />
46%<br />
% of Total<br />
Distributors
SOI 2007 INCENTIVE PROGRAMS<br />
Four Steps<br />
To Selling Incentive Plans<br />
1Know your audience.<br />
Whether it’s the marketing<br />
department or the human<br />
resources department of your<br />
clients’ companies, it’s vital to understand<br />
the audience that they’re<br />
trying to reach.<br />
There are vastly<br />
different incentive<br />
programs for<br />
employees and<br />
customers.<br />
2Think safety. Many companies<br />
you sell to already<br />
could probably use a safety<br />
incentive program. This is an<br />
under-tapped section of the incentive<br />
market that distributors can<br />
capitalize on.<br />
3Recognition<br />
counts. Every<br />
human resources<br />
department is looking<br />
for a creative way<br />
to recognize employees<br />
for good work and<br />
longevity. Be the person<br />
that provides creative solutions<br />
for their recognition needs.<br />
4Name brands count.<br />
When it comes to motivating<br />
employees, companies<br />
are looking for high perceived<br />
value from the prizes they<br />
give out. Gravitate toward name<br />
brands and high-quality items.<br />
68 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
sizes,” he says. “In these programs, we’ve<br />
used everything from tubes of golf balls<br />
to Howard Miller grandfather clocks as<br />
incentive items.”<br />
Walker recalls one program his company<br />
did for a bank that wanted to fi nd<br />
out from their customers if they planned<br />
to borrow money for capital equipment<br />
within the next 12 months. “In an effort<br />
to motivate their 20,000 customers to<br />
supply the bank with this information,<br />
a tube with two golf balls and nine tees<br />
was sent with each survey,” he says. “The<br />
response rate was 18%, and it generated<br />
leads resulting in more than $400 million<br />
in loans.”<br />
Walker advises those new to the<br />
incentive section of the industry to fi nd<br />
out their customers’ most signifi cant<br />
problems and opportunities. “Once you<br />
have a good understanding of the issues,<br />
you can start formulating an incentive<br />
program that will motivate their employees<br />
or customers toward the desired<br />
change needed to solve the problem or<br />
capitalize on the opportunity,” he says.<br />
Remaley says that while<br />
upper-end wearables come<br />
cheaper with the same<br />
quality from distributorships,<br />
clients are still looking<br />
for the name brand<br />
stuff, such as Adidas and Ashworth.<br />
“Perceived value to the end-user is big,”<br />
he says. “People gravitate to those brand<br />
names,” especially when the item is<br />
meant to motivate people to take action.<br />
It’s also important to give clients a<br />
high volume of ideas for incentive programs,<br />
according to Remaley, as there is a<br />
greater probability of an end-user signing<br />
on to one idea when it has 10 choices<br />
instead of just two or three. “You give<br />
your customers 10 or 20 ideas,” he says,<br />
“and you’re going to hit on something.”<br />
Remaley says incentive programs<br />
need not be the crux of any distributor-<br />
Distributors are<br />
swarming to the<br />
incentive market.<br />
of all ad specialty<br />
sellers say they<br />
were involved<br />
in the awards<br />
and recognition<br />
business in 2006.<br />
ship, but if the company heads in that<br />
direction – and it should – it’s important<br />
to know one’s audience. “If I had any<br />
advice, I’d say each customer is different<br />
in the industry they’re in, and you have<br />
to get a little background<br />
into what they do,” he<br />
says. “It’s going to help<br />
you get ideas into what<br />
you can do for that<br />
particular customer. Just<br />
cold-calling, that’s pretty tough.”<br />
For others, incentives represent a<br />
majority of their annual business. Tim<br />
Watch The Video!<br />
Editor Andy Cohen gives<br />
hot tips on breaking into<br />
the incentive market at<br />
asicentral.com/soivideo.<br />
44%<br />
Merritt, an independent sales rep for<br />
Kaeser & Blair ( (asi/238600),<br />
says that his<br />
business is fi rmly rooted in the incentive<br />
market, to the point where an overwhelming<br />
majority of his revenues come<br />
from big incentive sales. “Eighty percent<br />
of my annual sales come from 20% of<br />
my recognition and rewards customers,”<br />
he says. “When companies show<br />
appreciation and recognition to enhance<br />
employee motivation, it really adds to<br />
their bottom line.” – SD
SOI 2007 CREATIVE SELLING<br />
I Win business with a unique approach<br />
How I Use Creativity<br />
To Close Deals<br />
Agoat is no doubt the oddest<br />
promotional product<br />
Brian Gould has ever<br />
slapped an imprint on.<br />
No, not a stuffed, fuzzy,<br />
give-it-to your-kid-so-he-can-cuddlewith-it<br />
kind of goat. A real, live, stinking-like-hay,<br />
shoe-eating goat. The<br />
stunt, cooked up for an Arkansas shoe<br />
manufacturer through a Nickelodeon<br />
licensing agreement, required the<br />
four-legged creature to bear a promotional<br />
logo on its side while wearing<br />
sunglasses and riding a skateboard.<br />
“As goats go, he was pretty cool,” says<br />
Gould, vice president of LSC Market-<br />
ing ( (asi/321000).<br />
The promotion landed LSC a great<br />
deal of notoriety – and additional<br />
business – among its target audience,<br />
area ad agencies. It also resulted in<br />
Gould being slightly crushed by the<br />
goat when it fell on him as Gould attempted<br />
to put a stenciled sign on the<br />
animal’s side. That, however, followed<br />
a long day of dealing with an otherwise<br />
uncooperative animal.<br />
When Gould fi rst got the call, he<br />
couldn’t believe the request.<br />
“Brian?” said his ad agency account<br />
rep – “a real neat girl, 4 foot 10, 90<br />
pounds soaking wet,” Gould adds.<br />
“Yes?” he responded.<br />
“I need you to put a logo on a goat.”<br />
Gould stopped short. He’d never<br />
heard of such a ridiculous request. But,<br />
as luck would have it, his girlfriend at<br />
the time was a “vet tech.” “I asked her,<br />
‘What are goats like?’ ” Gould says,<br />
70 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
eliciting an alarmed reaction from his<br />
girlfriend, “like I was suggesting some<br />
threesome,” he says.<br />
He quickly explained his promotional<br />
need for the animal. After a crash<br />
course in goat behavior, Gould visited<br />
a local sign company and stocked up on<br />
stencils. “Something propelled me to<br />
cut various sizes of stencils, because I<br />
had not yet met the goat,” which, he was<br />
told, was about four feet at its shoulder,<br />
and his temperament was anyone’s best<br />
guess. To assuage the goat’s nervousness,<br />
Gould enlisted his assistant to calm the<br />
animal during the shoot. “So I gave her<br />
a Counselor, and she’s reading stories<br />
to the goat and the goat is transfi xed,”<br />
Gould recalls. That is, until the animal<br />
got hungry. “The next thing I know, the<br />
goat is eating the magazine,” he says.<br />
continued on page 74<br />
Creativity Counts<br />
Distributors report that their clients are increasingly requesting more services<br />
more from them than just the sale of promotional products. This branching out<br />
– and using creative sales to provide more value-added services to clients –<br />
can yield big revenues and profi ts for distributors. Here is how distributors<br />
responded when asked to rate their level of agreement with the statement<br />
that clients are seeking more services.<br />
Strongly Disagree<br />
Somewhat Disagree<br />
Neither Disagree<br />
Nor Agree<br />
Somewhat Agree<br />
Strongly Agree<br />
Counselor State of the Industry survey. ©2007
SOI 2007 CREATIVE SELLING<br />
Watch The Video!<br />
Check out Editor Andy Cohen,<br />
as he provides camera-ready<br />
tips for using creativity to<br />
win more business. Go to<br />
asicentral.com/soivideo.<br />
In the meantime, Gould was busy<br />
stenciling the creature’s side. “I get out<br />
my paint brush and put a stencil up<br />
against the goat. When you push up<br />
against a goat, they push back,” Gould<br />
says. “So I put up my stencil, the goat’s<br />
happily being read to and gazing lovingly<br />
at my assistant. I take my hands off,<br />
and the goat falls over onto me. Mad at<br />
me, he starts to kick.” Gould, he says, is<br />
thinking, “I don’t want any part of this.<br />
I’m not assigned to be kicked by goats.”<br />
An animal rights advocate had been<br />
summoned by Gould and the crew to<br />
More than<br />
22%<br />
of large<br />
distributors<br />
believe that their<br />
clients don’t shop<br />
primarily based on<br />
price, while only<br />
11%<br />
of small<br />
distributors<br />
have the same<br />
sentiments.<br />
74 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
make sure the animal wasn’t harmed in<br />
any way during decoration or production,<br />
but Gould never considered that<br />
he would need his own advocate looking<br />
out for his welfare.<br />
“Somebody was there to make sure<br />
we were not abusing the goat,” Gould<br />
says. “I’m like, ‘I’ve got a goat on top<br />
of me. Nobody seems to think there’s<br />
anything wrong with me.’ ”<br />
What’s more, Gould was now covered<br />
with the sugar, salt and food coloring<br />
combo he’d concocted to safely<br />
paint the animal in the fi rst place, the<br />
logo having smeared all over Gould<br />
when the goat fell on top of him.<br />
If the animal wasn’t falling over, he<br />
was contorting his body to lick the<br />
sweet and salty confections off his<br />
torso. “It took six tries” to get the goat<br />
properly adorned and ready for the<br />
shoot. “Everything I put in the mixture<br />
wouldn’t work or the goat would<br />
lick off part of it,” Gould says. Finally,<br />
“I had to give the goat a peanut butter<br />
sandwich” just so he would forget<br />
about his painted body.<br />
Ten takes later the Nickelodeon<br />
logo was fi nally painted perfectly and<br />
the goat, cooperating as much as he<br />
would, was ready to be fi lmed – on a<br />
skateboard, even.<br />
The commercial aired several<br />
months later and created a buzz among<br />
local ad agencies, with Gould’s name<br />
always mentioned in the same breath.<br />
“What it did for us,” Gould says, “is<br />
that it showed folks, if your fi rst choice<br />
in distributors says it can’t be done, the<br />
goat incident set me up as being the<br />
company that could get it done.”<br />
Gould’s efforts paid off nicely, he<br />
says, “three months later I get the<br />
same call. ‘Why don’t you put a logo on<br />
an elephant?’ ” his ad agency account<br />
rep asked. “I said, ‘That’s where I draw<br />
the line.’ ” – BC<br />
Four Steps<br />
To A Creative Sales Approach<br />
1Never say no. Being a<br />
creative partner to your clients<br />
means fi nding a way to<br />
always say “yes” to unique<br />
requests. Be the go-to distributor for<br />
the wackiest of promotions.<br />
2Think of new products to<br />
use. Many distributors look<br />
for untraditional products –<br />
not normally found in the ad<br />
specialty industry – so that they can<br />
surprise their clients. This approach<br />
will make you stand out.<br />
3<br />
A budget isn’t always a<br />
budget. Clients will often<br />
spend more than they<br />
planned for a creative promotion<br />
that will gain them attention.<br />
Offer options within their budgets, as<br />
well as other slightly more expensive<br />
options that will gain you notoriety.<br />
4Position yourself in a<br />
creative manner. Distributors<br />
should be spending<br />
more time promoting<br />
themselves in unique ways to gain<br />
attention for their services. You can’t<br />
expect to be able to charge for creative<br />
services if you don’t promote<br />
your company as one that will surely<br />
get attention for its clients.
SOI 2007 WEB-BASED BUSINESS<br />
v Moving fast into e-commerce<br />
How To Increase<br />
Business On The Internet<br />
At Absorbent Ink.<br />
(asi/295819<br />
( ), the top sales<br />
channel is the company’s<br />
Web site, www.absorbent<br />
printing.com. Each week,<br />
this sales-savvy guru garners 40,000<br />
online hits, which account for 95% of the<br />
distributor’s business.<br />
“In the last three years, our online<br />
promotional products sales have grown<br />
1,079%,” says Absorbent Ink. President<br />
Lee Eldridge, whose company established<br />
the Web site in 2000. “We get<br />
orders anywhere from a couple hundred<br />
dollars to thousands of dollars for a single<br />
order over the Web.”<br />
Eldridge’s company isn’t the only<br />
one to take advantage of the Internet’s<br />
selling and marketing powers. In today’s<br />
vibrant e-commerce world, distributors<br />
are looking for ways to launch – and more<br />
importantly, bolster – a Web site that’s<br />
sure to go ka-ching!<br />
A key part of attaining online sales is<br />
getting the word out, says Rick Martines,<br />
owner of Custom Graphic Designs<br />
(asi/173159 ( ). (His company’s Web address<br />
is www.customgraphicdesigns.net.) He recommends<br />
including your company’s Web<br />
site in e-mails, brochures and any other<br />
correspondence with clients.<br />
“I have it on my order forms, on my<br />
catalogs, on my invoices. It’s on everything<br />
that I put out,” Martines says. “I<br />
tell my existing customers to use it as an<br />
extended catalog.”<br />
For organizations that have yet to<br />
carve out a niche on the Web, here’s<br />
a helpful starting tip: Don’t go into it<br />
76 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
blindly. Familiarize yourself with the<br />
latest design software, and pay attention<br />
to applications such as an online shopping<br />
cart, checkout counter and other<br />
interactive tools. The other alternative is<br />
to hire an in-house team of Web designers<br />
and technicians, which, according to<br />
Eldridge, is well worth the investment.<br />
“If we had to go out and hire a com-<br />
pany to build our Web site for us, it would<br />
have cost tens of thousands of dollars,”<br />
Eldridge, whose company has been in<br />
business since 1991, says. “To have people<br />
on staff that have that knowledge makes<br />
it a lot more feasible.”<br />
The key is to offer users an interactive<br />
experience that is easy. A few of Absorbent<br />
Ink.’s notable features that make<br />
for a positive online customer experience<br />
include a special discounts section,<br />
a searchable database of products, and<br />
an inviting home page with photos that<br />
change each time the page is refreshed.<br />
“Some of our advantages are the fact that<br />
our Web site can physically do a number<br />
continued on page 78<br />
Electronic Marketing Heats Up<br />
Suppliers are rapidly increasing their use of e-mail and the Internet to market<br />
their products and services to distributors.<br />
SUPPLIERS’ TOP METHODS OF SELF PROMOTION<br />
Counselor State of the Industry survey. ©2007<br />
E-mail promotions Internet Web site
SOI 2007 WEB-BASED BUSINESS<br />
19%<br />
of distributors say that<br />
most of their new business comes from<br />
the Internet. This ranks fourth behind<br />
referrals, networking and cold calls.<br />
of things that other competitor sites<br />
don’t appear to be able to,” Eldridge says.<br />
As far as ways to pick up sales online,<br />
customers are looking for “ease of<br />
navigation,” says Hal Small, president<br />
of Kent Business Products ( (asi/241325),<br />
a distributor in Florida. “They don’t<br />
want it too cluttered. Make sure that<br />
your Web site has plenty of white space.<br />
Why Suppliers<br />
Have Web Sites<br />
Here are the top purposes that suppliers<br />
name for having a presence on<br />
the Internet.<br />
THE PRIMARY PURPOSE<br />
OF THE WEB SITE<br />
Distributor communication/education<br />
Marketing<br />
Customer service<br />
Order generation<br />
Other<br />
Counselor State of the Industry survey. ©2007<br />
78 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Make your shopping cart very similar to<br />
Amazon.com’s” – which keeps a running<br />
tally of online orders with a toolbar to<br />
the right of the screen.<br />
It’s also important to make your Web<br />
site safe to purchase on. “When someone’s<br />
going to be entering their credit<br />
card online, they want to have a comfort<br />
level that makes them think it’s a reputable<br />
company that’s going to do things<br />
safely and securely,” Eldridge says.<br />
Of course, where many companies go<br />
wrong online is that they think a Web<br />
site can be a channel entirely on its own.<br />
Rather, combining an effective Web site<br />
with a supportive customer service team<br />
is a vital strategy. Small, whose company<br />
recently redesigned and relaunched its<br />
Web site, encourages his customer service<br />
staff to assist a client with an online order.<br />
He gives the hypothetical scenario of<br />
a customer ordering a pin. “We can go<br />
to the Web site together and we can talk<br />
about some items that I think would be<br />
a good fi t for what they’re looking for,”<br />
Smalls says. “The customer may be in a<br />
hurry. He can see what he’s interested in,<br />
and we can kind of close the deal there.”<br />
Even for companies with a signifi cant<br />
Web presence, it’s often reassuring for<br />
customers to know there’s a live person<br />
who’s ready to help in a pinch. “There<br />
are a lot of people who want to call in,”<br />
Eldridge says. In May, his company<br />
received 33% of its orders over the<br />
phone. “They want to be sure there’s<br />
someone on the other side of the phone<br />
who will pick up, and that it’s not just a<br />
Web site.” – EW<br />
Four Steps<br />
To Building An Online Business<br />
1<br />
Get the word out. Put<br />
your Web address on every<br />
piece of correspondence<br />
you have with customers.<br />
Put it on all brochures, business<br />
cards, invoices, everything.<br />
Customers need to know that they<br />
can purchase on your site.<br />
2Don’t go online blindly.<br />
Learn about all the technologies,<br />
like shopping carts,<br />
search engines and checkout<br />
tools, so you can easily explain<br />
their applications to customers.<br />
3<br />
Make it easy to navigate.<br />
Customers will be<br />
turned off and frustrated if<br />
they can’t easily get around<br />
your Web site. Use white space<br />
so the pages aren’t cluttered, and<br />
make the shopping experience as<br />
easy as possible.<br />
4<br />
Add service. A Web site<br />
on its own won’t work. Your<br />
online<br />
presence<br />
should be<br />
enhanced with<br />
live customer<br />
support in case<br />
customers need<br />
help.
SOI 2007 PURCHASING HABITS<br />
˝<br />
Distributors change channels<br />
Why I Buy Products<br />
From Outsiders<br />
How else can I compete with them? A lot<br />
of them have direct importers. It’s not<br />
like the average supplier can penalize<br />
them, and turn off the big guy and say<br />
I’m not going to do business with you.”<br />
He says while he uses ASI-listed suppliers<br />
as much as possible, he does look<br />
for alternatives as a way to cut costs. “If I<br />
can cut 25 cents off of it and it’s a couple<br />
hundred thousand pieces, I will,” says<br />
Cole. “It’s competitive. If I don’t do it,<br />
someone else will.”<br />
Others in the industry believe, though,<br />
that remaining competitive within the<br />
traditional channel is entirely feasible.<br />
“We made a decision, and our<br />
philosophy as a company is to<br />
“<br />
In the old days you would get<br />
your throat cut if you went<br />
outside of the industry,” says<br />
Jeff Cole, sales manager for<br />
Eagle Graphics ( (asi/185192).<br />
According to a number of distributors,<br />
there are two signifi cant reasons as<br />
to why they will wade out of the mainstream<br />
buying channel. One common<br />
reason is that a distributor may need to<br />
However, these days many members search for a product that is not currently<br />
of the promotional products realm have<br />
sheathed their weapons.<br />
available from ASI-member suppliers.<br />
The fact of the matter is<br />
distributors buying direct Outside Sourcing<br />
stay within the ASI channel,”<br />
from factories overseas, as Do you purchase promotional products from domestic says Dale Kirby, director of<br />
Cole does, is becoming more suppliers outside of the industry?<br />
marketing for Promopeddler<br />
and more commonplace. And<br />
.com ( (asi/300367 7).<br />
“We are still<br />
those who are not partaking<br />
able to maintain our margins<br />
in the practice have accepted<br />
and also retain clients, which<br />
it as a necessary evil that has<br />
is always the challenge. Once<br />
overtaken the industry.<br />
they have booked overseas,<br />
The proper ad specialties<br />
they’ll say, ‘Here’s your order,<br />
chain is linked together like<br />
can you do it overseas for<br />
this: an end-user contacts a<br />
me?’ We’ve been in those<br />
distributor who in turn calls<br />
situations. We still will do<br />
a supplier who sources the<br />
not do it.”<br />
product. However, today<br />
Price aside, distributors will<br />
many links are being made<br />
often cast a wandering eye for<br />
that had rarely happened<br />
goods that are currently not<br />
before. An end-user may<br />
available, cannot be custom-<br />
contact a factory on its own.<br />
ized in the way they need it or<br />
A supplier may sell directly<br />
bear a brand name that is not<br />
to an end-user and a dis-<br />
involved in the industry.<br />
tributor may buy directly<br />
from overseas. In fact, 85%<br />
Yes No<br />
Netknacks Tennis Awards<br />
Inc. (asi/282349<br />
( ), for example,<br />
of distributors responding Counselor State of the Industry survey. ©2007<br />
specializes in tennis-themed<br />
to the State of the Industry<br />
products. The problem is,<br />
survey reported that they purchased But, the primary reason is the need to many suppliers have a limited assort-<br />
products last year from domestic suppli- capture the best price possible in order ment of tennis-related items or don’t<br />
ers outside of the ad specialty industry. to satisfy their customers.<br />
carry any tennis merchandise at all. This<br />
Further, 35% of all distributors said they “The advantages are it’s usually less forces owner Marcy Hirshberg to visit<br />
directly imported promotional products expensive,” Cole says. “It’s a money game. gift shows to fi nd suppliers that meet<br />
in 2006.<br />
A lot of the bigger companies are doing it.<br />
continued on page 82<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 81
SOI 2007 PURCHASING HABITS<br />
Importing on the Rise<br />
Have you purchased any promotional<br />
products directly from manufacturers<br />
outside of North America?<br />
33.7% 32.8% 35.0%<br />
Yes<br />
Counselor State of the Industry survey. ©2007<br />
her needs. Here, she also gets to make<br />
connections with overseas associates.<br />
“Sometimes direct representatives are at<br />
the shows,” she says.<br />
Gift shows or not, there are more and<br />
more importers contacting distributors<br />
directly, Cole says. “There used to be one<br />
or two, now there are fi ve or 10. They<br />
realize that the business is there.”<br />
Because of this easy access, more<br />
distributors are dealing direct today.<br />
“Whereas it used to be a mystery, now<br />
it’s more commonplace,” says Cole.<br />
“People know what they can and can’t<br />
do. Companies over here have factories<br />
over there. We’ve had some contact us<br />
directly. Some distributors go to Asia<br />
and create their own relationships with<br />
the factories.”<br />
Hirshberg sources brass and silver<br />
tennis balls from India because “they<br />
just are not available here,” she says. “If<br />
we want a custom design there is not a<br />
lot to choose from.”<br />
82 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
However, quality from<br />
suppliers outside of the<br />
traditional industry often<br />
becomes a problem for<br />
distributors and their<br />
clients. That’s the precise<br />
reason why many distributors,<br />
like Howard<br />
Weisberg, proprietor of<br />
Specialties Unlimited<br />
(asi/331399 ( ), choose to<br />
forgo outsiders entirely.<br />
Weisberg says quality<br />
control is why he “won’t<br />
go looking for merchandise<br />
outside of the U.S.<br />
personally. Maybe I’m not<br />
sophisticated enough.<br />
My clients are satisfi ed.<br />
I wouldn’t want to do<br />
anything to lose them.”<br />
Dan Ortiz, owner of<br />
Diversifi ed <strong>Advertising</strong><br />
Novelties ( (asi/181296 6),<br />
agrees. “Once it’s on the boat coming<br />
over here, it’s yours,” he says. “If it sinks<br />
or whatever, you can get burned. It’s<br />
better to just deal with suppliers who<br />
have the connections and good relations<br />
overseas. If I can’t sell a product because<br />
of the dollar value, because they’re trying<br />
to get it cheaper, I don’t need that enduser.<br />
I won’t play the game.”<br />
Still, clients sometimes want brandspecifi<br />
c items that often lead distributors<br />
to supplier channels that are outside<br />
of the ad specialty industry. Dennis<br />
Hoffman, owner of Awards & More<br />
Inc. ( (asi/128215),<br />
had a large order for<br />
Columbia brand fi shing shirts and had<br />
to go direct. “I try not to because you<br />
have to set up accounts and there are<br />
minimums,” he says. “But if I can’t fi nd<br />
it anywhere else, I have to go direct. As<br />
far as the fi shing shirt experience, we got<br />
the product for the customer and that’s<br />
all that matters.” – KH<br />
Four Reasons<br />
Why Distributors<br />
Go To Outsiders<br />
1Clients are looking for<br />
unique products not<br />
offered by traditional<br />
suppliers. This is the<br />
number-one reason, with 33% of<br />
distributors citing it.<br />
2Better prices. Many<br />
distributors say that they’re<br />
able to achieve higher profi t<br />
margins by sourcing products<br />
directly. Of<br />
course, shipping<br />
and customs<br />
issues often<br />
cause on-time<br />
delivery problems.<br />
3Brand-name requests.<br />
Clients sometimes come to<br />
distributors with requests<br />
for brand-name products<br />
that aren’t offered by any suppliers<br />
in the ad specialty market.<br />
4<br />
Ease of<br />
access.<br />
Overseas<br />
factories are<br />
increasingly contacting<br />
distributors<br />
directly, making<br />
importing easier<br />
for the average<br />
distributor.
SOI 2007 TOP PRODUCTS<br />
a Selling the number-one category<br />
How To Be An<br />
Apparel Sales Pro<br />
Jack Murray wears what he sells<br />
every day of the week – literally.<br />
The owner of J.P. Murray<br />
and Co. ( (asi/278575),<br />
says there’s<br />
no better way to grow apparel<br />
sales than by sporting the garments<br />
yourself. As a result, the South Carolinabased<br />
distributor can often be seen in<br />
his company’s line of moisture-wicking<br />
performance gear around the clock.<br />
“That’s the way I’ve been selling<br />
them, not through the Web or catalogs,”<br />
Murray says. “You can’t feel it,<br />
you can’t see it,” he adds of the fi rst two<br />
approaches. “With these new fi bers, you<br />
really need to wear it.”<br />
Of course, there are other ways<br />
to increase a company’s apparel sales<br />
without being a human billboard for it.<br />
A good starting point, suggests Joseph<br />
Scott, vice president of Scott & Associates<br />
( (asi/321502),<br />
is to make sure that<br />
end-users know your company offers<br />
apparel. Oftentimes, a distributor’s<br />
line of promotional products is so vast<br />
that buyers may simply overlook the<br />
range of wardrobe choices. “I know for<br />
a fact that our clients have no idea of<br />
84 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
all the things we can do, and we cannot<br />
assume that our clients know that we<br />
sell apparel,” Scott says. “That includes<br />
uniforms.”<br />
Once end-users know who you are<br />
and what you sell, it’s up to the distributor<br />
to brainstorm and pitch possible<br />
sales opportunities. Nancy Asher, presi-<br />
dent of The Image Group ( (asi/229916 6)<br />
in Oklahoma, utilizes a three-step<br />
approach to selling more clothing:<br />
employee-uniform programs, special<br />
events, and an open-enrollment purchasing<br />
period for small or large companies.<br />
Although the last strategy tends to<br />
involve simple requests such as a logo<br />
screen-printed onto a T-shirt or a polo<br />
that needs embroidering, it can be an<br />
easy way to guarantee future customers.<br />
“Don’t be afraid to pitch a program.<br />
That’s what’s made our business successful,”<br />
says Asher, whose company garners<br />
$1 million per year in apparel sales.<br />
“When people think about a wearables<br />
program, they think of dealing with a<br />
customer that has big, multiple locations.<br />
It doesn’t have to be that big,” she<br />
Wearables accounted for<br />
33%<br />
of overall industry revenue<br />
in 2006 – a total category haul<br />
of more than $5.7 billion.<br />
continued on page 86<br />
Most Popular<br />
Ad Specialties<br />
Here is a list of the 10 products<br />
that distributors say their clients<br />
purchased the most of in 2006:<br />
# 1<br />
# 2<br />
WRITING INSTRUMENTS<br />
# 3<br />
DESK/<br />
OFFICE ACCESSORIES<br />
# 4<br />
RECOGNITION AWARDS/<br />
TROPHIES<br />
# 5<br />
GLASSWARE/CERAMICS<br />
# 6<br />
CAPS/HEADWEAR<br />
# 7<br />
BAGS<br />
# 8<br />
CALENDARS<br />
# 9<br />
SPORTING GOODS/<br />
LEISURE PRODUCTS<br />
# 10<br />
BOOKS/CARDS/STATIONERY<br />
Counselor State of the Industry survey. ©2007<br />
unzip
SOI 2007 TOP PRODUCTS<br />
says, adding that her company recently<br />
outfi tted employees with uniforms at a<br />
two-location restaurant.<br />
“To tell an end-user that you’ll be<br />
able to stock certain inventory or have<br />
it within a certain period of time” can<br />
ensure repeat business, Asher says.<br />
As far as selling smarts go, the next<br />
step is offering customers a variety of<br />
apparel options that meet their needs.<br />
Sales professionals who demonstrate<br />
mastery of what they sell have a decisive<br />
advantage over those who prefer to let<br />
their clients leaf through books.<br />
“What end-users are looking for are<br />
people who know apparel, and what I<br />
mean by that is to be able to literally<br />
bring in three garments – good, better<br />
and best – and lay them side by side,<br />
turn them inside out, and be able to talk<br />
to the client about construction technique,<br />
fabric,” Scott says. “If you can<br />
provide a teaching and coaching function<br />
as a salesperson, that differentiates<br />
you from people who just sell stuff.”<br />
Factors to take into consideration<br />
include who will be wearing the apparel,<br />
color options, fabric features, comfort<br />
and fi t. When piecing together an<br />
ensemble, creativity and the ability to<br />
come up with different, practical combinations<br />
that don’t stretch the budget are<br />
essential.<br />
“If somebody has a $50 budget, you<br />
can show them a $50 polo or a $25 polo<br />
86 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
and a $25 vest,” Scott says. “You have<br />
to demonstrate that you have a wide<br />
range of options for them. Sometimes<br />
you can be pleasantly surprised. If you<br />
can explain what they’re getting for<br />
the extra money, every once in a while,<br />
someone will say, ‘Let’s go with this<br />
instead.’”<br />
Some strategies for homing in on<br />
the deal include showing a customer a<br />
sample with their logo already embroidered<br />
onto the fabric. To obtain a<br />
company’s logo, Asher suggests taking<br />
a look at the organization’s Web site or<br />
examining employees’ current uniforms<br />
and coming up with something similar<br />
in style and appearance, and, if possible,<br />
at a lower price.<br />
$ 50<br />
“If somebody has a budget,<br />
you can show them a $50 polo or a<br />
$25 polo and a $25 vest.”<br />
– JOSEPH SCOTT,<br />
SCOTT & ASSOCIATES (ASI/321502)<br />
“You’ve made that step forward as<br />
opposed to someone else going in and<br />
just dropping off a catalog,” Asher says.<br />
“As a buyer, the fi rst step is already done.<br />
The logo is digitized, the sample looks<br />
nicely done. They’re at least going to<br />
give you a second look or an opportunity<br />
to quote it.”<br />
Oftentimes, what determines a winning<br />
deal or not is a sales professional’s<br />
attitude toward what they sell. Murray,<br />
who wears his uniform even during the<br />
hottest days of summer, says an apparel<br />
sales expert has to believe in what he’s<br />
selling. “It makes it a lot easier for me<br />
to sell a product,” Murray says, “because<br />
I’m sold on it myself.” – EW<br />
Four Steps<br />
To Growing Apparel Sales<br />
1Wear it. It will be easier to<br />
sell promotional apparel if you<br />
wear the clothes yourself. Put<br />
your company’s logo on a<br />
comfortable shirt, and make it your<br />
uniform for all of your sales calls.<br />
2Use samples. It’s important<br />
when selling apparel to have<br />
as many samples to show<br />
clients as possible.<br />
Human resource and<br />
marketing execs shouldn’t<br />
be buying promotional<br />
apparel<br />
out of a catalog.<br />
Bring along<br />
three options<br />
– good, better,<br />
best – that fi t<br />
their budget; and<br />
let them feel the shirts<br />
and even wear them if<br />
they want.<br />
3Get educated. There are<br />
a lot of new fabrics on the<br />
market and new technology<br />
being put into apparel every<br />
day. To effectively sell apparel, you<br />
have to be as knowledgeable as<br />
possible about it, so you can answer<br />
questions and help to fulfi ll client<br />
needs.<br />
4Be creative.<br />
Once you know<br />
your client’s<br />
budget, offer<br />
solutions that will surprise<br />
him. Don’t just show one polo. Show<br />
a less expensive polo, along with a<br />
T-shirt, socks or towel, depending on<br />
their goals.
