Syracuse Nationals draws thousands to State Fairgrounds

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GEDDES — The Syracuse Nationals, year after year, draws thousands of car enthusiasts to the New York State Fairgrounds in Geddes. Right Coast Association, the Brewerton–based group that organizes the show, describes the annual mid-July event on its website as the “Largest Car Show in the Northeast.” The show is set for the weekend […]

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GEDDES — The Syracuse Nationals, year after year, draws thousands of car enthusiasts to the New York State Fairgrounds in Geddes.

Right Coast Association, the Brewerton–based group that organizes the show, describes the annual mid-July event on its website as the “Largest Car Show in the Northeast.”

The show is set for the weekend of July 18 through July 20, running from 8 a.m. to 6 p.m. on Friday and Saturday and 8 a.m. to 3 p.m. on Sunday, according to the website.

Adult tickets are $17 at the gate, while tickets for children aged 6 to 12 are $8 at the gate.

More than 7,000 cars participate in the show, depending on the weather, says Robert (Bob) O’Connor, director of Brewerton–based Right Coast Association, which organizes car shows on the East Coast.

“… A lot of the local people, say within an hour or so drive of Syracuse, they wait and see what the weather is going to do,” says O’Connor.

Right Coast takes a “complete body count” of everybody on the grounds for an attendance figure, including the car owners, the vendors, the sponsors, the spectators, he adds.

“We’ll be in that 80,000 range probably again for the three days,” says O’Connor, noting the attendance figures increase about 4 percent to 5 percent per year.

O’Connor declined to disclose how much it costs Right Coast Association to put on the annual event.

The car show is estimated to generate about $13 million in economic impact for the area, according to David Holder, president of the Syracuse Convention & Visitors Bureau (SCVB).

The car show always includes an art auction, called “Artie’s Party,” that Art Schilling, from Surfside Beach, S.C. and owner of East Coast Artie’s, organizes each year.

Schilling invites people to come in and paint throughout the weekend.

“They come in on their own nickel,” says O’Connor.

Those participating painters included visitors from Italy, New Zealand, Japan, and from Great Britain, according to O’Connor.

“Artie’s Party” in 2013 raised $73,000 for Ronald McDonald House Charities of Central New York, according to the Right Coast website.

The Syracuse Nationals, which started as an idea in the summer of 1999, has grown each year since its debut in July 2000 when more than 4,300 vehicles and 30,000 participants took to the Fairgrounds.

Contact Reinhardt at ereinhardt@cnybj.com

StartFast Demo Day 2014 set for Aug. 14 at WCNY Connection Center

Health Care, Small Business, Subscriber Only, Technology

SYRACUSE — Aspiring entrepreneurs will attempt to impress a room of angel investors and venture capitalists with their business plans for developing and commercializing the latest Internet and mobile technologies at the StartFast Venture Accelerator’s Demo Day 2014 on Aug. 14. The Demo Day kicks off at 3 p.m. with registration and a chance to

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The Demo Day kicks off at 3 p.m. with registration and a chance to meet the entrepreneurial teams at the WCNY Connection Center at 415 W. Fayette St. in Syracuse. The keynote speech and team presentations start at 4 p.m.

This year’s guest speaker is Patrick Ambron, co-founder & CEO of BrandYourSelf.com. He was named one of Inc. magazine’s “35 under 35 coolest entrepreneurs.” While at Syracuse University, Ambron and his co-founders launched Brand Yourself in the Syracuse Student Sandbox.

Launched in 2012, StartFast Venture Accelerator is a mentorship-based program for seed-stage software, mobile, and Internet companies. Backed by angel investors, venture capitalists, and corporations, StartFast takes an equity interest in each participating company. Each year, the accelerator chooses 5-10 software, mobile, and Internet companies for an intense three-month program in Syracuse.

The 2014 teams participating in the StartFast program and its Demo Day are the following (descriptions provided by StartFast Venture Accelerator):

Instamour (Philadelphia, Pa.): Instamour (www.instamour.com) allows you to create real relationships via video profiles, live video chat, virtual phone calls, and instant messaging without giving away your personal information.

PlatypusTV (Syracuse): Platypus TV (www.platypustv.com) is a social platform that time-stamps conversations to television episodes, allowing for a shared experience, no matter the time.

