The Wholesaler Information

We provide regional training meetings and will have our annual meeting in person again in 2012 after two years of Web-based meetings while we managed the distressed market conditions. These events provide great networking and best practice sharing among our local operators. MJM: What are you doing to recruit the next generation of wholesalers? Schwartz: Recruiting the next generation of wholesalers is an issue many of us in the industry are grappling with. Historically, we grew through our existing presidents and managers providing our Spirit of Opportunity to others. For many reasons, this growth has slowed considerably over the past decade. So, we're trying some new avenues such as junior military officers who want to enter the private sector, partnering with schools with industrial distribution programs, and making sure we explain our business and the opportunity at WinWholesale in a way that is clear and resonates with younger people. We also have to be sure we have a presence where young people are looking for information. We have recently begun using social media channels to create relationships and build our brand. MJM: How much emphasis does WinWholesale place on training and development, and why is this important? Salsman: We've made some great strides in this area in recent years and it's because we believe it is critical to building upon our 50-plus years of success. We've found that the people in our organization who typically achieve the most success have several common personality traits including a desire to learn and improve. We have to be able to feed their appetite for improvement with content and curriculum that benefits both the individual and our organization. MJM: What types of these programs do you offer? Salsman: It's really far reaching and includes everything from the basics and Web-based training to a program we call the Leadership Academy, which provides advanced training for high-potential employees over a period of months. MJM: Would you please share details on the new marketing initiatives you've rolled out over the past 24 months or so? Salsman: We've really just begun to scratch the surface of marketing in our organization. Historically, we haven't provided many organization-wide programs or tools, and we've left marketing up to the local companies. However, in the past couple of years we've created several tools, resources and programs that align with our philosophy of providing big-business tools for the small business owner. Programs like our ProRewards incentive program, direct marketing tools, and increased public relations have all contributed to improving the WinWholesale brand and the brands of our local companies. MJM: What strategies are you employing to improve efficiencies and functionality? Johnston: Like most businesses, we continually look for greater efficiencies. In our case we want to ensure that any support we provide our locations is scalable to serve what we expect to be a growing number of local distributors. Our strategy is to always consider technology to increase efficiency in all parts of the organization where it makes business sense. That includes everything from better ways for local companies to analyze sales reports to having state-of-the-art IT hardware and software. MJM: There is quite a spread in this industry between the handful of very large national firms, and the mid-sized and smaller independent wholesalers. What do you feel are the benefits of your position - both internally and for your customers? Schwartz: We occupy a unique position in the industry. Collectively, WinWholesale and the Win Group of Companies represent a large national firm and a group of smaller sized wholesalers. The benefit of this approach is that our local operations can get very close to their customers and focus on developing strong relationships that you find in a smaller wholesaler, yet they are backed by the strength of a large, national company. MJM: I can't help but notice all of the press releases that I receive from WinWholesale on new locations and owners. How is it that you have continued to experience growth during such a difficult time in our nation's economy? Schwartz: I'm glad that you see the information we send to you and that you find it useful and interesting. The fact is, our growth in terms of new locations has slowed over the past couple of years because of a combination of the economic conditions and finding people who we believe are the right fit for our organization. It would be relatively easy to open many more locations if we were willing to settle for local operations that, at best, will serve our customers with mediocrity. We offer an incredible opportunity for hard-working individuals to create wealth and partner with us to run a successful business. It's not the kind of opportunity we're willing to offer to anyone. We want people who we believe will be successful and grow with us and fit our profile of a successful member of the Win Group of Companies. MJM: Without giving away any secrets, what can you share with us about your plans for growth in the near term? Schwartz: There aren't many secrets in our industry. Our growth is tied to three distinct efforts:• First, the ability to recruit the best talent to our organization• Second is our ability to meet and exceed our customers' expectations and needs, and staying on top of those changing needs• Finally, honoring our great heritage and philosophy while being innovative and seeking new ways to extend our business model. MJM: Jack, I know you are a veteran within the WinWholesale organization, but could you share with us your thoughts as you take over the presidency? Johnston: I've been with WinWholesale for 34 years, primarily in finance-related roles. I'm honored that our board of directors has given me this opportunity to serve our organization in a new way. I'm also excited with the prospect of taking the bottom line discipline my team and I have worked on for many years and extending that to top line growth. MJM: Could you share a little about your background with our readers? Johnston: I'm a Dayton native, a graduate of Wright State University and a CPA. I spent four years in the U.S. Air Force and served in Vietnam after high school. I've been with WinWholesale since 1977 when I joined the organization as an accountant. I became treasurer of Primus, which was the predecessor to WinWholesale, in 1983. After that I was president of our division that manages all of the support services for our wholesalers. I became WinWholesale's CFO in 2005. MJM: What are your goals in this new position? Johnston: We have a great team in place with incredible experience. My job is to meet our growth objectives by harnessing and guiding that talent. All of us get very excited when we begin to discuss the opportunities we have as a company, so in addition, another goal is to help us focus on which of these opportunities to pursue and the best ways to do that. MJM: It sounds as though you have a very smooth transition set up, with Richard Schwartz moving into the position of chairman. What can you share about the legacy that Rick has cultivated at WinWholesale? Johnston: I've learned a lot from Rick. We've worked together for many years, and he has an endless amount of energy and passion for our company. There are many things I admire about Rick and what he's contributed to our organization including his relentless tenacity about how to grow WinWholesale and provide employees the opportunity to succeed, as well as his innovation and drive to use technology to improve operations. Building upon Rick's contributions is a good challenge for me. MJM: Are you involved in private labeling?