SOI 2007 TOP 40 DISTRIBUTORS<br />
Top<br />
40 p<br />
40<br />
The 2007 edition of Counselor’s r exclusive listing of the distributors<br />
with the highest revenues during 2006.<br />
What does it take to<br />
make it onto the<br />
distributor Top 40<br />
list for 2007? Well,<br />
$33 million in sales<br />
would do the trick.<br />
Welcome to this year’s Top 40,<br />
Counselor’s list of elite distributors<br />
with the largest amount of industry<br />
revenue in 2006. It’s made up of<br />
highly successful companies that<br />
are leading the way for the advertising<br />
specialty industry. In fact, the<br />
total sales of all of the 40 companies<br />
on this list is $3.8 billion. In other<br />
words, these 40 distributors currently<br />
represent 20% of the overall industry<br />
revenue. With more than 18,000<br />
distributors currently listed with ASI,<br />
that’s an extreme amount of revenue<br />
concentrated in just 40 fi rms.<br />
And their stories of success can<br />
certainly be an inspiration to everybody<br />
in the market. On the following<br />
pages, you’ll fi nd the revenue numbers<br />
for each of the Top 40 companies,<br />
as well as fi rst-hand accounts of how<br />
the companies fared in the industry<br />
last year. Whether it’s because of<br />
acquisitions or organic growth or<br />
management changes, we have the<br />
inside scoop on what led to each of<br />
the company’s results during the past<br />
year. And there’s even a revelation<br />
about each company: We dug up a<br />
fact about each member of the Top 40<br />
that is sure to surprise.<br />
So, don’t delay. Turn the page and<br />
check out the results.<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 89
SOI 2007 TOP 40 DISTRIBUTORS<br />
2007<br />
Rank<br />
1 2 WEARGUARD-CREST $240.0 $224.0 $16.0 7.1% 1952 6 500 0 $480 410,000 $585 1 0 Uniforms/Promo prods<br />
2 1<br />
3 3 PROFORMA INC. $227.5 $202.0 $25.5 12.6% 1978 16 0 650 $350 50,000 $4,550 650 50 General<br />
4 4<br />
5 7 BENSUSSEN-DEUTSCH $198.7 $144.9 $53.8 37.1% 1984 23 92 0 $2,160 750 $264,933 21 2 General<br />
& ASSOCIATES INC.<br />
6 5<br />
7 8 GEIGER $172.5 $138.2 $34.2 24.8% 1878 129 0 530 $325 74,000 $2,331 20 1 None<br />
8 6<br />
9 9 ADVENTURES IN ADVERTISING $135.0 $128.0 $7.0 5.5% 1981 25 0 310 $435 1,000,000 $135 310 0 General<br />
10 11<br />
11 10 NATIONAL PEN CORP. $130.0 $113.8 $16.2 14.3% 1966 38 260 0 $87 1,000,000 $650 5 3 Writing Instruments<br />
12 17<br />
13 12 TIC TOC $99.1 $96.2 $2.9 3.1% 1974 33 45 2 $2,109 100 $991,000 5 2 Telecom, Financial<br />
Serv., Pharma<br />
14 13<br />
15 15 SUMMIT MARKETING GROUP $87.1 $85.0 $2.1 2.5% 1996 11 55 5 $1,452 20,000 $4,355 8 0 General<br />
16 16<br />
17 18 MID WEST TROPHY CO. $81.0 (E) $81.0 $0.0 0.0% 1971 36 D D D D D D D Recognition Awards<br />
18 21<br />
19 19 KAESER & BLAIR INC. $78.0 $76.0 $2.0 2.6% 1894 113 0 3,900 $20 D D 1 0 General<br />
20 14<br />
2006 2005<br />
North North # of<br />
American American 2005/2006 Years Employee # Of Sales Per Average Total # Of Total # Of<br />
2006 Sales Sales Difference % Year In Sales Independent Rep Total # Sales Per Offi ces Offi ces<br />
Rank Top 40 Distributors ($ Millions) ($ Millions) ($ Millions) Change Est. Industry Reps Sales Reps ($ Thousands) of clients* Client Worldwide Outside U.S. Market Specialization<br />
E = Estimate D = Declined to provide information * Some distributors defi ne clients as the number of companies they sell to; others calculate total number of purchasers.
SOI 2007 TOP 40 DISTRIBUTORS<br />
2007<br />
Rank<br />
2006 2005<br />
North North # Of<br />
American American 2005/2006 Years Employee # Of Sales Per Average Total # Of Total # Of<br />
2006 Sales Sales Difference % Year In Sales Independent Rep Total # Sales Per Offi ces Offi ces<br />
Rank Top 40 Distributors ($ Millions) ($ Millions) ($ Millions) Change Est. Industry Reps Sales Reps ($Thousands) Of Clients* Client Worldwide Outside U.S. Market Specialization<br />
21 22 VERNON CO. $72.6 $66.4 $6.2 9.4% 1902 105 430 0 $169 30,000 $2,420 5 0 B2B<br />
22 24<br />
23 23 BROWN & BIGELOW W<br />
$67.1 $65.3 $1.8 2.8% 1896 111 245 0 $274 D D 19 0 Calendars and<br />
Promotional Products<br />
24 20<br />
25 25 ARTCRAFT PROMOTIONAL $61.1 $52.5 $8.6 16.4% 1946 60 0 10 $6,110 2,800 $21,821 3 0 General<br />
CONCEPTS<br />
26 29<br />
27 26 CORPORATE EDGE $58.8 $48.8 $10.0 20.4% 1990 25 28 0 $2,100 500 $117,600 5 0 Across Industries<br />
28<br />
N/A<br />
29 27 NEWTON MANUFACTURING CO. $49.6 $48.2 $1.4 3% 1909 98 300 500 $60,250 80,000 $603 4 0 General<br />
30 28<br />
31 31 MERIT INDUSTRIES INC $42.23 $38.5 $3.7 9.6% 1956 50 11 0 $3,836 1,500 $28,133 1 0 Eco Products<br />
32 33<br />
33 30 THOMAS DIRECT SALES $40.0 (E) $40.0 $0.0 0.0% 1986 21 D D D D D D D General<br />
34 N/A<br />
35 38 NORSCOT GROUP $34.8 $30.5 $4.3 14.1% 1970 37 17 75 $378 28,000 $1,243 10 3 Corporate Programs<br />
36 32<br />
37 35 ECOMPANYSTORE INC. $34.0 $32.2 $1.8 5.6% 1994 13 25 2 $1,259 1,500 $22,667 8 0 Corporate Programs<br />
38 40<br />
39 39 GOLDMAN PROMOTIONS $33.1 $29.7 $3.4 11.4% 1960 47 65 26 $297 3,000 $11,000 7 0 General<br />
40 34<br />
E = Estimate D = Declined to provide information * Some distributors defi ne clients as the number of companies they sell to; others calculate total number of purchasers.
SOI 2007 TOP 40 DISTRIBUTORS<br />
By The Numbers<br />
$ 207.2<br />
million<br />
The amount of revenue<br />
difference between the<br />
number-one company on<br />
the list and number-40<br />
company on the list.<br />
Biggest tG Growth Firms<br />
Here is the top 10, by percentage sales<br />
increase between 2005 and 2006:<br />
1. Workfl owOne 42%<br />
2. CorpLogoWare 40%<br />
3. EmbroidMe.com 38%<br />
4. Bensussen-Deutsch & Associates 37%<br />
5. 4Imprint 35%<br />
6. Geiger 25%<br />
7. Halo/Lee Wayne 23%<br />
8. Corporate Edge 20%<br />
9. Group II Communications 19%<br />
10. Artcraft Promotional Concepts 16%<br />
96 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
2<br />
The amount of companies<br />
that are new to the Top 40<br />
this year: G&G Outfi tters<br />
and Positive Promotions.<br />
Who’s Off The List<br />
This is the average amount<br />
of revenue growth that the<br />
Top 40 0 distributors realized<br />
between 2005 and 2006.<br />
Ones To Watch‰<br />
Here are fi ve companies that fell just short of the Top 40, but have<br />
positive sales results:<br />
2006 Revenue Increase over 2005<br />
1<br />
Veasey Ad Ventures. After<br />
debuting on the list last year at<br />
number 36, Veasey ran into major<br />
problems in 2006. The company<br />
lost its biggest customer, fi led for<br />
Chapter 7 bankruptcy and went out<br />
of business.<br />
Cyrk Inc. The company fell<br />
2 from number 30 to number 37<br />
last year, and now has fallen off the<br />
list after reporting 2006 sales of<br />
$30.6 million.<br />
11.25%<br />
✽ IPROMOTEU $29.8 million 63%<br />
✽ SUNRISE IDENTITY $28.3 million 16%<br />
✽ ZOUIRE $27.8 million 3%<br />
✽ PROMOSHOP $27.6 million 15%<br />
✽ BARKER SPECIALTY $27.6 million 7%<br />
D T<br />
Methodology<br />
To determine eligibility for Top 40<br />
ranking, Counselor r uses a multi-<br />
level approach. Before requesting<br />
fi nancials, only those fi rms that have<br />
been ASI members for a minimum<br />
of one year can participate. All fi rms<br />
then considered viable candidates<br />
are requested to submit their gross<br />
promotional products sales for<br />
calendar/fi scal 2006. Only North<br />
American sales (U.S., Canada,<br />
Mexico and Central America) are<br />
used to build the rankings. For companies<br />
with a common parent fi rm,<br />
sales are reported in the aggregate,<br />
unless they operate completely independent<br />
of each other. The 2006<br />
promotional products sales of any<br />
fi rms acquired by a candidate were<br />
also included, provided the transaction<br />
was completed on or before<br />
January 15, 2007.<br />
Distributors are asked to submit<br />
only sales for promotional products,<br />
“sold to clients for promotional,<br />
recognition or public relations<br />
(goodwill) purposes.” Revenues from<br />
print/electronic advertising done<br />
for clients are not permitted, nor is<br />
outdoor, travel, commercial printing<br />
and nontraditional products such as<br />
major appliances. Further, of each<br />
distributor’s promotional products<br />
sales, a minimum of 60% must have<br />
been for imprinted products.<br />
Once all contending companies<br />
have submitted acceptable fi gures,<br />
the determination process begins.<br />
It involves research on each fi rm,<br />
including fi nancial reports, year-end<br />
statements, annual reports and<br />
personal interviews conducted by<br />
Counselor’s r editorial staff. When a<br />
fi rm’s sales fi gures are proprietary,<br />
the same criteria and resources<br />
are used to develop as accurate an<br />
estimate as possible.
SOI 2007 TOP 40 SUPPLIERS<br />
Top<br />
40 p<br />
40<br />
The 2007 edition of Counselor’s exclusive listing of the suppliers<br />
with the highest revenues during 2006.<br />
Nearly half-a-billion dollars.<br />
That’s how much<br />
revenue the biggest<br />
supplier in the industry<br />
garnered last year.<br />
Broder Bros. Co., the parent company<br />
of industry brands Alpha Shirt<br />
Company, Broder and NES, raked<br />
in $447 million in North American<br />
ad specialty sales in 2006. And that<br />
was down 2% from the prior year, yet<br />
still over $100 million more than the<br />
second-largest supplier.<br />
Welcome to the 2007 supplier<br />
Top 40, which ranks the industry’s<br />
suppliers with the most revenue<br />
for 2006. While Broder remains<br />
the top company in the market,<br />
the giant apparel supplier is closely<br />
followed by a newcomer to the list.<br />
Polyconcept North America was<br />
formed last year when the European-based<br />
Polyconcept combined<br />
North American suppliers Leed’s<br />
and Bullet Line into one entity.<br />
The combined operation reports<br />
2006 revenues of $343.1 million.<br />
All together, this year’s Top 40<br />
suppliers attained $4.2 billion in<br />
2006 revenues. It’s quite a haul for<br />
such a small group of companies.<br />
For more information on how these<br />
companies achieved such high<br />
levels of sales, take a look at our<br />
profiles on the following pages.<br />
The secrets to success of each<br />
company are there, as well as some<br />
never-before-heard-of factoids<br />
about the companies.<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 97
SOI 2007 TOP 40 SUPPLIERS<br />
2007<br />
Rank<br />
2006 2005<br />
North North Client- Total #<br />
American American 2005/2006 Years Multi- Total # Sales Cust. Total # to-Cust. Average Of Offi ces<br />
2006 Sales Sales Difference % Year In Sales Line Admin. Prod. Per Rep Service Dist. Service Rep Sales Per Total # Outside Total # Total # Market<br />
Rank Top 40 Suppliers ($ Millions) ($ Millions) ($ Millions) Change Est. Industry Reps Reps Empl. Empl. ($ Thousands) Empl. Clients Ratio Client Offi ces U.S. Plants Warehouses Specialization<br />
1 1 BRODER BROS. CO $447.0 $456.0 -$9.0 -2% 1919 12 106 0 250 0 $4,217 178 70,000 393 to 1 $6,386 1 0 0 17 Apparel<br />
2<br />
3 2 NORWOOD PROMOTIONAL $335.4 $338.0 -$2.6 -0.7% 1984 23 63 0 D D $5,323.8 D 20,000 D $16,770 11 4 6 D General<br />
PRODUCTS<br />
4 3<br />
5 5 SANMAR $250.0 $214.0 $36.0 17% 1971 17 188 0 206 1,073 $1,329.8 188 D D D 1 1 0 6 Apparel<br />
6 6<br />
7 8 BODEK AND RHODES $140.1 $126.0 $14.1 11% 1939 20 30 0 110 200 $4,670.0 110 14,000 127 to 1 $10,007 1 0 0 5 Apparel<br />
8 7<br />
9 10 ASH CITY Y<br />
$124.0 $114.0 $10.0 9% 1977 30 20 80 25 150 $1,240.0 35 15,000 429 to 1 $8,267 5 4 2 2 Apparel<br />
10 9<br />
11 11 SUNSCOPE $112.8 $101.2 $11.6 11.5% 1943 19 21 0 65 375 $5,371.4 18 9,100 506 to 1 $12,396 30 25 13 6 General<br />
12 13<br />
13 12 RIVER’S END TRADING CO. $95.0 $95.0 $0.0 0% 1981 26 18 18 125 53 $2,638.8 20 40,000 571 to 1 $2,375 2 0 0 2 Apparel<br />
14<br />
N/A<br />
N/A<br />
15 16 GEMLINE $88.1 $82.8 $5.1 6% 1958 49 20 5 100 250 $3,520.0 75 15,000 200 to 1 $5,867 3 2 1 2 Bags<br />
16 15<br />
17 17 THE MAGNET GROUP $81.7 $78.0 $3.7 5% 1983 24 16 0 20 500 $5,106.2 49 17,000 347 to 1 $4,806 7 0 4 4 General<br />
18 14<br />
19 18 TRI-MOUNTAIN/ $71.7 $68.7 $3.1 4.5% 1994 13 D D D D D D D D D D D D 1 Apparel<br />
MOUNTAIN GEAR<br />
20 26<br />
E = Estimate D = Declined to provide information
SOI 2007 TOP 40 SUPPLIERS<br />
2007<br />
Rank<br />
2006 2005<br />
North North Client- Total #<br />
American American 2005/2006 Years Multi- Total # Sales Cust. Total # to-Cust. Average Of Offi ces<br />
2006 Sales Sales Difference % Year In Sales Line Admin Prod. Per Rep Service Dist. Service Rep Sales Per Total # Outside Total # Total # Market<br />
Rank Top 40 Suppliers ($Millions) ($Millions) ($Millions) change Est. Industry Reps Reps Empl. Empl. ($ Thousands) Empl. Clients Ratio Client Offi ces U.S. Plants Warehouses Specialization<br />
21 21 PROFILL HOLDINGS $60.2 $57.4 $2.9 5.1% 1975 32 26 4 27 130 $2,006.6 26 5,000 192 to 1 $8,027 4 0 2 3 Apparel<br />
22 20<br />
23 27 GILL STUDIOS INC. $58.4 $47.5 $11.0 23.2% 1934 60 9 0 74 310 $6,488.8 25 11,000 440 to 1 $5,309 1 0 1 Stickers<br />
24 22<br />
25 25 LANCO CORP. $56.2 $53.9 $2.4 4.5% 1993 14 24 0 70 350 $2,341.6 20 26,000 1,300 to 1 $2,162 1 0 1 1 General<br />
26 23<br />
27 24 PREMIUMWEAR INC. $52.0 $54.0 -$2.0 -4% 1886 13 0 31 38 320 $1,677.4 42 8,994 214 to 1 $5,782 6 2 1 4 Apparel<br />
28 29<br />
29 34 HIT PROMOTIONAL $50.0 $40.0 $10.0 25% 1950 51 15 0 35 300 $3,333.3 45 9,000 200 to 1 $5,556 1 0 1 2 General<br />
PRODUCTS<br />
30 32<br />
31 28 PLASTICAD LINE/ $46.0 $46.0 $0.0 0% 1936 57 7 0 30 200 $6,571.4 8 5,000 625 to 1 $9,200 1 0 1 1 Gift Cards<br />
ARTHUR BLANK & CO.<br />
32 33<br />
33 31 BARTON NELSON INC. $43.9 $42.6 $1.3 3% 1962 44 10 0 36 428 $4,390.0 17 6,835 402 to 1 $6,423 2 1 2 2 Note Cubes<br />
34 30<br />
35 35 STARLINE USA INC. $41.9 $38.1 $3.8 9.9% 1978 25 32 14 34 190 $910.8 42 8,532 203 to 1 $4,911 5 3 3 3 General<br />
36<br />
N/A<br />
37 36 SENATOR USA A<br />
$41.58 $37.8 $3.8 10% 1989 18 11 5 23 20 $2,600.0 8 8,606 1,076 to 1 $4,834 10 8 5 6 Writing<br />
Instruments<br />
38 37<br />
39 38 GOLD BOND $38.2 $35.4 $2.8 7.9% 1946 51 13 5 15 300 $2,122.2 30 13,000 433 to 1 $2,938 1 0 1 2 General<br />
40 39<br />
E = Estimate D = Declined to provide information
SOI 2007 TOP 40 SUPPLIERS<br />
By The Numbers<br />
$ 411.4<br />
million<br />
The amount<br />
of revenue difference<br />
between the<br />
number-one<br />
industry supplier<br />
and the 40th.<br />
104 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
The amount of suppliers<br />
3<br />
who are new to the list<br />
this year: Polyconcept<br />
North America a (a<br />
combination of Leed’s and<br />
Bullet Line), S&S Activewear<br />
and Piller Industries.<br />
Who’s Off The List<br />
Vitronic Promotional Group. The<br />
company debuted in the Top 40 0 at<br />
number 40 last year, but sales fell 1%<br />
in 2006 to $31.9 million.<br />
Biggest tG Growth Firms<br />
Here is the top 10, by percentage sales increase between 2005 and 2006:<br />
1. Hit Promotional<br />
Products 25.0%<br />
2. Gill Studios 23.2%<br />
3. Polyconcept North America 17.6%<br />
4. SanMar 17.0%<br />
5.75%<br />
5. S&S Activewear 15.3%<br />
6. Sanford Business-To-Business 14.5%<br />
7. Sunscope 11.3%<br />
8. Bodek and Rhodes 11.1%<br />
9. Groline 10.7%<br />
10. Virginia T’s 10.1%<br />
This is the average amount of revenue<br />
growth that the Top 40 0 suppliers<br />
realized between 2005 and 2006.<br />
Ones To Watch‰<br />
Here are three suppliers that fell just short of the Top 40, but have<br />
positive sales results:<br />
2006 Revenue Increase over 2005<br />
✽ MODERNE GLASS $30.4 million 7%<br />
✽ CHARLES RIVER APPAREL $30.4 million 9%<br />
✽ HARTWELL CLASSIC APPAREL $29.2 million 16%<br />
D T<br />
Methodology<br />
To determine eligibility for Top 40<br />
ranking, Counselor r uses a multi-<br />
level approach. Before requesting<br />
fi nancials, only those fi rms that have<br />
been ASI members for a minimum<br />
of one year can participate. All fi rms<br />
then considered viable candidates<br />
are requested to submit their gross<br />
promotional products sales for calendar/fi<br />
scal 2006. Only North American<br />
sales (U.S., Canada, Mexico and<br />
Central America) are used to build the<br />
rankings. For companies with a common<br />
parent fi rm, sales are reported<br />
in the aggregate, unless they operate<br />
completely independent of each other.<br />
The 2006 promotional products sales<br />
of any fi rms acquired by a candidate<br />
were also included, provided the<br />
transaction was completed on or<br />
before January 15, 2007.<br />
Suppliers are required to provide<br />
only promotional products sales,<br />
defi ned as, “any product you’ve sold,<br />
with or without imprints or personalization,<br />
provided that you sold it to<br />
and/or through recognized, traditional<br />
promotional products or premium<br />
distributors/resellers.” This eliminates<br />
retail, pure premium sales, direct-sales<br />
fi gures and sales to buyers or retailers<br />
in other industries. Sales to other suppliers<br />
were permitted, but with limitations:<br />
All sales of imprinted goods are<br />
accepted, but only 25% of sales of<br />
blank merchandise.<br />
Once all contending companies<br />
have submitted acceptable fi gures,<br />
the determination process begins. It<br />
involves research on each fi rm, including<br />
fi nancial reports, year-end statements,<br />
annual reports and personal<br />
interviews conducted by Counselor’s<br />
editorial staff. When a fi rm’s sales fi gures<br />
are proprietary, the same criteria<br />
and resources are used to develop as<br />
accurate an estimate as possible.
SOI 2007 TOP 40 DISTRIBUTORS<br />
Distributor Top 40<br />
(Last year’s rank in parentheses)<br />
1WearGuard-Crest (2)<br />
(asi/356061)<br />
Innovation has been the watchword in recent<br />
years for WearGuard-Crest, whose status as<br />
a part of professional services giant Aramark<br />
has not prevented the company from moving<br />
in new directions, including the introduction of<br />
signifi cant new product lines.<br />
✽ 2006 results: Last year saw a 7% sales<br />
increase, helped by an initiative over the last<br />
couple of years to drive direct sales through<br />
the apparel supplier’s rental customers. “We<br />
continue to have great results continuing to<br />
sell direct-sale product,” says Mark Barrocas,<br />
president.<br />
✽ New in 2006: The company expanded its<br />
product categories, seeing good results from<br />
recently introduced high visibility (safety) and<br />
women’s business products. A line of fi reresistant<br />
clothing was new for 2006.<br />
Of all Top 40<br />
distributors,<br />
Workfl owOne<br />
had the<br />
biggest<br />
revenue<br />
growth,<br />
42%.<br />
Millions<br />
✽ Personnel shifts: WearGuard has recently<br />
turned over most of its senior management<br />
team. Since Barrocas’ arrival in December<br />
2005, the company has welcomed Cindi Shapiro,<br />
vice president of merchandising and Chris<br />
Rackers, vice president of human resources.<br />
250<br />
200<br />
$226<br />
$228<br />
$230<br />
$224<br />
$240<br />
2002 2003 2004 2005 2006<br />
2Promotional Markets (1)<br />
(asi/168786)<br />
✽ Top challenges: Barrocas cites increasing<br />
competition from Internet suppliers and<br />
small-business clients being courted by local<br />
competitors.<br />
✽ Outlook for 2007: Things are tracking<br />
well for 2007, with signifi cant national<br />
accounts added to start off the year. New<br />
initiatives focus on improving customer service,<br />
and repositioning and elevating the<br />
WearGuard brand.<br />
✽ What the industry doesn’t know:<br />
WearGuard services over 300,000 business<br />
customers annually, taking orders as<br />
small as one piece all the way up to thousands.<br />
“I think what really makes us unique<br />
is how diverse of a customer base we<br />
have, and how customer-centric we are,” Barrocas<br />
says. “If we have a customer and they<br />
bring a new employee on, we make sure that<br />
employee is starting work with a uniform.”<br />
Last year’s largest distributor slipped into second<br />
place this year, but there’s no need to worry. Corporate<br />
Express posted a solid, but more earthly<br />
2% growth, after 2005’s impressive 14% growth.<br />
While it was edged out of the top spot, the company<br />
200<br />
$201<br />
remains within striking distance for next year’s list.<br />
✽ 2006 results: “Speed, quality and innovation<br />
$171<br />
delivered to our clients are keys to our success and<br />
$150<br />
resulting increases for 2006,” says Dennis Multack, 150<br />
president.<br />
2002 2003 2004 2005 2006<br />
✽ New in 2006: Multack cites the company’s long-term reputation, established infrastructure and<br />
experience for its continued success. “The depth of our relationships, the planning, the strategic link<br />
and the things we do for our clients, is beyond typical merchandise.”<br />
✽ What the industry doesn’t know: Worldwide, Corporate Express employs nearly 19,000<br />
employees in 300 locations in 20 countries.<br />
Millions<br />
250<br />
$229<br />
$235<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 105
Millions<br />
SOI 2007 TOP 40 DISTRIBUTORS<br />
3Proforma In<br />
c. (3)<br />
(asi/300094)<br />
CEO Greg Muzzillo believes that, while Proforma’s<br />
business model speaks for itself, continued<br />
success hinges on getting as many people<br />
as possible to listen. To that end, plans call for<br />
installing regional developers in 40 different<br />
locations around the country, to meet faceto-face<br />
with potential franchisees. The idea,<br />
he says, is to free business development from<br />
being tied to the support center at company<br />
headquarters in Cleveland. Nine of 40 developers<br />
are in place so far; sales, in the meantime,<br />
were up a healthy 12% from 2005 to 2006.<br />
✽ 2006 results: Muzzillo attributes the company’s<br />
recent success to the quality of its<br />
members. “We do attract very good people<br />
to membership at Proforma – good distributors<br />
looking to grow their business, and good<br />
salespeople who are ready to open their own<br />
business.”<br />
✽ New in 2006: A new company store program<br />
has led to the signing of some important<br />
clients, Muzzillo says, who appreciate the ability<br />
of custom-designed software to easily handle<br />
on-line ordering, warehousing, fulfi llment<br />
and reporting functions.<br />
✽ Top challenges: “Our biggest challenge is<br />
people understanding our model,” he says. “The<br />
challenge continues to be to tell our story to the<br />
distributor marketplace and to the salespeople<br />
who are ready to own their own businesses.”<br />
✽ Outlook for 2007: Muzzillo says Proforma<br />
is tracking up 10% to 20% over last year.<br />
The company is also putting initiatives in<br />
place to “get into 30% or 40% growth” in the<br />
near future.<br />
250<br />
200<br />
150<br />
100<br />
$131<br />
$140<br />
$161<br />
$202<br />
$228<br />
2002 2003 2004 2005 2006<br />
106 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
4Group II Communications<br />
Inc. (4)<br />
(asi/215310)<br />
Todd Cromheecke, director of new business,<br />
credits focusing on current clients<br />
for double-digit growth over the past year.<br />
“In some cases, it was more volume and in<br />
others it was expansion in responsibilities.<br />
But primarily it was organic growth with<br />
current clients.”<br />
✽ 2006 results: The explosive 19.4%<br />
growth last year can be attributed to a few<br />
key projects and expanded efforts with<br />
two Fortune 500 0 companies.<br />
✽ Top challenges: With no major market<br />
forces acting on Group II in 2006, its top<br />
challenge is continuing to streamline the<br />
organization and fi nding ways to operate<br />
more cost effectively.<br />
✽ Outlook for 2007: “Our plan is to<br />
continue to drive year-on-year growth as<br />
we traditionally have,” says Cromheecke.<br />
Millions<br />
250<br />
200<br />
150<br />
$156<br />
$158<br />
$177<br />
$185<br />
$222<br />
2002 2003 2004 2005 2006<br />
That means continued success with current<br />
clients and growth through new clients<br />
will both be key initiatives this year.<br />
✽ What the industry doesn’t know:<br />
Every cooler or towel that you see on the<br />
sideline from local soccer to the NBA or<br />
NFL, is shipped through Group II.<br />
5Bensussen Deutsch & Associates Inc. (7)<br />
(asi/137616)<br />
Coming off a great 2006, executives<br />
at Bensussen Deutsch & Associates<br />
wanted to do something special for<br />
employees. “As a reward for meeting<br />
2006 stretch revenue goals, Eric Bensussen<br />
and Jay Deutsch took the entire<br />
200<br />
$199<br />
company to Las Vegas for a party and an<br />
exclusive concert with Zowie Bowie and<br />
150<br />
$137<br />
$145<br />
Sugar Ray,” says Vice President of Marketing<br />
Alison Paisley. BD&A’s lucrative<br />
$118<br />
contract with American Idol l producer<br />
and licenser FremantleMedia, which has<br />
been extended through 2007, may have<br />
put them in the concert mood.<br />
100<br />
$101<br />
2002 2003 2004 2005 2006<br />
✽ 2006 results: The company’s 37% increase in sales compared to 2005 can be chalked<br />
up to new accounts and a growth in business with existing clients, Paisley says. “We<br />
extended our reach into our existing accounts, and signed new key deals in targeted business<br />
and entertainment arenas.”<br />
✽ Personnel shifts: Three new members joined BD&A executive management in 2006.<br />
Paisley stepped into the vp marketing role, Dan Sullivan became vice president of sales<br />
and Jeff Hansen was named GM and vice president of consumer products.<br />
✽ Top challenges: According to Paisley: ensuring that back-end processes and procedures<br />
effectively support business growth.<br />
✽ Outlook for 2007: The fi rm expects double-digit percentage revenue increases to<br />
continue.<br />
Millions
Millions<br />
Millions<br />
SOI 2007 TOP 40 DISTRIBUTORS<br />
6American Identity (5)<br />
(asi/120601)<br />
Last year was a year of transition for one of the nation’s biggest corporate branded<br />
merchandise distributors. The departure of company President, Paul Pickard, early in<br />
the year led CEO Roger Henry to serve as acting president until August, when David<br />
Krumbholz was named president and COO. Also, the company was acquired in May by<br />
Staples, the offi ce products giant.<br />
✽ 2006 results: American Identity enjoyed a sales increase of 37%, with growth coming on<br />
the strength of new, large account acquisitions and continued growth of existing accounts,<br />
according to Henry.<br />
200<br />
✽ New in 2006: The company is see-<br />
$191 ing unprecedented gains in international<br />
$185<br />
sales. “Our leadership in global distribution<br />
capabilities is creating signifi cant<br />
growth opportunities with clients requir-<br />
$180 $180 $180<br />
ing worldwide services,” Henry says.<br />
✽ Top challenges: Henry named continued<br />
investment in technology geared to<br />
improving customer service as a top challenge<br />
for the fi rm moving forward.<br />
✽ Outlook for 2007: Business is track-<br />
150<br />
2002 2003 2004 2005 2006<br />
ing ahead of 2006, and the outlook for<br />
2007 is “very strong,” Henry says.<br />
✽ What the industry doesn’t know: American Identity is over 60 years old, having<br />
been founded as a bowling shirt manufacturer in Bonner Springs, KS. The company has<br />
grown to over 800 employees.<br />
8Cintas (6)<br />
(asi/162167)<br />
Cintas wants people to know that it’s more<br />
than a uniform company. In fact, its business<br />
model provides localized service to<br />
meet its clients’ many needs, but with a<br />
perk that most local companies probably<br />
don’t have – the resources and backing of<br />
a $4 billion company.<br />
200<br />
150<br />
100<br />
N/A<br />
$135<br />
$149<br />
$155<br />
$158<br />
2002 2003 2004 2005 2006<br />
108 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
✽ 2006 results: Promotional product sales<br />
grew by $3 million in 2006, reaching $158<br />
million, an increase of 2% over 2005. Jim<br />
Stutz, director of promotional products,<br />
attributes this increase to good relationships<br />
with suppliers, in addition to its team<br />
of merchandisers and program managers<br />
being able to use suppliers’ products to<br />
satisfy their clients’ promotional needs.<br />
✽ New in 2006: Early in the year, Cintas<br />
acquired 20 uniform-rental operations and<br />
fi ve fi rst-aid services operations using the<br />
name Select First Aid.<br />
✽ Top challenges: Staffi ng is always an<br />
ongoing challenge for a growing organization,<br />
Stutz says, “to continue to fi nd top talent<br />
to help us serve our customers’ needs<br />
– fi nding the right people.”<br />
✽ Outlook for 2007: Cintas runs on a fi scal<br />
year that ends May 31. So it recently<br />
wrapped up fi scal year 2007. Compared to<br />
the previous year, Stutz says, “fi scal year<br />
2008 is looking extremely strong.”<br />
Millions<br />
7Geiger (8)<br />
(asi/202900)<br />
With an increase of 25% in revenues, Geiger<br />
rose one spot on the Top 40, from eight to<br />
seven this year. Geiger made two acquisitions<br />
in 2006: Elliott Sales in Tacoma, WA, and Forrester-Smith,<br />
based in Brandon, FL.<br />
✽ 2006 results: Geiger had a record-breaking<br />
sales and profi t year in 2006. The company<br />
attributes its results to its two sizable acquisitions,<br />
as well as solid organic growth. “Our<br />
growth from the existing sales force was more<br />
than double the growth rate of the industry,”<br />
says Jo-an Lantz, executive vice president. “Our<br />
sales reps were successful coast-to-coast at<br />
securing national programs.”<br />
✽ New in 2006: Geiger’s investment in technology<br />
exceeded $2 million. It enhanced its<br />
Geiger Studio, which is an online art storage<br />
system that allows salespeople to catalog<br />
their artwork for prospects and clients. Also,<br />
the company invested in new, integrated Web<br />
sites and enhanced its help desk, which is now<br />
staffed by four full-time employees who provide<br />
technical help to Geiger salespeople.<br />
✽ Top challenges: Lantz says that balancing<br />
relationships between clients, salespeople<br />
and suppliers is key. “We cannot grow at the<br />
expense of any relationship,” she says. “We<br />
need to work diligently to maintain every relationship<br />
at a personal level.”<br />
✽ Outlook for 2007: Geiger is tracking more<br />
than 15% ahead of 2006.<br />
✽ What the industry doesn’t know: “Geiger<br />
is the largest, privately held, family-owned and<br />
-managed distributor in the industry,” Lantz<br />
says. “The fi fth generation of Geiger – Jeff Geiger<br />
– has now joined the fi rm.”<br />
200<br />
150<br />
100<br />
$125<br />
$121<br />
$125<br />
$138<br />
$173<br />
2002 2003 2004 2005 2006
SOI 2007 TOP 40 DISTRIBUTORS<br />
9Adventures in <strong>Advertising</strong> (9)<br />
(asi/109480)<br />
Last year was the fi rst full year for Adventures<br />
in <strong>Advertising</strong> since its separation from<br />
former parent company 4imprint Inc.<br />
✽ 2006 results: AIA’s sales grew 5.5%,<br />
from $128 million in 2005 to $135 million<br />
in 2006. “I think part of the increase is<br />
just the professionalism and the maturity<br />
of the system, and part of it is the economy,”<br />
says Rebecca Kollmann, director of<br />
marketing.<br />
✽ New in 2006: AIA decided it was going<br />
to start selling franchises again. “We<br />
decided that midway through the year, and<br />
that may have added to some additional<br />
optimism in the system continuing to grow,”<br />
Kollmann says.<br />
Halo/Lee Wayne (11)<br />
10 (asi/356000)<br />
Acquisition has been the buzzword for<br />
Halo over the past year. In fact, the whole<br />
company was even acquired earlier this<br />
year by public equity company Compass<br />
Group Management. Also, Halo acquired<br />
four distributorships over the past year. Two<br />
of those – Francis & Lusky and Tasco Promotions<br />
– are giving Halo even more sales<br />
coverage across the country. The Tasco<br />
deal alone added about 200 salespeople to<br />
Halo’s coffers.<br />
✽ 2006 results: The company’s sales<br />
increased 23% from 2005 to 2006. Halo<br />
CEO Marc Simon attributes the big year<br />
to three factors: Greater productivity from<br />
110 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Millions<br />
✽ Top challenges: In 2006 these came<br />
mainly from getting back into the swing of<br />
adding franchisees again, Kollmann says.<br />
150<br />
120<br />
90<br />
N/A N/A<br />
2002 2003 2004 2005 2006<br />
its existing sales force, the recruitment of<br />
experienced salespeople and acquisitions<br />
of companies in the Houston and Nashville<br />
markets.<br />
✽ Top challenges: “We view the sales<br />
force as our customers, and the challenge<br />
is always to fi nd new ways to add more<br />
value to their efforts,” Simon says. “We<br />
focus on technology, training and improved<br />
sourcing as major initiatives to support our<br />
sales force.”<br />
✽ Outlook for 2007: Simon say that the<br />
company’s recent acquisitions and addition of<br />
salespeople in new locations is causing Halo<br />
to track “considerably ahead” of 2006.<br />
✽ What the industry doesn’t know:<br />
“We measure and report on all aspects<br />
“It was something that we hadn’t done for a<br />
two-and-a-half- to three-year period where<br />
we had stopped to reorganize the system<br />
a little bit,” she says. “We had the experience<br />
with the people that we had, but we<br />
really needed to reinvent our development<br />
activities.”<br />
✽ Outlook for 2007: 2007 has gotten off<br />
to a good start for AIA. It has added some<br />
new franchisees as well as some new sales<br />
affi liates this year, “So that’s very encouraging,”<br />
Kollmann says.<br />
✽ What the industry doesn’t know: AIA<br />
has more than one business model to offer<br />
to distributors: franchising and sales affi liation.<br />
“We have two different products that<br />
we can offer people, and that makes us<br />
unique,” Kollmann says.<br />
Two new distributors appear on the Top 40 list this year:<br />
G&G Outfi tters<br />
at number<br />
28<br />
$119<br />
$128<br />
$135<br />
Positive Promotions<br />
at number<br />
34<br />
Millions<br />
150<br />
120<br />
90<br />
N/A N/A N/A<br />
$106<br />
$131<br />
2002 2003 2004 2005 2006<br />
of our support staff’s performance for our<br />
sales force on a daily and weekly basis,”<br />
Simon says.
