Growing IT hardware reseller ZIP Networks readies for new home

SYRACUSE — ZIP Networks, Inc., a Syracuse–based reseller of IT hardware founded in 2011, is getting ready to move across town to accommodate its growth.

ZIP Networks expects to complete its move to a 53,000-square foot structure at 100 Wilkinson St. on June 1, departing its 3,000-square-foot headquarters at 524 N. Salina St.

This move, according to ZIP Networks president and co-owner Claudia Tooley, 49, will help accommodate the company’s growing customer needs.

 “This is a wonderful deal. It gives us an opportunity to expand, even from a personnel perspective,” says Tooley. “As we expand and move our equipment, we will be able to do everything right there.”

ZIP Networks purchased the former warehouse building at 100 Wilkinson St. from Inland Supply, Inc. in January for $175,000, according to Onondaga County property tax records. Edward Kiesa, senior broker with CBRE Syracuse, represented ZIP Networks while CBD Companies represented the seller in the real-estate transaction. The property is assessed at $274,000 and has a full market value of $334,146, according to the county’s tax records.

ZIP Networks has generated rapid growth since its founding. Its first-quarter 2013 sales exceeded the $182,000 in revenue it generated for the full year in 2012 and the $140,000 the company produced in 2011, according to Tooley.

ZIP Networks offers both new and refurbished hardware to customers. The constant purchasing of legacy equipment requires greater stocking space, Tooley says, and the N. Salina Street space was too small.

“The new space will help expand our inventory,” Tooley says. “We will be able to offer more to our customers [of] in-stock [items].”

Another reason for the move, Tooley noted, is St. Joseph’s Hospital Health Center’s expansion project, which will likely take away the parking space most of ZIP Networks’ employees were using. 

Company background

ZIP Networks provides IT networking hardware and services. The firm currently has six employees and is owned by Tooley and her husband Al Tooley, 63.

The products ZIP Networks sells include Ethernet switches, modular access routers, WAN interface cards, modules, wireless adapters, bandwidth cables, and converters. The company also collects and recycles outdated or unwanted appliances, refurbishes them and sell them to customers. “We deal with both new and old solutions for businesses,” says Tooley.

Some of the partners ZIP Networks is working with on recycling are Computer Connection of Central New York, Inc. near Utica and Coast 2 Coast Electronic Recyclers, Inc. in DeWitt.

ZIP Networks’ customers range from individuals to large organizations like universities and government agencies. Claudia Tooley declined to disclose the customer list.  

Tooley, holds a bachelor's degree in business administration and management from Le Moyne College. Her first job after college graduation was working in the data processing department of Dairylea Cooperative Inc. in DeWitt. Tooley went on to serve as a data-processing manager at NRS Circulation, Inc. and then as a manager for the Syracuse–based magazine-subscription management company, Nationwide Processing Center, Inc. Both companies are owned by her husband.

In 2011, after listening to suggestions from her friends, Tooley decided to leave the shrinking publishing market and venture into the hardware retailing industry. It was an area that was completely out of her zone of expertise, Tooley says. She hired experts and tried to learn the IT hardware market from scratch.

“It’s amazing what you learn every day,” Tooley says. “The product might be different” but sound management and operational principles apply no matter the business or industry, she adds.

Strategic plans

When talking about development strategies in the future, Tooley says she will continue to expand her customer base at ZIP Networks, but she stressed that the public sector will become the company’s major focus. She also seeks to broaden the equipment-maintenance services the firm provides, a task that’s difficult with the firm’s current small staff. 

As a state-certified Woman Owned Business Enterprise, a National Women Business Owners Corporation-certified enterprise, and a certified Historically Underutilized Business Zones (HUBZone) business, ZIP Networks gains contracting and subcontracting opportunities with various government agencies while benefiting from preferential policies. As part of the Small Business Administration’s HUBZone’s certified benefits, for example, ZIP Networks enjoys 10 percent leeway of price evaluation in full and open contract competitions. In return, ZIP Networks must hire at least 35 percent of its employees from among those who reside in the HUBZone.

Tooley concedes that working for the government is very competitive and businesses must offer the best price. However, it can provide a steady revenue stream, particularly when the private sector is in a downturn.

“Even when the private sector is little down, you still have a steady stream of cash flow and stable work for your people,” she says. “I think it provides a good base to keep working. And then you can spend time working on your private-sector customers.”

In the IT market, competition and opportunities abound. There are a lot of companies out there, like ZIP Networks, that are providing similar services, Tooley says. It takes a lot of hard work, persistence, and relationship development to be successful.

“We certainly want to be better at marketing.” Tooley plans to hire more sales and marketing people after moving. “We tend to attract sales people who have been in the business for a long time. Oftentimes they can come with some good relationships with other customers.”

