The Singleton Company associates with Kaeser & Blair, Inc.
Posted 09 December 2011 - 08:47 PM
Counselor Top 40 distributor Kaeser & Blair (asi/238600) announced today that Los Angeles, CA-based The Singleton Company (asi/328000) has associated with it. While no financial information was revealed, all of The Singleton Company's sales reps will be joining the Kaeser organization as part of the deal and Kaeser will be opening an office in California. The Singleton Company is a third-generation family business now headed by Todd Singleton. "I spent months researching the best possible fit for my reps and found Kaeser & Blair provided the fit I needed," said Todd Singleton in a statement. "I am pleased and excited with the opportunities this partnership offers me and my sales group."
For Kaeser & Blair, this gives the Batavia, OH-based distributorship a presence in California that it didn't previously have. "We are very happy to welcome Todd and his whole team to K&B," said Kurt Kaeser, CEO of Kaeser & Blair. "Having the talented sales professionals of The Singleton Company join the K&B Dealer Group is an exciting event for both companies."
Kaeser & Blair ranks as the 17th-largest distributor in the industry, with $79.2 million in 2010 North American ad specialty revenues. The company received Counselor's Distributor Family Business of the Year award earlier this year. The Singleton Company, which reports annual sales of $7 million to ASI's CreditConnect program, received the same honor in 2006.
Posted 10 December 2011 - 04:38 PM
One issue with associating with some of these franchise distributors is that if you were an employee at the old company and had benefits such as health insurance and 401K, you might be changing to an independent contractor agreement and have to manage those benefits yourself. The other issue is with becoming an independent contractor, if you speak with a good accountant and read the IRS tax laws, in order to be classified as an independent contractor, you need to show that you are doing business and invoicing more than one client. You should run certain orders through your own company such as printing, why would you want to take a 50/50 split on printing business? Treat the larger distributor as a processing/invoice engine for large orders, small-medium orders you can handle and fund yourself. Watch out for non-compete agreements! some are not enforceable in California, but not a good agreement to have in place when you are an IC. Set-up an LLC for legal & tax reasons.
Posted 22 May 2012 - 07:22 AM
K & B has no 'non-compete' contract with their dealers, and to the best of my knowledge never has. In fact, for my first eight months with K & B, I was still sending orders to my former company while shifting 99% of my clients to K & B - with their knowledge and blessing.
If was my first distributor who had trouble with my splitting and demanded I send them 100% of my business - in total violation of the rules for engaging Independent Agents.
As for the 50.50 split, that is strictly for the entry level/part-timers who sell less than $100K annually. I've been enjoying a 65/35 split of the total profits on every order, while K & B does all the heavy lifting - credit, sales tax collections & reporting, absorbing the bad debt orders, working out issues with suppliers on unsatisfactory imprints, etc. For my book, K & B earns their 35%, leaving me with more hours to focus on what generates income - marketing and sales to my clients and prospects.
Any of Mr. Singleton's employees can decide for themselves whether or not they prefer to look for an employee situation, or take the higher commissions from K & B and provide their own insurance/benefits.
Kaeser & Blair, Inc.
www.CuttingEdgeAdv.com -My TLN site
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