Millions<br />
SOI 2007 TOP 40 DISTRIBUTORS<br />
National Pen Corp. (10)<br />
11 (asi/281040)<br />
Its 14% sales increase since last year was<br />
the result of a host of new writing instruments,<br />
desk accessories, and tighter coordination of<br />
its various internal sales divisions. “We have<br />
been focusing in on tighter integration between<br />
all of our channels, which include sales, Web<br />
and mail,” says Gregg Kornfeld, general manager,<br />
National Pen & Pencil Corp.<br />
✽ New in 2006: The biggest change has<br />
been the addition of Rich Schulte as the new<br />
CEO. He spearheaded the purchase of New<br />
England Business Services Inc. (asi/282590) 0<br />
by Deluxe Corp. while president of Deluxe’s<br />
small business division.<br />
✽ Top challenges: The increase in postal<br />
rates is the single biggest obstacle going<br />
forward. “It means that you have to work on<br />
making your dollar work more for you,” says<br />
Kornfeld. “That’s when the integration of the<br />
channels is even more important.”<br />
✽ Outlook for 2007: National feels good<br />
about 2007, especially considering its recent<br />
purchase of fellow Top 40 0 distributor, Atlas<br />
Pen & Pencil Corp. (asi/127000). 0 “I think it’s<br />
challenging for any company to continue to<br />
grow at double digits,” Kornfeld says. “However,<br />
we remain optimistic thus far on the outlook<br />
for 2007.”<br />
✽ What the industry doesn’t know:<br />
National has a separate European headquarters<br />
in Ireland and currently services 17 countries<br />
outside of North America, including all of<br />
Western Europe, Japan, Australia and New<br />
Zealand.<br />
150<br />
120<br />
90<br />
60<br />
$74<br />
$93<br />
$110<br />
$114<br />
$130<br />
2002 2003 2004 2005 2006<br />
4imprint Inc. (17)<br />
12 (asi/197045)<br />
With a 34% increase in North American<br />
120<br />
$112<br />
sales between 2005 and 2006, 4imprint<br />
fi nds itself in the driver’s seat as new client<br />
General Motors, along with strong growth<br />
100<br />
in existing accounts, powers profi ts. As<br />
$83<br />
reported by Counselor r in February, the<br />
GM deal includes branded promotional<br />
80<br />
items such as keytags, pens, caps and<br />
travel mugs.<br />
✽ 2006 results: Company CFO David<br />
Seekings reports that no major shift in<br />
60<br />
N/A N/A<br />
$73<br />
strategy lies behind the company’s growth. “We’re just doing more of the same, more effectively,”<br />
with sales increases driven by a catalog/Web strategy.<br />
✽ New in 2006: The company announced the acquisition of Supreme Holdings Limited in<br />
November.<br />
✽ Top challenges: Recent years have been great for the industry, Seekings says, with a<br />
welcome shift to the use of more promotional products in the advertising mix. Moving forward,<br />
“The big challenge for everyone is gauging the state of the economy. We’ve all benefi ted in<br />
the past few years from a very buoyant economy. I think in one way or another if there is a<br />
downturn, it could be diffi cult.”<br />
✽ What the industry doesn’t know: Parent company 4imprint Group PLC is a publicly<br />
quoted group on the London Stock Exchange, where it has been listed since 1953.<br />
Tic Toc (12)<br />
13(asi/158990) Tic Toc, which is owned by ad agency giant<br />
Omnicom, increased its sales from $96.2<br />
million in 2005 to $99.1 million last year.<br />
✽ 2006 results: Paul Gittemeier, CEO of<br />
Tic Toc, believes the company is doing well<br />
thanks to a combination of factors. First, Tic<br />
Toc last year hired two seasoned new business<br />
development executives who were<br />
only casually acquainted with the ad specialty<br />
market, but are highly knowledgeable<br />
about marketing. “Their sole responsibility<br />
is to cultivate new business opportunities,”<br />
he says. Second, Tic Toc decided to shed<br />
three Fortune 2500 clients that weren’t profitable<br />
and were a drain on the company.<br />
“I wrestled with these decisions just to<br />
be sure they were right,” Gittemeier says.<br />
“They were. We redeployed the people and<br />
resources against other clients and grew<br />
those businesses substantially.”<br />
✽ New in 2006: The company expanded its<br />
digital marketing capabilities in 2006. “We<br />
Millions<br />
Millions<br />
100<br />
80<br />
$91<br />
$86<br />
$95<br />
$96<br />
$99<br />
2002 2003 2004 2005 2006<br />
can now support client programs requiring<br />
this discipline, thereby being a more complete<br />
resource to them,” Gittemeier says.<br />
✽ Top challenges: Appealing to new<br />
people in the job market. “The job market<br />
is tight,” he says, “and young go-getters<br />
– who are most of our new hires – are looking<br />
for more than a job and a salary.”<br />
✽ 2007 Outlook: “We are up quarter to<br />
quarter and year-to-date compared to<br />
2006,” Gittemeier says.<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 113
Millions<br />
SOI 2007 TOP 40 DISTRIBUTORS<br />
Banyan Incentives (13)<br />
14 (asi/342382)<br />
Banyan Incentives is composed of sev-<br />
100<br />
$88 $88 $88 $88<br />
eral companies, including Amsterdam<br />
Printing, Sales Guides Intl., Anderson’s<br />
Paper and Party Suppliers, Anderson’s<br />
School Spirit, Anderson’s School Events<br />
80<br />
and Anderson’s Middle Zone. It is one of 60<br />
several companies that comprise the privately<br />
owned Taylor Corp., a $1.7 billion<br />
company with over 15,000 employees,<br />
$58<br />
according to 2005 fi gures.<br />
✽ 2006 results: Paul Griffi ths, president<br />
40<br />
2002 2003 2004 2005 2006<br />
of Banyan Incentives, declined to confi rm Counselor’s $88.2 million estimate.<br />
✽ New in 2006: Griffi ths did break his silence when asked about the company’s focus last<br />
year: “We continued to go more and more aggressively toward retaining the customers we<br />
have and less focused on getting new customers. So it’s a small shift in focus.”<br />
✽ Outlook for 2007: The biggest challenge for Banyan going forward is simple: Postal<br />
rate increases. “It affects our cost more than sales,” says Griffi ths. “We try to put it into the<br />
product cost but it is really diffi cult. There’s no value added. It just ups the costs without<br />
anything getting better.”<br />
✽ What the industry doesn’t know: Taylor Corp. president Glen Taylor is owner of the<br />
NBA’s Minnesota Timberwolves.<br />
Millions<br />
150<br />
Myron (16)<br />
16 (asi/278980)<br />
Counselorr estimates put Myron’s 2006<br />
sales fi gure at $83.6 million for a second<br />
120<br />
consecutive year. CEO Jim Adler declined<br />
to confi rm the fi gure or provide any additional<br />
information.<br />
✽ 2006 results: The estimated sales fi g-<br />
90<br />
ure fi rst noted last year was gathered from<br />
the latest report from Dun & Bradstreet. In<br />
$84 $84<br />
2006, company President Paul D’Andrea<br />
60<br />
N/A<br />
2001<br />
N/A<br />
2002<br />
N/A<br />
2003 2004 2005 2006<br />
told Counselorr the company’s revenues<br />
were signifi cantly higher than the Dun &<br />
Bradstreet number.<br />
✽ What the industry doesn’t know: The company’s fi rst product in 1949 was policy<br />
wallets for insurance documents.<br />
114 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Millions<br />
Summit Marketing (15)<br />
15 (asi/339116)<br />
The full-service integrated marketing provider<br />
continues to benefi t from a diversity<br />
of clients and services. Last year saw a<br />
2.5% revenue increase over 2005.<br />
✽ 2006 results: Sales numbers can be<br />
chalked up to “organic growth” in key<br />
accounts, along with additional product<br />
work in support of outreach programs<br />
for the U.S. Army, according to CEO<br />
Daniel Renz.<br />
✽ New in 2006: Signifi cant account<br />
growth for the fi rm’s Arlington, VAbased<br />
Government Services Group<br />
was the most notable development in<br />
2006, Renz says.<br />
✽ Top challenges: According to<br />
Renz, the need to “identify and develop<br />
younger people into the industry on the<br />
sales side of the business.”<br />
✽ Outlook for 2007: Renz predicts<br />
double-digit-percentage sales growth<br />
in 2007.<br />
100<br />
80<br />
60<br />
N/A<br />
$65<br />
$85 $85<br />
$87<br />
2002 2003 2004 2005 2006<br />
17 companies in the distributor Top 40 had double-digit<br />
growth last year, with an overall average of<br />
11.25%.
Millions<br />
SOI 2007 TOP 40 DISTRIBUTORS<br />
Mid West Trophy (18)<br />
17 (asi/270880)<br />
Mid West Trophy sales remained fl at in<br />
2006, according to Counselorr estimates.<br />
After doubling its sales in 2002 to $74 million,<br />
the company has reported only a $7<br />
million increase the past four years.<br />
✽ New in 2006: The company has a new<br />
building for its corporate division, MTM Recognition.<br />
The building is located on 20 acres<br />
in Del City, OK, and includes both an offi ce<br />
building and manufacturing facility.<br />
✽ Outlook for 2007: MTM Recognition<br />
was selected by the NCAA Offi cial Awards<br />
Program Supplier to produce awards for all<br />
its program needs.<br />
✽ What the industry doesn’t know: Mid<br />
West purchased Jostens, the well-known<br />
class ring company, in 2001 after supplying<br />
them with product for over 20 years.<br />
100<br />
80<br />
60<br />
$74<br />
$77<br />
$81 $81 $81<br />
2002 2003 2004 2005 2006<br />
Kaeser & Blair Inc. (19)<br />
19 (asi/238600)<br />
Central to Kaeser & Blair’s success is the<br />
company’s relationships with its authorized,<br />
independent dealers, a fact that has always<br />
made professional support and service the<br />
keystone of its operation.<br />
✽ 2006 results: After a year of essentially<br />
fl at growth, sales at Kaeser & Blair grew<br />
about 3% between 2005 and 2006. The<br />
company attributes much of its increase to<br />
technological effi ciencies – like its order<br />
processing system. “We automate as much<br />
of the order processing as we can,” says<br />
Gregg Emmer, chief marketing offi cer. “We<br />
116 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
American Solutions for 80<br />
18 Business Inc. (21)<br />
$78<br />
(asi/120075)<br />
70<br />
$67<br />
In 2006, American Solutions for Business<br />
continued to work with Novation, a large<br />
health care purchasing organization that 60<br />
ASB landed a contract with in 2004, while<br />
also building profi ts from other areas.<br />
✽ 2006 results: Sales were up just over<br />
$55<br />
50<br />
$10 million, or 16% in 2006, resulting<br />
$49<br />
in a total of $78.1 million. There were $46<br />
many reasons for this increase, including 40<br />
2002 2003 2004 2005 2006<br />
a partnership with sales associates from<br />
the recently bankrupted Global DocuGraphix; its continuing contract with Novation; and<br />
a sales force personnel growth of 8.5%. And new capabilities with its proprietary ACES<br />
online technology have helped drive growth as well. “We’re averaging 5,000 orders a<br />
month coming through electronically where our sales reps never have to touch an order,”<br />
says Wayne Martin, vice president of vendor relations. “We’ve got a little over 1,000 customers<br />
using that technology today.”<br />
✽ New in 2006: ASB began the process of establishing a new enterprise resource project<br />
system internally. “We went through a selection process last year, which included a lot<br />
of people from various functional groups in the company, and we’ve been going through<br />
the confi guration phases now all of this year,” Martin says.<br />
✽ Top challenges: Increased competition from non-traditional distributors was a challenge<br />
in 2006 and that continues today. “I see a new type of company evolving, and it’s a<br />
more creative-marketing-agency-type promotional distributor,” Martin says.<br />
✽ Outlook for 2007: Sales in almost all of ASB’s categories are up for 2007, Martin<br />
says. “We’ve got some really good stuff on the radar screen right now, and we’re really<br />
pretty excited about 2007.”<br />
✽ What the industry doesn’t know: One of company President/CEO Larry Zavadil’s<br />
favorite analogies for the company is an amoeba. “An amoeba, when you look at it, it’s<br />
constantly changing its shape and form to meet its environment,” Martin says. “Larry uses<br />
the amoeba over and over again, and it’s so true when you look at who we were and who<br />
we are today.”<br />
still edit the orders with a human, but we<br />
have eliminated most of the keystrokes and cesses,” Kaeser says.<br />
have online checking.”<br />
✽ New in 2006: CEO Kurt Kaeser cites new<br />
80<br />
$78<br />
technology effi ciencies, expanded programs<br />
$76<br />
and new dealer relationships as hallmarks<br />
of 2006.<br />
$76<br />
✽ Top challenges: Staying on top of cut-<br />
$70<br />
ting-edge technologies and programs.<br />
✽ Outlook for 2007: Sales continue to<br />
trend upward through 2007, Kaeser says.<br />
✽ What the industry doesn’t know: “We’re<br />
70<br />
probably the oldest distributor in the industry,<br />
with roots back to the 1850s and at the same<br />
$65<br />
time we’re one of the leading distributors with 60<br />
2002 2003 2004 2005 2006<br />
Millions<br />
Millions cutting-edge, revolutionary programs and pro
SOI 2007 TOP 40 DISTRIBUTORS<br />
20<br />
Jack Nadel International<br />
(14)<br />
(asi/279600)<br />
Last year saw the death of longtime president<br />
Marty Nadel (in April) and the passing<br />
of the leadership torch to his son, Craig.<br />
Company founder Jack Nadel continues in<br />
his role as chairman of the board of directors,<br />
while Executive Vice President Robert<br />
Buckingham was promoted to chief operating<br />
offi cer.<br />
✽ 2006 results: “Sales were fl at with an<br />
asterisk,” according to Craig Nadel – the<br />
asterisk accounting for a $10 million drop<br />
in revenue from 2005. The entire loss can<br />
be chalked up to one account, a cash debit<br />
118 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Millions<br />
card business, he says. “There was no margin,<br />
but it was a really big sale and big<br />
chunk of the business.”<br />
100<br />
80<br />
60<br />
$70<br />
$74<br />
$86 $86<br />
$76<br />
2002 2003 2004 2005 2006<br />
The Vernon Company (22)<br />
21(asi/351700) New marketing initiatives and internal efforts to maintain high employee retention rates<br />
have executives at The Vernon Company feeling very positive about the fi rm’s direction.<br />
Adding to the good feeling is a 10% increase in revenue between 2005 and 2006.<br />
✽ 2006 results: Vice President of sales Dave Regan chalks sales success up to three factors:<br />
Large orders and new fulfi llment programs from new and existing clients, employee<br />
retention and the addition of more than 40 experienced industry account managers to the<br />
Vernon team.<br />
80<br />
✽ New in 2006: A new program ties<br />
direct-marketing efforts to specifi c<br />
sales associates, including individual<br />
names and contact information. “The<br />
$73 sales force has been overwhelmingly<br />
supportive of these initiatives, and for<br />
70<br />
$67<br />
$68<br />
that reason we expect to expand our<br />
efforts in 2007/2008,” Regan says.<br />
✽ Personnel changes: Jeff Burnett<br />
$66<br />
was promoted from his former position<br />
of director of marketing to vice presi-<br />
$63<br />
dent of marketing.<br />
60<br />
2002 2003 2004 2005 2006<br />
✽ Top challenges: The company sees<br />
industry public relations as a key challenge.<br />
“We have an objective to make sure people in this industry really know who we are,<br />
what we offer and what we are all about,” Regan says.<br />
✽ Outlook for 2007: Regan says the company is running about 6% ahead of last year’s<br />
shipments. “We continue to add good quality people to our sales team via new hires and<br />
a number of acquisitions of small to mid-size distributorships,” he says.<br />
✽ What the industry doesn’t know: Of the company’s top salespeople, 50% are women.<br />
Millions<br />
✽ New in 2006: The company opened<br />
two new offi ces last year, in Dallas and<br />
Chicago.<br />
✽ Top challenges: “Getting and keeping<br />
good salespeople is always number<br />
one,” Nadel says. “We’re in the people<br />
business.”<br />
Outlook for 2007: With the company’s<br />
fi scal year ending March 31, “it’s too early<br />
to say,” Nadel says. “We obviously, to a<br />
degree, roll with the economy.”<br />
✽ What the industry doesn’t know: With<br />
an eye to greater service and effi ciency, the<br />
company developed its own order-writing<br />
system on the Web, maintaining a version<br />
for clients as well as internal employees.<br />
One top<br />
distributor<br />
challenge:<br />
“Getting<br />
and<br />
keeping<br />
good<br />
salespeople<br />
is always<br />
number<br />
one.”<br />
– CRAIG NADEL,<br />
JACK NADEL INTERNATIONAL
Millions<br />
SOI 2007 TOP 40 DISTRIBUTORS<br />
Evigna (24)<br />
22 (asi/155460)<br />
“We’re a pretty entrepreneurial group and<br />
we’re very committed to driving growth in<br />
this business,” says Evigna President Shan<br />
Mehta. This has meant refocusing the company<br />
to go after long-term, contracted relationships<br />
with big brands, rather than oneoff<br />
sales.<br />
150<br />
120<br />
90<br />
60<br />
$135<br />
$80<br />
$68<br />
$65<br />
$69<br />
2002 2003 2004 2005 2006<br />
✽ 2006 results: Mehta says that sales<br />
last year benefi ted from new account<br />
growth, but were primarily driven by existing<br />
accounts. “It usually takes a year or two<br />
to really penetrate a new account, so you<br />
really don’t see an uptick in revenue until at<br />
least a year out,” he says.<br />
120 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
✽ New in 2006: Evigna signed contracts<br />
with a host of Fortune 500 companies,<br />
including Bose, Hyatt, Harman/Becker,<br />
Blue Cross national and Ely Lilly, becoming<br />
the preferred, or, in many cases, the exclusive<br />
provider. The new account growth<br />
required a 30% increase in the number<br />
of personnel, to just under 200 employees.<br />
“We’ve invested a great deal in new<br />
technology infrastructure to drive customer<br />
service,” Mehta adds, including new ERP,<br />
call center and warehouse management<br />
systems.<br />
✽ Personnel shifts: Evigna hired a new<br />
head of operations, Pete Reisner, as part of<br />
its effort to increase supply chain effi ciency<br />
and reduce delivery times.<br />
✽ Top challenges: “As we focus on big<br />
brands, they change their strategies very<br />
quickly,” Mehta says. “Each industry has<br />
their own issues and continued shifts from<br />
year to year, and our biggest challenge is to<br />
be able to react to those shifts.”<br />
✽ Outlook for 2007: The company<br />
expects growth of around 20%, dependent<br />
on demand among top end clients.<br />
✽ What the industry doesn’t know:<br />
Evigna oversees a managed, rather than<br />
commissioned, sales force. “I think that’s a<br />
departure from the way most of the companies<br />
operate in the industry,” Mehta says.<br />
The difference in revenue<br />
between the top distributor and last<br />
distributor on the list is<br />
$ 207.2<br />
million.<br />
Millions<br />
Brown & Bigelow (23)<br />
23(asi/148500) Acquisitions were the big news at Brown &<br />
Bigelow last year. They acquired two companies:<br />
Lemark <strong>Advertising</strong>, located in Long<br />
Island, NY, and the Costa Mesa, CA IPW<br />
Product Development, which merged with<br />
B&B’s Anaheim, CA, offi ces in October.<br />
✽ 2006 results: B&B was up $1.8 million<br />
over last year, which Executive Vice<br />
President William D. Smith, Jr. says is due<br />
to the new companies. “In 2006, our sales<br />
increased $1,814,000 from $65,268,000 to<br />
$67,082,000, and we attribute this gain to<br />
the acquisition of the two distributors. Both of<br />
these new offi ces will continue to support our<br />
new salespeople locally.”<br />
✽ New in 2006: They weren’t the only new<br />
offi ces last year. The company also opened<br />
one in Salt Lake City and hired three new<br />
sales reps to staff it. The executive team was<br />
expanded with Dave Thorman joining as vice<br />
president of national accounts and Emmett<br />
Taylor as regional vice president of the central<br />
region.<br />
✽ Top challenges: “Continuing to get our<br />
message out to salespeople in the industry:<br />
local support, employee status and a 50/50<br />
split of the gross profi t,” Smith says.<br />
✽ Outlook for 2007: “We are optimistic<br />
about the business prospects for 2007,” says<br />
Smith. “While some companies have had to<br />
reduce their budgets, others are increasing<br />
their promotional spending, and that’s good<br />
for our company.”<br />
✽ What the industry doesn’t know: Of the<br />
company’s top 60 salespeople, 63% of them<br />
are women.<br />
80<br />
70<br />
60<br />
$65<br />
$62<br />
$63<br />
$65<br />
$67<br />
2002 2003 2004 2005 2006
Millions<br />
Millions<br />
SOI 2007 TOP 40 DISTRIBUTORS<br />
EmbroidMe (20)<br />
24 (asi/384186)<br />
EmbroidMe’s expanding network of retail franchise operations has benefi ted from new printing<br />
technologies and product lines as the company continues to refi ne its strategies for sales success.<br />
Sales were up 40 % between 2005 and 2006.<br />
✽ 2006 results: Tipton Shonkwiler, director of marketing, attributes the sales spike primarily<br />
to the addition of new stores. “Between ’05 and ’06 we put about 100 new franchisees in to<br />
the system.” All new stores opened with a direct-to-garment printer that allows franchisees to<br />
generate new sales at the store level, rather than<br />
80<br />
sending orders out to be screen printed.<br />
✽ New in 2006: A new private label product<br />
70<br />
$63 line “really started to get legs” in 2006, Shonk-<br />
60<br />
wiler reports. Sales of the EmbroidMe Collection<br />
were very good, and the fourth quarter saw<br />
50<br />
$45 $46<br />
the introduction of a higher-end product line for<br />
Varendan: golf shirts.<br />
40<br />
✽ Top challenges: “The biggest challenge that<br />
we have is continuing to educate our franchi-<br />
30 $26<br />
sees on the importance of building sales with<br />
20<br />
N/A<br />
2002 2003 2004 2005 2006<br />
the strategies we have in place,” he says.<br />
✽ Outlook for 2007: “We’re looking forward to<br />
our best year ever,” Shonkwiler says.<br />
✽ What the industry doesn’t know: “Because of the name EmbroidMe, a lot of people associate<br />
what we do with embroidery, but we do a lot of other things for clients, including marketing<br />
campaigns for promotional products, school uniforms and athletics.”<br />
60<br />
50<br />
40<br />
30<br />
$23<br />
$29<br />
$38<br />
$42<br />
$60<br />
20<br />
2002 2003 2004 2005 2006<br />
Workfl owOne (29)<br />
26 (asi/333647)<br />
Workfl owOne has not made many waves in<br />
the industry, but that’s going to change very<br />
soon. “We’ve turned 180 degrees,” says Dan<br />
Welborne, vice president of the promotional<br />
division. “Promotional products is the number-one<br />
initiative in the company. And that’s<br />
pretty big for a billion-dollar company to pick<br />
a space that we’ve been doing $35 million in<br />
122 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
and say that is our number-one initiative.”<br />
✽ 2006 results: Its new direction has already<br />
resulted in an amazing 42.9% growth in promotional<br />
sales.<br />
✽ New in 2006: Leading the promotional<br />
charge is Welborne, who was hired in<br />
October 2006. He has hired fi ve regional<br />
promotional products directors to oversee<br />
the company’s new direction. “That’s their<br />
only responsibility and my only responsibility,”<br />
he says.<br />
✽ Top challenges: “Getting the massive<br />
number of employees that we have to believe<br />
that we are serious about promotional products<br />
and that we will be good at it,” says<br />
Welborne. “Some of these veterans have 25<br />
year’s experience selling to print. Suddenly<br />
we’re telling them we are a promotional<br />
products company, and they may not have<br />
believed that right away.”<br />
✽ Outlook for 2007: “I believe that we will<br />
have upwards of 200% increase. We are<br />
already on a track of 100% increase,” Wel-<br />
Artcraft Promotional<br />
25 Concepts (25)<br />
(asi/125050)<br />
Artcraft’s knack for strategic expansion<br />
and targeted services has kept the fi rm<br />
seeing black. The Moorestown, NJ-based<br />
distributor, which specializes in custom<br />
product design, enjoyed revenue growth<br />
last year topping 16%.<br />
✽ 2006 results: “Increased sales in 2006<br />
is a confi rmation that our clients value the<br />
expanded services that we forecasted<br />
they would require,” says Vice President<br />
Harold Zimmermann.<br />
✽ New in 2006: Last April, Artcraft purchased<br />
a 50% interest in Anatstat, USA,<br />
a Flemington, NJ-based health education<br />
media company. The purchase “enables<br />
us to offer world-class models and teaching<br />
tools,” Zimmermann says. “Anatstat has<br />
collaborative medical association relationships<br />
and focus group capabilities.” The<br />
company’s direct marketing division also<br />
expanded into several new markets.<br />
✽ Top challenges: Zimmermann puts<br />
continuing to improve value for clients at<br />
the top of the list of challenges for 2007.<br />
✽ Outlook for 2007: Citing the soundness<br />
of business initiatives strategized and<br />
implemented over the past year, Zimmermann<br />
expects 2007 to be “very good.”<br />
✽ What the industry doesn’t know:<br />
“The Artcraft difference is simply the<br />
culture,” Zimmermann says. “We hire<br />
good people with passion, and provide<br />
them with the necessary tools to exceed<br />
client expectations.”<br />
40<br />
borne says. 2002 2003 2004 2005 2006<br />
Millions<br />
80<br />
70<br />
60<br />
50<br />
$42<br />
$45<br />
$49<br />
$53<br />
$61
SOI 2007 TOP 40 DISTRIBUTORS<br />
Corporate Edge (26)<br />
27 (asi/168860)<br />
Focusing on e-commerce has proved profitable<br />
for Corporate Edge, which designs,<br />
manufactures and distributes promotional<br />
materials. In-house manufacturing means fl exibility<br />
and creative expertise for the company’s<br />
Fortune 5000 clients, but creates supply chain<br />
challenges that have led to some consolidation<br />
of operations.<br />
✽ 2006 results: CEO Scott Levy reports<br />
sales increases in e-commerce and among<br />
existing clients the primary factors driving<br />
20% revenue growth from 2005 to 2006.<br />
✽ New in 2006: The company has brought<br />