Wyzerr (Berkeley, Calif.): Wyzerr (www.wyzerr.com) is a communication platform that helps businesses target, engage, and better understand their customers. It says it helps customers communicate feedback directly to the business at the point-of-sale.

Zursh (San Diego, Calif. and Chile) Zursh (www.zursh.com) is a research engine connecting enterprise requests with researchers. For professionals, Zursh says it minimizes the time, cost, and complexity of getting quality, hard-to-find data.

Mass Mosaic (Kingston, N.Y.) Mass Mosaic (www.massmosaic.com) is a website of wants and haves. You can exchange anything with anyone.

Interface Foundry (New York City) Interface Foundry (www.interfacefoundry.com) lets you browse and build personalized data bubbles.

“DemoDay showcases the reality for top talent around the world to come to this area, be nurtured by world-class mentors, and evolve into high-growth business models,” Jonathan Grutka, director of growth initiatives at Upstate Venture Connect, which helps operate StartFast, says in an email. “StartFast has generated a tremendous opportunity to re-engage [area] expats, alumni, and top entrepreneurs from around the country to come back to and/or visit the area for the first time and experience all that CNY has to offer.”

For more information on the StartFast Demo Day, including requesting an invitation to attend, visit http://startfast.net/demoday/.

Contact Rombel at arombel@cnybj.com

Binghamton University Ross Fund announces community projects grants

Health Care, Regional News

BINGHAMTON — The Broome County Community Emergency Response Team (CERT) and the Johnson Classroom Elements and Teacher Workshops have been chosen for this year’s round

Upstate New York consumers’ confidence rises for a third month

New York News, Subscriber Only

A prediction on the near-term future of the U.S economy and continued investment gains on Wall Street has New York consumers in a better mood and more willing to spend their money on big-ticket items. That’s the assessment of one analyst following the release of a monthly survey on confidence among New York consumers. Consumer

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That’s the assessment of one analyst following the release of a monthly survey on confidence among New York consumers.

Consumer sentiment in upstate New York edged higher by 1.1 points to 76.5 in June, the third straight monthly increase, according to the latest survey the Siena (College) Research Institute (SRI) released July 3.

Upstate’s overall-sentiment index of 76.5 is a combination of the current sentiment and future-sentiment components. Upstate’s current-sentiment index of 83.7 increased 2.6 points from May, while the future-sentiment level remained unchanged at 71.8, according to the SRI data.

The future-sentiment level had increased nearly 8 points in the May survey, the data indicated.

Upstate’s overall sentiment was 2.3 points below the statewide consumer-sentiment level of 78.8, which rose 2.8 points from May, SRI said.

New York state’s consumer-sentiment index was 3.7 points lower than the June figure of 82.5 for the entire nation, which inched up 0.6 points from May, as measured by the University of Michigan’s consumer-sentiment index.

June was “actually a pretty good month” from the consumer standpoint, says Douglas Lonnstrom, professor of statistics and finance at Siena College and SRI founding director. “Fairly good economic news and some good economic predictions that the economy is going to grow a little bit better than people thought a year ago,” he says.

Reuters on June 17 reported that its survey of economists found the U.S. economy is on a “self-sustaining growth path” that should allow the Federal Reserve to start raising interest rates in the second half of 2015.

Also, the stock market is performing well (the S&P 500 index is up more than 7 percent year to date), and “that makes people feel good when their retirement plan has a little more value,” Lonnstrom adds.

When compared with the previous three years, the state’s overall-confidence sentiment of 78.8 is up 0.1 points from June 2013, up 4.3 points from June 2012, and has increased 13.9 points compared to June 2011, according to the SRI data. The sentiment index measured 64.3 in June 2009.

The overall index is 15 points higher than it was back in 2007, says Lonnstrom.

“Over that five-year period, we’ve had a pretty good move up,” he says.

The current component is up 24 points over that same time period, and the future component is up 9 points, Lonnstrom adds.

In June, buying plans were up 1.3 points to 11.8 percent for cars and trucks; increased 2.1 points to 34.1 percent for consumer electronics; and rose 0.6 points to 20.9 percent for major home improvements.

“If people feel better, then they’re more likely to buy things,” he says.

However, buying plans were down 4.2 points to 19.7 percent for furniture, and slipped 0.8 points to 4.3 percent for homes, according to the SRI data.

