Voices From the Top
This year we thought we would open our questions to the rest of the top 50, as opposed to limiting it to just the top 10. After all, there's no reason to deny the insights of a fast-rising company or the experiences of a high-ranking industry veteran. Below is a brief selection of what they had to say.
How do you expect the growing global economy to affect your company?
"I believe new business in the future will be awarded globally. We believe as much as one-quarter of our 2011 revenue will come from international markets and expect that number to keep going up." - Eric D. Belcher, President and CEO, InnerWorkings
"Many of the Fortune 500 companies are striving to develop a consistent brand message and marketing strategy globally. Additionally, the use of promotional products is increasing outside of the U.S. New opportunities are emerging in many different countries. As such, companies are looking for a partner that has a global supply chain network to develop and distribute product in many different countries." - Rich Witaszak, Vice President and General Manager, Staples Promotional Products
"More transparency in global sourcing supply chain, and with it an expectation for more stringent compliance at all levels—factory compliance, labor compliance, and continued emphasis on product safety. Our clients are asking for provenance of all types of products—Sunrise is committed to being an industry leader in product safety and compliance." - Mitch Mounger, CEO of Sunrise Identity
"It's not just the 'growing' global economy—it's the 'ever changing' global economy—and it will continue to lead to:
- Price Compression—It's as easy to shop worldwide markets for promotional products now as it is to order a pair of boots from L.L. Bean.
- Sourcing Issues—As commodities run up in various world markets we will continue to experience challenges in consistent costs and reliable sources. You saw cotton jump in 2010, oil in early 2011 (which will affect nylon and plastic components). What will be next is hard to say but rest assured it will be something.
- The China Syndrome—China is dramatically shifting its focus from low technology manufacturing to high tech. Apple alone employs over 800,000 people in China (400,000 in one plant). They have learned that it requires just as much labor to make a circuit board for Apple as it does to make a key tag. This has and will continue to put pressure on other markets for the production of promotional products. Africa, Bangladesh and numerous other developing market economies simply aren't ready yet to take the workload and deliver consistently and reliably."
Jerry Mulligan, Vice President Sales/Business Development, Chamberlain Marketing Group
What's an ethical issue facing the industry, and what needs to be done to overcome it?
"Whether you're dealing with end-user customers, vendors, sales or employees it all comes down to credibility and trust. Many people do not believe in "what goes around comes around" nor do they approach business with a 'win-win' attitude trying to do the right things for the right reasons. The challenge will always be in how we 'communicate' as an industry, companies and individuals sharing this information with one another. It's not a 'technology' answer. It's a 'people' answer. It's still a 'people' business. Sooner or later it comes down to relationships and who you can trust." - Larry A. Zavadil, Founder/CEO, American Solutions for Business
"I don't see any 'ethical issues' being challenged, but believe the 'traditional' supplier-distributor-buyer model being challenged as technology enables all players in the supply chain with more options to identify alternative solutions that may better suit their needs." - Jason Black, CEO of Boundless Network
"A fairly significant issue that faces our industry is the impact products have on the environment. Research shows customers are willing to pay more if it can result in a positive impact to the environment. As an industry, we need to educate our customers on the choices available as many industry products can be produced in an environmentally friendly capacity." - Tom, John and David Robertson, Owners, Robertson Marketing Group. Inc.
"Compliance, compliance, compliance. Because ethically sourcing products from compliant factories is the right thing to do. If a distributor cannot identify the source, they ought to seriously consider a compliant option." - Mitch Mounger, CEO of Sunrise Identity
"Integrity/compliance are the greatest issues facing our industry. There currently is no legitimate, well-vetted and documented worldwide Quality Assurance Standard. The recent scandal at Alibaba is just one example. It's rampant, and as long as U.S. clients insist on the cheapest price we will continue to turn a blind eye to developing a uniform world standard for quality and social compliance. If we won't/don't self govern our own industry and establish an ISO (International Standards Organization) like standard we will continue to run the risk of jeopardizing the long-term viability of our entire industry." - Jerry Mulligan, Vice President Sales/Business Development, Chamberlain Marketing Group
What's the best decision you ever made to advance your company, and why?
"Expanding globally. InnerWorkings is no longer limited to a specific region of our clients' business but instead can support all regions in which they do business. We are now uniquely positioned to be the sole provider to clients around the globe." - Eric D. Belcher, President and CEO, InnerWorkings
"The creation of the Kaeser & Blair Century Club in 1994 on the 100th anniversary of the company's founding (K&B was spun-off in 1894 from a company founded in 1853). The Century Club is a separate service system for our highest producing dealers with dedicated internal personnel, much higher than normal profit splits, substantial bonuses, and sales tools that support the efforts of full time or high volume part time dealers." - Gregg A. Emmer, Vice President and Chief Marketing Officer, Kaeser & Blair Inc.
"Focusing on being a 'boutique agency' and having quality people working with you (even though it has meant scaling back) as well as being creative and constantly practicing what we preach—via self-promos and direct mail/incentive campaigns." - Kris Robinson, Chief Sustainability Officer and Executive Vice President, PromoShop Inc./ecopromos.com
"Invest in the best people and best available technology to further our mission." - Mitch Mounger, CEO of Sunrise Identity
"Sales Compensation—We took our sales team off of commissions over 10 years ago. We felt commissions created a 'used car' sales mentality and wanted our sales team focused on the needs of their individual clients not their own personal gain. It has allowed them to focus on long-term relationships and lifetime value of the customer. Now they are paid a salary and year-end bonuses based on both achieving their goals as well as overall company performance—just like all other employees." - Jerry Mulligan, Vice President Sales/Business Development, Chamberlain Marketing Group
(His answer edited for space, Mulligan also cited vertical integration, technology investments and fiscal discipline as key decisions for the company's growth.)
Who is a hero or roll model of yours?
"Richard Branson, because he is a nontraditionalist and willing to take risk based on his passion, while not giving a sh*t what people think about him." - Jason Black, CEO of Boundless Network
"Herman Newman was my professor at the University of Cincinnati for communications, speech practicum and semantics. He lectured that all communications is outcome based and that the outcome desired must be known or the communications will fail. This concept along with much additional insight and wisdom shared by Mr. Newman with his students, has been instrumental in my professional success." - Gregg A. Emmer, Vice President and Chief Marketing Officer, Kaeser & Blair Inc.
"Both our father (Tom Robertson, Sr., the company founder) and mother (JoAnn) are our roles models. Through their teachings, actions and positive behaviors they created a business culture that is focused on the customers' needs, all while maintaining a sense of fun and creativity around our entire service offering. Additionally, their impact on our organization has grounded our company in high ethical business practices." - Tom, John and David Robertson, Owners, Robertson Marketing Group Inc.
"There are lots of heros/role models I have respect for in business. One quote I think is applicable to our current industry and economy is from Donald Petersen the former CEO of Ford Motor Company. He's credited with being the first to introduce Alan Mulally into Ford when Mulally was at Boeing. In 1989 he was awarded CEO of the Year. When asked what how he turned Ford around he said: 'We had the luxury of adversity.' I feel our industry has that same 'luxury' now and it will spawn lots of entrepreneurial and innovative ideas in the near future." - Jerry Mulligan, Vice President Sales/Business Development, Chamberlain Marketing Group
Click here for Promo Marketing's full Top 50 Distributors list.