its entire e-commerce operation in-house,<br />
124 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
from software platforms to Web design and<br />
hosting, sourcing, billing and warehousing.<br />
The effort brings together “the whole complete<br />
management of the corporate store.”<br />
✽ Top challenges: “The goal in the beginning<br />
of 2006 was to build up that e-commerce<br />
department,” Levy says.<br />
✽ Outlook for 2007: Sales are up 15% so<br />
far, though much of the company’s business<br />
comes in the fourth quarter. Levy estimates a<br />
10% overall sales increase for the year.<br />
✽ What the industry doesn’t know: It’s<br />
been fi ve years since the merger of Corporate<br />
Image and Selling Edge created Corporate<br />
Edge. “In those fi ve years, the company has<br />
doubled in size.”<br />
G & G Outfi tters (N/A)<br />
28 (asi/199904)<br />
G & G Outfi tters may be new to the Top 40 0 but the company has been around for 17<br />
years now. Why the sudden emergence? The company decided to get its name out in<br />
the public more, as part of its strategy for growth. “If we’re going to try to continue to<br />
improve that top-line revenue, we realize we’re going to have to be a little more forthcoming<br />
with our numbers,” says Richard<br />
Gergar, executive vice president.<br />
“Clearly by sharing our numbers, we<br />
$58<br />
become more legitimate in the eyes<br />
of any potential customers who may<br />
be looking to see who’s a world-class<br />
provider in this space outside of the<br />
big boys.”<br />
✽ 2006 results: With sales of $51.3<br />
million in 2005 and $58.3 million in<br />
$51<br />
2006, G&G saw an increase of 14%.<br />
The increase in sales can be attrib-<br />
N/A N/A N/A<br />
uted to the company’s many divisions<br />
2002 2003 2004 2005 2006 marketing themselves aggressively.<br />
For example, its motor sports and<br />
beverage divisions have people who call on clients in specifi c regions to develop and<br />
implement branded merchandise promotions for those specifi c channels. “That’s really<br />
paid a lot of dividends,” Gergar says.<br />
✽ New in 2006: Both the motor sports and beverage divisions were created in 2006<br />
to better tap into these lucrative markets.<br />
✽ Personnel shifts: G&G appointed Steve Hirschorn regional vice president of its<br />
newly established Overland Park, KS, offi ce.<br />
✽ Top challenges: Managing and maintaining growth have been top challenges for<br />
G&G. “As the top-line revenue number becomes bigger, trying to maintain a 10%,<br />
20%, 15% growth rate becomes that much more challenging,” Gergar says.<br />
✽ What the industry doesn’t know: G&G started as a small company that sold<br />
and screen-printed T-shirts. Today, it still does that, but has grown to a company that<br />
also has approximately 160 embroidery heads and a fulfi llment division, along with its<br />
promotional products sales and marketing organization. “Not many, if any, of our competitors<br />
in the marketplace have that manufacturing base as part of their promotional<br />
products solution for their customers,” Gergar says.<br />
60<br />
Millions<br />
50<br />
Millions<br />
60<br />
50<br />
40<br />
30<br />
$30<br />
$32<br />
$41<br />
$49<br />
$59<br />
2002 2003 2004 2005 2006<br />
Newton Manufacturing (27)<br />
29 (asi/283300)<br />
“Our growth comes from the efforts of our salespeople,”<br />
says Jerome Hoxton, president. To that end,<br />
the distributor has been an innovator in online sales<br />
support.<br />
✽ 2006 results: Sales were up 3% thanks to “a lot<br />
of hard work, good salespeople, cold-calling and<br />
providing more value service to prospects and customers,”<br />
Hoxton says.<br />
✽ New in 2006: “We were able to partner with a lot of<br />
new representatives that had good contacts,” Hoxton<br />
says, also mentioning new online services such as a<br />
Web-based data management program.<br />
✽ Top challenges: Further expansion and evolution<br />
of the services needed to support the sales group,<br />
including “more use of technology to support transactional<br />
processes.”<br />
✽ Outlook for 2007: Hoxton says he expects a<br />
growth year.<br />
✽ What the industry doesn’t know: Newton Manufacturing<br />
will be 100 years old in 2009, and has been<br />
in business in the same Iowa town since its inception.<br />
Millions<br />
80<br />
70<br />
60<br />
50<br />
40<br />
$62<br />
$45<br />
$47<br />
$48<br />
$50<br />
2002 2003 2004 2005 2006
Millions<br />
SOI 2007 TOP 40 DISTRIBUTORS<br />
Gary Mandel Promotional<br />
30 Concepts Inc. (28)<br />
(asi/260340)<br />
This Santa Monica, CA-based distributor has<br />
been selling and designing custom promotional<br />
products since 1976 with President<br />
Gary Mandel at the helm. The company has a<br />
diverse client base that includes brands such<br />
as Kraft, Pepsi, Gap and Pfi zer.<br />
✽ 2006 results: Gary Mandel followed up a<br />
double-digit growth year in 2005 (15%) with a<br />
more pedestrian 7% increase in 2006. While<br />
the company’s growth has slowed a bit, it has<br />
gotten larger – from $28 million in 2002 to its<br />
2006 total of $48 million.<br />
✽ What the industry doesn’t know: The<br />
company has been importing products from<br />
Asia for more than 30 years. It even has its<br />
own in-house logistics department staffed with<br />
full-time shipping and U.S. Customs experts.<br />
50<br />
40<br />
30<br />
$28<br />
$31<br />
$39<br />
$45<br />
$48<br />
20<br />
CorpLogoWare (33)<br />
32(asi/168827) For 2006, the growth for CorpLogoWare runs<br />
deeper than the numbers, says President/<br />
CEO Jack Levine. The company had asked 25<br />
of its lower producing account executives to<br />
leave, and added 30 higher producing ones,<br />
resulting in higher profi tability.<br />
✽ 2006 results: CorpLogoWare enjoyed a<br />
40% increase in sales over 2005’s $30.1<br />
million, resulting in $42.1 million in sales for<br />
2006. This can be attributed to the higher<br />
producing account executives, along with<br />
the results of a healthy economy overall. In<br />
addition, Levine says, “Our U.S. Olympic<br />
Team license has continued to provide not<br />
only entrée to new clients but also increased<br />
126 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
31<br />
(asi/268100)<br />
(31)<br />
Company President Herbert Piller believes<br />
quality of service and good research can<br />
trump bargain-basement offerings when<br />
$42<br />
it comes to winning clients. Merit Industries<br />
has found success – sales were up<br />
nearly 10% last year – providing quality<br />
promotional items that deliver both marketing<br />
and public relations benefi ts.<br />
40<br />
$39<br />
✽ 2006 results: Piller credits increased<br />
$30<br />
advertising as a key factor behind rev- 30<br />
N/A N/A<br />
enue numbers, maintaining a monthly<br />
presence in 120 publications.<br />
2002 2003 2004 2005 2006<br />
✽ New in 2006: In a strategic move, Merit dropped customers with orders of less than<br />
1,000 pieces. “We have either upgraded smaller clients or cut them out,” Piller says,<br />
bringing the company’s average order size to 3,000 to 5,000 pieces, he says. “It doesn’t<br />
pay to take an order for a couple of hundred pieces,” he says.<br />
✽ Top challenges: “To come up with new, exciting products,” Piller says. The company<br />
has latched on to the green movement, in one instance supplying live trees for a giveaway<br />
promotion run by an oil refi ner seeking to burnish its image after a spate of bad publicity.<br />
✽ Outlook for 2007: Sales are up 22% from where they were a year ago, according to<br />
Piller. The secret? “We’re working our butts off.”<br />
✽ What the industry doesn’t know: “We sell at list prices only, because we put a lot<br />
of research into our suggestions, and large companies are willing to pay our price,” Piller<br />
says. “We’ve had some big customers for 35 to 40-odd years.”<br />
Only fi ve companies had fl at, or 0%<br />
growth last year.<br />
credibility for all of our account executives.”<br />
✽ New in 2006: In late 2006, CorpLogo-<br />
Ware added a NASCAR license, which<br />
Levine expects will have a major impact on<br />
2007 revenue.<br />
✽ Outlook for 2007: Thanks to the new<br />
NASCAR license, CorpLogoWare is also<br />
expecting a strong showing in 2007, Levine<br />
says. And the addition of several higher producing<br />
account executives in late 2006 has<br />
the company expecting 40% year-to-year<br />
growth again for 2007.<br />
✽ What the industry doesn’t know:<br />
CorpLogoWare combines two different business<br />
models to help make its account executives<br />
successful: carrying licensing and hiring<br />
independent contractors. “We merge both, in<br />
Millions<br />
50<br />
accounts but also have licensed accounts as<br />
a way to bolster their base,” Levine says.<br />
50<br />
40<br />
30<br />
20<br />
10<br />
N/A<br />
$13<br />
$24<br />
$30<br />
$42<br />
Millions pendent contractors who work on their own<br />
2002 2003 2004 2005 2006
Millions<br />
SOI 2007 TOP 40 DISTRIBUTORS<br />
Thomas Direct Sales (30)<br />
33(asi/343878) Founded in 1986, Thomas Direct Sales is<br />
a family-owned business that started in a<br />
basement in Ironia, NJ. Headed by President<br />
Nancy D’Andrea, it has blossomed<br />
into a $40 million global business and one<br />
of the top woman-run businesses in the<br />
country.<br />
✽ 2006 results: Thomas Direct Sales is<br />
another company joining our no-growth<br />
club, according to a Counselorr estimate.<br />
✽ What the industry doesn’t know:<br />
Professional Woman Magazine named<br />
D’Andrea to its Top 100 Minority Women<br />
Business Owners list.<br />
40<br />
35<br />
30<br />
$34<br />
35<br />
$33<br />
$35<br />
$40 $40<br />
2002 2003 2004 2005 2006<br />
Norscot Group (38)<br />
(asi/284520)<br />
Norscot is an international distributor with<br />
locations in Europe, China and several locations<br />
across the U.S., including a headquarters<br />
in Wisconsin. President Scott Stern<br />
says the company’s continued success<br />
comes from its ability to fi nd new clients<br />
and new markets, but prides itself on the<br />
number of referrals it gets from satisfi ed<br />
customers.<br />
✽ 2006 results: Norscot nearly doubled its<br />
growth over last year, with a 12% increase.<br />
Stern cites the addition of several new<br />
major clients as the biggest reason behind<br />
the increase.<br />
✽ New in 2006: The company moved into<br />
a new facility several years ago, giving<br />
Millions<br />
Positive Promotions<br />
34(N/A) (asi/297370)<br />
According to Counselorr sources, Posi-<br />
tive Promotions garnered an estimated<br />
$39.5 million in sales in 2006. While Nelson<br />
Taxel, the company’s president, won’t<br />
confi rm or deny this estimate, it places<br />
Positive Promotions at number 34 on this<br />
year’s Top 400 list.<br />
✽ About the company: Positive, which is<br />
40<br />
$40<br />
based in Hauppauge, NY, has been in business<br />
since 1947. The company’s strategy<br />
35<br />
N/A<br />
2002<br />
N/A<br />
2003<br />
N/A<br />
2004<br />
N/A<br />
2005 2006<br />
is to break its offerings up into market specialties. It’s Web site, www.positivepromotions.<br />
com, has specifi c sections for various events (like Breast Cancer Awareness and Black History<br />
Month), as well as topline tabs for markets such as schools, safety, recognition, and<br />
health and wellness<br />
✽ Go to market strategy: The company tries to be a one-stop-shop destination for its<br />
customers. It offers customers the ability to purchase through any of three vehicles: catalog,<br />
over the phone, or through its Web site. The company even employs event planners and<br />
product-fi nders to help its customers locate the promotional items they need.<br />
✽ What the industry doesn’t know: Each year, Positive donates a portion of the proceeds<br />
from its National Breast Cancer Awareness campaign to the American Cancer Society. In<br />
2005, Taxel presented a check for $23,500 to ACS representatives.<br />
35<br />
30<br />
25<br />
20<br />
2002 2003 2004 2005 2006<br />
it additional space to expand its service<br />
capabilities. In 2006 it was fi nally able to<br />
truly take advantage of all this change, says<br />
Stern: “Now we can photograph products<br />
Millions<br />
4imprint is the company that made the<br />
biggest leap this year, moving up fi ve<br />
spots from 17th on the list to 12th.<br />
N/A N/A<br />
$24<br />
$31<br />
$35<br />
and send them to clients electronically.<br />
We expanded our creative department and<br />
added more artists, because we do all of<br />
our own catalogs and graphics. It just gives<br />
us a lot of fl exibility and helps us introduce<br />
products faster.”<br />
✽ Top Challenges: Norscot manufactures<br />
die-cast models along with being a full-scale<br />
distributor. Unfortunately, it means that the<br />
increases in raw material costs in 2006 hits<br />
them directly.<br />
✽ Outlook for 2007: “We are looking forward<br />
to another year of double-digit growth,”<br />
Stern says.<br />
✽ What the industry doesn’t know:<br />
Norscot has been an industry distributor<br />
since 1970; Stern has been with the company<br />
since 1974.<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 129
SOI 2007 TOP 40 DISTRIBUTORS<br />
Atlas Pen and Pencil (32)<br />
36 (asi/127000)<br />
Atlas Pen & Pencil Co.’s 2006 performance<br />
is bound to be overshadowed by National<br />
Pen Company’s May 2007 purchase of the<br />
company (the two will continue to operate<br />
under separate company names and<br />
brands); still, recent infrastructure improvements,<br />
a solid client base and an increasing<br />
diversity of offerings make clear Atlas’<br />
appeal to National Pen.<br />
2006 results: Atlas’ sales in 2006 were<br />
essentially fl at, off a few thousand dollars<br />
from 2005. “Last year, the company<br />
diverted some of its advertising dollars to<br />
enhance our systems and our e-commerce<br />
platforms,” says Gregg Kornfeld, new general<br />
manager of the combined companies.<br />
✽ New in 2006: The company continued<br />
to launch a number of new products in all<br />
divisions, Kornfeld says, seeing good sales<br />
of trendy electronic products, like USB pen<br />
drives and storage devices and MP3 players<br />
and recorders.<br />
✽ Top challenges: Heightened competition,<br />
pressure from imports that continuously<br />
erode profi t margins and the<br />
increasing price of postage. “The dramatic,<br />
arbitrary increase in postage is a huge<br />
challenge for all of the direct marketers,”<br />
37<br />
(asi/185782)<br />
(35)<br />
Maintaining a recent trend, this Alpharetta,<br />
GA-based provider of online corporate<br />
stores and promotional sales strategies<br />
has proven its worth to some of the world’s<br />
best-known brands, including Offi ce Max,<br />
Xerox and AIG. Sales last year topped $34<br />
million, a 5% increase over 2005.<br />
✽ 2006 results: Craig Callaway, chief executive<br />
offi cer, credits the fi rm’s growth to the<br />
expansion of custom order and importing<br />
capabilities, as well as the addition of several<br />
new Fortune 1000 clients.<br />
✽ New in 2006: “We enjoyed several, very<br />
130 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Millions<br />
35<br />
30<br />
$31<br />
$32<br />
$33<br />
$35<br />
$35<br />
2002 2003 2004 2005 2006<br />
he says. “It goes right to the bottom line.”<br />
✽ Outlook for 2007: “The 2007 outlook<br />
is of course affected by the acquisition,”<br />
Kornfeld says. “The National Pen acquisition<br />
of Atlas will bring lots of opportunities<br />
in inventory, system synergy, a wider area<br />
product line.”<br />
✽ What the industry doesn’t know: “It’s<br />
the third generation of one family working<br />
in the company,” Atlas Pen CEO Bob Schneider<br />
says. “My father started the company<br />
in 1941, I joined the company in 1973, my<br />
brother Eric joined the company in ’75,<br />
and my son David joined the company six<br />
years ago.”<br />
large custom orders, grew our core online<br />
business and won a few signifi cant new<br />
accounts,” Callaway says.<br />
✽ Personnel shifts: “Same great people,<br />
just a little more gray hair.”<br />
✽ Top challenges: “The challenges continue<br />
to be maintaining product gross margins,<br />
fi nding new sales talent to keep up<br />
with our growth and discerning the best<br />
investments for our future,” Callaway says.<br />
✽ Outlook for 2007: Callaway reports<br />
company sales were up 25% over 2006 for<br />
the fi rst four months of 2007.<br />
✽ What the industry doesn’t know: “We<br />
are not Internet geeks,” Callaway insists,<br />
Millions<br />
35<br />
30<br />
25<br />
20<br />
15<br />
As a combined<br />
group the<br />
Top 40<br />
distributors<br />
make up<br />
20%<br />
of the<br />
industry’s total<br />
revenue.<br />
$19<br />
$23<br />
$28<br />
$32<br />
$34<br />
2002 2003 2004 2005 2006<br />
“but people who love to delight our customers<br />
with creative stuff.”
Millions<br />
SOI 2007 TOP 40 DISTRIBUTORS<br />
Gateway/CDI (40)<br />
38(asi/202515) This distributor of promotional products for<br />
corporate events, marketing campaigns and<br />
incentive programs has been working on providing<br />
new distribution options for customers<br />
in order to keep sales moving in their current<br />
direction: up 12% between 2005 and 2006.<br />
✽ 2006 results: Chuck Fandos, president,<br />
attributes sales growth to new fulfi llment/company<br />
store accounts, growth in existing client<br />
accounts and special orders, and the hiring of<br />
new salespeople.<br />
✽ New in 2006: Gateway/CDI is putting a<br />
new emphasis on dropships, or special orders,<br />
including quick-turnaround special orders for<br />
corporate special events. The effort called for<br />
a revamped business model designed by the<br />
Facilis Group, another St. Louis fi rm.<br />
✽ Top challenges: “Finding and training new<br />
people as we continue to grow,” Fandos says.<br />
✽ Outlook for 2007: Sales are healthy, up<br />
132 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Millions<br />
35<br />
30<br />
25<br />
20<br />
$26<br />
$30<br />
$33<br />
$23<br />
N/A<br />
2002 2003 2004 2005 2006<br />
25% in the fi rst quarter of 2007.<br />
✽ What the industry doesn’t know:<br />
According to Fandos, the company has an<br />
unoffi cial motto. “We kind of joke that our<br />
motto is ‘We climb a mountain, every day, that<br />
doesn’t have a top.’ In other words, in working<br />
to provide better services for customers, the<br />
effort does not end.”<br />
Goldman Promotions (39)<br />
39(asi/209700) Goldman Promotions continued to grow in 2006, capitalizing on a new facility (opened December<br />
2005). The company’s sales were up 11% over 2005 totals.<br />
✽ 2006 results: Ken Goldman, chairman, credits solid recruiting of experienced account managers<br />
with much of the company’s recent sales success. “We’ve strengthened our account<br />
manager support services, which has helped quite a few of our top producers have their best<br />
sales year ever,” he says.<br />
✽ New in 2006: Goldman expanded its licens-<br />
35<br />
$34<br />
ing activity to include the collegiate market,<br />
$33 fraternities and specifi c customer licenses, and<br />
expanded its in-house Web development and<br />
graphic arts capabilities.<br />
✽ Personnel shifts: The company has<br />
30<br />
$29 $29<br />
$30<br />
increased the size of its sales management<br />
team by promoting from within, a policy the<br />
chairman believes inspires regional managers<br />
to become more entrepreneurial.<br />
✽ Top challenges: “The challenges ahead<br />
include keeping our focus on account manager<br />
25<br />
support,” Goldman says. “Our goal is to offer<br />
2002 2003 2004 2005 2006<br />
the highest quality of support in the country.”<br />
✽ Outlook for 2007: Four months into 2007, the company was on pace to match its recent double-digit<br />
growth margins, Goldman says. Gross profi t margins are also trending steadily upward.<br />
✽ What the industry doesn’t know: Proving the not-so-old adage, “if you build it, they<br />
will come,” Goldman moved into its new headquarters with 20 empty desks reserved for 20<br />
future support staff. As of now, “all of those desks are fi lled,” Goldman says.<br />
Millions<br />
40 Caliendo-Savio<br />
Enterprises (34)<br />
(asi/155807)<br />
Caliendo-Savio Enterprises looks to big<br />
names when it comes to companies it tries<br />
to emulate: “It would be Nordstrom’s, Four<br />
Seasons and Ritz-Carlton – we really try to<br />
deliver that level of service,” says Mark Ziskind,<br />
COO.<br />
✽ 2006 results: Sales were up slightly last<br />
year, from $32.5 in 2005 to $32.8 in 2006.<br />
Ziskind attributes the increase to four things:<br />
the company’s commitment to service, creativity,<br />
a new in-house awards division and<br />
new business.<br />
✽ New in 2006: CSE instituted a mistake<br />
prevention incentive program where the<br />
employees are able to split what’s left after<br />
penalties for mistakes are deducted from a<br />
$50,000 pool per quarter. The cost of the<br />
mistake is deducted directly from the fund<br />
if it’s caught while still in-house; if the incorrect<br />
product gets into a client’s hands, the<br />
deduction from the fund is doubled. Since<br />
the plan was implemented, CSE has seen a<br />
58% reduction of mistakes.<br />
✽ Top challenges: Like many growing<br />
companies, the biggest challenge for CSE<br />
is fi nding good salespeople. In addition, the<br />
company has been working to build its offshore<br />
network.<br />
✽ Outlook for 2007: Sales are up 24%<br />
year-to-date, Ziskind says.<br />
✽ What the industry doesn’t know: Not<br />
only does CSE provide traditional distributor<br />
services, but it also sells uniforms and<br />
awards and has in-house embroidery, digitizing,<br />
and laser-engraving.<br />
40<br />
35<br />
30<br />
25<br />
$28<br />
$30<br />
$31<br />
$33 $33<br />
2002 2003 2004 2005 2006
Millions<br />
SOI 2007 TOP 40 SUPPLIERS<br />
Supplier Top 40<br />
(Last year’s rank in parentheses)<br />
1Broder Bros. Co. (1)<br />
(asi/42090)<br />
The giant of the ad specialty industry remains<br />
on top this year, even though its revenues fell<br />
from $456 million in 2005 to $447 million in<br />
2006. In an effort to focus on cost controls,<br />
last year the apparel supplier – which consists<br />
of industry fi rms Broder, Alpha Shirt<br />
Co., and NES – consolidated some of its<br />
distribution centers to end up with eight bigger<br />
warehouses spread across the country.<br />
✽ 2006 results: While the company’s overall<br />
revenues decreased by about 2%, Broder<br />
is focused on results outside of revenue performance.<br />
“Though growing sales is important<br />
to us, it’s actually not our top objective,”<br />
says Girisha Chandraraj, vice president of<br />
marketing. “Our sales performance last year<br />
is a refl ection of selling less of the plain,<br />
white T-shirts that you can buy anywhere.”<br />
2 Polyconcept<br />
North America (N/A)<br />
2006 was a busy year for Leed’s parent<br />
company, Polyconcept North America, which<br />
acquired felloww Top 400<br />
supplier Bullet Line<br />
(asi/42424) in August. While Leed’s and Bul-<br />
350<br />
300<br />
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200<br />
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2002 2003 2004 2005 2006<br />
134 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Millions<br />
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$364<br />
$451<br />
$456<br />
$447<br />
2002 2003 2004 2005 2006<br />
✽ New in 2006: Broder launched new Web<br />
sites last year focused specifi cally on the<br />
business-to-business market. The company<br />
also expanded its inventory and shipping<br />
capabilities so it can now have as much<br />
product available to distributors within one<br />
day as possible.<br />
let Line each operate independently, both companies<br />
benefi ted from the purchase. “While<br />
each company goes to market independently,<br />
the synergies realized in the areas of overseas<br />
sourcing and product development are<br />
even greater than we anticipated,” says Sam<br />
DiBiase, Leed’s vice president of sales.<br />
✽ 2006 results: For Leed’s, sales increased<br />
$44.2 million in 2006 to $275.1 million, a<br />
jump of 19% over 2005’s numbers. Bullet<br />
Line saw its sales jump for the third straight<br />
year, leaping from $60.8 million in 2005 to<br />
$68 million last year.<br />
✽ New in 2006: Leed’s added fi ve new<br />
brands in 2006: Balmain, Stanley, Case<br />
Logic, Wenger and Laguiole. Bullet Line also<br />
refreshed its product line.<br />
✽ Top challenges: “One of our top challenges<br />
in 2006, which continues into 2007, is<br />
our ability to educate our distributors regar-<br />
✽ Management changes: Interim CEO<br />
Tom Myers became CEO and the company<br />
hired Girisha Chandraraj as its new vice<br />
president of marketing. Also, Matt O’Connor<br />
was promoted to vice president, managing<br />
the Broder sales force.<br />
✽ Top challenges: “We are working to offer<br />
better availability of product so that what’s in<br />
the catalog is what’s in the warehouse, and<br />
to offer the best pricing day in and day out,”<br />
Chandraraj says.<br />
✽ Outlook for 2007: The company is<br />
expecting a big year in 2007 as it gets<br />
its distribution centers ramped up and<br />
enhances its offerings to the market. “We’ve<br />
had red-hot sales on our newest products,”<br />
Chandraraj says.<br />
✽ What the industry doesn’t know:<br />
Broder Bros. is based in Trevose, PA, about<br />
a mile from ASI’s headquarters.<br />
ding all our products and services available,<br />
to best meet their needs,” DiBiase says.<br />
“We need to be very effi cient in delivering<br />
this message in a way that distributor<br />
account executives remember all that we<br />
bring to market.”<br />
✽ Outlook for 2007: Most signs look good<br />
for 2007, with most distributors reporting an<br />
active marketplace, DiBiase says. In addition,<br />
the company is hitting its goals for<br />
growth so far this year. One caveat: “The<br />
real unknown is how increased energy and<br />
a continued softening of the housing market<br />
will affect the overall economy in the second<br />
half of 2007,” he says. But, despite the<br />
uncertainty, “we remain cautiously optimistic<br />
about the year.”<br />
✽ What the industry doesn’t know: Bullet<br />
Line was the innovator of rush service in the<br />
industry.