Gas and food prices
In SRI’s monthly analysis of gas and food prices, 65 percent of upstate New York respondents said the price of gas was having a serious impact on their monthly budgets, which is down from 67 percent in May and 69 percent in April.

In addition, 54 percent of statewide respondents indicated concern about the price of gas, down from 58 percent in May and 56 percent in April, according to SRI.

The price of gas is about 20 cents higher now than it was a year ago, yet the concern declined, Lonnstrom noted.

He believes the slow rise in gas prices, and not a 20-cent increase in one month, was a factor in the lack of consumer concern.

“There was no sticker shock there with the gas prices,” he says.

When asked about food prices, 73 percent of upstate respondents indicated the price of groceries was having a serious impact on their finances, up from 68 percent in May.

About 68 percent of statewide respondents expressed concern about their food bills, up from 64 percent in May.

Lonnstrom also noted the increase in concern about food prices offset the decline in concern about gas prices.

In a July 6 article, The Wall Street Journal cites data from the U.S. Department of Agriculture, which predicts overall food prices will increase 2.5 percent to 3.5 percent this year after rising 1.4 percent in 2013, as measured by the U.S. Department of Labor’s consumer-price index.

SRI conducted its survey of consumer sentiment in June by random telephone calls to 628 New York residents over the age of 18.

As consumer sentiment is expressed as an index number developed after statistical calculations to a series of questions, “margin of error” does not apply.

Buying plans, which are shown as a percentage based on answers to specific questions, have a margin of error of plus or minus 3.9 points, SRI said.

Contact Reinhardt at ereinhardt@cnybj.com

Seven Tips for Hiring “A Players” for your Business

Business Mentors, Employee Benefits & Human Resources, Subscriber Only

Your business does not run itself. The quality of your organization depends on the quality of your team — a motivated, energized staff is the key to companywide success. You want “A Players,” those colleagues who contribute disproportionately to the advancement and profitability of the organization. In the same way that the Pareto Principle states

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In the same way that the Pareto Principle states that 80 percent of results come from 20 percent of your employees (based on research by the Italian economist Vilfredo Pareto in the early 1900s), your A Players have a measurable impact on your bottom line.

The Pareto Principle is often used in a sales environment, but it applies equally to a variety of different industries. If you can build a team of A Players around you, then your job as a business leader or owner becomes much easier, as you do not have to deal with endless crises and can work more intentionally on developing the future strategy for your organization.

So how do you find A Players for your team?

The funny thing about A Players is that you can find them in the strangest places. A few years ago, James was running a car dealership that was lacking in quality salespeople. He received a call from his wife while she was out shopping for strollers, and asked him to meet her at the store.

“I want you to meet Louise. She has a great attitude and I think you’ll like her.”

About 10 minutes later, he was walking into the shop to meet Louise. She was a class act and spent the next half an hour asking them lots of qualifying questions about their lifestyle. Once she had all the information she needed from them, she launched into a brilliant sales demonstration of various products. She was impressive.

They ended up spending over $1,000 in the shop that day and were absolutely thrilled with their interactions with Louise. James was particularly impressed by her enthusiasm, her energy, and her ability to listen intently to their needs, and then repeating this information back when closing the sale. Too many sales people believe that selling is about talking, but in reality it is actually about the ability to listen to your customers so that you can truly understand their needs.

A few days later, James went back to her store and offered her a job. He was not sure that selling cars had been on her career plan, but to her credit she took a risk and joined the team the following month.

Initially, Louise struggled a bit because she had no product knowledge, no customer base, and was the only female on a sales team of 30 people. However, after continual support from James and the upper-level staff, and a combination of hard work and positive attitude, she began to flourish. By the end of the year she was the top sales person at the dealership.

When you are seeking A Players for your organization, don’t just look for skills and experience, but start by looking for someone with a great attitude.

Seven tips to help you find your own A Players

1) One-page plan. Have a simple one-page plan that you can share with future employees. This plan highlights what you have achieved as an organization during the past year and also what your Vision is for the next 3 to 5 years. “A Players” are motivated as much by being part of an organization that has clear goals and aspirations as they are by salary and benefits. They want to be part of an organization that has a purpose.

