The School-Pak Story, Part 2

Don't know how this was missed but apparently it was never posted. Here's part 2 of our story.

Crayola became our first company to deal with.

Like most big companies that get approached by a start-up, Crayola wouldn’t give us credit. But they did come up with an interesting program.

All we had to do was send them $2,500 to start our account. (That wasn’t real easy. You see, our total start-up cost was $500. So coming up with 5 times that amount was taking a bit of a stretch.)

As we had things sent to us, Crayola would deduct that from our account until we were almost at zero. Then, another $2,500 was needed.

It’s time to step back a little at this point. In 1993, Terri was working as a group leader in the outpatient department of St. Joseph’s hospital. Her schedule had her working second shift 2 days a week for one week and then 3 days the following week. It didn’t bring in much income but it provided health insurance.

My only source of income came from an interesting place. In 1986 I became a partner in a small company, Station WVCR. We had a vending machine for VHS tapes. We were the forerunner of the Red Box, just 25 years early!

We ended up closing the business as Blockbuster became the major force for renting tapes. We couldn’t afford to keep up with the number of new release copies they provided and eventually had to close our doors.

Our main benefactor, Bill Kesselman, was the financial loser, close to $500,000. Yet, as I’ll write about in the future, he became one of the best mentors I’ve ever had.

I kept the tapes and started a small service, placing films in grocery stores (without the vending machine) and shared in the rental profits. That was now my way of earning a living.

It was tough but we held together for another 5 years before Terri could come on full time. In the meantime, I was the “missionary”, traveling across SE Wisconsin, talking to principals and parent groups about School-Pak.

It was a new concept then and it was pretty difficult getting schools to sign up. Yet a lot did and now we had another problem.

School-Pak outgrew our house!

To be continued.

Unethical Business Practice

In 1991, I founded School-Pak with the core beliefs of providing quality products, a high level of  customer service and a fair price for school supplies.

I have been unable over the years to match the sale prices of items offered by WalMart, Target, Kmart, etc., as School-Pak does not carry underwear and socks, the items that these stores want you to buy. They offer the sale prices on school supplies as a loss leader to their store.

I understand that sales model. It works for them and they will continue to do that. They don’t offer the same level of customer service and convenience that School-Pak presents.

However, I can no longer stay silent about the practices of Educational Products (EPI). I have found that our pricing has shown to be lower than theirs in many cases. EPI, however, will state that they will discount any lower bid than theirs by 3% in order to get the business.

I believe that to be the highest level of unethical business practice.

Consider the following:

You, or someone in your family, is applying for a job. The interviewer asks you what salary you need. After offering your number, another applicant, not having the same skills as you, responds that they will take 3% less than you. And you lose the job.

Or worse. Someone comes into your employment and says they'll do your job for 3% less. And you lose your job.

I can’t change the mindset of people who believe that the lowest price offsets business ethics. I can only believe that most people will do the right thing.

Terri Schulist

Founder, School-Pak, Inc

Random thoughts as school approaches

Kept thinking about the following last night while trying to sleep:

Random Thought 1 

 Our local Walgreens is promoting a free back-to-school supply event. You go into Walgreens, purchase the items (of course Walgreens isn't discounting the items) and place them into a bin. Makes Walgreens look good (and profitable) helping out kids. Why don't they just donate the items?

The same goes for Wal-Mart, now having a special give-away. C'mon. Why not just donate the items and not sell them? It's no different than the food stores that ask for donations at Thanksgiving and Christmas. It's not really coming out of their pocket. Every year we're asked by non-profits across the country for donations. We do donate to a number of causes but we don't sell them the items.

Random Thought 2

Just had to deal with a school that was asking for a specific sketch book, a Strathmore one. They were for all students in the school from Kindergarten to Grade 8. We were able to supply (our price is just under $9 for the book) to those who bought School-Paks. But what about those parents that didn't order from us. Where do they find it?

We found them at an art store for $19.95 each. Do teachers realize what some of these items cost? Does a Kindergarten child need that quality? Just wondering.

The same goes for specialty compasses, protractors, pens, etc. What happened to common products? Parents are not going to find some of these specialty items without making numerous trips to numerous stores. Of course, that makes us look good. :)

Random Thought 3

Since we're limited by inventory and workers, we close our final ordering date in late July. So how should we answer "Hi, I see that you are out of stock and don't have any more packs. Can we still order?"

Huh? If we're "Out of Stock" it means we're "Out of Stock".

Most schools start taking orders in March giving the parents up to 4½ months to place their order. I'm not sure why they procrastinate for that long.

I wish we could keep enough inventory in stock for the entire year but it's just not possible. 