Millions<br />
SOI 2007 TOP 40 DISTRIBUTORS<br />
SUPPLIERS<br />
3Norwood Promotional<br />
Products (2)<br />
2006 was a year to right the ship for Norwood.<br />
After the company’s revenues fell<br />
more than 11% between 2005 and 2006,<br />
Norwood began to turn itself around in 2006<br />
and was down less than 1% from 2005.<br />
✽ 2006 results: With 2006 revenues of<br />
$335 million, Norwood ranks as the thirdlargest<br />
supplier in the ad specialty industry.<br />
“Over the past year we’ve gone a long<br />
way toward repairing relationships with our<br />
customers and with our own employees,”<br />
says Paul Lage, Norwood’s president. “We<br />
had to win the confi dence of a lot of people<br />
back before we can really begin to build it<br />
all up again.”<br />
✽ Personnel changes: Paul Lage, formerly<br />
of BIC Graphic USA, was hired to be president<br />
of Norwood in June 2006. Also, Bill<br />
Steckel came on as chief fi nancial offi cer and<br />
Jim Simone joined the organization as chief<br />
marketing offi cer.<br />
Millions<br />
4Ennis Inc. (3)<br />
(asi/52493)<br />
Ennis’ growth in 2005 was spurred on by its<br />
acquisition of Alstyle Apparel (asi/34817). While<br />
Ennis is best known as a giant in the businessforms<br />
market, that category isn’t what it used to<br />
be, says Zak Smith, marketing manager. “The traditional<br />
business forms side of the market continues<br />
to decline,” he says.<br />
✽ 2006 results: The apparel and promotional<br />
divisions represent steady growth, but business<br />
forms still account for the majority of Ennis’ sales.<br />
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$363<br />
$380<br />
$338 $335<br />
2002 2003 2004 2005 2006<br />
✽ New in 2006: Upon joining the company,<br />
one of the fi rst things Lage did was form a<br />
small advisory board of Norwood’s distributor<br />
customers, called The Mighty 8. This group<br />
provides Norwood with feedback and offers<br />
direction on how it can improve its relationships<br />
with distributors. Also, the company<br />
consolidated its shipping and warehousing<br />
facilities, closing its last one in Los Angeles<br />
The slow growth in business forms resulted in a<br />
much slimmer 2% growth in 2006.<br />
✽ New in 2006: Ennis added a few locations to<br />
its business forms business, but it was the addition<br />
of the Dunbrooke and Reebok lines that was<br />
most notable for industry distributors.<br />
✽ Top challenges: Education remains the biggest<br />
challenge. As the company diversifi es into<br />
other product avenues, distributors need to recognize<br />
the new face of Ennis. “From the printing<br />
standpoint, everyone knows us,” says Smith. “But<br />
most people don’t go past business forms to see<br />
that we do tags, labels, envelopes, promotional<br />
printing and now the apparel side as well.”<br />
✽ Outlook for 2007: Ennis will continue to pursue<br />
acquisitions in the print fi eld whenever they fi t<br />
the business model and make sense to its shareholders.<br />
They are also pushing for more crosssell<br />
across products lines. “We want to educate<br />
promotional products distributors about print,<br />
and traditional forms distributors to sell more promotional<br />
product items,” says Smith.<br />
✽ What the industry doesn’t know: The cover<br />
of the Alstyle 2006/2007 catalog featured male<br />
model, Tyler Denk, co-winner of The Amazing<br />
Race 10.<br />
the fi rst month that Lage started. “There will<br />
be no more plant closings,” he says.<br />
✽ Top challenges: One of Lage’s major<br />
initiatives is to emphasize and promote Norwood<br />
as a brand, as opposed to the 16<br />
individual companies that the overall organization<br />
consists of. “It’s tough to do because<br />
the individual names are rooted in the industry,<br />
but we have to get the Norwood brand<br />
to mean something to distributors,” he says.<br />
To that end, the company is putting all of its<br />
divisions on the same phone, computer and<br />
software systems – each had operated independently<br />
previously.<br />
✽ Outlook for 2007: “In the next three to<br />
fi ve years, we’ll be in every major category in<br />
the industry, and I think we have the potential<br />
to be a $1 billion supplier,” Lage says.<br />
✽ What the industry doesn’t know: The<br />
walls of Norwood’s headquarters, based in<br />
Indianapolis, are decorated with dozens of<br />
original prints that were fi rst created for the<br />
company’s calendars.<br />
Five<br />
Top 40<br />
suppliers<br />
experienced<br />
negative<br />
growth in<br />
2006.<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 137
Millions<br />
Millions<br />
SOI 2007 TOP 40 SUPPLIERS<br />
5SanMar (5)<br />
(asi/84863)<br />
Sticking to the basics of excellent customer service and fast turnaround on quality products<br />
led to another outstanding year for the apparel supplier.<br />
✽ 2006 results: Sales in 2006 reached $250 million, a 17% increase over 2005. “There are<br />
two vital questions heard daily by industry suppliers: ‘Do you have the product in stock?’ and<br />
‘How fast can you get it to me?’ SanMar’s ability to answer ‘Yes’ and ‘Faster than ever’ led<br />
to an increase in sales for 2006,” says Marty<br />
Lott, president. To keep up with demand, in<br />
$250 2006 the company expanded its warehouse<br />
$214<br />
capacity by 20% overall and its one-day shipping<br />
territory by more than 5%.<br />
$186<br />
✽ New in 2006: In January SanMar partnered<br />
with Nike Golf, added new products<br />
to its Port Authority, Sport-Tek, District<br />
Threads and CornerStone brands and intro-<br />
$156<br />
duced a new brand for infants and toddlers,<br />
$145<br />
Precious Cargo.<br />
✽ Top challenges: Unseasonable weather<br />
and unpredictability of business in general<br />
2002 2003 2004 2005 2006 were top challenges in 2006 and have continued<br />
into 2007, Lott says. For example, the company was taking very large orders for down<br />
parkas and leather items in the spring. “Normally big leather sales come in fall – people really<br />
don’t think of leather in May … and people don’t buy down parkas this time of year. But<br />
they’re doing it,” Lott says. “Obviously we had the inventory and were able to take the orders,<br />
but it’s creating more scrambling to get our inventory back up to where we want it to be.”<br />
✽ Outlook for 2007: So far, 2007 is going well for SanMar. “Sales are up for 2007,”<br />
Lott says.<br />
250<br />
200<br />
150<br />
100<br />
7Bodek and Rhodes (8)<br />
(asi/40788)<br />
Sales again climbed substantially in 2006.<br />
The supplier has opened two new warehouses<br />
in the past two years. “Our pricing<br />
has never been more competitive than over<br />
the last few years,” says Mary Ellen Hudicka,<br />
director of marketing. “We have huge product<br />
line increases and fi ve new brands, including<br />
150<br />
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2002 2003 2004 2005 2006<br />
138 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Tommy Hilfi ger. Our customer service has<br />
improved even more, with error level improvements<br />
of 25% to 35% in 2006.”<br />
✽ 2006 results: Sales increased from $126<br />
million in 2005 to $140 million in 2006, an<br />
11% jump. Bodek and Rhodes has seen<br />
annual increases of 3% or more since 2001.<br />
✽ New in 2006: “We added a new distribution<br />
center in Norton, MA, and over 30 new<br />
styles to our private label, UltraClub, including<br />
many performance fabrics,” says Hudicka,<br />
who adds there have been no changes in<br />
senior management in the past seven years.<br />
✽ Top challenges: “Managing growth,<br />
increasing our product line 20% and increasing<br />
our sales staff by 20%,” Hudicka says.<br />
✽ Outlook for 2007: “We are meeting all<br />
our business projections and forecasts,<br />
including sales growth,” Hudicka says. She<br />
adds that customer service reps are answering<br />
calls within 20 seconds 99% of the time,<br />
another goal of the company.<br />
Millions<br />
6BIC Graphic USA (6)<br />
(asi/40480)<br />
When people think of BIC, most will think of<br />
pens, but the writing instrument company has<br />
been expanding its offerings of other business<br />
essentials. And these additional product<br />
lines have helped drive sales for the company.<br />
“As we continue to add more product categories<br />
into our portfolio, those new categories<br />
are some of the key contributors to growth, as<br />
well as new products within existing categories,”<br />
says Jason Miller, director of business<br />
development.<br />
✽ 2006 results: BIC’s sales grew 3% in<br />
2006, to $174 million. Some of this growth<br />
can be attributed to the expansion of the Solis<br />
category, which was added in 2004, as well<br />
as other new products, Miller says.<br />
✽ Personnel changes: In early 2006, Paul<br />
Lage left his position of global vice president,<br />
which created opportunities for other employees<br />
within the organization and triggered some<br />
restructuring, Miller says.<br />
✽ New in 2006: Notebooks and keyrings<br />
were among the new products offered by BIC<br />
in 2006. It also continued to add more writing<br />
instruments within its Solis category.<br />
✽ Top challenges: Miller says that service<br />
and importing from China are two of BIC’s<br />
biggest challenges right now “and they pretty<br />
much go part and parcel with one another,”<br />
he says. “We have generally been a manufacturer,<br />
and as we migrate from manufacturing<br />
to manufacturing/importing it brings with it a<br />
whole new host of issues and challenges.”<br />
✽ Outlook for 2007: “We’re optimistic that<br />
we will exceed last year’s sales numbers,”<br />
Miller says.<br />
200<br />
150<br />
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$154<br />
$169<br />
$174<br />
2002 2003 2004 2005 2006
SOI 2007 TOP 40 SUPPLIERS<br />
83M Promotional Markets<br />
Dept. (7)<br />
(asi/91240)<br />
Though it does not break out its special<br />
markets division, this conglomerate posted<br />
2006 revenues at more than $22 billion.<br />
The company entered the market in 1983<br />
with the oft-imitated Post-It note. It has introduced<br />
dozens of products over the past<br />
150<br />
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2002 2003 2004 2005 2006<br />
140 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
two decades, including note cubes, diecut<br />
note pads, document fl ags and writing<br />
instruments.<br />
✽ 2006 results: Counselor’s estimate puts<br />
3M fl at for the year.<br />
✽ New in 2006: The latest products from<br />
3M feature combinations of products into one<br />
multifunction unit, such as a pen with fl ags.<br />
There is also a great move toward customization,<br />
says Deb Leptine, national sales manager.<br />
“We are working with our manufacturing<br />
to be more fl exible to the needs of our customers<br />
by offering truly custom products.”<br />
✽ Top challenges: Customers were demanding<br />
a more personal touch from 3M in<br />
2006. “The distributors want to see more<br />
face time, and that’s one of the reasons we<br />
have hired a lot of multiline reps to reach<br />
more people more frequently,” says Leptine.<br />
✽ What the industry doesn’t know: 3M<br />
stands for Minnesota Mining and Manufacturing<br />
Co.<br />
Staton (9)<br />
10 (asi/89380)<br />
Despite a fl at year, confi dence in what the future holds could not be higher. “Our product<br />
offering is changing,” says Lea Robinson, vice president of sales and marketing. “Our product<br />
line is more attractive to the ad specialty market than we have been in the past, and this<br />
additional business increases our sales.”<br />
✽ 2006 results: After a 10% upswing from 2004-2005, sales slowed down for Staton, with a<br />
marginal increase to $122 million last year from $121 million in 2005, a jump of just 0.8%.<br />
✽ New in 2006: Robinson says Staton introduced three new product lines last year: Arnold<br />
Palmer, NYNE and Pace Race wear. “In addition, we added Alo and Bella Baby to our existing<br />
Bella line,” she says. “Sierra Pacifi c introduced their Business Ready concept, and that<br />
addition gives our customers access to the entire Sierra Pacifi c line.”<br />
✽ Top challenges: “To communicate to the industry that the best value for their dollar is<br />
Staton’s personal service, availability of branded products and reliable delivery,” Robinson<br />
150<br />
says. “Bigger is not always better. ‘Free’<br />
usually has a cost attached.”<br />
✽ Outlook for 2007: “Our sales are<br />
strong, and we are excited that our new<br />
commitment to the ad specialty market<br />
$121 $122 has given us new focus,” Robinson says.<br />
120<br />
✽ What the industry doesn’t know:<br />
The launch of Staton’s new Web site earlier<br />
this year has increased Web business<br />
$110<br />
by over 20%, according to Robinson.<br />
“The site allows our customers to man-<br />
90<br />
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2002<br />
N/A<br />
2003 2004 2005 2006<br />
age their account with just a click of their<br />
mouse,” she says.<br />
9Ash City (10)<br />
(asi/37127)<br />
A large introduction of new products, including<br />
new styles for wovens, outerwear, caps, polos<br />
and twills, is a key reason for Ash City’s continued<br />
climb. “We truly try to be the frontrunners in<br />
design and materials, and attempt to offer what is<br />
being seen at retail in Europe and America,” says<br />
Paul Kory, vice president of sales. That could be<br />
why the company’s sales have been in the triple<br />
digits since 2004.<br />
✽ 2006 results: Sales leapt from $114 million<br />
in 2005 to $124 million in 2006, an increase of<br />
nearly 9% that matches Ash City’s sales boost<br />
from 2004-2005.<br />
✽ New in 2006: The U.S. sales division was<br />
divided up between the newly-appointed vice<br />
presidents of sales: Kory, Mike Rozier and Chris<br />
Clark to help Ash City focus on its key national<br />
accounts. An improved “retail looking” catalog,<br />
direct marketing campaigns to its customer base<br />
and new materials – including bamboo polos<br />
– were also added, according to Kory.<br />
✽ Top challenges: Correct product offering,<br />
the stability of the economy, the number of trade<br />
shows the company will attend, and the right<br />
inventory levels for new products are the company’s<br />
primary concerns, according to Kory.<br />
✽ Outlook for 2007: “Sales are up double digits,<br />
and distributors are reacting very positively to<br />
our new product introductions and the fashion<br />
forward product offering that we have in place,”<br />
Kory says. “With the addition of our new distribution<br />
center in Kansas City opening in August, we<br />
expect to have a great third and fourth quarter.”<br />
✽ What the industry doesn’t know: Ash City<br />
manufactures all of its apparel and has fi ve distinct<br />
product brands.<br />
Millions<br />
150<br />
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$124<br />
2002 2003 2004 2005 2006
SOI 2007 TOP 40 SUPPLIERS<br />
Sunscope (11)<br />
11 (asi/90075)<br />
Sunscope keeps rising as the company has<br />
been able to keep current. “We launched<br />
our new 600-plus-page catalog that featured<br />
over 200 patented products,” says<br />
Stephen Jackson, director of marketing.<br />
“We also increased our printing capabilities<br />
by adding wraparound multi-color mug silk<br />
screening machines, YAG laser engraving<br />
machines for personalization and printing<br />
machines for our new line of personalized<br />
paper products.”<br />
✽ New in 2006: Sunscope added Jackson as<br />
director of marketing and Darryl Hanks as its<br />
southern states sales manager. It also hired<br />
American Apparel (13)<br />
(asi/35297)<br />
American Apparel made headlines last year<br />
when it was purchased by Endeavor Acquisition<br />
Corp. The company will be taken<br />
public later this year with founder and CEO<br />
Dov Charney at the helm. In 2006, sales<br />
increased only 2%.<br />
American Apparel has maintained a<br />
slow but steady upward trend. “We lost a<br />
couple of major programs and experienced<br />
inventory issues throughout the course of<br />
the year due to growth,” says Mark Smalley,<br />
director of marketing. “And end-users<br />
purchased competitor garments cheaper<br />
overseas.”<br />
13<br />
100<br />
Millions 12<br />
80<br />
$85<br />
River’s End Trading (12)<br />
(asi/82588)<br />
$94<br />
$87<br />
$95 $95<br />
2002 2003 2004 2005 2006<br />
142 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Millions<br />
120<br />
100<br />
80<br />
60<br />
$78<br />
$81<br />
$97<br />
$101<br />
$113<br />
2002 2003 2004 2005 2006<br />
additional customer service reps and implemented<br />
new processing software. As a result,<br />
✽ 2006 results: Despite the setbacks and<br />
the fi nancial resources it has invested in<br />
expansion of plants and products, American<br />
Apparel’s sales grew from $93 million<br />
in 2005 to $95 million in 2006.<br />
✽ New in 2006: The company expanded<br />
its product offering with the introduction<br />
of fl ex fl eece (a polyester/cotton blend), a<br />
50/50 polyester/cotton jersey, along with a<br />
track shirt and summer shirt family.<br />
✽ Top challenges: Managing inventory<br />
due to retail growth, growth in retail store<br />
locations, and growth with retail-exclusive<br />
styles (the latter two are the basis behind<br />
last year’s inventory issues, according to<br />
Smalley).<br />
average order turnaround time decreased<br />
by 32 hours, according to Jackson.<br />
✽ Top challenges: Locating available<br />
warehouse space for its massive increase of<br />
stocked catalog inventory was job one for<br />
Sunscope last year. “Our 120,000-squarefoot<br />
Los Angeles facility was not large<br />
enough,” Jackson says. “We have already<br />
raised the walls of our annex, which provides<br />
an additional 65,000 square feet of space<br />
dedicated to warehousing catalog products<br />
to support the day-to-day ASI business.<br />
✽ Outlook for 2007: Business looks “exceptionally<br />
promising,” says Jackson. “Sunscope’s<br />
fi rst-quarter revenue has increased by 28%<br />
compared to the same period in 2006.”<br />
Millions<br />
✽ Outlook for 2007: American Apparel is<br />
up 20% at the wholesale level compared to<br />
the middle of 2006, according to Smalley.<br />
Company sales were fl at in 2006. Sales for each division were greatly mixed, says Lori<br />
Anderson, marketing manger, with some up and others fl at or down for the year.<br />
✽ 2006 results: Anderson says activewear sales were one of the weak-performing segments<br />
but points to some changes that should have a positive effect on next year’s performance.<br />
“Certainly the reason why private label and retail brands are up is because we added some<br />
pretty exciting new retail brands, with Nike, Tommy Hilfi ger and Lacoste,” she says. “There was<br />
a big need for that in the industry, and that’s where we saw some good gains.”<br />
✽ New in 2006: In addition to the retail brand, Dri Duck was added to its offerings. River’s<br />
End also addressed one of its supply-chain concerns by consolidating two facilities in<br />
Denver and Anaheim, CA. “We opened a new location in Reno, NV, to help serve our customers<br />
better through improved shipping rates,” says Anderson.<br />
✽ Outlook for 2007:“We feel that we’ve got the perfect business model: retail brands,<br />
private label and activewear,” says Anderson. “We have the right mix.”<br />
100<br />
80<br />
60<br />
40<br />
20<br />
$22<br />
$40<br />
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2002 2003 2004 2005 2006
Millions<br />
SOI 2007 TOP 40 DISTRIBUTORS<br />
SUPPLIERS<br />
S&S Activewear (N/A)<br />
14 (asi/84358)<br />
This apparel supplier debuts on the Top 400 with $88.8 million in sales, a 14% increase in revenues<br />
from 2005. It has previously been quiet in the market, but has ramped-up its marketing presence.<br />
“We were so focused on our business and our growth previously,” says Margaret Crow,<br />
marketing director for S&S, “but we see an advantage of now being out front in the industry.”<br />
2006 results: S&S is now the ninth-largest apparel supplier in the industry. Crow attributes the<br />
company’s success to a couple of factors: “We’re constantly focused on our inventory levels and<br />
making sure we have enough product on-hand to meet increasing demand,” she says. “We also<br />
100<br />
increased the number of trade shows we exhibit<br />
at and the amount of advertising that we’ve<br />
done in the market.”<br />
$89<br />
✽ New in 2006: S&S moved into a new<br />
450,000 square foot warehouse and distribution<br />
center in Bolingbrook, IL. The space<br />
80<br />
practically doubles the size of the company’s<br />
previous warehouse.<br />
$77<br />
✽ What the industry doesn’t know: Every<br />
spring for the past nine years, S&S has held its<br />
own trade show in its warehouse. It’s called the<br />
60<br />
N/A N/A N/A<br />
S&S Open House. This year’s event attracted<br />
more than 2,000 attendees.<br />
2002 2003 2004 2005 2006<br />
Gemline (16)<br />
15 (asi/56070)<br />
“We attribute our growth in 2006 to our continued<br />
ability to execute our core strategy of<br />
providing customers with innovative, retailinspired<br />
products, value-added services<br />
and deep inventories,” says Stuart Babb,<br />
director of marketing and product management.<br />
“More and more customers are taking<br />
advantage of our Global Solutions division<br />
for direct-import and custom products.”<br />
✽ 2006 results: Gemline did $88.1 million<br />
in sales in 2006, up from $83 million in<br />
2005, a 6% increase. The company’s sales<br />
have increased by nearly 30% since 2003.<br />
✽ New in 2006: A leading industry supplier of<br />
bags, gifts and business accessories, Gemline<br />
is always looking for new, innovative products<br />
and services that fi ll a niche in the marketplace,<br />
according to Babb. This includes<br />
developing a multi-category product offering<br />
designed just for women, expanding its gift<br />
category product offering, and introducing<br />
enhancements to its Fast Track program.<br />
✽ Top challenges: “In such a global economy,<br />
one of the top challenges experienced<br />
by most suppliers is managing the dynamic<br />
Millions<br />
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80<br />
60<br />
$67<br />
$68<br />
$75<br />
$83<br />
$88<br />
2002 2003 2004 2005 2006<br />
and continually changing overseas marketplace,”<br />
Babb says. “Gemline is extremely fortunate<br />
to have an experienced team in place<br />
both in the U.S. and overseas.” The company<br />
has also put a lot of effort into being an<br />
industry leader when it comes to regulatory,<br />
social and customer-specifi c compliance<br />
issues, according to Babb.<br />
✽ Outlook for 2007: “Based on the fi rst<br />
quarter, we expect 2007 to be another good<br />
year,” Babb says.<br />
✽ What the industry doesn’t know:<br />
Gemline will celebrate its 50th anniversary<br />
in January.<br />
100<br />
80<br />
60<br />
(asi/90305)<br />
“Last year was a signifi cant transition<br />
time at Sweda,” says Joseph Schembri,<br />
vice president of sales and marketing.<br />
“Every one of our top management position<br />
changed.”<br />
✽ New in 2006: Jim Hagan was named<br />
president, with Schembri taking his former<br />
role. The company also created the<br />
new position of vice president of merchandising,<br />
as well as naming a new<br />
chief operating offi cer and vice president<br />
of fi nance.<br />
✽ Top challenges: There’s been a major<br />
push for improving turnaround times, and<br />
that has meant several adjustments on<br />
Sweda’s part. One of the biggest has<br />
been depending on domestic production<br />
to close the gap.<br />
✽ Outlook for 2007: “We just came off<br />
a record fi rst quarter,” says Schembri. “A<br />
lot of the things we are starting to put in<br />
place are starting to pay off. For example,<br />
we had gone from 18-24 months with<br />
our full-line catalog to now producing<br />
one every year, plus other supplemental<br />
releases. Moving forward, we are going<br />
to be in a much better position in 2007<br />
than we were in 2006 in terms of following<br />
our business plan and living up to our<br />
mission.”<br />
✽ What the industry doesn’t know:<br />
Sweda is known for electronics and<br />
watches, but its top-selling product<br />
categories are writing instruments and<br />
drinkware.<br />
$69<br />
$75<br />
$78<br />
Millions 16 Sweda Co. LLC (15)<br />
$83 $83<br />
2002 2003 2004 2005 2006<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 145
Millions<br />
SOI 2007 TOP 40 SUPPLIERS<br />
The Magnet Group (17)<br />
17(asi/68520) Magnet had another strong year in 2006. It added several new lines, including an aggressive<br />
launch of a new line of upscale bags from The Bag Factory, as well as the creation of Innovations<br />
by Magnet LLC (asi/62663), a line of magnetic home and offi ce peripherals with a focus<br />
on debut designs and trend-sensitive products.<br />
✽ 2006 results: Magnet was up 5% over last year for a total of $81.7 million in sales. The reason<br />
for the growth can be attributed to three things, says Bob Tidwell, vice president of sales:<br />
Continued steady growth from Magnet’s core<br />
100<br />
brand, The Bag Factory’s new line and impressive<br />
growth from Benchmark’s crystal line.<br />
✽ New in 2006: The biggest change last year<br />
was the beefi ng up of the company’s inside<br />
80 $77<br />
$78<br />
$82 sales team. “They work just like our outside<br />
sales reps but they work strictly over the<br />
telephone and handle our medium-to-small<br />
$73<br />
accounts,” says Tidwell. “I think that has had a<br />
huge impact on our business.”<br />
$70<br />
✽ Top challenges: “A company our size,<br />
with as many lines as we have, focusing our<br />
60<br />
2002 2003 2004 2005 2006<br />
resources is always a challenge,” says Tidwell.<br />
“Our brands are seasonal, so we shift gears<br />
a lot. Benchmark is huge in the late third and<br />
fourth quarters and The Bag Factory is a spring and summer brand. I think it’s placing the right<br />
emphasis on the right line at the right time.”<br />
✽ Outlook for 2007: “We’ve got a lot more of our year ahead of us so it’s hard to tell,” says<br />
Tidwell. “All of our indicators are very positive at this time. I’m cautiously optimistic.”<br />
✽ What the industry doesn’t know: Magnet started in the founder’s garage, and his fi rst big<br />
move was into an old car wash.<br />
Corvest Promotional<br />
18 Products (14)<br />
It has been another year of change for Corvest,<br />
as it announced on April 30 that the<br />
three suppliers under the Corvest umbrella<br />
(Adva-Lite, Toppers and It’s All Greek To<br />
Me) had been acquired by a subsidiary of<br />
Cerberus Capital Management, a private<br />
investment fi rm headquartered in New York<br />
City. The acquisition will allow Corvest to<br />
regain momentum following its Chapter 11<br />
bankruptcy fi ling earlier this year. “Cerberus<br />
is a fi rst-class operation with a reputation<br />
for innovative thinking and inter-company<br />
collaboration,” says Mark Holland, vice president<br />
of marketing for Corvest. “We believe<br />
that this mindset, combined with the new<br />
capital structure, positions all the Corvest<br />
brands for an extremely successful future.”<br />
146 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Millions<br />
✽ 2006 results: After consecutive $88 million<br />
sales years, Corvest slid to $76.4 million<br />
in 2006, a drop of 13%. Corvest’s peak<br />
year was $91 million in 2001.<br />
✽ New in 2006: Corvest’s challenges<br />
100<br />
80<br />
60<br />
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$80<br />
$88 $88<br />
$76<br />
2002 2003 2004 2005 2006<br />
Hit<br />
Promotional<br />
Products<br />
experienced<br />
the most<br />
revenue<br />
growth in<br />
2006 with a<br />
25%<br />
jump.<br />
didn’t prevent it from launching more than<br />
400 new items, says Holland. “We developed<br />
and launched new Web sites for each<br />
line and increased the size of our fi eld sales<br />
force and customer service staff.”<br />
✽ Top challenges: Restart the upward<br />
trend in sales that Corvest hasn’t enjoyed<br />
since 2004 – along with maintaining its staff<br />
of about 350 in its offi ces in Florida, California<br />
and New Jersey.<br />
✽ Outlook for 2007: Corvest is in prime<br />
position to turn things around quickly,<br />
according to Holland. “We are tracking<br />
positively from last year.”<br />
✽ What the industry doesn’t know:<br />
Adva-Lite (asi/32145), a supplier of fl ashlights,<br />
writing instruments, drinkware and<br />
tools, is a 2005 and 2006 Counselor<br />
Distributor Choice Award winner.
Millions<br />
SOI 2007 TOP 40 SUPPLIERS<br />
19 Tri-Mountain/Mountain<br />
Gear (18)<br />
(asi/92125)<br />
After business dropped in 2005 for Tri-Mountain<br />
following Hurricane Katrina, sales have<br />
resumed an upward trend. “Sales were up<br />
between 2005 and 2006 because of our new<br />
collection and different incentive packages<br />
offered to customers,” says Danny Tsai, director<br />
of marketing. In fact, sales hit an all-time<br />
high last year for the West Coast company.<br />
✽ 2006 results: A jump from $68.7 million in<br />
2005 to $71.7 million in 2006 – an increase<br />
of over 4% – is Tri-Mountain’s biggest singleyear<br />
leap since 2001-2002.<br />
✽ New in 2006: Tsai says Tri-Mountain put<br />
new sales representation in place in the<br />
southeast U.S. In addition, the supplier introduced<br />
a new product line that includes a<br />
new silk camp shirt collection in Tri-Mountain<br />
Gold. “We also added women’s tall sizing, a<br />
fi rst in the industry,” he says.<br />
✽ Top challenges: Tsai hopes his new sales<br />
reps will help Tri-Mountain to further saturate<br />
the American market. “Increasing market<br />
share and developing ways for distributors<br />
to consider us fi rst when buying apparel” are<br />
top priorities, he says.<br />
✽ Outlook for 2007: “We plan to launch a<br />
brand-new Web site that features distributor<br />
sales tools, user-friendly navigation and a<br />
new online ordering system,” Tsai says.<br />
✽ What the industry doesn’t know: Tri-<br />
Mountain is a family-run business and has<br />
been since it opened in 1994. “And our fi rst<br />
employees we hired in each department are<br />
still in the Tri-Mountain family,” Tsai says.<br />
80<br />
70<br />
60<br />
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$69<br />
$72<br />
2002 2003 2004 2005 2006<br />
148 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Sanford Business-to-<br />
20 Business (26)<br />
(asi/84833)<br />
Sanford has increased its annual North<br />
American sales by 41% in the past three<br />
years. “Double-digit sales growth was<br />
fueled by the introduction of several new<br />
and innovative products,” says Lisa O’Leary,<br />
marketing director, “and by the steady<br />
growth across distributor partners selling<br />
Sanford products.”<br />
✽ 2006 results: Sanford’s sales in North<br />
America rose signifi cantly again in 2006, up<br />
to $60.7 million from $53 million in 2005, a<br />
leap of nearly 15%.<br />
✽ New in 2006: Sanford introduced 25<br />
new items via entirely new products and line<br />
enhancements, making it “poised in 2006 to<br />
meet all writing instrument needs,” according<br />
to O’Leary. The introduction of several<br />
new sampling vehicles, such as kits, special<br />
self-promotion offers and sample packs,<br />
provided distributors with the selling tools<br />
needed for a professional sales presentation<br />
to their consumers.<br />
ProFill Holdings (21)<br />
21<br />
In 2005 ProFill Holdings acquired Georgia<br />
Tees, so 2006 was the fi rst full year under<br />
the acquisition. “Anytime you assimilate two<br />
companies together, you are bringing two<br />
management teams together. There were<br />
changes, but we were able to leverage all<br />
the strengths of both companies toward our<br />
advantage,” says Rick Mouty, ProFill CEO.<br />
✽ 2006 results: Sales were up 5% in<br />
2006, reaching $60.2 million. This increase<br />
was mainly attributed to ProFill’s focus on<br />
the basics. “While other wearables suppliers<br />
have concentrated on fashion, ProFill<br />
has stayed focused on and benefi ted tremendously<br />
from the exploding popularity of<br />
T-shirts and fl eece,” Mouty says.<br />
✽ New in 2006: In 2006, the company reintroduced<br />
its Tultex brand in a line of combed<br />
ring spun tees and fl eece. It also purchased<br />
Dayton, OH-based apparel wholesaler Sol<br />
Shultz and Co. midyear, consolidating it into<br />
ProFill’s Cincinnati facility.<br />
Millions<br />
Millions<br />
80<br />
70<br />
60<br />
50<br />
40<br />
$40<br />
$43<br />
$49<br />
$53<br />
$61<br />
2002 2003 2004 2005 2006<br />
✽ Top challenges: “Always a top priority is<br />
to continually try to enhance our customer<br />
service experience,” O’Leary says.<br />
✽ Outlook for 2007: “We are projecting<br />
double-digit growth,” she says.<br />
✽ What the industry doesn’t know:<br />
“Many distributors still fi nd it surprising that<br />
we are the sole manufacturer and marketer<br />
of Paper Mate, Sharpie permanent markets,<br />
Sharpie Accent highlighters and EXPO dryerase<br />
products.”<br />
✽ Top challenges: “Changing the buying<br />
habits of the prospective customer – for<br />
us that means getting a distributor to take<br />
notice of the simplicity, service and convenience<br />
we have built around sourcing decorated<br />
wearables,” Mouty says.<br />
✽ Outlook for 2007: ProFill’s outlook for<br />
2007 “is the best we have ever seen,” Mouty<br />
says. This positive view is driven by the<br />
popularity of the recently reintroduced Tultex<br />
brand in 2006.<br />
80<br />
70<br />
60<br />
50<br />
40<br />
30<br />
N/A<br />
$39<br />
$42<br />
$57<br />
$62<br />
2002 2003 2004 2005 2006
Millions<br />
SOI 2007 TOP 40 SUPPLIERS<br />
Vantage Apparel (20)<br />
22 (asi/93390)<br />
After its peak at $69 million in sales in 2001,<br />
Vantage has hovered under the $60 million<br />
mark each year since 2002 – though sales<br />
have seen a slight increase in the last two<br />
years. The reason for the standstill? “Vantage<br />
traded an increase in units versus an<br />
offset of lower sell prices in 2006,” according<br />
to Ira Neaman, president.<br />
✽ 2006 results: Sales inched up from<br />
80<br />
70<br />
60<br />
50<br />
$61<br />
$57<br />
$55<br />
$59 $59<br />
2002 2003 2004 2005 2006<br />
Gill Studios Inc. (27)<br />
23 (asi/56950)<br />
A supplier that emphasizes political-based<br />
sales, Gill Studios thrived once again during<br />
last year’s election cycle. The company’s<br />
sales yo-yo each year – down during<br />
odd-numbered years (non-election years)<br />
and up during even-numbered ones. “Political-related<br />
sales were very strong in 2006,”<br />
says Tom Carrico, president, “and many<br />
other products were helped by the stronger<br />
economy.”<br />
✽ 2006 results: Gill saw its typical 20-25%<br />
bounce during the 2006 election cycle, as<br />
sales increased from $47.5 million in 2005<br />
to $58.4 million in 2006, However, last<br />
year’s sales were an all-time high.<br />
✽ New in 2006: “We expanded our digital<br />
printing capabilities, and continued to<br />
improve our service levels, such as adding<br />
online proofi ng services,” Carrico says.<br />
✽ Top challenges: An election off-year<br />
isn’t the only hurdle, as signifi cant raw<br />
150 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Millions<br />
$59 million in 2005 to $59.4 in 2006 – an<br />
increase of just under 1%.<br />
✽ New in 2007: Vantage added a successful<br />
veteran of the industry to its team in Fran<br />
Ford, who was named western regional and<br />
new-business sales director this year. Ford<br />
is cofounder of Ford-Howsmon LLC, a business<br />
consultant group that provides management<br />
and advisory services to industry<br />
clients.<br />
✽ Top challenges: Comprehensive sales<br />
and marketing to a rapidly growing distributor<br />
base, according to Neaman.<br />
✽ Outlook for 2007: Continued strength<br />
and signifi cant growth in unit volume,<br />
says Neaman, who adds that Vantage<br />
has recently added two new lines: Verve<br />
(youth-inspired apparel) and Vansport (performance<br />
apparel), and has added digital<br />
printing.<br />
✽ What the industry doesn’t know: Neaman<br />
says Vantage is the largest contract<br />
embroiderer in the U.S. and the fastestgrowing<br />
screen printer.<br />
60<br />
50<br />
40<br />
$55<br />
$46<br />
$56<br />
$48<br />
$58<br />
2002 2003 2004 2005 2006<br />
material cost increases in petroleum and<br />
steel-related products are a concern, says<br />
Carrico.<br />
✽ Outlook for 2007: “The political business<br />
is not nearly as strong in an odd-numbered<br />
year, so we are emphasizing other products,”<br />
Carrico says.<br />
✽ What the industry doesn’t know: Forest<br />
P. Gill, founder of Gill Studios, developed<br />
the fi rst self-sticking bumper sticker.<br />
Millions<br />
24<br />
Cutter & Buck (22)<br />
(asi/47965)<br />
Cutter & Buck was recently purchased<br />
by European apparel giant New Wave<br />
Group AB, with net sales of $512 billion<br />
in 2006. The purchase should strengthen<br />
Cutter & Buck’s inventory, distribution<br />
and service. It will also likely increase<br />
its style offerings over the next several<br />
years. In addition, the company this year<br />
continued to navigate the high-end golf<br />
apparel markets in the promotional arena<br />
while maintaining a loyal customer base<br />
in the green grass market. “We stuck to<br />
our formula,” says Brian Thompson, vice<br />
president and general manager. “We<br />
kept the brand prestigious and continued<br />
to do all the things that have been<br />
working well for us.”<br />
✽ 2006 results: Thompson attributes<br />
the modest 2% increase to three things:<br />
the introduction of an opening pricepoint<br />
performance piqué knit, expanded<br />
performance wear offerings and a host<br />
of upgraded women’s styles.<br />
✽ New in 2006: The biggest change in<br />
2006 was the appointment of industry<br />
veteran Jeff Smith as corporate national<br />
sales manger.<br />
✽ Outlook for 2007: “It looks fantastic,”<br />
says Thompson. “I really think 2007<br />
will be our biggest year ever in corporate<br />
wearables.”<br />
✽ What the industry doesn’t know:<br />
Cutter & Buck will be adding several<br />
new lines from its new owners in 2007.<br />
60<br />
50<br />
N/A<br />
$55<br />
$54<br />
$57<br />
$58<br />
2002 2003 2004 2005 2006
Millions<br />
SOI 2007 TOP 40 SUPPLIERS<br />
25<br />
Lanco Corp. (25)<br />
(asi/66224)<br />
After a monumental 33% jump in sales from<br />
2003 ($39 million) to 2004 ($52 million),<br />
Lanco has come back to Earth but continues<br />
to rise steadily. Why the continued upswing? “I<br />
would have to say it’s been our changes in customer<br />
service, more quality time with our customers,”<br />
says Brian Landow, president. “And<br />
we have really expanded our product line.”<br />
✽ 2006 results: A jump of about $2 million<br />
for the second year in a row: up from $53.9<br />
million in 2005 to $56.2 million last year, a<br />
4% bump.<br />
✽ New in 2006: Lanco has committed itself<br />
to bulking up in every area of business, personnel-wise.<br />
“We have strengthened our<br />
middle management level and we also have<br />
increased our training in every department,”<br />
Landow says.<br />
✽ Top challenges: Improving said training<br />
PremiumWear Inc. (24)<br />
27 (asi/79393)<br />
In 2006, PremiumWear was still feeling the<br />
effects of its September 2005 acquisition<br />
by The John Forsyth Co. from former parent<br />
Deluxe Corp. But, while sales were down,<br />
profi ts were up, and the company continued<br />
to strengthen its position as a single-source<br />
vendor offering products and decoration.<br />
✽ 2006 results: 2006 saw sales decline by<br />
4%, from $54 million in 2005 to $52 million<br />
in 2006. This is solely attributed to Premium-<br />
Wear ending an unprofi table business relationship<br />
with former parent company Deluxe, says<br />
Tim Klouda, president. “It was decided that for<br />
60<br />
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2002 2003 2004 2005 2006<br />
152 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Millions<br />
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$54<br />
$56<br />
2002 2003 2004 2005 2006<br />
programs, according to Landow, along with<br />
maintaining growth effi ciency. Lanco’s North<br />
American sales have risen by nearly 59%<br />
since 2001.<br />
✽ Outlook for 2007: Landow estimates<br />
another 2004 for Lanco. “Our growth for this<br />
year will be 25% to 30%,” he says.<br />
2006 we would not continue to service the<br />
Deluxe promotional products business. As a<br />
result of this decision, our volume was down<br />
for 2005, but our profi t was up,” he says.<br />
✽ New in 2006: PremiumWear added a<br />
director of East Coast sales, Thom Goodyke.<br />
✽ Top challenges: In addition to the issues<br />
that always stem from an ownership change,<br />
PremiumWear’s biggest challenge has been<br />
getting out its message of being a single<br />
source for apparel. “Today, we probably only<br />
decorate one out of every two shirt orders<br />
that come in here. When I started, it was<br />
probably 10% to 15% of our business. So<br />
we’ve grown it, but we just want to continually<br />
push that message.”<br />
✽ Outlook for 2007: The new year has been<br />
one of steady growth for PremiumWear, with<br />
sales already outpacing 2006’s by 10%.<br />
✽ What the industry doesn’t know: Roots<br />
of PremiumWear go all the way back to 1886,<br />
when Edward Tuttle and Frank Page founded<br />
the Northwestern Knitting Co., which eventually<br />
was renamed Munsingwear Corp. Additionally,<br />
Munsingwear created the famous<br />
Penguin logo golf shirts in 1955, which<br />
PremiumWear brought into the advertising<br />
specialty industry in 1996.<br />
Millions<br />
PromoResource One<br />
26 Inc. (23)<br />
PromoResource has remained fl at over the<br />
past several years, hovering around the $55<br />
million mark in North American sales since<br />
2003. That didn’t change much last year.<br />
“In 2006 we did not have as much success<br />
with new product sales,” says Steve Holm,<br />
president of Adimage Promotional Group<br />
(asi/31969). “In past years, polycarbonate<br />
bottles, pedometers and other new stainless<br />
items fueled our sales growth. Cost<br />
increases from our suppliers forced us to<br />
increase prices, which also impacted sales.<br />
Our large quote activity was down as well,<br />
as we suspect some customers may be<br />
going direct to Asia to source product.”<br />
✽ 2006 results: The company’s sales<br />
rose ever so slightly in 2006 to $56 million,<br />
up from $55.3 million in 2005 (a 1%<br />
increase).<br />
✽ New in 2006: “We added many new products<br />
across all sales lines and increased the<br />
amount of e-mail promotions we do,” Holm<br />
says. “We also added new representation<br />
to the south central United States.”<br />
✽ Top challenges: Continuing to develop<br />
new, innovative products and processes,<br />
along with balancing investment in inventory<br />
with customer demand, according<br />
to Holm.<br />
✽ Outlook for 2007: “Sales are fl at to<br />
2006,” Holm says.<br />
✽ What the industry doesn’t know:<br />
PromoResource is comprised of seven<br />
supplier companies, all under the umbrella<br />
of Taylor Corp.<br />
60<br />
50<br />
$52<br />
$55 $55 $55<br />
$56<br />
2002 2003 2004 2005 2006
Millions<br />
SOI 2007 TOP 40 SUPPLIERS<br />
28<br />
Virginia T’s (29)<br />
(asi/93917)<br />
Virginia T’s has nearly doubled its annual sales since premiering on the Top 400 in 2002.<br />
New product lines and a commitment to supply higher-end product lines are the major<br />
reasons, according to Jay Frink, president.<br />
60<br />
50<br />
$46<br />
$50<br />
✽ 2006 results: Sales soared another 10% for Virginia T’s in 2006, from $45.5 million<br />
in 2005 to $50.1 million last year. Surprisingly, this is the smallest jump for the company<br />
40<br />
$38<br />
since 2002; sales increased by at least 12% from 2002 to 2005.<br />
$30<br />
✽ New in 2006: “We added IZOD, Hilton Apparel, WickID and OOBE,” Frink says.<br />
✽ Top challenges: “We have a broad range of product categories in our offering, yet we<br />
30<br />
are still known for supplying the basics,” Frink says.<br />
$26<br />
✽ Outlook for 2007: “The outlook for this year is good,” Frink says. “We are expecting 20<br />
another year of growth.”<br />
2002 2003 2004 2005 2006<br />
✽ What the industry doesn’t know: Despite its monumental growth in the 21st century, Frink says that Virginia T’s “will continue to cater<br />
to individual needs without regard to the size of the account.”<br />
29<br />
Hit Promotional Products<br />
(34)<br />
(asi/61125)<br />
“Sales were up in 2006 for several reasons,<br />
including the addition of 180 new<br />
products,” says Bill Schmidt, Jr., president,<br />
who adds that a large investment in inventory<br />
in the company’s top-selling products<br />
was a driving factor in another recordbreaking<br />
year.<br />
✽ 2006 results: Just your run-of-the-mill,<br />
modest 25% jump in sales last year for Hit<br />
Promotional Products, up to $50 million in<br />
2006 from $40 million in 2005.<br />
✽ New in 2006: C.J. Schmidt was pro-<br />
154 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Millions<br />
50<br />
40<br />
30<br />
20<br />
N/A<br />
$29<br />
$33<br />
$40<br />
$50<br />
2002 2003 2004 2005 2006<br />
moted to vice president of sales. “We also<br />
completed our new 40,000-square-foot<br />
Millions<br />
state-of-the-art warehouse and added a<br />
second shift,” Schmidt says. The company<br />
also entered into laser engraving with a substantial<br />
investment in three laser machines.<br />
✽ Top challenges: “The major challenges<br />
are the ability to attract qualifi ed and<br />
capable new employees for both production<br />
and customer service,” Schmidt says,<br />
“and adapting to a much more diffi cult<br />
pricing and production environment in<br />
China, where we source the majority of our<br />
product.”<br />
✽ Outlook for 2007: “We are off to an<br />
excellent start, with sales up 28% from last<br />
year,” Schmidt says.<br />
Groline (32)<br />
30 (asi/58295)<br />
Things are looking green for Groline in more ways than one. Record earnings helped the company move up two spots on the charts. And with<br />
the current trend towards all things green and environmentally conscious, Groline continues to gain ground. “What we offer is related to the<br />
environment, and they’re low-cost items,” says Herbert Piller, president.<br />
50<br />
$47<br />
✽ 2006 results: The environment helped Groline realize an 11% increase in sales over last<br />
year’s fi gures, and earn $47.3 million selling an assortment of trees, fl owers and plants.<br />
✽ New in 2006: Groline added several new products last year, including aloe vera, feng shui bam-<br />
$43<br />
boo, bulbs and bookmarks embedded with seeds. The company also began offering tree-planting<br />
kits that have a longer life span than standard live trees.<br />
✽ Top challenges: While green marketing is growing, the challenge is still trying to educate<br />
40<br />
distributors more used to selling mugs and pens than live trees and plants. “It’s such a different<br />
product that we have to give them a sample and explain,” says Piller.<br />
✽ Outlook for 2007: “If we had an expensive item I would be worried, because the economy might<br />
$33<br />
fl atten out or companies don’t have as much money to spend this year,” says Piller. “But when you<br />
can give away an item that can help the environment and costs only 99 cents, I don’t worry.”<br />
30<br />
N/A<br />
2002<br />
N/A<br />
2003 2004 2005 2006<br />
✽ What the industry doesn’t know: A sizable portion of Groline’s workforce works from home<br />
fulfi lling orders, including a number of disabled workers.
