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March 2009
 | March 2009 |
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Economy
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Written by Joseph Greco, MSOD
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Monday, 02 March 2009 13:54 |
 A few months ago, I discussed how my company decided to fire our major account. While this was the right move, it was certainly worrisome to risk losing volume in a time of recession. But in analyzing our remaining accounts, we discovered that while these clients each represented lower sales volume, the gross profit was higher. This prompted me to recall one of the lessons my father Domenick taught me. He used to repeat the adage, "the big ones don't let you eat and the little ones don't let you sleep."
It took a few years for this idea to sink in. The big accounts, with the large orders and popular name brands, seemed more glamorous. But we were squeezed on prices then and now. Sound familiar? The smaller accounts seemed to be bothersome for the amount of units they ordered but the gross profit margin was more attractive. Let's remember the name of the game is profits and not just sales.
The aggravation or annoyance that you may encounter from handling smaller accounts should be ameliorated by the use of technology. With a sophisticated data base for enterprise resource planning, dealing with smaller accounts is made simpler. And they still remain profitable. Now that's attractive.
In these challenging times, it's important not just to review and select your account base but also to keep your mind and the minds of your associate's wide open to new opportunities. Brainstorm with your team to develop fresh ideas for marketing and services. If you get fifty ideas contributed and only two are valuable, you are still ahead. Quoting from an Investor's Business Daily article, Mr. Jay Forte, a consultant, reminds us to "tell your people that no matter what happens, we are all going to look for and take advantage of opportunities. By creating a culture of learning, where you're soliciting input from all employees and sharing the latest news with them, you make it easier to include them in your hunt for opportunities. Have them gather information about you industry and talk to customers so that they're always generating ideas."
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Last Updated on Monday, 17 August 2009 19:33 |
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Companies
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Written by Jackie Rosselli
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Monday, 02 March 2009 16:05 |
 Purchasing another company is always risky, but to acquire a troubled business is a gamble few in the uniform industry would take. But that's exactly what family-owned Eiseman-Ludmar Company a New York manufacturer of epaulettes and accessories did in 2006. Effectively rolling the dice, the owners of Eiseman-Ludmar purchased the assets of the braid division of A.H. Rice Company, a business driven to the brink of ruin by poor management, establishing a new company called ELC Industries,. "We're not a large, Fortune 500 firm, so this was a pretty big risk for us" says ELC co-owner David Ludmar. "Yet we knew that if there wasn't a good quality of braid out there, the entire industry would suffer."
Unlike the odds in Vegas, this gamble appears to have paid off. In the three years since the acquisition, Rice Braid has experienced a Lazarus-like resurrection, going from a beleaguered company that couldn't fill orders to an entity with renewed purpose, regaining its stature as the premier American braid house for the uniform industry. As a Rice customer who is a major supplier for the airlines industry recently expressed to Ludmar, "It's hard to believe a problem ever existed."
For a company on the verge of extinction, the turnaround is remarkable. Sales grew over 25 percent from mid 2006 through 2007, and rose 11 percent during 2007-08, an impressive feat given the inhospitable economy. And growth is still anticipated this year, despite an overall bleak economic picture.
For those unfamiliar with the Rice rise and fall, a primer: Founded in 1878 in Pittsfield, MA, Rice Braid had been synonymous with quality, reliability and service. Originally family owned, it was sold a number of times throughout the years. It also acquired several competitors along the way, purchasing the businesses and assets, including equipment and machinery, of its once rivals.
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Last Updated on Monday, 09 March 2009 07:34 |
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Companies
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Written by Debra Hindlemann Webster
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Monday, 02 March 2009 14:35 |
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 Winnipeg, Manitoba, is a major hub of clothing manufacturing in Canada. It is here that so many arrived from Eastern Europe in the early 20th century, used their tailoring skills as their primary occupation, built fulfilling lives for themselves, and created an enormously successful industry. Even as manufacturing has become an offshore endeavor for so many companies elsewhere, this city remains a strong and surviving force in the North American garment trade.
One success story is JMJ/Ingenuity, celebrating 75 years in business with multiple generations of family ownership. 34 year old Morris Shenkarow heads this firm that fills over a city block of manufacturing space, and is capable of running 24 hour per day alternating shifts when necessary. He succeeds his father, Marvin, who created a joint venture between Morris' maternal and paternal grandfathers, each of whom had their own distinct companies.
Founded by Morris Neaman in 1933, the Sterling Cloak Co. Ltd. was originally a producer of ladies' overcoats and sportswear, until it was merged with S. Stall & Sons in 1978, and became the Sterling Stall group. This partnership produced a wide range of ladies' clothing, adding leather, down coats, and suits to the already successful lines of the original Sterling Cloak.' From there, the company became JMJ Fashions, as it continued to expand and create private-label programs for Canadian retailers.
In 1995, always capable of changing with the times, JMJ introduced the Ingenuity line of washable, crease resistant women's tailored sportswear. It was an enormous success and today, Ingenuity is sold all over Canada, the United States, and in Mexico City.
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Last Updated on Wednesday, 25 March 2009 14:23 |
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March 2009