2) Think outside the box. Don’t just look in the same old places for new employees. Think about looking outside your industry for people with the right attitude and a track record of success. You can always train skills and product knowledge.

3) Telephone-screening interview. Consider having a 15 to 20 minute telephone interview with potential candidates. This can save both parties a lot of time and expense before a more formal interview is arranged.

4) Personality profiles. Use DISC or another similar personality-profiling tool to make sure that you have a good fit for the role you are seeking to fill. Different fields require their own unique brand of skills, such as high-influencing personalities or levels of compliance.

5) Watch the body language. Always have another person interview with you, and if possible get them to ask the questions, so that you can concentrate on listening to the answers given and also observe the body language to make sure that it is congruent with what is being said.

6) References. Always insist on speaking to a former boss for a reference. Sometimes it is not what is said about the candidate but the way in which it is said over the phone that can alert you to potential problems but also provide clues to the positive aspects of the candidate. Written references are usually very brief and not very helpful.

7) Staff-referral program. Have a program in place that rewards existing members of the staff if they recommend someone for a position you are trying to fill. For example, you could offer a cash bonus to your employees if their recommended candidate is hired, and another bonus if the candidate is still with you and performing well six months later. This has the added benefit of ensuring that new members of the staff have a mentor looking out for them during their initial six months

Try some of these tips and see what works best for you. If you can surround yourself with a team of A Players who have great attitudes, are motivated by achievement, and are strong in areas where you are weak, then your role as a leader or business owner becomes far easier. You can concentrate on setting the future strategy for your organization while your team achieves amazing results.

Richard J. Bryan is an international speaker, executive coach, and author of the forthcoming book, “Being Frank: Real Life Lessons to Grow Your Business and Yourself.” For more information, visit www.richardjbryan.com

Friendship leads to partnership at Daughter for Hire, LLC

Small Business, Subscriber Only

WHITESBORO — Kathleen Rutishauser and Denise Flihan have known each other since the mid-1990s when their daughters were in the same ballet class. Each has a “strong” business-development background, says Flihan, and they now co-own a business that Rutishauser launched in late 2012. Daughter for Hire, LLC, a firm that operates from Rutishauser’s home in

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WHITESBORO — Kathleen Rutishauser and Denise Flihan have known each other since the mid-1990s when their daughters were in the same ballet class.

Each has a “strong” business-development background, says Flihan, and they now co-own a business that Rutishauser launched in late 2012.

Daughter for Hire, LLC, a firm that operates from Rutishauser’s home in Whitesboro, provides non-medical, in-home services that assist the elderly.

The LLC’s services focus on a variety of household chores, companionship, accompaniment, running errands, handling outside chores such as lawn mowing or snow removal, or handling financial matters like banking or bill paying, according to the company’s website.

Both Rutishauser and Flihan spoke with The Business Journal News Network on July 9.

When Rutishauser first started the business, she figured it would be something that she alone could maintain. But she eventually realized the service-oriented business would require additional help.

“So, really, in about 18 months, we’ve gone from 1 [employee] up to 26 [part-time employees] and we’re just constantly growing,” says Rutishauser.

And just because the company’s name is Daughter for Hire, the firm also employs male caregivers, she adds.

As of July 9, the firm was servicing more than 100 clients, according to Rutishauser

She declined to release specific revenue information for the business.

“We’re on track to more than double the revenue that we [generated] in 2013,” says Rutishauser.

A new start
Rutishauser had been working for NBT Bank as a vice president and retirement-plan specialist when the company eliminated her position in December 2012. Her career in banking and finance had spanned three decades, she says.

In recent years, Rutishauser would use her free time to help senior citizens she knew.

“It was bringing meals to people that had hurt their back, helping people around the house, doing some errands, taking them to doctor’s appointments, and that kind of thing,” Rutishauser said.

Using her own assets, Rutishauser spent about $5,000 to launch the business. “A lot of the expenses related to marketing, a little bit of advertising, the insurance for sure,” she says.

She spent some of the money on legal and accounting fees, Quickbooks software, establishing the firm as a limited-liability company, website development, and classes at the Small Business Development Center at Onondaga Community College, says Rutishauser.

Flihan had served as vice president of sales and marketing at Human Technologies Corp. in Utica before leaving in June 2010 to work with her husband and his small business, N.J. Flihan & Co., Inc., a restaurant equipment and supply company in Utica.