SOI 2007 TOP 40 SUPPLIERS<br />
Plasticad/Arthur Blank<br />
31(28) (asi/78690)<br />
Just as the numbers for the Top 40 were<br />
being fi nalized, Arthur Blank was purchased<br />
by American Banknote, a global supplier of<br />
secure documents, services and systems<br />
with international operations on six continents.<br />
Top management, including President<br />
Stuart Blank, is staying on to manage<br />
the North American operations.<br />
✽ 2006 results: After a year of impressive<br />
growth of $7 million in 2005 to $46 million<br />
in total sales, the company was fl at for the<br />
year.<br />
✽ New in 2006: The biggest news in 2006<br />
was the introduction of the environmentally<br />
friendly CornCard. The new gift card is<br />
made from corn and is identical in look and<br />
feel to a traditional petroleum-based card.<br />
✽ Top challenges: “The development of<br />
new and innovative products,” such as the<br />
CornCard, which helped to anchor sales in<br />
the fi rst quarter,” says Suzanne d’Amonville,<br />
market development specialist.<br />
156 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Millions<br />
50<br />
40<br />
$39<br />
$46 $46<br />
N/A N/A<br />
30<br />
2002 2003 2004 2005 2006<br />
✽ Outlook for 2007: “Production capacity<br />
will increase 20% due to the ability to ship<br />
product from a new facility in Nashville, TN,”<br />
says d’Amonville. The purchase will also<br />
nearly double American Banknote’s U.S.<br />
operations and make Arthur Blank the sole<br />
provider of its plastic card operations in<br />
North America.<br />
✽ What the industry doesn’t know:<br />
Arthur Blank was created in 1934 to produce<br />
plastic wallet inserts and menu covers<br />
from reclaimed X-ray fi lm.<br />
Dard Products Inc. (33)<br />
32 (asi/48500)<br />
50<br />
$45<br />
In 2006, Dard set up a new system to bet-<br />
$42<br />
ter handle customer service calls, and it<br />
$39<br />
increased its advertising and trade show<br />
attendance as well. An expanded warehouse<br />
and off-site showroom were other<br />
40<br />
$35<br />
additions that helped Dard bring its selection<br />
of products to distributors in 2006.<br />
30<br />
✽ 2006 results: For Dard, sales in 2006<br />
increased $3.2 million to $45.3 million,<br />
$27<br />
an 8% jump over 2005. The company’s<br />
increased marketing efforts, as well as a<br />
20<br />
2002 2003 2004 2005 2006<br />
new customer service system headed up by its new general manager, helped lead to the<br />
gain, says Cary Shevin, president. In addition, the company started to have two full shifts<br />
and an additional late carrier pickup, allowing Dard the opportunity “to get out every possible<br />
rush order,” Shevin says.<br />
✽ New in 2006: Dard added a new general manager, who implemented a new customer<br />
service system. In addition, it added an off-site showroom and another full shift to produce<br />
orders faster.<br />
✽ Top challenges: Dard’s challenges in the past year stemmed mainly from the implementation<br />
of a new computer system. “When you add a new computer system there’s normally<br />
some confusion, training, and adjusting,” Shevin says.<br />
✽ Outlook for 2007: 2007 sales are beating 2006 sales, Shevin says.<br />
Millions<br />
Barton Nelson Inc. (31)<br />
33 (asi/38670)<br />
Sales have moved slowly but steadily<br />
upward for this family-owned and -operated<br />
company. But there is more good<br />
news beneath the surface. “In 2006, Barton<br />
Nelson increased sales over 3%, while<br />
our order count and product volume was<br />
up over 15%,” says Gabe Nelson, vice<br />
president of sales. “This gap is explained<br />
by a strong trend where our clientele are<br />
switching from industry standard notepad<br />
sizes to more economical sizes. For example,<br />
it has become more common for a distributor<br />
to order a 41 /4” by 5 3 /4” adhesive<br />
notepad as opposed to a 4” by 6” note.<br />
The perceived value of the notepads are<br />
equal, but we can provide the 41 /4” by<br />
5 3 /4” adhesive notepad at a signifi cantly<br />
lower price.”<br />
✽ 2006 results: This is the third<br />
straight year that sales have risen for<br />
Barton Nelson.<br />
✽ New in 2006: “We expanded our product<br />
line in several categories: magnets,<br />
fl a g dispensers and plastic-molded combo<br />
pads,” says Nelson, who was appointed to<br />
VP of sales just last year.<br />
✽ Outlook for 2007: “We’re off to an<br />
excellent start in 2007, and we are ahead<br />
of where we were at in 2006 by a nice margin,”<br />
Nelson says. “I foresee our business<br />
continuing to grow through the year.”<br />
✽ What the industry doesn’t know:<br />
There are currently nine second-generation<br />
and six third-generation family members<br />
working for the company.<br />
Millions<br />
50<br />
40<br />
$41<br />
$40<br />
$42<br />
$43<br />
$44<br />
2002 2003 2004 2005 2006
SOI 2007 TOP 40 DISTRIBUTORS<br />
SUPPLIERS<br />
34<br />
Prime Line (30)<br />
(asi/79530)<br />
Rebranding was the name of the game at<br />
Prime in 2006. The company developed a<br />
new logo, catalog and a larger product mix.<br />
It also focused on training and expanding its<br />
sales force, with a greater concentration on<br />
selling deeper with existing clients. “We did<br />
surveys, we did blogs and we got feedback<br />
from distributors about products and the company<br />
as a whole,” says Jeff Lederer, executive<br />
vice president. “We found that what makes<br />
the distributor and us money are products<br />
that are all about form, function and fun.”<br />
✽ 2006 results: Prime’s sales were down<br />
4% from last year, from $45.3 million to<br />
$43.3 million. The drop was not a surprise,<br />
says Lederer. Prime’s focus on remaking itself<br />
to be more competitive in the future required<br />
sacrifi ce that management knew was worth<br />
any short-term losses.<br />
✽ New in 2006: Everything was new in<br />
2006. Prime increased its sales force by<br />
Millions<br />
50<br />
40<br />
$40<br />
$43<br />
$47<br />
$45<br />
$43<br />
2002 2003 2004 2005 2006<br />
40% while improving its training of current<br />
and new employees. It added a bag and<br />
drinkware line – its fastest-growing line – to<br />
improve its overall product offering. “We<br />
purposely add to our product mix to make it<br />
more broad,” says Lederer. “The goal was to<br />
make it more diffi cult to copy us through the<br />
sheer breadth of our line.”<br />
✽ Top challenges: “Keeping focused on<br />
what we were doing,” says Lederer. “We had<br />
to remind ourselves that we were doing the<br />
right thing now for growth in the future.”<br />
✽ Outlook for 2007: Prime is way ahead<br />
of last year with product categories’ sales<br />
up across the board and order counts up<br />
10% to 40% every day.<br />
✽ What the industry doesn’t know: Prime<br />
fi rst introduced the robot calculator to the<br />
industry.<br />
New to the<br />
supplier list<br />
this year:<br />
S&S Activewear &<br />
Piller Industries.
SOI 2007 TOP 40 SUPPLIERS<br />
Starline (35)<br />
35 (asi/89320)<br />
50<br />
Starline made its fi rst appearance in<br />
$42<br />
the Top 40 0 in 2002. A balanced combination<br />
of factory and multi-representation<br />
40<br />
$36<br />
$38<br />
in North America, using in-market senior<br />
sales management, is the key ingredient<br />
$32<br />
to the company’s continued upswing,<br />
according to Daniel Norris, president.<br />
30<br />
“Our new product introductions in January,<br />
April and July were well-received,”<br />
$27<br />
he says. “Starline introduced a multilevel 20<br />
responsive customer service team dedi-<br />
2002 2003 2004 2005 2006<br />
cated to quickly providing our client with a live, knowledgeable representative, minimizing autoattendant<br />
and voicemail.”<br />
✽ 2006 results: Starline’s 2006 sales were up to $42 million in 2006, from $38 million in<br />
2005, an increase of nearly 11% and its biggest jump in three years.<br />
✽ New in 2006: The company introduced three factory sales reps and a regional vice president<br />
in the Northeast U.S. in the middle of the year, and added a three-person factory rep sales<br />
team in Quebec. “We leveraged our service and print capabilities to introduce a more pricepoint-complete<br />
bag line in 2006,” Norris says.<br />
✽ Top challenges now: Since Starline’s profi ts have grown 250% since 2000, it is building<br />
an infrastructure capable of supporting a $75 million sales organization without losing personto-person<br />
relationships, according to Norris.<br />
✽ Outlook for 2007: “The fi rst quarter was a couple of points under forecast, with the second<br />
quarter starting above forecast,” Norris says. “We expect to fi nish 2007 with good growth.”<br />
Millions<br />
Piller Industries Inc.<br />
36 (N/A)<br />
(asi/78120)<br />
Piller Industries joins two other companies<br />
owned by Herbert Piller on the Top 400 list<br />
this year. The company produces framed<br />
and matted recognition awards that differ<br />
from year to year. Stamps are the most predominant<br />
theme, but on the higher end Piller<br />
offers such unique items as framed meteor<br />
fragments, ancient coins, antique stock certifi<br />
cates and a limited number of genuine<br />
350-year-old swords.<br />
✽ 2006 results: Piller earned $41.6 million<br />
in 2005 to land on the list at number 36.<br />
Extensive magazine advertising was the reason<br />
for its success.<br />
✽ New in 2006: A new year means new<br />
products and new concepts for Piller Industries.<br />
“Every year we add a whole lot of new<br />
items to the line, so when distributors show<br />
our catalog to a customer, they won’t see the<br />
same thing,” says Piller. “If you don’t go out<br />
Millions<br />
50<br />
40<br />
30<br />
N/A N/A<br />
N/A<br />
$40<br />
$42<br />
2002 2003 2004 2005 2006<br />
of your way and offer completely new things,<br />
people are going to be disappointed.”<br />
✽ Top challenges: Attracting the attention<br />
of distributors unfamiliar with the line is<br />
always a challenge, says Piller: “We have to<br />
get the word out by going to trade shows and<br />
doing advertising.”<br />
✽ Outlook for 2007: Piller estimates the line<br />
will do 15% to 20% better next year.<br />
37<br />
Senator USA (36)<br />
(asi/86390)<br />
Senator’s sales force increased from fi ve<br />
to 16 with the effect of 10% growth over<br />
last year. “It’s been going really well having<br />
the face time and personal touch,” says<br />
Jill Randolph, product marketing manager.<br />
“Also since expanding the number of inside<br />
sales reps we have been contacting smaller<br />
accounts and that’s been really successful<br />
as well.”<br />
✽ 2006 results: Senator reduced its print<br />
advertising budget in 2006 because it felt the<br />
ads were underperforming. It instead focused<br />
on doing fl yers, hand delivered sample kits<br />
and sales contests with its larger clients.<br />
✽ New in 2006: Senator hired a new<br />
COO, customer service manager and cost<br />
accountant, but the biggest change was<br />
from Randolph, who introduced a new trade<br />
show booth, as well as new catalogs and<br />
Web site designs and fl yer program.<br />
✽ Top challenges: “We are an 87-year-old<br />
company and huge in Europe,” says Randolph.<br />
“But we are not selling at retail so we<br />
don’t have that household name recognition.<br />
Our biggest challenge is getting our name<br />
out there more.”<br />
✽ Outlook for 2007: A whole host of new<br />
changes are coming this year, including a<br />
new line, existing line extensions and, most<br />
important, a line of offi ce products such as<br />
pen holders and note pads.<br />
✽ What the industry doesn’t know: Senator<br />
offers 17 original, patented designs,<br />
as well as six different international design<br />
award-winning pens.<br />
Millions<br />
50<br />
40<br />
30<br />
$35 $35 $35<br />
$38<br />
$42<br />
2002 2003 2004 2005 2006<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 161
SOI 2007 TOP 40 DISTRIBUTORS<br />
SUPPLIERS<br />
Millions<br />
40<br />
35<br />
30<br />
$30<br />
$29<br />
$34<br />
$36<br />
25<br />
2002 2003 2004 2005 2006<br />
Stouse (37)<br />
38 (asi/89910)<br />
“New-customer acquisition is very important<br />
to our goals for growth,” says Michael<br />
Stoeck, president of Stouse. The Midwest<br />
supplier has seen North American business<br />
increase by 34% since 2003. “Stouse has<br />
demonstrated a consistent pattern of growth<br />
throughout its history.”<br />
✽ 2006 results: Sales rose from $35.7 million<br />
in 2005 to $38.9 million last year, a 9%<br />
hike. That beats out the still-impressive 6%<br />
jump Stouse achieved from 2004-2005.<br />
✽ New in 2006: “We expanded our product<br />
offering with an increase in full-color<br />
digitally printed products, which were wellreceived<br />
in the marketplace,” Stoeck says.<br />
“That expansion, combined with a growth<br />
in political product sales thanks to the<br />
This year’s<br />
Top 40 suppliers<br />
collectively<br />
brought in<br />
$ 4.2<br />
billion<br />
in revenue.<br />
$39<br />
even-numbered year, played a role in our<br />
success.”<br />
✽ Top challenges: “Our delivery times<br />
are fast, but we still can’t ship it yesterday,<br />
so the challenge remains.” Stoeck<br />
adds that limiting price increases following<br />
the increase in raw material costs is a top<br />
priority.<br />
✽ Outlook for 2007: “Stouse expects consistent<br />
growth, though probably not as high<br />
a percentage as in 2006, in part due to the<br />
absence of political sales in an odd-numbered<br />
year,” Stoeck says.<br />
✽ What the industry doesn’t know:<br />
Nearly one-third of the Stouse staff has been<br />
with the company for at least 10 years.<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 163
SOI 2007 TOP 40 SUPPLIERS<br />
Gold Bond (38)<br />
39 (asi/57653)<br />
Gold Bond is rising in the industry, appearing<br />
in the Top 400 for the third year in a row.<br />
“We worked to bring in new and exciting<br />
products, and it worked for us,” says Mark<br />
Godsey, president. Those products include<br />
an exclusive golf line, the addition of polycarbonate<br />
bottles to its drinkware line, and<br />
fresh additions to the pen line.<br />
✽ 2006 results: Another $3 million in sales<br />
this year. After a leap from $32 million in 2004<br />
to $35 million in 2005, Gold Bond jumped to<br />
$38 million last year – an 8% increase.<br />
✽ New in 2006: Godsey points to the<br />
company’s new marketing efforts under the<br />
direction of James Canning. “James took a<br />
more proactive approach to advertising and<br />
expanded the number of publications we<br />
used,” Godsey says.<br />
✽ Top challenges: “Sales were down in<br />
our pen line in 2005,” Godsey says, “and an<br />
effort was made to freshen the line with new<br />
Millions<br />
40<br />
35<br />
30<br />
N/A N/A<br />
$32<br />
$35<br />
$38<br />
2002 2003 2004 2005 2006<br />
colors and styles.” He adds that Gold Bond<br />
discontinued outdated pens and purchased<br />
three new pen presses. “In addition to adding<br />
new items to our line, we took a look<br />
at our printing process for drinkware, and<br />
made the investment to bring in equipment<br />
that allows us to print up to four colors on<br />
our polycarbonate bottles,” he says.<br />
✽ Outlook for 2007: The company met<br />
sales growth projections in the fi rst four<br />
months of 2007, according to Godsey, who<br />
says the fi rst two months are traditionally<br />
slow, with a strong rebound in March, when<br />
the company’s season really begins.<br />
✽ What the industry doesn’t know: Of<br />
Gold Bond’s 303 employees, the average<br />
length of service is six years, and over 21%<br />
have been with the company between 10<br />
and 34 years. “There is a lot of experience<br />
within these walls,” Godsey says.<br />
Off the supplier<br />
list this year:<br />
Vitronic<br />
Promotional<br />
Group.
Millions<br />
SOI 2007 TOP 40 SUPPLIERS<br />
40<br />
35<br />
30<br />
$32<br />
$35 $35 $35<br />
$36<br />
2002 2003 2004 2005 2006<br />
Noteworthy (39)<br />
40 (asi/74360)<br />
✽ 2006 results: This family business had<br />
a relatively fl at revenue year, growing its<br />
revenues from $35.1 million in 2005 to<br />
$35.7 million in 2006. Carol Constantino,<br />
president of Noteworthy, attributes the small<br />
increase to the purchase of new machinery.<br />
“This allowed us,” she says, “to expand our<br />
product line and improve lead times.”<br />
✽ Personnel changes: Constantino<br />
says part of the reason for her company’s<br />
long-term success has been low turnover.<br />
“Our employees are treated as important<br />
family members,” she says. “Matt, the fi rst<br />
artist that we hired in 1962, is still a loyal,<br />
dedicated and productive member of our art<br />
department.”<br />
✽ Top challenges: Constantino points<br />
to the rigors of keeping up with strict<br />
manufacturing guidelines and procedures<br />
as the company’s biggest challenge going<br />
The Top 40<br />
suppliers<br />
average a revenue<br />
increase of<br />
5.75%.<br />
forward. “It’s important to position ourselves<br />
to be proactive to the environmental issues<br />
concerning plastics,” she says. “As a<br />
manufacturer, we have to be able to stay<br />
compliant with every state’s regulations.”<br />
✽ Outlook for 2007: This year is looking<br />
“very promising,” according to Constantino.<br />
✽ What the industry doesn’t know:<br />
Noteworthy owns an Indian Museum. It<br />
has a collection of more than 60,000<br />
artifacts that pay tribute to the Indians from<br />
Mohawk Valley. “It’s the largest privately<br />
owned collection of Mohawk items,”<br />
Constantino says.<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 167
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
Presenting the 2007<br />
Multimillion-Dollar Distributor Roundtable<br />
The Multimillion-Dollar Roundtable is a designation presented<br />
to distributors reporting a sales volume of $2 million<br />
and over. Comprised of 1,314 distributors (more than<br />
in 2006), the 2007 Roundtable consists of three levels of<br />
achievement. The Gold designation lauds distributors with<br />
sales volumes of $10 million or more; Silver honors distributors<br />
with sales volumes of $5 million to just under $10<br />
Gold<br />
Sales volume of $10 million and over<br />
101556 A S A P<br />
102905 Accolade Reaction Promotion Group Inc<br />
105360 The Adam Group Inc<br />
108406 Adstracts Inc<br />
108996 Advance Business Graphics Inc<br />
109480 Adventures In <strong>Advertising</strong><br />
116308 Albrecht & Co<br />
117230 All-Ways <strong>Advertising</strong> Company<br />
120075 American Solutions For Business<br />
120601 American Identity<br />
121412 Ampro Sportswear Inc<br />
125050 Artcraft Promotional Concepts<br />
125870 Aspen Marketing Services<br />
126400 Associated Premium Corp<br />
126485 Athletic Supply Company Inc<br />
127000 Atlas Pen & Pencil Corp<br />
128030 Award Incentives & Recognition<br />
128262 Axiom Marketing Inc<br />
128263 Axis Promotions & Events<br />
129175 B G A Pharma Inc<br />
129240 B I dba Of Schoeneckers Inc<br />
131650 Bankers <strong>Advertising</strong> Co<br />
Banyan Incentives<br />
121500 Amsterdam Printing<br />
342382 Taymark<br />
132690 Barker <strong>Specialty</strong> Co Inc<br />
133600 Bass Mollett Publishers Inc<br />
136400 Bells Promotional Products Inc<br />
137616 Bensussen-Deutsch Assoc<br />
138500 Best Impressions Catalog Co<br />
141964 Bluegrass Promotional Mktg LLC<br />
144642 Bradley Marketing Group<br />
145037 Brandvia Alliance Inc<br />
147450 Charles G Brown Inc t/a API<br />
148500 Brown & Bigelow<br />
149287 Brymark Promotions<br />
150250 Bureau For At Risk Youth Inc<br />
154758 C C Creations Ltd<br />
154876 C F J Manufacturing LP<br />
155136 C T P Solutions Inc<br />
155460 Evigna<br />
155807 Caliendo Savio Enterprises – CSE<br />
157004 Capital Ideas Inc<br />
157218 Capital Travel & Incentives<br />
158700 Carretta USA Inc<br />
158924 Cary Francis Group Inc<br />
158990 Tic Toc<br />
159262 Cavanaugh<br />
159420 Cedar Graphics Inc<br />
160501 Chamberlain Marketing Group Inc<br />
162167 Cintas Corporation<br />
162979 Clean Fun Promotional Mktg<br />
163770 Coast To Coast Promotional Products<br />
165162 Colonial LLC<br />
166088 Competitive Edge Inc<br />
168781 Corporate Express<br />
168786 Corporate Express Promotional Marketing<br />
168795 C E P M - Canada<br />
168827 CorpLogoWare<br />
168860 Corporate Edge Inc<br />
168979 Corporate Incentive Solutions LLC<br />
169230 Country Cotton Designs Inc<br />
169773 Cravat Club Omex Group BV<br />
169995 Creaciones Artisticas Publicitarias<br />
SA(Capsa)<br />
171951 Van Dyne Crotty Inc<br />
173519 Cyrk Inc<br />
179586 Design Specialties<br />
179853 Design Shoppe<br />
180717 Diga Me Promotions<br />
183080 Dowlis Corporate Solutions<br />
183522 Drike Inc<br />
183776 Dumont Promotional Images Inc<br />
185320 Eagle Promotions LLC<br />
185696 East West Connection<br />
185782 Ecompanystore<br />
186610 Electra <strong>Specialty</strong> Advg Co<br />
188270 Enbee Company<br />
188490 Epicentre Trading Pty Ltd<br />
188515 Epromos Promo’l Products Inc<br />
189390 Eskco Inc<br />
191085 F S I<br />
million; and Distinguished designation recognizes distributors<br />
with sales volumes of $2 million to just under $5 million.<br />
Listed among the Gold Roundtable honorees are the Top<br />
40 distributors (shown in bold here), profi led on pages 105<br />
thru 132 of this edition. ASI and Counselor r congratulate these<br />
distributors on their accomplishments and welcome them to<br />
the 2007 Multimillion-Dollar Distributor Roundtable.<br />
197045 4 Imprint Inc<br />
199904 G & G Outfi tters Inc<br />
200087 G T Promotions<br />
200520 Gail Company Inc<br />
202515 Gateway/CDI<br />
202900 Geiger Inc<br />
196480 Forrester-Smith Inc<br />
204506 Genesis Marketing Group Inc<br />
204588 Genumark Promotional Mdse Inc<br />
208346 Global Products Inc<br />
209700 Goldman Promotions<br />
209800 Goldner Associates Inc<br />
209944 Golf Graphics Inc<br />
212971 Graphography Limited LLC<br />
213135 Great American Advg Co<br />
215310 Group II Communications Inc<br />
215500 Guardian Products Inc<br />
217597 Hagadone Printing Co Inc<br />
218450 Halo Branded Solutions<br />
197700 Francis & Lusky Co LLC<br />
356000 Lee Wayne<br />
341700 Tasco Industries Inc<br />
221600 Harvey-Daco Inc<br />
223630 Helm Promotions<br />
225400 Hiromori Corporation<br />
227730 Hotlink Inc<br />
229635 Ideas In Action<br />
230069 The Image Group<br />
230094 Imagine This<br />
230137 Imagemark<br />
230166 Imagination Specialties Inc<br />
230284 Image Promotions Inc<br />
230326 Impact Group<br />
230430 Imperial Marketing Inc<br />
230736 Incentive Innovations Inc<br />
231120 Inkwell Promotions Corp<br />
231438 Innerworkings Inc<br />
231537 Integrus Brand Solutions Inc<br />
232119 ipromoteu<br />
232307 J & A Promotions<br />
234950 John Michael Associates Inc<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 169
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
Gold<br />
234979 Johnny Macs<br />
238600 Kaeser & Blair Inc<br />
239010 Irving Kannett & Assocs Inc<br />
244815 Konik & Company Inc<br />
246743 L C Marketing Communications<br />
258113 M P C Promotions LLC<br />
259540 Made To Order<br />
260340 Gary Mandel Promotional Concepts<br />
260750 Marc Promotions<br />
260870 Marco<br />
261670 Marketing Impressions<br />
262111 Marlow International Ltd Inc<br />
263610 Massachusetts Envelope Plus<br />
267770 Mercury Promotions & Fulfi llment Inc<br />
268085 Merit Impressions Inc<br />
268100 Merit Industries Inc<br />
270150 Mid Ocean Group BV<br />
270880 Mid West Trophy<br />
272250 T R Miller Company Inc<br />
275350 Mo’ Money Associates<br />
276555 Morley Companies Inc<br />
278698 My Private Label LLC<br />
278980 Myron Corp<br />
279600 Jack Nadel International<br />
281040 National Pen Corp<br />
281050 National Premium & Mdsg Inc<br />
281700 Nationwide Advg Spec Co Inc<br />
282473 New Century Promo Prod Inc<br />
283300 Newton Mfg Co<br />
284520 Norscot Group<br />
286300 Nyberg Fletcher & White Inc<br />
287029 Offi ce Express Supplies Inc<br />
287087 Ohio <strong>Specialty</strong> Products Inc<br />
287658 On Time Promotions Inc<br />
288473 Overture Premiums & Promos LLC<br />
288689 P C Acquisition Inc<br />
288694 P C L SA<br />
294228 Personal Graphics Inc<br />
297370 Positive Promotions<br />
299230 Prestige Graphic Services Inc<br />
299346 Prime Time Marketing Inc<br />
299717 Prologic.com<br />
300094 Proforma Inc<br />
300171 Proforma Print & Promos Inc<br />
300370 Promac Inc<br />
300446 Promo Shop<br />
300729 Promotional Alliance Int’l Inc<br />
303361 R D J Specialties Inc<br />
303585 R P & Associates<br />
307030 Reminders<br />
307074 Renaissance Promotions<br />
307887 The Reynolds & Reynolds Co<br />
309630 Robertson Marketing Group Inc<br />
315984 S C I Promotion Group LLC<br />
316340 St Andrews Products<br />
317830 Sity Communications Inc<br />
319945 Scarborough & Tweed<br />
321999 The Screen Print Dept Inc<br />
322791 Select Design Ltd<br />
326300 Shumsky<br />
326636 Signet Inc<br />
329220 Smith-Southwestern Inc<br />
329778 Solion Corporation<br />
331075 Sparks Exhibits & Environments<br />
331150 Spartan Promotional Group Inc<br />
331605 Specialties Unlimited Inc<br />
332556 Sports Promotion Network<br />
332589 Sportswear Plus Inc<br />
333647 Workfl owOne<br />
338401 Strottman International Inc<br />
339116 Summit Marketing<br />
339162 Sun Business Forms & Adv Spec<br />
339206 Sunrise Identity<br />
339297 Sunfl ower Marketing Group<br />
340705 Swift Printing Services<br />
340973 T-Formation of Tallahassee Inc<br />
341204 T O P Marketing<br />
341500 Talbot Marketing<br />
341691 Target Marketing Inc<br />
342639 Tee-Riffi c Promotions Inc<br />
342701 Tee’s Plus Screen Prtg Factory<br />
343480 The Tharpe Company Inc<br />
343878 Thomas Direct Sales<br />
345448 Topitzes & Associates Inc<br />
345545 Total Brand Delivery<br />
345631 Touchstone Merchandise Group LLC<br />
351700 The Vernon Company<br />
356061 Wearguard Crest<br />
356377 J M Wechter & Associates Inc<br />
358500 Western Associates Inc<br />
360200 Wild Impact Marketing<br />
365552 Zagwear Inc<br />
365782 Zenith Promotion Inc<br />
366094 Zouire Marketing<br />
384000 EmbroidMe<br />
391000 Instant Imprints Franchising Inc<br />
Silver<br />
Sales volume of $5 million and over<br />
100085 A S D Promotion/<strong>Advertising</strong><br />
