 |
 |
|
 |
||
 |
|
|
|
|
|
|
||
|
|
 |
IN RICHFIELD, in a nondescript ranch house behind a Dairy Queen and the 19-hole Richfield Golf-ette, is what may very well be the country's next direct mail empire - the J.B. Dollar Stretcher (JBDS) empire. And while JBDS has a ways to go towards earning that imperial moniker, the company has made phenomenal gains in its seven-year history. This year, JBDS has won the Weatherhead 100 Upstart award. In addition, the company recently was ranked No. 238 on the Inc. magazine 500 list, up from No. 303 on the 1991 list. In case you have not heard or seen it appear every other month in your mailbox, JBDS publishes a part-glossy, part-newsprint, all-advertising magazine distributed through direct mail to households all over the Cleveland area. And as Robert "J.B. Dollar Stretcher Bob" Minchak, Jr., the company's flamboyant, energetic president, says: "Everyone has a mailbox." Direct mail is one of the fastest growing forms of advertising, and in that arena, JBDS is a fast-growing player. According to Minchak, sales for this year will be up 80% from 1991 numbers. And from 1987 to 1991, the company realized 1163% sales growth, according to the Cleveland Enterprise Weatherhead 100. "When you're (analyzing) how direct mail is superior," Minchak says, "you have to realize that not everyone is watching the same TV station at the same time, not everyone is listening to the same radio station, not everyone buys the Plain Dealer. Direct mail gives the business person the ability to (target) particular demographic areas and put the message into all those mailboxes." To that end, JBDS publishes 22 regional editions in the Cleveland area. Editions of the magazine reach as far west as Elyria, as far east as Painesville, and as far south as Tallmadge. These editions, zoned by zip code, make it economically feasible for national chains like Domino's Pizza and Wendy's to advertise and offer coupons alongside local restaurants, car dealers, and mom-and-pop stores seeking to reach only geographically desirable customer groups. "By being able to direct the message," Minchak says, "you can maximize the impact." Minchak founded the company with his wife, Joan, a graphic artist, company vice president, and the "J" in JBDS in 1985 and launched the company with a 16-page, hand-delivered publication. Today, the magazine's editions range from 28 pages to around 72-pages. One of the secrets to JBDS's success has been Minchak's ability to keep overhead low. The company started in the Minchaks' apartment at E. 152 Street and Lakeshore. The firm has only eight employees. The sales force is made up of independent contractors who work the regions of "J.B. Dollar Land," as Minchak affectionately calls northeast Ohio. "The lower you keep your overhead, the more you stuff in your pocket," he says. Minchak has had to face competition from other advertising media and from local direct-mail firms and larger, national firms. JBDS boasts of being northeast Ohio's least expensive direct mailer, but Minchak takes fighting the competition further than price points. "We work harder at making our customers successful with their advertising. We give our customer a higher dollar returned for dollar invested." JBDS' customer service includes designing marketing programs for advertisers, designing ads, and ensuring quick response to customer requests and inquiries. "If you make your customer successful, your customer will make you successful. If you screw your customer, he'll screw you and then he'll tell 10 of his friends to screw you." "We put our customers on a pedestal," he continues, "and do everything to the best of our ability to serve our customers." In addition to watching out for established competition, Minchak takes pains to identify potential threats. "You always have to keep your eye out for anyone coming up," he advises. "I got my market share (from other mailers) and I've got to make sure that no one else comes around and does it better." While watching the competition and managing his fast-growing enterprise, Minchak is mapping out the firm's expansion. He plans to start publishing a JBDS Canton-area edition in February, a Portage County edition in April, and he has expansion plans for other areas of northeast Ohio throughout 1993. As far as expansion outside Ohio, Minchak jokes that "God has told me to take it wherever people speak English!" For next year, Minchak has set a goal of hitting $5 million in sales. "I'll probably hit $4.5 (million), but you've got to stretch your goals out a little bit in order to make you reach." Finally, Minchak insists it is his wife Joan and his other employees who deserve most of the credit for the company's success. "It's a real team here," he says. "I'm just the ringleader."
|