Contact The Business Journal at news@cnybj.com

SYRACUSE — ZIP Networks, Inc., a Syracuse–based reseller of IT hardware founded in 2011, is getting ready to move across town to accommodate its growth.

ZIP Networks expects to complete its move to a 53,000-square foot structure at 100 Wilkinson St. on June 1, departing its 3,000-square-foot headquarters at 524 N. Salina St.

This move, according to ZIP Networks president and co-owner Claudia Tooley, 49, will help accommodate the company’s growing customer needs.

 “This is a wonderful deal. It gives us an opportunity to expand, even from a personnel perspective,” says Tooley. “As we expand and move our equipment, we will be able to do everything right there.”

ZIP Networks purchased the former warehouse building at 100 Wilkinson St. from Inland Supply, Inc. in January for $175,000, according to Onondaga County property tax records. Edward Kiesa, senior broker with CBRE Syracuse, represented ZIP Networks while CBD Companies represented the seller in the real-estate transaction. The property is assessed at $274,000 and has a full market value of $334,146, according to the county’s tax records.

ZIP Networks has generated rapid growth since its founding. Its first-quarter 2013 sales exceeded the $182,000 in revenue it generated for the full year in 2012 and the $140,000 the company produced in 2011, according to Tooley.

ZIP Networks offers both new and refurbished hardware to customers. The constant purchasing of legacy equipment requires greater stocking space, Tooley says, and the N. Salina Street space was too small.

“The new space will help expand our inventory,” Tooley says. “We will be able to offer more to our customers [of] in-stock [items].”

Another reason for the move, Tooley noted, is St. Joseph’s Hospital Health Center’s expansion project, which will likely take away the parking space most of ZIP Networks’ employees were using. 

Company background

ZIP Networks provides IT networking hardware and services. The firm currently has six employees and is owned by Tooley and her husband Al Tooley, 63.

The products ZIP Networks sells include Ethernet switches, modular access routers, WAN interface cards, modules, wireless adapters, bandwidth cables, and converters. The company also collects and recycles outdated or unwanted appliances, refurbishes them and sell them to customers. “We deal with both new and old solutions for businesses,” says Tooley.

Some of the partners ZIP Networks is working with on recycling are Computer Connection of Central New York, Inc. near Utica and Coast 2 Coast Electronic Recyclers, Inc. in DeWitt.

ZIP Networks’ customers range from individuals to large organizations like universities and government agencies. Claudia Tooley declined to disclose the customer list.  

Tooley, holds a bachelor's degree in business administration and management from Le Moyne College. Her first job after college graduation was working in the data processing department of Dairylea Cooperative Inc. in DeWitt. Tooley went on to serve as a data-processing manager at NRS Circulation, Inc. and then as a manager for the Syracuse–based magazine-subscription management company, Nationwide Processing Center, Inc. Both companies are owned by her husband.

In 2011, after listening to suggestions from her friends, Tooley decided to leave the shrinking publishing market and venture into the hardware retailing industry. It was an area that was completely out of her zone of expertise, Tooley says. She hired experts and tried to learn the IT hardware market from scratch.

“It’s amazing what you learn every day,” Tooley says. “The product might be different” but sound management and operational principles apply no matter the business or industry, she adds.

Strategic plans

When talking about development strategies in the future, Tooley says she will continue to expand her customer base at ZIP Networks, but she stressed that the public sector will become the company’s major focus. She also seeks to broaden the equipment-maintenance services the firm provides, a task that’s difficult with the firm’s current small staff. 

As a state-certified Woman Owned Business Enterprise, a National Women Business Owners Corporation-certified enterprise, and a certified Historically Underutilized Business Zones (HUBZone) business, ZIP Networks gains contracting and subcontracting opportunities with various government agencies while benefiting from preferential policies. As part of the Small Business Administration’s HUBZone’s certified benefits, for example, ZIP Networks enjoys 10 percent leeway of price evaluation in full and open contract competitions. In return, ZIP Networks must hire at least 35 percent of its employees from among those who reside in the HUBZone.

Tooley concedes that working for the government is very competitive and businesses must offer the best price. However, it can provide a steady revenue stream, particularly when the private sector is in a downturn.

“Even when the private sector is little down, you still have a steady stream of cash flow and stable work for your people,” she says. “I think it provides a good base to keep working. And then you can spend time working on your private-sector customers.”

In the IT market, competition and opportunities abound. There are a lot of companies out there, like ZIP Networks, that are providing similar services, Tooley says. It takes a lot of hard work, persistence, and relationship development to be successful.

“We certainly want to be better at marketing.” Tooley plans to hire more sales and marketing people after moving. “We tend to attract sales people who have been in the business for a long time. Oftentimes they can come with some good relationships with other customers.”

Contact The Business Journal at news@cnybj.com