103679 Acme Apparel of Gloucester Inc<br />
104775 Action Sports Image LLC<br />
105630 The Adcentive Group Inc<br />
105710 Ad-Centives West Inc<br />
106742 Addyourlogo-Reklambolaget AB<br />
108200 The Ad Solution Inc<br />
108390 Adstar Inc<br />
110487 <strong>Advertising</strong> Edge Inc<br />
111385 <strong>Advertising</strong> Incentives Inc<br />
111600 <strong>Advertising</strong> Novelties Co Inc<br />
116315 Alcone Marketing Group<br />
116710 Alexander Global Promotions Inc<br />
116995 The Alison Group<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 171
SOI 2007 TOP MULTIMILLION-DOLLAR 40 DISTRIBUTORS ROUNDTABLE<br />
Silver<br />
117019 All America Concepts & Design Inc<br />
119100 Alpha Graphics, Ltd<br />
119550 AMCLA Pty Ltd<br />
120658 American Minority Bus Forms Inc<br />
122205 Anheuser Marketing Inc<br />
122208 Animal Marketing<br />
122737 Apex <strong>Advertising</strong> Inc<br />
123041 Applied Graphics Inc<br />
125290 Artina Promotional Products LLC<br />
128184 Award Excellence Marketing LLC<br />
128880 B C Graphics Inc<br />
129170 B F G Communications Inc<br />
129449 B M P Inc<br />
131431 Bamko Promotional Items<br />
133000 L W Barrett Co Inc<br />
137190 Benchworks Inc<br />
141930 Blue Sky Marketing Group<br />
142474 Body Billboards Inc<br />
145008 A Branovan Company LLC<br />
145025 Brand Fuel<br />
145039 Brand I Q<br />
146060 Bright Ideas/Broad Ripple Inc<br />
149459 Budco<br />
152930 Business Innovations<br />
154695 C A M Inc<br />
154720 C X & B United Corp<br />
155110 C & S Sales Inc<br />
155966 The Callard Company<br />
156455 Canary Marketing LLC<br />
157364 Capitv 8 Promotions Inc<br />
158580 Carpe Diem Sales & Marketing Inc<br />
159067 Catalyst Marketing Inc<br />
160686 Chapman Printing Inc<br />
162226 Circe Inc<br />
162850 Alvin M Clayman Enterprises Inc<br />
162968 Clayton Kendall Inc<br />
163427 Club Colors Inc<br />
165945 Commercial Marketing<br />
166070 Communicorp Inc<br />
166235 Concepts & Associates Inc<br />
166445 Concord Promotions Inc<br />
167000 Consumer Contact Company<br />
167326 Continental Binder & Spec Corp<br />
168358 Copilote Inc<br />
168962 Corporate Imaging Concepts Inc<br />
168968 Corporate Image Works LLC<br />
169081 Corporate Images Inc<br />
169184 Cotapaxi Custom Design & Mfg LLC<br />
169186 Cotton Candy Inc<br />
169192 Cottonimages Com Inc<br />
169600 Craig-Richard Prm’l Prds Inc<br />
170480 Creative Concepts Dvr Inc<br />
170594 Creative Impressions Inc<br />
170669 Creative Promotional Products Ltd<br />
170720 Creative Promotions Int’l LLC<br />
172755 Curtis 1000 Inc<br />
173183 Custom Logos<br />
173251 Custom Special Tees Inc<br />
173252 Custom Specialties LLC<br />
173427 Customized Business Services Inc<br />
175755 Data Power Inc<br />
176080 Davene Inc<br />
176850 Davis & Stanton Inc<br />
177258 Developmental Concepts Inc<br />
179558 Design & Source Productions<br />
179669 Devcom Inc<br />
179923 Dewynters <strong>Advertising</strong> Inc<br />
180260 Diann’s <strong>Specialty</strong> <strong>Advertising</strong> Inc<br />
183590 Drive Marketing<br />
184795 The E Group Inc<br />
184797 E Group Inc of MN<br />
184981 E M C <strong>Advertising</strong> Gifts<br />
185750 Ebsco Promotional Products<br />
186310 E L K Promotions Inc<br />
186655 The Elite Group<br />
186738 Elite Sportswear & Awards Ltd<br />
187639 Emed Co Inc<br />
189775 Etienne International Inc<br />
193040 James Feldman Associates, Inc<br />
194440 First Impressions Sportswear & Cresting<br />
195735 The Flying Logo Sisters<br />
197085 Four Star Marketing Inc<br />
198342 Freestyle Marketing LLC<br />
200095 G W S Inc<br />
200460 Gage Marketing Group, LLC<br />
200500 Gagnon Levesque Inc<br />
203700 General <strong>Advertising</strong> Products Inc<br />
203760 General Commercial Corp<br />
205947 Gifts By Design Inc<br />
206126 Gifts & Premium S L<br />
212829 Grapevine Designs LLC<br />
213035 The Graphic Edge Inc<br />
214111 Greensboro Offi ce Supply Inc<br />
215320 Groupe Katrio Inc<br />
215444 Grupo Mafra Marketing<br />
216747 H A S Marketing<br />
216807 H D S Marketing Inc<br />
219278 Handicapped Sales Workshop<br />
219413 Hands On Originals Inc<br />
229805 Idegy Inc<br />
230059 Image Group Inc<br />
230076 Image First<br />
230121 Image Source Inc<br />
230189 Immediate Sales Agency Ltd<br />
230276 Imagewear By Mark’s Work Wearhouse<br />
231122 Initiatives International Inc<br />
231220 Industrial Contacts Inc<br />
232850 Jacksonville Spec Advg Inc<br />
233578 Janway Company USA Inc<br />
233579 Jansen <strong>Advertising</strong> Inc<br />
235965 The Jolesch Group Inc<br />
238367 K - Promotions Ltd<br />
238371 K M G Marketing<br />
238508 K T M North America<br />
242474 King Logo<br />
242475 Kingston<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 173
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
Silver<br />
243420 Peter Kleine Company<br />
245872 Kreo Inc<br />
245947 Kritzer Marketing<br />
249050 Bob Lanier Enterprises Inc<br />
249309 Lapel Pin and Button Co Inc<br />
254117 Lightning Golf & Promos Inc<br />
254137 Lighthouse Branding & Merch Agncy<br />
254138 Bob Lilly Prof’l Promos Inc<br />
254667 Lithexcel<br />
255247 Logogram Inc<br />
255309 Logovision LLC<br />
255679 Lor & Associates Inc<br />
256250 Loves Park Rapid Print<br />
257000 Lucking Advg Products Inc<br />
258391 Ma Cher (USA) Inc<br />
259100 Mac Mannes Inc<br />
259280 Madden<br />
260987 Marco Sales & Incentives Ltd<br />
261250 Maritz Rewards Inc<br />
261810 Mktg Incentive Resources Inc<br />
261888 Marketing Tools Inc<br />
261911 Marketing Strategies Group Inc<br />
263360 Marudas Print Services & Promotional<br />
Products<br />
264230 Match-Up Promotions<br />
264406 Maxi Distribucion S A<br />
264901 Mccabe Promotional Advg Inc<br />
266976 Media Connection Advg Specs<br />
267038 Medialink Creative Solutions<br />
267631 Merchandise Mania Ltd<br />
267660 Merchandising Incentives Corp<br />
268940 Metromedia Marketing Ltd<br />
269625 Mid-American Specialties Inc<br />
269745 Mid-America Merchandising Inc<br />
269991 Mid Eastern <strong>Advertising</strong><br />
270800 Midwest Promotional Group<br />
270950 Midwestern Spec Advg Co<br />
272830 Milner Marketing Corp<br />
277511 Mosquito Inc<br />
279381 N E P M<br />
279385 N I C Inc <strong>Advertising</strong><br />
280420 National Bank Products Inc<br />
282400 Network Interstate<br />
282470 New Clients Inc<br />
283582 Henry Ninowsky Sales<br />
283625 Noble Logos Inc<br />
287488 Omnisource Marketing Group Inc<br />
287586 On Target Promo<br />
288406 Out of the Box Group<br />
293570 Performance Award Ctr Inc<br />
293619 Perfect Promotions Inc<br />
294905 Pharmadesign Inc<br />
295985 Pinnacle Printing Systems LLC<br />
295986 Pinnacle Promotions Inc<br />
296325 Plain & Simple Sports & Promo Wear Inc<br />
296485 William J Plogsted & Associates<br />
296982 Polydono AG Prom’l Products<br />
297307 Porter Wallace Corp<br />
297675 Powertex Group<br />
299458 Printable Promotions<br />
299725 Pro Specialties Group Inc<br />
299745 Productopop Inc<br />
299860 Professional Marketing Servces Inc<br />
300367 Promopeddler.com<br />
300408 Promo Depot Inc<br />
300477 Promo Direct<br />
300585 Promotion Plus Inc<br />
300621 Promotion Resource Group Inc<br />
300762 Promotional Designs Inc<br />
300790 Promotional Consultants Inc<br />
300810 Promotional Considerations Inc<br />
300830 Promotional Designs Inc<br />
300870 Allied Promotional Products Group<br />
300872 Promotional Images Inc<br />
301163 The Promotional Specialists<br />
301193 Promotions By Design Inc<br />
301330 Promotions Unlimited Inc<br />
303015 Quality Resource Group<br />
303767 R O K Promotions Inc<br />
303858 R T Marketing Inc<br />
304530 Rambow Inc<br />
305150 React Enterprises Inc<br />
305344 Reba’s Custom Embroidery<br />
306686 Relay Gear LLC<br />
307140 Rennhack Marketing Service Inc<br />
307550 Resources Unlimited Inc<br />
309300 Roberts <strong>Advertising</strong> Co<br />
309700 Howard Roe Company<br />
313998 Royal Recognition Inc<br />
315640 Connor F Ryan & Co Inc<br />
316955 Sales Dynamics Inc<br />
317151 Sales Packaging Inc<br />
317305 Sales Service America Inc<br />
319240 Sasco Inc<br />
319940 Scarborough Specialties Inc<br />
326552 Signature Concepts Inc<br />
326835 Silkworm Inc<br />
328000 The Singleton Co<br />
330686 Southland Business Group Inc<br />
331275 Special Recognition Inc<br />
332489 AB Sporrong Inc<br />
333600 Standard Buying Service<br />
334909 Star Promotions Inc<br />
336312 Sterling Business Products Inc<br />
337725 Stran & Company Inc<br />
337838 Stratacom<br />
338200 Streff <strong>Advertising</strong> Inc<br />
338380 Strong & Cutter Company<br />
340210 Sutter’s Mill Specialties Inc<br />
341741 Target Marketing Inc<br />
342420 Tchotchke’s LLC<br />
342485 Team Jedi Marketing LLC<br />
342620 Technovel S A<br />
342844 Tera Enterprises Inc<br />
343432 W S P International Ltd<br />
343919 Thompson Merchandising & Sup<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 175
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
Silver<br />
345403 Top Promotion Inc<br />
345900 Towsley’s Inc<br />
346070 Trademarks Promotional Products<br />
347790 Tropiano & Son Corp Mktg Inc<br />
348024 USA Screen Prtng & Embroidery Inc<br />
348068 Under The Sun Promotions Inc<br />
350530 Vail Dunlap & Associates<br />
351285 Vatex America Inc<br />
355726 The Watermark Group Inc<br />
355980 Way To Be Designs LLC<br />
356166 Webb/Mason Inc<br />
356448 The Weeks Lerman Group LLC<br />
360450 Williams & Associates Ltd<br />
361850 Wings Sportswear<br />
364869 Ye Ole Printery Inc<br />
365683 Zebra Marketing Corporation<br />
371000 Advantage Golf Franchising Corp<br />
376500 Asgard Promotional Services<br />
Distinguished<br />
Sales volume of $2 million and over<br />
100330 A A <strong>Advertising</strong> Ltd<br />
101251 A E Litho Offset Printers Inc<br />
101262 A E O/Amer Envir Outfters Inc<br />
101405 A & H Associates Inc<br />
101468 A N <strong>Advertising</strong> Specialties<br />
101495 A N C Promotions<br />
101510 A S A P Inc<br />
101536 A P S/<strong>Advertising</strong> Pkg Solutions<br />
101601 A T I P Corporation<br />
102202 Abelanani Creations<br />
102267 Aberson Narotzky & White Inc<br />
102291 Above & Beyond Incentives<br />
102846 Access Uniforms & Emb Works Inc<br />
103085 Ace Marketing & Promotions Inc<br />
103530 Ace Promotional Products LLC<br />
103600 Achievement Products Inc<br />
104683 Action Plus Sportswear & Specs<br />
104915 Adamerica <strong>Advertising</strong> Spec<br />
104930 The Ad Answer Inc<br />
104977 Adform <strong>Advertising</strong><br />
105011 Ad Ideas of Wisconsin Inc<br />
105035 Adirondack Ad Specialties<br />
105230 Ad Promotions Inc<br />
105319 Ad Venture Promotions Inc<br />
106130 Adco Associates<br />
107060 The Ad King Inc<br />
107158 Admar Promotions Group<br />
107316 Ad One Advg Specialties Inc<br />
107727 Adpro Inc<br />
107895 Adroc Productions Inc<br />
108040 Ads Infi nitum<br />
108135 Ad Spec<br />
108535 Advanced Business Products<br />
108957 Advance Promotions<br />
108965 Advanced Promotional Advg of Puerto<br />
Rico Inc<br />
109420 Ad Ventures In Texas Inc<br />
109959 <strong>Advertising</strong> Anything<br />
110390 <strong>Advertising</strong> Concepts Inc<br />
111425 <strong>Advertising</strong> Magic Inc<br />
111774 <strong>Advertising</strong> Plus Inc<br />
113890 <strong>Advertising</strong> Spec Assocs Inc<br />
114697 <strong>Advertising</strong> With Wit Inc<br />
115160 A I M Inc (Always In Mind)<br />
115329 Akran Marketing<br />
116550 Alert-All Corporation<br />
117110 All Star Incentive Marketing<br />
117125 All Sports Promotions<br />
117160 All American Spec Corp Inc<br />
117240 All-Ways Advg Company USA Inc<br />
117246 All World Promotions<br />
117905 Alliance Graphics Inc<br />
118860 All Star Awards & Ad Specs Inc<br />
119183 Alterman Business Gifts<br />
119632 American Ad Specialties Inc<br />
119900 American <strong>Advertising</strong> Specs<br />
120200 American Calendar Co<br />
120362 American Design & Mfg Inc<br />
120608 American Klassic Designs Inc<br />
120660 American National Ltd<br />
120666 American Outfi tters Ltd<br />
120709 American Products Inc<br />
120763 American Sales Industries Inc<br />
120930 Americap Co Inc<br />
120935 Americhip Inc<br />
121650 Anaconda Sports Inc<br />
121870 Anderson Marketing Inc<br />
122110 George Andrie & Associates Inc<br />
123062 Applied Litho Resource Inc<br />
124500 Arrow <strong>Advertising</strong> Company<br />
125341 Artistic Promotions LLC<br />
125464 Ascentives<br />
125465 Ash-Allmond Associates Inc<br />
126466 The Athletic Edge<br />
127568 Austin Ad Group Inc<br />
127818 Avalon Corporation<br />
127901 Avatar Brand Management Inc<br />
128039 Award International<br />
128229 Awards Unlimited Inc<br />
128242 Awards.Com LLC<br />
128257 Axiz Group LLC<br />
128270 Axley Incentives<br />
128551 B & B Ad Specialties<br />
128682 B B J Inc<br />
129215 B H S International Inc<br />
129422 B J M Promotions Inc<br />
129699 B2Usolutions.Com<br />
130250 The Baja Man Inc<br />
130700 Margaret Baker Associates<br />
130801 Balady Promotions Inc<br />
131414 Bama Jammer Promotions<br />
132050 Barash <strong>Advertising</strong> Inc<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 177
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
Distinguished g<br />
132220 Barbara’s Incentive Programs Inc<br />
133075 Barry Wayne Enterprises Inc<br />
133900 Bates-Wells Inc<br />
137004 Ben Marketing Group<br />
137600 S E Bennett Company<br />
137955 Bergman Incentives Inc<br />
138554 Best Design Inc<br />
138557 Best Promotions Inc<br />
138560 Best Business Systems<br />
140093 Billboard Direct Prml Svcs Inc<br />
140100 Bill-Mar <strong>Specialty</strong><br />
140290 Billward Inc<br />
140730 Black Duck Inc<br />
141957 Blue Wave Productions Inc<br />
142835 Bonus Marketing Inc<br />
143070 Borgelin & Co Profi lreklam AB<br />
144100 Bowlmaster Bowling Supplies Inc<br />
145006 The Brandmarket Inc<br />
145011 Brand Innovators Inc<br />
145150 Bravo! Inc<br />
145236 Bravo Promotional Marketing Inc<br />
145242 Breakthru Marketing Inc<br />
145576 Brew City Promotions Inc<br />
145830 Bridges Sportswear & Ad Spec<br />
146026 Bright Ideas<br />
146280 Broadway Marketing Ltd<br />
147812 Brown and Gold Inc<br />
149200 Bryan <strong>Advertising</strong> Co Inc<br />
149853 Buffalo LLC<br />
149870 Buffalo Specialties Inc<br />
149885 Builder Promotions Inc<br />
150000 Louis Bull Promotional Products<br />
151066 Burrell Promotions<br />
151258 Burston Marketing Inc<br />
152486 Business Forms <strong>Specialty</strong> Inc<br />
152915 Business Ink Company<br />
154450 C Gerard Marketing<br />
154540 C 3 Marketing<br />
154909 C M T I Inc<br />
155018 C P S Carl Piercey Spec Inc<br />
155128 C S I & Associates Inc<br />
155920 California Mktg Group Inc<br />
156421 Campus Mktg Specialists Inc<br />
157229 Capitol Promotions Inc<br />
157355 Caprina<br />
157388 Caps City S A De P V<br />
157555 Carlisle Printing of Walnut Creek<br />
158292 Carolina Specialties of NC Inc<br />
158910 Carter Promotions<br />
159053 Castlerock Productions<br />
159072 Cat Communication<br />
159600 The Cedarstream Company Inc<br />
160435 Century 2001 Inc<br />
161120 Chase Marketing Int’l LLC<br />
161632 Chestnut Identity Apparel<br />
161795 Chillybear Inc<br />
162165 Cinder Block Inc<br />
163100 J W Cleary Company<br />
163650 Coastline Marketing Group Inc<br />
164612 Collegiate Concepts<br />
164741 Collegiate USA Inc<br />
165177 Color Graphics Screenprinting Inc<br />
165210 Colorado Badge & Trophy Co<br />
165261 Colortech Graphics & Prtg Inc<br />
166010 Commotion Promotions Ltd<br />
166102 Compleat Sportswear Inc<br />
166107 Compas Inc<br />
166148 Completesource Inc<br />
167062 Contact Import-Export LLC<br />
167767 Control Seneca Corporation<br />
167990 Dan Cook Associates Inc<br />
168125 Cooley Group Inc<br />
168160 Cooney Promotions Inc<br />
168743 Corevision Group Inc<br />
168799 Corporate Data Products<br />
168804 Corporate Carrots Inc<br />
168920 Corporate Incentives of America Inc<br />
168923 Corporate Graffi ti Inc<br />
168928 CGA Promotions<br />
168963 Corporate Image Apparel Inc<br />
168990 Corporate Motivators Inc<br />
168999 Corporate Impressions<br />
169021 Corporate Source<br />
169026 Corporate Specialties<br />
169039 Corporate Selections Inc<br />
169059 The Corporate Shop Inc<br />
169585 Craig <strong>Specialty</strong> <strong>Advertising</strong><br />
170250 Creative <strong>Advertising</strong> Specs Inc<br />
170489 Creative Expression Inc<br />
170522 Creative Corporate Image Inc<br />
170631 Creative Marketing Concepts<br />
170680 Creative Media Development Inc<br />
170760 Creative Services<br />
170769 Creative Solutions<br />
170800 Creative Specialties Co Inc<br />
171500 Cronmiller-McCormick Co<br />
172200 Cubbon <strong>Advertising</strong><br />
173036 Custom <strong>Advertising</strong> Inc<br />
173152 Custom Images Inc<br />
173237 Custom Promotions Inc<br />
173245 Custom Products Corporation<br />
173365 Customcraft Industries Inc<br />
173697 D C I Marketing Inc<br />
174051 D R A Promotions Inc<br />
175676 Data Associates Inc<br />
175701 Data Business Forms Inc<br />
175769 Data Supplies Inc<br />
176197 Junior Davis & Associates Inc<br />
176797 Davis-Humbert Group<br />
177262 Dataguide Inc<br />
178282 Del Mar Embroidery Inc<br />
179525 Design Marketing Inc<br />
179644 Details Diversifi ed Inc<br />
179750 De Vlieger Associates<br />
179900 Dewitt Inc<br />
180198 Diamond State Promotions Inc<br />
www.counselormag.com STATE OF THE INDUSTRY 2007 179
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
Distinguished g<br />
180870 R A Dinkel & Associates Inc<br />
181040 Direct <strong>Advertising</strong> Co<br />
181051 Direct Focus Marketing Comm<br />
181211 Distinctive Marketing Ideas<br />
181294 Diversifi ed Concepts Mktg Inc<br />
181620 James A Doherty Inc<br />
182105 Don’s Group Attire Inc<br />
182666 Dovetail Marketing<br />
183320 D Q S-Intl Dairy Queen<br />
183723 Duck Soup Promotions Inc<br />
184844 E Bags Corporate Sales Inc<br />
184937 E J K Promotions Inc<br />
184997 E O Dunbar Associates Inc<br />
185070 E S M Enterprises Inc<br />
185120 E T C Group Inc<br />
185192 Eagle Graphics<br />
185460 Earle Press Printing Inc<br />
185700 Eastern <strong>Advertising</strong> Novelty Inc<br />
185710 Eastland Apparel<br />
185897 Edel Partners Inc<br />
186055 Edventure Promotions Inc<br />
186230 Efi nger Sporting Goods Inc<br />
186702 Elite Promotions Inc of MO<br />
188335 Enform Graphic Productions Inc<br />
188379 Enterprise Document Solutions<br />
188488 Epic Promotions Inc<br />
188701 Ericson Group Inc<br />
189402 Eskimo Joe’s Prm’l Prds Grp Inc<br />
189950 European Marketing Group Inc<br />
190280 Event Custom Merchandise Inc<br />
190370 Events Made EZ Inc<br />
190421 Everglades Direct<br />
190571 Every Promotional Product<br />
190685 Exceptional <strong>Specialty</strong> Promos Inc<br />
190689 Executayne Marketing Limited<br />
190903 Executive Mktg Promotions Inc<br />
190936 Executive Promotions Inc<br />
190978 Express Promotions<br />
191017 Eyecon Marketing Group<br />
191035 F G S Inc<br />
191041 F & E Sportswear<br />
191049 F A C Services L P<br />
191361 Facilitations Ltd Inc<br />
191845 Fan Grabber Inc<br />
191881 Fantastic Fabrics Inc<br />
192473 The Farwest Group Inc<br />
192510 Fast <strong>Advertising</strong> Inc<br />
193427 Ferra Doyle Group<br />
193670 Fiddler’s Rock Communications Inc<br />
194030 Michael C Fina Company<br />
194037 Financial Innovations Inc<br />
194096 Fine Products<br />
194115 Fine Promotions Inc<br />
194400 The Finney Company-Ad Spec Div<br />
194411 First Choice Uniforms<br />
194897 Flagworks Inc<br />
195761 Focus Promotions Inc<br />
195787 Footprint Marketing Inc<br />
196045 C Forbes Inc<br />
196371 Forms Associates/Z Images<br />
197281 Fox Pro Media Inc<br />
198030 Franklin Printing Inc<br />
198264 Frederick Enterprises<br />
198365 Doug Fregolle Promotions<br />
198707 Fresh Concepts LLC<br />
199789 Fundy Textile & Design<br />
199836 Fusion LLC<br />
199849 G B G The Corporate Giftsource<br />
199876 G & A Corp Events & Consulting<br />
200020 G N P Specialties Inc<br />
200590 Galactic Ltd<br />
200900 Galaxy <strong>Specialty</strong> Company Inc<br />
201366 Gameplanz Inc<br />
201409 Gandy Ink<br />
202287 Gatehouse Gifts & Premiums LLC<br />
202755 Gear ‘N Up<br />
203950 General Graphics Co Inc<br />
203955 General Litho Services Inc<br />
204633 The Georgian Press Inc<br />
204824 The German Advg Advantage<br />
205000 Gettier-Montanye Inc<br />
205205 Gibbs General Prtg Service Inc<br />
207200 Gino’s Awards Inc<br />
208309 Global Direct
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
Distinguished g<br />
208338 Global Promos & Incentives LLC<br />
209277 Gold-Mark Promotions LLC<br />
209953 Gomez Lee Marketing SA<br />
210555 Goodman Enterprises Inc<br />
211820 Go Promotions Inc<br />
212454 Graftek Systems Inc<br />
212461 Graham Marketing Group<br />
212843 Graphic Apparel Inc<br />
212918 Graphics Systems<br />
Michael’s Realty<br />
Carlson Craft offers a wide variety<br />
of greeting cards.<br />
Each card can be personalized with<br />
your client’s signatures, ink or foil<br />
imprints, and even a multicolored<br />
logo if they choose.<br />
Call 800-580-1707<br />
for your holiday albums.<br />
Mention code COXM77S and<br />
a Soft Creek Hills Specialist<br />
will assist you.<br />
182 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
213122 Graystone Graphics Inc<br />
213138 Great American Business Prods<br />
213175 Great North American Cos Inc<br />
213177 Great Ideas Inc<br />
213753 Green Pond Marketing Group<br />
215366 Grubb & Ellis Management Svcs<br />
215950 Gull Associates Inc<br />
215953 Gulotta’s Inc<br />
216694 Hyde Park Jewelers<br />
ADAM and MITCHELL FIRM<br />
SAGE/50600 ASI/43920 UPIC/CARLSONC<br />
217274 H M Marketing Inc<br />
217276 H P I Direct<br />
217302 H S A Enterprises Inc<br />
217975 Hall Marketing Group Inc<br />
219010 R L Hammette & Assoc<br />
219857 Harbor Marketing Group LLC<br />
221400 The Hartnett Co Inc<br />
222437 Health Impressions<br />
222470 Heavin & Associates<br />
223900 Henderson Associates Inc<br />
225024 High Profi le H P <strong>Advertising</strong> Inc<br />
225275 Hinda Inc<br />
227701 Hot Ideas Inc<br />
228810 The John K Howe Company Inc<br />
228900 Howell & Windham Advg Co<br />
229164 Brady Hull & Associates<br />
229171 Humphrey Printing Co Inc<br />
229272 Hygrade Business Group Inc<br />
229302 I C M Corporation<br />
229307 I D America Inc<br />
229330 I M G International Ltd<br />
229338 I P S<br />
229383 I S E Offi ce Plus Inc<br />
229428 The Idea Brokers Inc<br />
229440 Identy-Links Inc<br />
229502 Idea Reps Ltd<br />
229524 The Idea Source Inc<br />
229587 Ideas & Details Inc<br />
229643 Ideas’ N Motion Inc<br />
230085 Image Printing Solutions<br />
230088 Image Outfi tters Inc<br />
230126 Image Products Inc<br />
230240 Imagraphics Corp<br />
230376 Impatto Custom Marketing Inc<br />
230464 Impresos Quintana Inc<br />
230490 The Impress Corporation<br />
230562 Imprint Marketing Concepts<br />
230607 Imprint Inc<br />
230722 Incentex Inc<br />
230728 In Record Time Inc<br />
230756 Incentive Media LLC<br />
230759 In-Concept Ltd<br />
230790 Incentive Services Inc<br />
230875 Incentives By Design Inc<br />
230890 Independent Business Group<br />
230908 Indiana Dimensional Prdts LLC<br />
231011 Indoff Inc<br />
231045 Infi nity Watch Corp<br />
231063 Infopak Inc<br />
231086 Informs<br />
231110 Initial Impression<br />
231119 Ink Enterprises Inc<br />
231137 Inman Promotional Team Inc<br />
231152 Inmartgroup Limited<br />
231235 Innovative Marketing/Orinda Ca<br />
231380 Innovative Concepts<br />
231501 Interform Graphics<br />
231553 Inter-Concept Sales Promotion Inc<br />
231555 Innovative Concepts/Your Image<br />
232048 In2Itive Group Inc
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
Distinguished g<br />
232263 Ivars Sportswear Inc<br />
232363 J C B Specialties Inc<br />
232386 J E B Designs Inc<br />
232414 J G E Awards And Promotions<br />
232421 J G Products LLC<br />
232440 J & L Promotions Inc<br />
232532 J K G Group Inc<br />
232638 J R Resources<br />
232661 J P Graphics Inc<br />
232852 Jacobs Agency<br />
233180 James Group Solutions<br />
233420 Jansco Inc<br />
233730 Jarrett & Assoc/Button King<br />
233754 Jaxco Industries LLC<br />
234862 Jibe Promotional Mktg<br />
234936 Joe Henry Inc<br />
234972 The John Gray Awards Company<br />
235914 Joiner Marketing And Promotions<br />
237250 Jones Associates<br />
237905 Just Call Inc<br />
238041 K-Sport Inc<br />
238295 K L K Holdings Inc<br />
238325 K L & P Marketing Inc<br />
239900 Keeler <strong>Advertising</strong> Inc<br />
240000 Keene Promotions Inc<br />
240315 Keith’s Ii Sports Ltd<br />
241050 Kendall Promotions<br />
241600 Terry Kernan Associates<br />
242345 Keystone Gifts Inc<br />
242358 Killeen Dynamic Designs Inc<br />
242390 Kilroy Creations Corporation<br />
243630 Klondike <strong>Advertising</strong> Inc<br />
244009 Knight-Abbey Commercial Printers<br />
244500 Koher <strong>Advertising</strong><br />
244608 Kohn Design & Printing<br />
246176 Krystal Marketing Inc<br />
246655 Kustomize It<br />
246723 L A Promotions Inc<br />
246736 L F <strong>Advertising</strong> & Supply Inc<br />
246986 L T’s Inc<br />
247042 Label Systems Specialties<br />
248550 Lane <strong>Advertising</strong> Specialties<br />
249350 Lapelco LLC<br />
249351 Lapgevity LP<br />
249352 Lapine Inc<br />
250025 Launch! Brand Marketing<br />
252287 Les Productions Rhinoferoce<br />
253164 Levy <strong>Advertising</strong> Ent Inc<br />
253765 Liberty Flag & <strong>Specialty</strong> Co<br />
254000 Lidejo Companies<br />
254320 Lindsey <strong>Advertising</strong> Company<br />
254382 Linjen Promotions Inc<br />
254415 The Linx Group Inc<br />
254650 Lipic’s Inc<br />
255225 Logofx Inc<br />
255235 Logo Inc<br />
255269 Logomotion Inc<br />
255322 Logoworld<br />
255323 Logos And Promotions<br />
255409 Logoworks Inc<br />
255444 Logos Your Way Inc<br />
255496 Mckee-Southern Marketing Inc<br />
256200 J T Lovell Company<br />
257900 M B Promotions<br />
257970 M G I Promotions<br />
258014 M J Marketing Inc<br />
258056 M G R Entertainment Inc<br />
258120 M P G Promotions LLC<br />
258169 M S I Corporation<br />
258374 M T I-Marketing Techniques Inc<br />
258400 Macco Promotions Inc<br />
258405 M W International Group Inc<br />
258917 Mackellar Associates Inc<br />
259286 Mad Design Co Inc<br />
259615 Madison Sales Group Inc<br />
259637 Magagna Associates Inc<br />
259761 The Mainline Embrdry & Design Co<br />
259800 Majaq<br />
259977 Major Saver Fundraising Inc<br />