She had been working there for about three years. While doing so, Flihan kept in touch with Rutishauser as she was developing Daughter for Hire and “took a very strong interest in [the new venture].”

At the same time, Flihan was helping her mother-in-law who had developed some health issues, which inspired her to partner with Rutishauser and Daughter for Hire.

“There was definitely a hole that I was seeing in the care of the senior population, and I wanted to help make a difference there,” says Flihan.

Flihan and Rutishauser started discussions about a possible partnership in the summer of 2013, says Flihan.

“Denise joined the business this past January, though she’s been very heavily involved before January. We firmed up our partnership agreement January 2014,” says Rutishauser.

Flihan had provided Rutishauser with friendly guidance and advice since her job elimination sparked the effort to start her own business.

Growth, protection
Initially, Rutishauser was planning to work on her own with clients until she determined “there was such a need out there.”

Her appointments started to overlap. She started having conflicts with days and times for client meetings, so Rutishauser hired her first employee in March 2013.

As Rutishauser continued her marketing efforts for the business, the client requests and referrals kept coming. She eventually realized a need “to start hiring some people.”

Besides the 26 part-time employees who currently work for the firm, Rutishauser expects to hire additional workers, but it’s “hard to say” how many as of now.

Both women have been focusing on marketing and business development, visiting all the “centers of influence” and working “hand-in-glove” with the hospitals, independent-living facilities, estate-planning attorneys, accountants, financial planners, and senior residential-living facilities in the Mohawk Valley area, says Rutishauser.

They find that they’re getting “more and more” referrals every day, she adds.

Daughter for Hire’s rates depend on the number of hours a caregiver provides a given client per week, she says.

“So they would range anywhere from $16 an hour up to $20 [an hour] …” says Rutishauser.

All Daughter for Hire employees are bonded, background checked, and insured, she says.

“We have an insurance policy that bonds each of our employees in the event of some sort of theft,” she adds

The firm also has a liability-insurance policy and a workers’ compensation policy for each employee as well, according to Rutishauser.

Daughter for Hire also has its employees background checked both in Oneida County and nationwide.

“We want to make sure that they’ve never done anything, anywhere” says Rutishauser.

John (Chip) Hemmel, an agent with the insurance firm Gilroy Kernan & Gilroy of New Hartford, handles the bonding and the firm’s liability and workers’ compensation policies, she adds.

L.B. Security and Investigations, Inc. of Utica handles the background checks.

The company on June 12 announced the Mohawk Valley Business Women’s Network presented Daughter for Hire with its 2014 Endowment Award, a grant of $750, which Rutishauer and Flihan are using to purchase customized scheduling software to more efficiently serve their clients in Oneida, Herkimer, and Madison counties.

“What this endowment allows us to do is invest in software that will allow us to easily schedule our caregivers with our clients and make a whole bunch of processes easier for us,” says Flihan.

Besides scheduling, the software also “interacts” with other software programs they use for payroll and billing.

Contact Reinhardt at ereinhardt@cnybj.com

SMALL-BUSINESS SNAPSHOT
Daughter for Hire, LLC
500 Brett’s Way
Whitesboro, N.Y. 13492
Phone: (315) 725-2955
Website: http://www.daughter-for-hire.com

Type of business: non-medical, in-home service provider
Year founded: 2012
Employees: 26 part time
Co-owners: Kathleen Rutishauser, Denise Flihan

CenterState CEO goes in a new direction with new B2B Marketplace

Small Business, Subscriber Only

SYRACUSE — Jane Amico, vice president of chamber services at CenterState CEO, explained it this way. “After 23 years and valuable feedback from both our members and the business community, we are reshaping our traditional business showcase and delivering a targeted-engagement opportunity,” said Amico. She spoke to reporters assembled to cover the announcement at the

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SYRACUSE — Jane Amico, vice president of chamber services at CenterState CEO, explained it this way.

“After 23 years and valuable feedback from both our members and the business community, we are reshaping our traditional business showcase and delivering a targeted-engagement opportunity,” said Amico.

She spoke to reporters assembled to cover the announcement at the CenterState CEO offices in downtown Syracuse.

CenterState CEO on July 9 announced the upcoming B2B Marketplace, an event that is “succeeding the long-standing CEO Business Showcase.”

