The stalled economy has helped Trope by increasing demand for the promotional products that his company manufactures.
"I call it the macaroni factor," he said. "People use more coupons and start watching their money. They're looking for cheaper meals and use more coupons, especially for things like pizza and fried chicken."
Trope estimated his company's 2001 revenues will total $1.1 million, up from $950,000 the previous year. In 1999, the company's revenue was $850,000.
Magnets by PAC is one of about 21,000 small distributors of promotional products nationwide.
The nationwide sales volume for the promotional products industry in 2000 was $17.8 billion, showed data from Promotional Products Association International. That was an increase of about 20 percent compared with 1999.
Research and surveys by promotional products and advertising specialties organizations show small distribution firms specializing in specific items or those that produce a full range of products form the backbone of the promotional products industry in the Tampa Bay area.
With his son and daughter helping him run his business, Trope does his own sales and distribution. He occasionally uses a broker and works as a subcontractor.
Magnets by PAC is different than similar businesses because Trope designed and built the machines that turn out millions of advertising and promotional products a year. His machines cut, sort, apply magnetic strips and laminate promotional items ranging from business cards to football schedules with pizza coupons using six employees.
Trope, a mechanical engineer, worked for a corporation that manufactures medical devices before opening a machine shop. He retrofit some machinery for a major Pinellas County promotional products manufacturer to allow the company to print advertising on the handles of razors.
"I realized I was making people rich on machines," Trope said. "I started doing a little promotional printing myself and using magnets. The business just grew and grew. Each year, business was about the same or a little up. Now, everything is paid for."
He switched from silk-screening to thermal printing and serves smaller clients by providing generic logos to which different advertising can be added. Corporate clients usually supply their own graphics.
Trope advertises in two publications, but most of his clients are repeat customers.
Ninety percent of his business is advertising and promotional magnetic products for pizza companies. This year, the firm manufactured about 2.76 million pieces for Hungry Howie's Pizza & Subs Inc.
"It's a cheap way to get a lot of advertising," Trope said. The advantage for pizza companies and other clients is the repetition of advertising messages, said Steve Watters, co-founder of Bayshore Media Inc. in Largo.
"How many times do you open your refrigerator?" Watters said. "How many times do you look up a pizza place's phone number? If it's on a magnet, odds are you're not going to throw it away."
Magnetic promotional items are strong advertising because they're free and obvious, said Bill Frederick, president of Bill Frederick Communications.
"The advantage is that it's always in front of you," he said.
Trope is ready to add something new to his product line. He has been working for about a year on making scratch-off areas on coupons that would provide something free for coupon users.
"It will only cost about a penny apiece extra," Trope said. "We're almost ready to move with that." |