260262 Manatee Bay Enterprises Inc<br />
260495 The Manfred Group Inc<br />
261592 Market Builder<br />
261596 Market Identity<br />
261599 Market U S A<br />
261648 Marketing Products Group Inc<br />
261698 Mktg Drive Promo Services Grp<br />
261862 Marketing Promotions<br />
261867 Marketing Motivation<br />
& Prom’l Resources Inc<br />
261869 Marketing Partners Inc<br />
261898 Marketnet/PMA<br />
261930 Mark-It Smart, Inc<br />
262890 Martin Marketing Spec Inc<br />
264121 Master Prints of New England Inc<br />
264421 Maxwell Marketing Inc<br />
265326 McCormick Company<br />
265910 McKee Group Inc<br />
266870 Mc Weeney Marketing Group Inc<br />
266971 Ron Mears Appreciated Advg Inc<br />
266972 Mechanical Specialties<br />
267019 Media Sales Limited<br />
267078 Mega Source Hospitality Resources Inc<br />
267436 Mellin Promotional <strong>Advertising</strong><br />
268475 Lorne Merkur & Sister Inc<br />
268585 Merrill/May Inc<br />
268613 Merrill Corporation Inc<br />
268680 Jim Mersfelder & Assoc Inc<br />
268930 Metromarketing Services Inc<br />
269404 Micanor A S<br />
269513 Ted Michaud & Associates<br />
270825 Midwest College Mktg Group Inc<br />
271800 Homer Miller Company<br />
274488 Models Plus LLC<br />
275276 Moisant Promotional Products<br />
275306 Momentum<br />
275358 Monaco Design & Mktg Inc<br />
275500 Monarch Sales Company Inc<br />
275700 Monograms & More Inc<br />
275795 Montana Marketing Inc<br />
277370 Morton Suggestion Company
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
Distinguished g<br />
277750 Motivation Consultants Inc<br />
277768 Motivation Excellence Inc<br />
277770 Motivational Concepts Inc<br />
277780 Motivators Inc<br />
277882 Motor Car Dealer Forms<br />
277973 Mulligan Marketing Group Inc<br />
278151 Munoz Athletics<br />
278631 Music T’s/SW Spec Ptrs Inc<br />
279614 Nadler Brothers Company<br />
280160 National Awards<br />
280920 National Imprint Corporation<br />
281041 National Offi ce Suppliers Inc<br />
281930 Nelaine <strong>Advertising</strong> Ltd<br />
282349 Netknacks Tennis Awards Inc<br />
282610 New England Promotions<br />
282750 New Image Promotions Inc<br />
283126 Newline Printing & Tech Solut Inc<br />
283200 Newport Promotional Svcs Inc<br />
283375 The Next Trend Designs Inc<br />
283520 Nick’s Enterprises Inc<br />
284536 Norseman Apparel Inc<br />
284633 North American Corp of IL<br />
285080 Northeast Promotions<br />
285379 Northwest Sleevewear Inc<br />
286464 O2 Marketing & Design<br />
286510 Oates Flag Company Inc<br />
286680 E R Ochsendorf Company<br />
286685 Octagon Merchandising<br />
286915 Odyssey Marketing Group Inc<br />
287450 Olympia Promo & Distr Co<br />
287671 1Roof LLP<br />
288640 P A C Q Inc<br />
288656 P A W Marketing Inc<br />
288777 P D Q Printing of Las Vegas<br />
288860 P-F Unlimited, Inc<br />
288940 P J Marketing Services Inc<br />
288992 The P O P Shop Inc<br />
288993 P P A G Ltd<br />
290031 Panda Embroidery<br />
291371 The Pascall Principal Inc<br />
291481 Patty’s Premiums.com<br />
292050 Don Payne Inc<br />
292461 Peak Promotional Group LLC<br />
292479 Peak Resource Group<br />
293250 Pennsylvania Promotions Inc<br />
293537 Performance Marketing Inc<br />
293580 Percivall <strong>Advertising</strong><br />
293617 The Perfect Impression<br />
293622 Perk International LLC Inc<br />
294929 Philburn Inc<br />
295279 Phoenix Marketing Group Inc<br />
295287 Phoenix Promotional Prods Inc<br />
295590 Piedmont Graphics Inc<br />
295819 Pilgrimpage Inc<br />
296360 Planet Promotions Inc<br />
296391 The Planning Showcase<br />
296416 Platinum Promotions Inc<br />
296750 Polar Graphics USA Inc<br />
297297 Porter World Trade Inc<br />
297322 Positive Impressions Inc<br />
298087 Precision Printing & Supply Co Inc<br />
298300 Preferred <strong>Advertising</strong> Inc<br />
298562 Premiere Partners Inc<br />
298598 Premiere Marketing Group Inc<br />
298656 Premium Concepts Inc<br />
298862 Premium Research Inc<br />
298968 Premium Works Inc<br />
298990 Premiums & Specialties Inc<br />
299019 Premiums Promotions & Imports Inc<br />
299279 Prezents Inc<br />
299331 Prime Source of Western NY Inc<br />
299349 Prime Time Plus Inc<br />
299417 Print Promotional Services Inc<br />
299441 Print Resources Inc<br />
299491 Print Management Partners<br />
299589 Print-Tex USA<br />
299590 The Printsource Group Ltd LLC<br />
299600 The Cy Prisyon Co Inc<br />
299604 Printing Solutions - Redlands<br />
299644 Printing Inc<br />
299697 Pro Corp Images Inc<br />
299710 Pro Media Inc<br />
299792 Prism Graphics Inc<br />
299815 Print Solutions
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
Distinguished g<br />
299836 Professional Concepts Inc<br />
299837 Professional Duplicating Inc<br />
299841 Professional Forms & Syst Inc<br />
299935 Professional Uniforms Inc<br />
300143 Proforma Graphic Printsource<br />
300152 ProFill Holdings LLC<br />
300235 Progressive Industries Inc<br />
300237 Progressive Promotions Inc<br />
300363 Promarketing Gear Inc<br />
188 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
300398 Promo 540 LLC<br />
300413 Promo Dart<br />
300415 Promoadvantage Mktg Group LLC<br />
300455 Promo Plus <strong>Advertising</strong> Inc<br />
300470 Promo-Ad & Associates Inc<br />
300475 Promoco<br />
300521 Promobiz.com LLC<br />
300540 Promoting You Inc<br />
300545 Promotion Concepts Inc/Award<br />
300564 Promo Logic LLC<br />
300571 Promotion Factory of Oklahoma<br />
300590 Promotion Products Inc<br />
300605 Promotion Prdts Mktg Group Inc<br />
300644 Promocentric Inc<br />
300752 Promotional Concepts Inc<br />
300786 Promotional Elements Inc<br />
301008 Promotional Marketing Inc<br />
301060 Promotional Media Inc<br />
301107 Promotional Products Plus<br />
301122 Promotional Resource Group Inc<br />
301169 Promotional Solutions Inc<br />
301221 The Promotions Dept<br />
301244 Promotions Hannah Inc<br />
301257 Promotions Pronto LLC<br />
301409 Promotions Unlimited<br />
301413 Promotions 2000 Inc<br />
301443 Promoventures Inc<br />
301452 Promotivators<br />
301518 Propac Inc<br />
301744 Provident Merchandise Sourcing<br />
301878 Publicidentity Inc<br />
302257 Publigraphics S A De C V<br />
302916 Quality Concepts Inc<br />
303057 Quantum Forms Corporation<br />
303070 Quest Promotions<br />
303320 R B S (Ring Binder Supply)<br />
303347 R & D <strong>Specialty</strong> Company Inc<br />
303556 R L K & Associates Inc<br />
303583 R M I Inc<br />
303763 R & M Specialties Ltd<br />
303794 R&R Recreational Products Inc<br />
303806 R S N Promotionals Inc<br />
303878 Rainbow <strong>Advertising</strong> Inc<br />
303879 Rage Unlimited<br />
304120 Rainbow Industries Inc<br />
304803 Ranroy Printing Company<br />
304900 Rayko Inc<br />
304980 R’Devie “Art of Life”<br />
305402 Recognition Concepts Inc<br />
305441 Recognition Experts Inc<br />
305642 Red Oak Concepts Inc<br />
306115 Regalia Mfg Co<br />
306240 Regis Marketing Group Inc<br />
306688 Relco International Corp<br />
307080 Render Ad Service Inc<br />
307267 Repco Graphics Inc<br />
309335 R J Roberts & Co<br />
309430 Theresa Roberts Inc<br />
309550 Robert’s <strong>Specialty</strong> Company<br />
313690 Roush Sports Group Inc<br />
314601 Rudig Trophies Inc<br />
315060 Rush <strong>Advertising</strong> Specialties<br />
315120 Russell Specialties Corp<br />
315737 J Ryan Industries 5 Inc<br />
316016 S Group Inc<br />
316060 S P S Worldwide LLC<br />
316103 S & S Enterprise Group LLC<br />
316120 S & S Promotional Group Inc<br />
316200 Safe Designs Promotional Mktg
SOI 2007 TOP MULTIMILLION-DOLLAR 40 DISTRIBUTORS ROUNDTABLE<br />
Distinguished g<br />
316309 St Croix Promotions Inc<br />
316328 St Croix Screen Printing Inc<br />
316700 Sales Aids Inc<br />
317040 Sales Makers Inc<br />
317500 Salisbury Sales Inc<br />
318080 Sanders Marketing Group<br />
318377 Sands Promotions<br />
319933 Sayre Enterprises Inc<br />
321410 Scola <strong>Specialty</strong> Advg Corp<br />
321992 Screen Printing U S A Inc<br />
322009 Screenprinting Specialties Inc<br />
322012 Screen Printers Design<br />
323555 Servaward Inc<br />
324150 Shads <strong>Advertising</strong> Inc<br />
324237 The Shamrock Companies Inc<br />
324550 Sharp Ideas Inc<br />
324676 Shaw Print & Promotion Inc<br />
325050 Shearer & Associates<br />
325469 Shenk Athletic<br />
325811 Shipmates/Printmates<br />
326179 Show Your Logo Inc<br />
326508 Siegel’s Corporate Gifts<br />
326527 The Sign Cellar<br />
326530 Sigma Marketing<br />
326644 Signs of Success<br />
326704 Silk Screen Printing Company<br />
326710 Silk Screen Shirts Inc<br />
328075 Sisu Marcom Inc<br />
328901 Smart Practice<br />
328914 Smart Source LLC<br />
328944 E Smith & Associates Inc<br />
329120 Smith Promotional Advg Inc<br />
329812 The Solutions! Group<br />
329824 Solutions Ink<br />
329829 Solutions In Marketing Inc<br />
329950 Sooo Special Inc<br />
330000 Souder’s Inc<br />
330070 Source One Mktg Group Inc<br />
330160 South Shore Outdoor Store<br />
330474 Southern IL Book & Supply Co<br />
330675 Southern Specialties<br />
330940 Southwick <strong>Specialty</strong> Advg Inc<br />
331000 Spalding Companies<br />
331149 Spec Works Inc<br />
331340 Specialties Inc<br />
331392 Specialties USA Inc<br />
331870 <strong>Specialty</strong> Incentives Inc<br />
331872 <strong>Specialty</strong> Fashions<br />
332193 Speedway Systems LLC<br />
332278 Spencer Marketing & Promotions<br />
332417 Spirit Products Ltd<br />
332490 Sportdecals Inc<br />
332573 Sportsrock Merchandising LLC<br />
332662 Spotlight Professional Svcs<br />
332750 Cedric Spring & Associates<br />
332900 Richard E Spry Inc<br />
332909 Square One Inc<br />
334185 Stanley Thomas Associates Inc<br />
334634 Staples Inc<br />
334780 Star Athletics Inc<br />
336200 Bob Stephens & Assoc Inc<br />
336492 Stern Group<br />
336952 Stincor Specialties Ltd<br />
337186 Stonestreet Mktg Services Inc<br />
337500 Stowebridge Promotion Group Inc<br />
337875 Strategies Ltd<br />
338151 Streetwise Promotions<br />
338337 Striking Solutions Inc<br />
338407 Stuart & Associates<br />
338528 Success Promotions Inc<br />
339107 Sullivan Group Inc<br />
339615 Suntex Aquisition L P<br />
339634 Super Embroidery Inc<br />
339859 Supersonic Enterprises Inc<br />
339875 Suplidora Industrial Dominican<br />
340497 The Swann Group Inc<br />
340725 Sybar Press Inc<br />
340982 T H P Printing Co Inc<br />
340984 T J Associates Printing Inc<br />
341090 T M Marketing Inc<br />
341098 T N M Promotions Ltd<br />
341100 T N T Inc<br />
341203 T S C Inc<br />
341210 T & P Incentives Inc<br />
341358 Tag! The Creative Source LLC<br />
341537 Tallahassee Engraving & Awards<br />
341588 Tandem Printing Inc<br />
341900 G G Tauber Co Inc<br />
342464 The Team Group Promociones<br />
342478 Team Shop Premiums LLC<br />
342495 Teamco International<br />
342534 Teamworld Inc<br />
343895 Thomas Promotions Inc<br />
345120 Tobie & Friends Inc<br />
345397 Top of The Line Sportswear Inc<br />
345710 Tower Products Inc<br />
346200 Trans-Canada Advg Co Ltd<br />
346355 Treadway Graphics<br />
346520 Trexco Associates Inc<br />
346551 Tri-Media Marketing Inc<br />
346648 Trident Communications Inc<br />
346987 Tri Market Promotions<br />
347037 Trims Unlimited Inc<br />
347055 Triple A Specialties Inc<br />
347065 Triple Crown Products Inc<br />
347089 Trippe Supply Co of Wash DC Inc<br />
347095 Tri-Star Promotions Inc<br />
347400 Tri-State Distributing<br />
347421 Tri-Versa-Global Inc<br />
347513 Trophy Award Co<br />
347550 Trophies Inc<br />
347752 Tugboat Inc<br />
347792 Turnkey Promotions Inc<br />
347878 Twister Inc<br />
347899 2 Oceans Promotions Inc<br />
347981 U P I Promotions Inc<br />
348002 U S A Marketing LLC<br />
348051 Ultra Marketing Inc<br />
348084 Underground Printing<br />
348322 The Union Group Inc
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
Distinguished g<br />
348425 Unique Appeals Ltd<br />
348440 Unique Gifts & Promotions<br />
348520 Unique Specialties Inc<br />
348665 United Print Group<br />
349257 Unitex Sales Ltd<br />
349342 Universal South Inc<br />
349585 Universal Midwest<br />
349590 Universal North Inc<br />
349700 Universal Promotional Prods<br />
349915 Unlimited Ideas Inc<br />
349928 Unlimited Opportunities<br />
349935 Unlimited Promotions Inc<br />
350365 V.N. Products Inc<br />
350617 Harlan Vance Co<br />
350660 Van Pearl Associates Inc<br />
350667 Vanguard Industries West Inc<br />
351130 Van-Smith Marketing<br />
351527 Venture Marketing Inc<br />
351606 Verge Promotional Mktg Inc<br />
351965 Vibrations Sales Promos & Advg<br />
352000 Victor <strong>Advertising</strong> Service Inc<br />
352212 Viper Marketing Group Inc<br />
352485 Virgo III Ltd<br />
352503 Visions Marketing Inc<br />
352515 Vista Marketing Inc<br />
352528 Visionmark Inc<br />
353190 Vox Promotions Inc<br />
354440 Walker <strong>Advertising</strong> Inc<br />
354530 Walker-Clay Inc<br />
355050 Walrob Agency Inc<br />
355440 Warjo Promotions Inc<br />
355625 N Wasserman & Co Inc<br />
355716 Waterfront Promo’l Mdsing LLC<br />
355719 Watermark Graphics Inc<br />
356470 Martha Weems Ltd<br />
358760 Western Printing Company<br />
358768 Western Prtg & Graphics LLC<br />
359158 Westminster Prtg & Promotions<br />
359174 Westwind Identity Products<br />
359630 White’s <strong>Advertising</strong><br />
360100 J Wilbur Company<br />
360175 Wilcox & Associates Inc<br />
360183 Wilde <strong>Advertising</strong><br />
361166 Wilson Dunn Promotions Ltd Inc<br />
361169 Wilson Int’l Products Ltd<br />
361600 Wincraft Inc<br />
361610 Winners Circle Inc<br />
361620 Windjammer Promos<br />
362226 Winter People Inc<br />
363153 Benny Wood<br />
363800 Worrell Bros Inc<br />
364259 The Wright Touch<br />
364510 Wurzburg Print Services<br />
364573 Wyndham Jade LP<br />
365124 You Name It Promotions<br />
365818 Zide’s Sport Shop<br />
372419 Allegra Print & Imaging<br />
372420 Elk Grove Allegra Prt Img Inc<br />
373069 Alphagraphics #370<br />
373094 Alphagraphics #207<br />
398501 P I P Printing #500<br />
398502 P I P Printing #248<br />
398516 P I P Printing #459
Presenting the 2007<br />
Multimillion-Dollar Supplier Roundtable<br />
We are proud to present the suppliers of the 2007 Roundtable<br />
– 241 industry leaders (more than in 2006) who have<br />
each earned an annual sales volume of $5 million and over.<br />
Included in the Roundtable are the Top 40 suppliers (shown<br />
in bold here), profi led on pages 134 thru 167 of this edition.<br />
The Gold designation lauds suppliers with sales volumes<br />
Gold<br />
Sales volume of $10 million and over<br />
30270 Aakron Rule Corp<br />
31570 Advantage Industries<br />
34354 Allstate Printing & Graphics<br />
35290 American Ad Bag Co<br />
35297 American Apparel<br />
36230 Anico Intl (Plush Animals)<br />
36320 Antigua Group Inc<br />
36730 Ariel Premium Supply Inc<br />
37127 Ash City<br />
37128 Ashworth Inc<br />
37210 Atchison Products Inc<br />
37590 Avaline<br />
37940 Bag Makers Inc<br />
38670 Barton Nelson Inc<br />
40480 Bic Graphic USA<br />
40653 Blue Generation<br />
40788 Bodek and Rhodes<br />
42090 Broder Bros. Co.<br />
192 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
34408 Alpha Shirt<br />
72808 NES Clothing<br />
43442 Calibre International LLC<br />
43785 Capitol Sales Co Inc<br />
44620 Charles River Apparel<br />
45450 Clegg Industries Inc<br />
46420 Continental Mktg Svc Inc<br />
46573 Cooper & Clement Inc<br />
Corvest Promotional Products<br />
32145 Adva Lite<br />
62960 Its All Greek To Me<br />
91530 Toppers LLC<br />
46767 Counterpoint<br />
43051 CPS<br />
47520 A T Cross Company<br />
47700 Crown Products<br />
47971 Custom Printing Ii Ltd<br />
47965 Cutter & Buck<br />
of $10 million or more; Silver honors suppliers with sales<br />
volumes of $5 million to just under $10 million. As with the<br />
Distributor Top 40, rankings are bound to hold a surprise or<br />
two! ASI and Counselor r congratulate these supplier sales lead-<br />
ers for their achievements and welcome them to the 2007<br />
Multimillion-Dollar Supplier Roundtable.<br />
48500 Dard Products Inc<br />
48520 Dart Manufacturing Co<br />
49716 Digispec<br />
49807 Direct Connections Inc<br />
50835 Dri Duck Traders Inc<br />
50840 Dri Mark Products Inc<br />
50930 Dunbrooke<br />
51650 Economy Pen & Pencil Company<br />
52493 Ennis Inc<br />
32050 Admore Inc<br />
34817 Alstyle Apparel/A & G Inc<br />
52495 Ennis Inc/<strong>Advertising</strong> Concepts<br />
52840 Evans Manufacturing<br />
54100 Fields Manufacturing Inc<br />
55145 Fossil Special Markets Div<br />
55549 GA Golden Pacifi c Intl<br />
55990 Garyline<br />
56070 Gemline
Gold<br />
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
56950 Gill Studios Inc<br />
57653 Gold Bond Inc<br />
57668 Golden State T’s<br />
58135 Greater China<br />
58295 Groline<br />
58842 H T T Headwear Ltd<br />
60135 Hartwell Classic Apparel<br />
60930 Hilton/Rawlings Apparel Group<br />
61125 Hit Promotional Products<br />
61960 Hotline Products<br />
61966 Hub Pen Co<br />
62660 Innovation Specialties<br />
62820 International Merch Concepts<br />
91340 Journalbooks/Timeplanner Calendar<br />
63776 KTI Networks Inc<br />
66224 Lanco Corporation<br />
67866 Logomark Inc<br />
The Magnet Group<br />
37934 The Bag Factory<br />
39700 Benchmark Ind<br />
62663 Innovations By Magnet<br />
68520 Magnet LLC<br />
77965 Phonecard Express<br />
68680 Maple Ridge Farms Inc<br />
70122 Meadwestvaco<br />
71685 Mid-Nite Snax (R)<br />
71920 Moderne Glass Company Inc<br />
Norwood<br />
31010 Action Line<br />
33260 Air-Tex<br />
38480 Barlow<br />
51625Econ-O-Line<br />
63110 Jaffa<br />
78105 Pillowline<br />
80330 RCC Koozie<br />
88390 Souvenir<br />
89998 Style-Rite Planners<br />
90454 Symphony Diaries<br />
90740 Tee Off<br />
92185 Triumph Calendars<br />
94120s V-Line<br />
74360 Noteworthy Co<br />
74359 Noteworthy Awards<br />
74600 Nucom Ltd/Premiumwear<br />
74710 Numo Manufacturing Inc<br />
74773 Ogio International Inc<br />
75350 Otto Intl Inc<br />
75420 Outdoor Cap Co<br />
76730 Peerless Umbrella Co Inc<br />
78120 Piller Industries Inc<br />
78690 Plasticad Line<br />
78825 Points of Light Inc<br />
Polyconcept North American<br />
42424 Bullet Line Inc<br />
66887 Leed’s<br />
79300 Precidio Inc<br />
79393 Premiumwear Inc<br />
72725s Munsingwear/Premiumwear<br />
79530 Prime Line<br />
79680 Pro Golf Premiums Inc<br />
Profi ll Holdings LLC<br />
45180 Cincinnati Line/Wear Magic<br />
90518 TSC Apparel<br />
PromoResourceOne Inc.<br />
31969 Adimages Promotional Group<br />
43920 Carlson Craft<br />
66040 Label Works<br />
81500 Regency Thermographers<br />
97270 Windmill Press/Saratoga Pen Co<br />
79914 Promotion Express<br />
80060 Punch Products USA Inc<br />
80150 Quick Point Inc<br />
82588 River’s End Trading<br />
83770 Royal Industries<br />
84358 S & S Activewear<br />
84470 Sabina<br />
84820 Sanders Mfg Company<br />
84833 Sanford Business-To-Business<br />
84863 SanMar<br />
85371 Scarborough & Tweed<br />
86390 Senator USA<br />
88060 Snugz/USA Inc<br />
88877 Sportsman Cap Network<br />
84592 St Regis Crystal Inc<br />
89320 Starline USA Inc<br />
89380 Staton Corporate & Casual<br />
89910 Stouse Inc<br />
90075 Sunscope<br />
90305 Sweda Company LLC<br />
90667 Taylor & Grant Specialties Ltd<br />
91240 3M/Promotional Markets Dept<br />
91320 Time Products Intl<br />
91605 Towel Specialties<br />
91760 Tradenet Publishing<br />
92125 Tri-Mountain/Mountain Gear<br />
93390 Vantage Apparel<br />
93520 Ventura Inc<br />
93917 Virginia T’s Inc<br />
93986 Visions Awards<br />
93990 Vitronic Promotional Group<br />
95280 Warwick Publishing Co<br />
95838 Webb Company<br />
99070 Zippo Manufacturing Co<br />
Silver<br />
Sales volume of $5 million and over<br />
30350 A La Carte<br />
30205 A M Player<br />
30250 A Z X Sport<br />
30050 AAA Glass Corporation<br />
31260 Adcapitol Aprons, Bags,<br />
31940 Addventure Products Inc<br />
32180 Advance Corporation<br />
35375 Amer Cabin Supply/Amer Accents<br />
35500 American Greenwood Inc
SOI 2007 MULTIMILLION-DOLLAR ROUNDTABLE<br />
Silver<br />
35530 American Intercont’l Trade Group<br />
35722 The Americana Company<br />
36901 Arrow Emblems<br />
37390 Atlantis Match Company<br />
37470 Aura Badge Co<br />
37655 Awards Inc<br />
38120 Ball Pro Inc<br />
39250 Beacon Promotions Inc<br />
39590 Bella<br />
42330 Bruce Fox Inc<br />
42868 Business Stationery LLC<br />
42963 Buztronics Inc<br />
43792 Cap America Inc<br />
43993 Carolina Made Inc<br />
44500 Certif-A-Gift Co<br />
44900 Chocolate Inn Ltd<br />
46170 Compass Industries Inc<br />
46755 Cosmo Fiber Corp<br />
47168 Creative Metal Casting<br />
47934 Custom HBC Corp<br />
49675 Dickies Occupational Wear<br />
50150 Dixon Ticonderoga Company<br />
48000 DLX Industries Inc<br />
50873 Drummond Printing Inc<br />
52710 Essef Distributors Inc<br />
51197 ETS Express Inc<br />
53509 Fairdeal Import & Export Ltd<br />
53616 Fanda Enterprise Inc<br />
54040 Fey Line<br />
55675 Galaxy Balloons Inc<br />
55980 Garrity Industries<br />
56080 Gemaco Inc<br />
56778 Giftronics Inc<br />
73295 Goldstar<br />
59080 Halls & Company<br />
61820 Hospitality Mints LLC<br />
62050 Humphrey Line Inc<br />
62860 Iris Ltd Inc<br />
64860 King Louie America<br />
66390 Lar Lu<br />
67230 Lewtan Industries Corp<br />
68190 Lungsal Int’l Inc<br />
68288 M M I International Trade<br />
68480 Magna-Tel Inc<br />
68707 Marathon Mfg/Prestige Lines<br />
68810 Markoff Industries Inc<br />
69718 Maxplus International Inc<br />
70830 Metropak<br />
71235 Millennium Leather LLC<br />
71475 Minimedia Intl Inc<br />
71980 Molenaar Inc<br />
73295 National Design Corp/Goldstar<br />
74248 North Amer Prod Development LLC<br />
75660 Pacifi c Headwear<br />
76675 Pedre Promotional Products Inc<br />
78100 Pilgrim Plastic Products Inc<br />
78128 Pine Island Sportswear<br />
78328 Plasti-Plak<br />
79387 Premium Shapes<br />
79840 Proinnovative Inc<br />
79980 Providence<br />
81808 Rennoc Corporation<br />
80289 RMK Worldwide Inc<br />
86565 Seville Corporation<br />
86850 Shepenco/Shelbyville Pencil<br />
87188 Showdown Displays<br />
87400 Simple Signman Inc<br />
88188 Sonoma Promotional Solutions<br />
90640 Target Industries<br />
91080 Thermo-Serv<br />
91755 Trademarks Embroidery<br />
91880 Tranter Graphics Inc<br />
90507 TRG Group<br />
97292 Wine Appreciation Guild Ltd<br />
98290 World Wide Lines Inc
SOI 2007 QUOTABLES<br />
Compiled By Andy Cohen<br />
Abrams, Brian, Corporate Imaging<br />
Concepts Inc.; on fi nally collecting<br />
money from a deadbeat client who<br />
once told him to “F off,” 54<br />
Asher, Nancy, The Image Group;<br />
on how the company is able to sell<br />
$1 million a year in promotional<br />
apparel, 84<br />
Barrocas, Mark, WearGuard-Crest;<br />
on how the company services more<br />
than 300,000 individual clients every<br />
year, 105<br />
Borst, Dennis, Patriot Marketing<br />
Group; on cracking a million-dollar<br />
account with logoed dog tags, 38<br />
Callaway, Craig, eCompanyStore Inc.;<br />
on insisting that the company isn’t<br />
made up of “Internet geeks,” 130<br />
Carrico, Tom, Gill Studios; on how the<br />
company faces the election-year<br />
yo-yo of revenues, 150<br />
Chandraraj, Girisha, Broder Bros. Co.;<br />
on why growing sales isn’t the company’s<br />
number-one goal, 134<br />
Cole, Jeff, Eagle Graphics; on why<br />
you’d “get your throat cut” in the old<br />
days if you sourced products outside<br />
of the industry, 81<br />
Constantino, Carol, Noteworthy;<br />
on the company owning an Indian<br />
Museum that is the largest privatelyheld<br />
collection of Mohawk items, 167<br />
Ferrer, Jody, The Perfect Promotion;<br />
on why it’s diffi cult to keep new salespeople<br />
motivated in the beginning, 50<br />
Gould, Brian, LSC Marketing; on<br />
painting a logo on a goat and having<br />
the goat fall on him in the process, 70<br />
200 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />
Gray, David, David Gray Enterprises;<br />
on how he nabbed a $2 million client,<br />
62<br />
Holland, Mark, Corvest Promotional<br />
Products; on the company being sold<br />
to the same private equity fi rm that<br />
recently purchased Chrysler, 146<br />
Hudicka, Mary Ellen, Bodek and<br />
Rhodes; on the company increasing<br />
its product line and sales staff by 20%<br />
each, 138<br />
Jackson, Stephen, Sunscope; on<br />
launching a new 600-page catalog,<br />
142<br />
Kelley, Jerry, Mirror Sales Inc; on losing<br />
money if the company accepts a<br />
deal with less than a 30% gross profi t<br />
margin, 41<br />
Lage, Paul, Norwood Promotional<br />
Products; on the effort to win back<br />
the confi dence of distributors, 137<br />
Lantz, Jo-an, Geiger; on a more-than<br />
$2-million investment in technology,<br />
108; on the “fi fth generation of<br />
Geiger” joining the fi rm, 108<br />
Lasker, Sammy, Rushking Promotions;<br />
on the need to bend over backwards<br />
for “mega-dollar” deals from pharmaceutical<br />
companies, 46<br />
Lott, Marty, SanMar; on distributors’<br />
overwhelming need for speed and<br />
deep inventory, 138<br />
Martin, Wayne, American Solutions<br />
For Business; on averaging 5,000<br />
orders a month through electronic<br />
channels, 116<br />
Mouty, Rick, ProFill Holdings; on<br />
benefi ting from selling the basics –<br />
T-shirts and fl eece – and not fads, 148<br />
Muzzillo, Greg, Proforma; on the<br />
company’s bold goals of increasing<br />
revenues 30% to 40%, 106<br />
Nadel, Craig, Jack Nadel International;<br />
on why he’s happy about the company’s<br />
revenues falling more than 11%<br />
between 2005 and 2006, 118<br />
Nelson, Gabe, Barton Nelson; on nine<br />
second-generation and six third-generation<br />
family members currently<br />
working at the company, 156<br />
Paisley, Alison, Bensussen Deutsch &<br />
Associates; on the whole company<br />
being taken on a trip to Las Vegas for<br />
an exclusive concert with Sugar Ray<br />
and Zowie Bowie, 106<br />
Piller, Herbert, Groline; on profi ting<br />
from an increased consumer focus on<br />
the environment, 154<br />
Reisbaum, Michael, ProCon Marketing;<br />
on showing up at a deadbeat<br />
client’s offi ce every Friday morning<br />
for 15 months to try to collect, 57<br />
Remaley, Russ, A to Z Promotions; on<br />
selling employee recognition programs,<br />
66<br />
Schembri, Joseph, Sweda Co. LLC; on<br />
dealing with all of the company’s top<br />
management positions changing last<br />
year, 145<br />
Simon, Marc, Halo Branded Solutions;<br />
on what the company looks for in a<br />
potential acquisition target, 58<br />
Smalley, Mark, American Apparel; on<br />
how the company overcame inventory<br />
defi ciencies, 142<br />
Welborne, Dan, Workfl owOne; on<br />
how the company achieved 42%<br />
growth last year, and why it’s projecting<br />
200% growth this year, 122