The marketplace, which is scheduled for Oct. 29 at the Oncenter, will provide area businesses the chance to participate in training and education programs and networking events.

The B2B Marketplace seems to “fit our purpose and our strategy,” Joella Wind, vice president of video and voice-product management at Time Warner Cable Business Class.

Time Warner Cable Business Class is the event’s presenting sponsor.

“Facilitating business connections is what we do. It’s what we’re all about, whether it be their suppliers, their customers, their vendors,” said Wind.

The event will include what CenterState CEO is calling the “business exchange,” which Amico referred to as “the key differentiator.”

In its news release about the event, CenterState CEO describes the business exchange as a “structured forum to engage buyers and sellers identified by members as important to the growth and sustainability of their businesses.”

“It really provides direct qualified connections versus a traditional trade show, which is really much more of a visibility opportunity,” said Amico.

All meetings during the exchange are prescheduled and will take place at the exhibitor’s space at the Oncenter.

CenterState CEO wants its members to shift 10 percent of their purchases to local, independent businesses, which is similar to a program that the nonprofit SyracuseFirst announced March 25 and continues promoting.

“We want participants to evaluate how and from who they purchase their goods and services,” Amico said.

The B2B Marketplace “really allows that to happen,” she added.

Founded in 2009, SyracuseFirst is a nonprofit network of locally owned, independent businesses and organizations “dedicated to building a sustainable community by encouraging citizens to ‘Think Local First,’” according to the group’s website.

CenterState CEO is partnering with Syracuse–based BTI The Travel Consultants, which is providing the software for the B2B Marketplace sign-up website.

The firm’s software allows firms to request meetings with other at the event, Lou Lemos, president and CEO of BTI The Travel Consultants, said during his remarks at the morning announcement.

“For all companies, large, medium, and small, we offer the ability to have a minimum of 18, 10-minute appointments,” said Lemos.

The website to sign up is available through the website of CenterState CEO, Lemos added.

In order to schedule business exchange meetings, exhibitors must register by Aug. 15, CenterState CEO said. Attendees should register by Sept. 1.

“I honestly believe this show will sell out of booths,” said Lemos.

The business-exchange portion of the event will occur between 10 a.m. and 4 p.m. on that day. In that same time frame, the B2B Marketplace will also include the Economic Champions Luncheon, which begins at 12 p.m.

The event will also include a networking reception beginning that day at 4 p.m., Amico said.

Contact Reinhardt at ereinhardt@cnybj.com

Cuomo: The “I Love New York” program is expanding into China

New York News

The “I Love New York” program, which promotes New York businesses and tourism, is expanding into China. Gov. Andrew Cuomo made the announcement in a

Integrated Marketing Services acquires Automated Graphics

Small Business, Subscriber Only

CLAY — Integrated Marketing Services, Inc., a firm that has specialized in direct-mail marketing services for more than 20 years, has acquired Automated Graphics, Inc. of DeWitt. It was an asset purchase that closed on June 18, says Michael Barker, president and CEO of Integrated Marketing Services. Barker is the firm’s majority owner, while company

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CLAY — Integrated Marketing Services, Inc., a firm that has specialized in direct-mail marketing services for more than 20 years, has acquired Automated Graphics, Inc. of DeWitt.

It was an asset purchase that closed on June 18, says Michael Barker, president and CEO of Integrated Marketing Services.

Barker is the firm’s majority owner, while company vice presidents John Kinslow and Edward Mertens, Jr. have a minority ownership stake in the company.

Integrated Marketing acquired some office furniture and amenities from Automated Graphics, its client list, and existing customers, he adds.

“We are temporarily using the name and we acquired all their assets and we hired all their employees on as employees of our company,” says Barker.

Barker declined to release any terms of the acquisition during an interview with the Business Journal News Network on July 9.

“Our goal here is to continue to provide the marketing-communications services that Automated Graphics has been providing,” Barker says.

Integrated Marketing Services operates in a 20,000-square-foot facility at 4682 Crossroads Park Drive in Clay.

Automated Graphics will continue operating in a space at 5846 Heritage Landing Drive in DeWitt as the firm’s employees transition to Integrated Marketing.

The acquired firm will temporarily be known as Automated Graphics, an Integrated Marketing Services company for about 90 days as the transition progresses, says Barker.

