Print Solutions Magazine, February 2005 -- E-Files

PROFILE

Peanut Butter And Someone Else’s Jelly

Ennis bucks convention with its online store, hoping the results are delicious.

BY JOE DONATELLI

One joy of a free-market economy is watching the creativity businesses use to increase revenue. Some firms concentrate on improving efficiency, some upgrade the quality of their products and some discover new ways to market. Other firms venture so far beyond the pale that their idea seems simultaneously clever and peculiar.

Ennis Inc. has struck upon such an idea. The Midlothian, Texas-based manufacturer is rolling out a business-to-business store that allows its customers to make purchases online. Ennis also lets its customers set up a second business-to-customer storefront so its customers can sell online. Ennis doesn’t charge for these features, but that’s not what makes the idea different: At each distributor’s request, the company provides access to other manufacturers’ products as well. For example, if FORMSouth of Jacksonville, Fla., wants access to both Ennis’ and manufacturer Highland Computer Forms’ products, Ennis will make both available on its custom FORMSouth business-to-business store site.

“We understand that distributors need choices and that they will not shop at a store where they don’t have choice,” says Ennis Director of Marketing Steve Osterloh. “We think we have a competitive advantage with our name and brand, and we think the customer will see our value and we will earn their business.”

Ennis produces and sells business forms, promotional products and other business products and is one of the country’s largest private-label printed business product suppliers. The company has four business segments: Forms Solutions Group, Promotional Solutions Group, Financial Solutions Group and Alstyle Apparel. (In November 2004, Ennis completed its $242 million merger with Alstyle Apparel Inc., a manufacturer of promotional apparel in Anaheim, Calif. In June 2004, Ennis acquired manufacturer Crabar/GBF for $18 million.) Ennis now operates 42 production facilities and seven distribution centers in 17 states, Canada and Mexico. Last year, Forbes magazine named it one of the “200 Best Small Companies,” and the firm generated nearly $260 million in sales.

For all of Ennis’ clout, finding a working solution has been difficult. Ennis began devising its ennistores .com solution four years ago and launched its first version in 2001, but was forced to retreat when its technology partner went out of business. Ennis gleaned what it could from the experience and spent three years developing a second store based on feedback from customers and non-customers. “Our goal is to help our customers do business with us and help our customers do business,” Osterloh says, even if that means offering its competitors’ products on demand.

Ennis rolled out a beta version of its store a year ago, and it will go live this month. For the time being, the manufacturer offers ennistores.com only to its current customers. Osterloh anticipates connecting hundreds or possibly thousands of clients by the end of the year. “It has taken longer than we wanted to get to market, but we wanted to make sure it was more than a shopping cart,” Osterloh says. “We think it’s an industry-changing solution.” His favorite analogy is the sandwich spread isle at your local grocery store. “I call it the peanut butter and jelly factor,” he says. “If a customer wants peanut butter, offer them jelly on the right-hand side of the page. If they want jelly, offer them peanut butter.” These transactions are conducted through a customized web site that Ennis’ customers can tailor to fit their buying needs. Ennis doesn’t make every competitor’s products available, just those of partnering firms.

On the client side, Ennis allows its customers access to a second personalized site, which can be outfitted to sell virtually any product. Clients can choose from a set of colors and layout designs for each site. Ideally, no fee is charged to Ennis customers. But if a client wants Ennis to design its site, the client must pay. Credit card transactions are handled by VeriSign. Osterloh says that Ennis also reserves the right to charge a fee if “the partnership is not good for both companies.” By making buying and selling easier for clients, Osterloh says, Ennis hopes to increase its sales with entrenched customers as they increase their revenue.

As one of the industry experts tapped for feedback, FORMSouth Owner Malcolm Thompson has been looking forward to ennistores.com since 2001. When Ennis rolled out its initial store, Thompson says he spent $20,000 in marketing and setup costs before the tech bubble, and then his plans of buying and selling online burst. “I’ve been a little gun-shy talking to my clients about this,” Thompson says.

But Thompson remains a believer. He tested the beta version of the store, liked what he saw and thinks that Ennis is fully committed to ennistores.com. “Online products for me are invaluable,” Thompson says. “I sell to clients throughout the Southeast. I can put the product online and even though it’s a custom form, they can add their information and order online. This makes a 500-piece order a viable moneymaker for me. I don’t have to get in my truck and drive 110 miles for a $79 order.”

Thompson’s goal within the next three years is to have 2,000 online clients spending $2,500 a year. Only the ability to render online, he says, puts those goals “within the realm of reality.” The first employee Thompson plans to bring up to speed on the full capabilities of ennistores.com is himself. “This is the future of my business and the future of the industry,” he says. “It’s worth my time.”

Joe Donatelli is a freelance writer in Los Angeles. Email us at editors@printsolutionsmag.com.

Quote

“It has taken longer than we wanted to get to market, but we wanted to make sure it was more than a shopping cart. We think it’s an industry-changing solution.”

Steve Osterloh, Director of Marketing

Ennis Inc., Midlothian, Texas

THE FILE ON ENNIS INC.

Company: Ennis Inc.

Launched: 1909

Location: Midlothian, Texas

Principals: Keith S. Walters, chairman, president and CEO

Business in Brief: Ennis, one of the largest printed business product suppliers in the country, has 42 production facilities located in 17 states, Canada and Mexico, strategically located to serve a national network of distributors. Ennis offers an extensive product line that includes forms, financial documents and promotional printed products. The company’s subsidiaries include 360° Custom Labels, Adams McClure, Admore, Calibrated Forms Co., General Financial Supply, GenForms, Northstar, Star Award Ribbon Co. and Witt Printing.