Random Thought 4

Without a doubt our economy is still struggling. According to the "economic gurus" we need to stimulate the economy again to propel consumer buying. If enough people buy items, we'll need more workers goes the story. So Terri came up with a brilliant idea. We've tried sending it to elected officials but our campaign donations are non-existent so we never get a reply.

Terri is suggesting that the next stimulus be the issuance of debit cards to citizens. The amount doesn't matter (we didn't go that deep into it) but there would be a 180 day expiration date. The cards could only be used for purchases and could not be used to put money in the bank or pay bills.

Just think of a few hundred million citizens with a $300 - $500 debit card purchasing items. The Consumer Spending Index should go through the roof.
Remember, you read it here first!

Summer's half over

Summer keeps speeding by and we're getting a lot of orders. Hard to believe that we're at the half-way point. And we're having a problem with a large supplier, Mead. Apparently the "big" retailers (Wal-Mart, Amazon, etc)have items made specially for them by Mead. So when customers go shopping and find something they like, they ask to put it into a School-Pak. But Mead has restrictions on selling the items to us. They have to get a release from these retailers. That takes us out of the running if a school is asking for the product. We have an agreement with Mead for their products but these don't show up in their catalog as they are specially made. I guess exclusivity is what all of us retailers would like. It's hard enough to stay competitive with multi-million dollar companies. We'd just like a level playing field when it comes to product accessibility. On a side note, teachers are still asking for items that haven't been made for years. We keep getting requests for "Spacemaker" pencil boxes. Sorry. These haven't been around for about 5 years. Teachers may be using "Spacemaker" as a generic term. Unfortunately, parents that go shopping will be looking for it. The same with "Duo-Tang" folders. They're history. The company that bought their manufacturer dropped the name. But back to the good news. The temperature today is a little more comfortable in the warehouse and our workers (college and high school students)are doing an incredible job this summer.

School Supply Addiction

Finally (my second surgery for a detached retina was in August of 2011) I was going to get the cataract surgery that would start the return of eyesight to the left eye.

I spent the morning answering emails and in meetings so I was pretty pumped for the 2:30 event.

My doctor had told me that it normally takes about 15-20 minutes for the surgery. Mine lasted about and hour due to all the trauma the eye had gone through with 2 surgeries in August.

What was most interesting was the return visit on Friday. The outpatient clinic is right next door to a Starbucks. Not only was the drive through backed up on the lot but the line of cars actually extended out to the street for another 4-5 cars. Unbelievable.

We went into the clinic and rode the elevator with a woman who was holding a Starbucks cup in her hand. Naturally, the first question I had was, "How long did you wait in line?" She looked at me and said "I won't go to this one. The lines are always too long. I stop every morning at a different one on my way to work."

That got me thinking. People stop, some every morning, for their $4 + cup of coffee and think nothing of it. There's approximately 225+ work days in a year so they end up spending around $900 a year on coffee.

Many times I'll speak to a coordinator about our programs and they'll tell me that they need to go with a different company because "these are hard times. Families are suffering and our parent organization wants to help them with this type of program. So we're going with the lowest price." The difference is price might be $2.00 more for a School-Pak. Realize, of course, that not every coordinator says this and not everyone in the school community would necessarily agree. Some would be willing to pay a little more for the quality.

I believe that providing exceptional service plus quality brand name products like Crayola, Elmers, Fiskars, etc., would make that $2.00 (once a year) a great value.

So here's my question: What can we do to make buying a School-Pak addictive? Send me some ideas and maybe we can get on TLC with "Strange Addictions". Could be a riveting program. :)

Feel free to comment

Is the Modern Family too Modern?

Milwaukee has joined the nation with a teacher being accused of child enticement. Stories are showing up all over the Internet about teachers, coaches, band leaders, scout leaders, just about anyone we've believed we could trust, that are facing charges.

What's going on? Is this a new phenomenon, or are we getting kids to finally step forward and report these incidents?

Having grown sons, we're now faced with worrying about the grand-children. We know that our sons' families are aware of the problem and spend the time vetting those people that are in contact with the grand-kids. With an 8 year old and a 4 year old grandson, my eyes lit up when I read the new issue of TV Guide.

On page 12 there's an article by William Keck about Modern Family. In an upcoming episode, Phil (Ty Burrell) finds out that Haley is not a virgin. According to Keck, Phil "is horrified but it ends up being very heartfelt and meaningful".

Claire (Julie Bowen) has know for some time and apparently had dealt with it without telling Phil. And, although Keck writes "Julie had the most difficult time with the plotline", Bowen's comment at the end of the story is what stunned me.

Asked of she dreads facing this rite of passage with her kids, she jokes, "My kids are boys. So they can have sex at age 6 and that'd be fine."

Would she make her daughter (if she had one) wait until age 7? 8? 9?

Really? Maybe the Modern Family is too modern.