With the asset purchase, Integrated Marketing has the right to use the name until the clients are familiar with the new firm, he adds.

Michael Byrnes and Edward Bambrick are the partners who previously owned Automated Graphics, according to Barker. Byrnes has since retired and Bambrick is also advancing toward retirement age.

Byrnes and Bambrick approached Integrated Marketing Services about the acquisition possibility, says Barker.

“They didn’t want to just close the doors and walk away. They wanted to continue the business [if] possible,” he adds.

Barker has known Byrnes for about 25 years as a competitor in the same industry, he says.

Integrated Marketing Services hired Bambrick as a consultant for an undetermined period of time, perhaps between six months to a one year, to help with the transition “from a client contact standpoint,” says Barker.

The acquisition discussions began last August, Barker says, continuing for about 10 months before both sides finalized the deal.

Besides the partners, Automated Graphics employed four full-time workers who are still working at the DeWitt facility for the time being.

“We’re going to complete the transition over to our location by the end of this month,” says Barker.

The added workers bring the employee count at Integrated Marketing Services to about 30, he adds.

Integrated Marketing Services financed the acquisition through a loan from M&T Bank (NYSE: MTB), but Barker declined to disclose the amount of the loan.

Automated Graphics, a print-based, marketing-communications company, is “similar” to Integrated Marketing Services, says Barker.

Automated Graphics doesn’t handle the production work that Integrated Marketing can do, he says. The DeWitt firm strictly focused on graphic design, marketing, and consulting.

“They have some key customers that we were interested in getting to know better, which is really why we were in agreement to do this,” he says.

Barker declined to disclose any specific client that his firm wants to assist with services, saying that it’s still too early to disclose names following the acquisition.

Integrated Marketing already services clients that include Time Warner Cable, Aspen Dental, Raymour & Flanagan, National Grid. The firms that Automated Graphics worked with are also in that “same corporate category,” he says.

Besides its work in direct-mail marketing, Integrated Marketing Services also handles digital print work for brochures, post cards, and pamphlets and larger format printing work for trade shows, vehicle wraps, and signage, says Barker.

The firm generates about $4 million in revenue annually, he adds.

The Automated Graphics space in DeWitt will eventually go back on the market, says Barker.

The website of the Onondaga County Real Property Tax Services office lists Erie Heritage Group, LLC as the owner of the property at 5846 Heritage Landing Drive.

Contact Reinhardt at ereinhardt@cnybj.com

SMALL-BUSINESS SNAPSHOT
Integrated Marketing Services, Inc.
4682 Crossroads Park Drive
Clay, N.Y. 13088
Phone: (315) 433-1190
Website: www.intmarkserv.com

Type of business: Direct-mail and digital-print marketing firm
Employees: 30 full time
Annual revenue: $4 million
Company owners: Michael Barker, Edward Mertens, Jr., John Kinslow

Central New York is a great test market

Business Mentors, Small Business, Subscriber Only

Several years ago, Coca-Cola introduced a product called C2 which contained half the calories and carbohydrates of regular Coke. It created C2 specifically for men who did not like the image or flavor of Diet Coke, but did not want to consume all the calories and carbohydrates in regular Coke. After spending nearly $50 million

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After spending nearly $50 million on advertising and promotion of C2, Coca-Cola’s worst fears were confirmed. Its target market did not like C2. Instead Coca-Cola learned its target group wanted a beverage that had more flavor than Diet Coke and contained zero calories and carbohydrates. In the end, Coca-Cola was forced to shelve C2 and waste a lot of time and money in the process.

Coca-Cola did however learn a valuable lesson from C2 in that it should have done its research first. According to the Harvard Business Review, about 75 percent of consumer packaged goods and retail products do not earn enough income when they are first introduced. The main reason? Lack of market research.

Testing a product before producing it on a full-scale level minimizes risk and can save a company lots of time and money. Furthermore, one of the best places to test a new product is right here in Central New York. The use of Central New York as a predictor of eventual product success or failure has been well documented by marketers for decades. Products, services, and advertising — both famous and obscure, ranging from ice cream to alcoholic beverages to baby carrots — have been tested in Syracuse.