Web Site: www.ennis.com

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PROFILE Peanut Butter And Someone Else’s Jelly Ennis bucks convention with its online store, hoping the results are delicious. BY JOE DONATELLI One joy of a free-market economy is watching the creativity businesses use to increase revenue. Some firms concentrate on improving efficiency, some upgrade the quality of their products and some discover new ways to market. Other firms venture so far beyond the pale that their idea seems simultaneously clever and peculiar. Ennis Inc. has struck upon such an idea. The Midlothian, Texas-based manufacturer is rolling out a business-to-business store that allows its customers to make purchases online. Ennis also lets its customers set up a second business-to-customer storefront so its customers can sell online. Ennis doesn’t charge for these features, but that’s not what makes the idea different: At each distributor’s request, the company provides access to other manufacturers’ products as well. For example, if FORMSouth of Jacksonville, Fla., wants access to both Ennis’ and manufacturer Highland Computer Forms’ products, Ennis will make both available on its custom FORMSouth business-to-business store site. “We understand that distributors need choices and that they will not shop at a store where they don’t have choice,” says Ennis Director of Marketing Steve Osterloh. “We think we have a competitive advantage with our name and brand, and we think the customer will see our value and we will earn their business.” Ennis produces and sells business forms, promotional products and other business products and is one of the country’s largest private-label printed business product suppliers. The company has four business segments: Forms Solutions Group, Promotional Solutions Group, Financial Solutions Group and Alstyle Apparel. (In November 2004, Ennis completed its $242 million merger with Alstyle Apparel Inc., a manufacturer of promotional apparel in Anaheim, Calif. In June 2004, Ennis acquired manufacturer Crabar/GBF for $18 million.) Ennis now operates 42 production facilities and seven distribution centers in 17 states, Canada and Mexico. Last year, Forbes magazine named it one of the “200 Best Small Companies,” and the firm generated nearly $260 million in sales. For all of Ennis’ clout, finding a working solution has been difficult. Ennis began devising its ennistores .com solution four years ago and launched its first version in 2001, but was forced to retreat when its technology partner went out of business. Ennis gleaned what it could from the experience and spent three years developing a second store based on feedback from customers and non-customers. “Our goal is to help our customers do business with us and help our customers do business,” Osterloh says, even if that means offering its competitors’ products on demand. Ennis rolled out a beta version of its store a year ago, and it will go live this month. For the time being, the manufacturer offers ennistores.com only to its current customers. Osterloh anticipates connecting hundreds or possibly thousands of clients by the end of the year. “It has taken longer than we wanted to get to market, but we wanted to make sure it was more than a shopping cart,” Osterloh says. “We think it’s an industry-changing solution.” His favorite analogy is the sandwich spread isle at your local grocery store. “I call it the peanut butter and jelly factor,” he says. “If a customer wants peanut butter, offer them jelly on the right-hand side of the page. If they want jelly, offer them peanut butter.” These transactions are conducted through a customized web site that Ennis’ customers can tailor to fit their buying needs. Ennis doesn’t make every competitor’s products available, just those of partnering firms. On the client side, Ennis allows its customers access to a second personalized site, which can be outfitted to sell virtually any product. Clients can choose from a set of colors and layout designs for each site. Ideally, no fee is charged to Ennis customers. But if a client wants Ennis to design its site, the client must pay. Credit card transactions are handled by VeriSign. Osterloh says that Ennis also reserves the right to charge a fee if “the partnership is not good for both companies.” By making buying and selling easier for clients, Osterloh says, Ennis hopes to increase its sales with entrenched customers as they increase their revenue. As one of the industry experts tapped for feedback, FORMSouth Owner Malcolm Thompson has been looking forward to ennistores.com since 2001. When Ennis rolled out its initial store, Thompson says he spent $20,000 in marketing and setup costs before the tech bubble, and then his plans of buying and selling online burst. “I’ve been a little gun-shy talking to my clients about this,” Thompson says. But Thompson remains a believer. He tested the beta version of the store, liked what he saw and thinks that Ennis is fully committed to ennistores.com. “Online products for me are invaluable,” Thompson says. “I sell to clients throughout the Southeast. I can put the product online and even though it’s a custom form, they can add their information and order online. This makes a 500-piece order a viable moneymaker for me. I don’t have to get in my truck and drive 110 miles for a $79 order.” Thompson’s goal within the next three years is to have 2,000 online clients spending $2,500 a year. Only the ability to render online, he says, puts those goals “within the realm of reality.” The first employee Thompson plans to bring up to speed on the full capabilities of ennistores.com is himself. “This is the future of my business and the future of the industry,” he says. “It’s worth my time.” Joe Donatelli is a freelance writer in Los Angeles. Email us at editors@printsolutionsmag.com. Quote “It has taken longer than we wanted to get to market, but we wanted to make sure it was more than a shopping cart. We think it’s an industry-changing solution.” Steve Osterloh, Director of Marketing Ennis Inc., Midlothian, Texas THE FILE ON ENNIS INC. Company: Ennis Inc. Launched: 1909 Location: Midlothian, Texas Principals: Keith S. Walters, chairman, president and CEO Business in Brief: Ennis, one of the largest printed business product suppliers in the country, has 42 production facilities located in 17 states, Canada and Mexico, strategically located to serve a national network of distributors. Ennis offers an extensive product line that includes forms, financial documents and promotional printed products. The company’s subsidiaries include 360° Custom Labels, Adams McClure, Admore, Calibrated Forms Co., General Financial Supply, GenForms, Northstar, Star Award Ribbon Co. and Witt Printing. Web Site: www.ennis.com




		Ennis Inc., a manufacturer based in Midlothian, Texas, is rolling out a business-to-business store that allows its customers to make purchases online. The company provides access to some other manufacturers’ products. The site also lets Ennis’ customers set up business-to-customer storefronts so distributors can sell online.