People Have the Power
After the recession hit, a paper trail of red ink led some companies to financial ruin. But as closures, bankruptcies and layoffs found their 15 minutes of fame in trade publications, not everyone backed down to the sensational headlines.
Many distributors continued last year's trends of heart and ingenuity-and the payoff was big. Take InnerWorkings Inc., for example. With reported annual sales coming in at $798 million-a $164.2 million increase compared to 2012 figures-the Chicago-based company once again clinched the No. 1 spot on Print+Promo's Top 50 Distributors list. Cleveland-headquartered Proforma also saw a jump in revenue, holding on to its No. 2 ranking at $430.3 million. Finally, American Solutions for Business (ASB), Glenwood, Minn., enjoyed a boost in numbers, rounding out our top three, with roughly $190.3 million in sales.
These are sizable accomplishments, no doubt, but there's more to the story than dollar signs. In fact, according to these heavy-hitters, there is no story without their people. Creative minds are responsible for bringing new responsibilities around the world to InnerWorkings Inc., for helping eight Proforma members make Inc.'s 5000 list of America's fastest growing companies, and for helping ASB to profit from emerging technologies.
The following section takes a closer look behind the makings of 2013's top three distributors. Read on to learn how these executives have been spending their time and what they have in store for the industry.
1. InnerWorkings Inc.
Principal: Eric D. Belcher, CEO
Print+Promo (P+P): What was your company's greatest success over the last year?
Eric D. Belcher (EDB): Our team got even better. Our growth has created new responsibilities around the globe, and I'm proud of the way our professionals have risen to meet the new opportunities our clients have provided. We've also had one of our best recruiting years, both from within the industry as well as bringing in new top talent from other industries.
P+P: What is your company's top priority for 2014?
EDB: In 2014, we will launch our new technology platform. It's been in development for almost two years, and we have 68 full-time people working on it right now. It will launch in 38 countries, with 18 languages and in 28 different currencies. With an easy-to-use interface, our employees, our clients and our suppliers will be able to work off the same platform in producing, monitoring and analyzing all aspects of our brand delivery services. We think this platform will be a game changer for our company and for our industry.
P+P: What keeps you up at night? In other words, what is the biggest problem(s) facing the industry today? Do you foresee any improvement?
EDB: There's far too much waste in our industry, and it hurts the returns that marketing departments see from their investments in branded materials and experiences. Better information-made more transparent and accessible-is the solution. It's the only way to reduce price discrimination, to better balance capacity across the industry, and to make better matches between jobs and the manufacturing environment where they are produced.
P+P: What types of marketing strategies does your company rely on to succeed?
EDB: The best marketing strategy we know is to provide our clients with value and insight every day. Our business continues to grow thanks to the introductions our clients make for us.
P+P: What is the most important thing you want the industry to know about your company?
EDB: InnerWorkings is a comprehensive brand partner-we are committed to driving one marketing experience across channels, mediums, experiences and geographies. Building this broad level of expertise at InnerWorkings has taken a lot of resources and hard work, but we believe our solution is where our industry is headed.
2. Proforma
Principals: Greg Muzzillo, Founder, Vera Muzzillo, CEO
Print+Promo (P+P): What was Proforma's greatest success over the last year?
Greg Muzzillo (GM): We just introduced our Results First Program. Most distributor networks say, "Join us. Pay us fees. And then we will get you results." With the Proforma Results First Program we say, "We will get you results first. Then join us. Then pay us fees." The Proforma Results First Program makes joining Proforma virtually risk free. The fact is only Proforma has the proven team and programs to deliver the Results First Program. Only Proforma has a recruiting department that can source experienced sales reps for our members. Only Proforma has a $4 million per year sales and marketing support that can help our members sell more to their current customers and earn new customers. Only Proforma has more than $400 million in purchasing clout. Only Proforma has a support team of over 150 professionals. Only Proforma can deliver a Results First program.
P+P: What keeps you up at night? In other words, what is the biggest problem(s) facing the industry today? Do you foresee any improvement?
GM: I prefer to talk about the biggest opportunity facing our industry. The biggest opportunity in our industry is that businesses in North America spend over $200 billion per year on the promotional products and printing solutions we sell ... and no organization in this industry has a significant share of this large market. If anything keeps me up at night, it's my continuous pursuit of building a network of distributors that earns the largest share of this giant industry.
P+P: Is there anything you would like to add?
GM: The proof of Proforma's ability to maximize the success of our members is that last year eight of our members made the Inc.magazine list of the 5000 fastest growing companies. No other distributor network had even one member on the list.
We also have the industry's largest group of million dollar and multi-million dollar members. We have over 100 members of our Million Dollar Club, [and] over 40 members of our Multi-Million Dollar Club [have] sales ranging up to $25 million per year.
3. American Solutions for Business
Principal: Larry Zavadil, Founder and CEO
Print+Promo (P+P): What was your company's greatest success over the last year?Larry Zavadil (LZ): We've finalized the restructuring of our senior leadership team in the home office with V.P. leadership in each department. This has provided the strongest and most talented leadership team in American's history. The senior leadership team understands that American is a "sales" company, and is determined to help sales associates grow their business by focusing on expanded products and technology solutions. With this combination, American can once again focus on growth and top line sales.
P+P: What is your company's top priority for 2014?
LZ: Our priority for 2014 is growth through transformative technologies, including expanded e-commerce solutions and vertical market focus (automotive, health care GPOs, B-to-C sales, etc.) along with acquisitions. Once again, American has positioned itself to handle aggressive growth. Every model in our industry is available within the American model, including the opportunity for smaller companies to join the American family to grow or sell and transition their employees to American's employee-owned environment.
P+P: What keeps you up at night? In other words, what is the biggest problem(s) facing the industry today? Do you foresee any improvement?
LZ: Our customers will continue to drag us "kicking and screaming" into the future. We need to continue to ask questions in order to understand our customers' needs and "pain points" in order for American to evolve with the solutions for the future. Being able to "think young" in adapting the use of social media as it is being adopted by our customers.The economy has less of an effect on the American model than a good banking relationship with availability. As long as customers are buying products and American can finance the transactions, American can grow in spite of the economy. Our Business Protection Program insures us against customer bankruptcies and sales errors.
P+P: What types of marketing strategies does your company rely on to succeed?
LZ: American is launching a multi-channel marketing campaign that incorporates the latest technologies and self-promo opportunities provided by our vendors. Word-of-mouth referrals from end-user customers, vendors and sales associates will always be the best to spread the word about working with American.