The criteria used to judge the acceptability of a test-market region or group include: a population that is demographically similar to the proposed target market (in most cases that is the U.S.), relative isolation from densely populated media markets, and low advertising costs so testing can be efficient and economical.

1. Similarity to the eventual desired market
It goes without saying that a test market should have similar demographic and consumer purchasing habits to the wider area where a product or service will ultimately be distributed. Some criteria where it might be important for a test market to mirror the intended larger market include age distribution, home ownership, blue-collar/white-collar mix, educational attainment, racial/ethnic composition, just to name a few.

The Syracuse metropolitan area has a demographic composition that largely reflects the United States, which makes it a great test market by research standards.

In fact, Acxiom Corp. recently published a “Mirror on America” study that ranked the top 150 test markets in terms of how well they conformed to national norms in key criteria. Out of the list of 150 test markets, Syracuse ranked 5th. The top five were:

Albany, N.Y.
Rochester, N.Y.
Greensboro, N.C.
Birmingham, Ala.
Syracuse, N.Y.

2. Geographic isolation
Some metropolitan areas are tightly packed among others (e.g., Baltimore is sandwiched between Washington and Philadelphia) while others are a great distance from the next population center (e.g., Phoenix, Ariz.). The latter type of market is desirable for test-market purposes because, as with any type of research, it is important to isolate variables as much as possible. If people are regularly exposed to advertising in one media market, but do a significant amount of shopping in another, they are poor test subjects. People who live in isolated population pockets are more likely to be exposed to marketing messages and make their purchases within that market. That makes it easier for researchers to isolate the effect of, for example, a TV commercial on sales.

Even though Syracuse is located in the relatively densely populated Northeast, and in a state that many outsiders assume is synonymous with New York City, it is a combination of urban, suburban, and rural communities isolated in part by significant natural boundaries such as the Adirondack Mountains and Lake Ontario. Syracuse is about a 90-minute drive from Rochester, two hours from Albany, and four hours from New York City. The nearest televisions markets — Watertown, Utica, and Binghamton — are at least an hour away and have small reaches beyond their core cities.

3. Affordable advertising media
Larger cities don’t normally make the best test markets because, among other things, it can be very expensive to advertise in them. The cost of advertising in New York City or Los Angeles is much higher than in a mid-sized market like Syracuse. The main purpose of the test market is to determine the likelihood of success while expending minimal resources. For that reason alone, smaller, more affordable media markets make much more sense to test marketers.

So you have this great test market, now how do you test your product?

The same factors that make Syracuse a great test market also make it a great place to conduct market research. Even if your business does not need to test a new product it could conduct research on various different topics. Common consumer-based research topics are:

Brand loyalty
Customer satisfaction
Customer retention
Purchasing habits
Message effectiveness

There are two methodologies, quantitative and qualitative, that marketers use to conduct research. Qualitative research is used to explore and understand people’s beliefs, experiences, attitudes, behavior, and interactions. It generates non-numerical data — for example a customer’s description of satisfaction rather than a rating using a numerical scale. Focus groups, in-depth interviews, and mystery shopping are examples of qualitative research that can document a variety of experiences, revealing views and experiences of test subjects.

On the other hand, quantitative research often generates data that can be converted into numbers for a statistical review. A typical example would be a restaurant survey card that asks “from 1 to 5, with 1 being ‘very dissatisfied’ and 5 being ‘very satisfied,’ how would you describe your dining experience today?” Surveys that use a research panel can allow firms to quickly access willing participants.

A company could reach a specific audience, such as females aged 25 to 40, and survey them on a specific characteristic of brand loyalty, for example measuring their satisfaction on a new variation of an existing product to see how additional features or changes would be perceived. “RMS ViewPoint” is a local research panel made up of Central New York residents. Participants are paid a stipend to participate in surveys, focus groups, etc. depending on the type of study being conducted.

In conclusion, whether you are a small business like a local pizza shop or a large conglomerate like Coca-Cola, you should never simply make assumptions about your consumers’ habits, tastes, or preferences. Take the time to do the research; ask the right questions and gain valuable insights that either affirm your assumptions, or better yet, prevent costly mistakes.

Lori Lichorobiec is the communications coordinator for Research & Marketing Strategies, Inc., or RMS, a full-service marketing and market-research firm based in Baldwinsville. Contact her at loril@rmsresults.com

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