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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 />

250<br />

200<br />

N/A N/A N/A<br />

$292<br />

$343<br />

2002 2003 2004 2005 2006<br />

134 STATE OF THE INDUSTRY 2007 www.counselormag.com<br />

Millions<br />

500<br />

400<br />

300<br />

$374<br />

$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 />

350<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

-0<br />

$37<br />

$38<br />

$62<br />

$300<br />

$305<br />

2002 2003 2004 2005 2006<br />

400<br />

350<br />

300<br />

$385<br />

$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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$107<br />

$116<br />

$126<br />

$140<br />

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 />

100<br />

$147 $147<br />

$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 />

Millions<br />

120<br />

Millions<br />

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$129 $129 $129<br />

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 />

N/A<br />

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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$91<br />

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$114<br />

$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 />

$90<br />

$93<br />

$95<br />

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 />

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$68<br />

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$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 />

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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 />

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$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 />

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$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 />

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$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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50<br />

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$39<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 />

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$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 />

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$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

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