The Elder-Beerman Stores Corporation owned and operated a chain of department stores based in Dayton, OH. That is, the flagship store was in downtown Dayton. However, the corporate offices were on El-Bee Road in nearby Moraine, OH.
In 1994 or 1995 Doug Pease, TSI’s marketing director, received a telephone call from Jack Mullen1, the Senior VP of the advertising department at Elder-Beerman. Jack had known Doug from the years in which they both worked in the advertising department at G. Fox, the Hartford-based department store chain that was owned by the May Co. We flew to Dayton (on Delta through the Cincinnati airport, which is actually in Kentucky). I don’t remember much about the department’s requirements or the demo except that everyone talked as if the purchase of the AdDept system were a done deal. I suspect that Jack must have already secured funding before inviting us.
Jack invited us to his house for supper. I remember a few things about the experience:
Jack had a weird handshake. He extended his forefinger to the inside of my wrist. I found this vaguely threatening. Is this a Masonic handshake? In the photo the guy on the left demonstrating the same grip is George W. Bush.
Jack and his family lived in a very nice house in the suburbs. We sat for a while on the patio in the back There was a brook or something in the back yard. It seemed to be an embodiment of the American dream. I am sure that Doug, who had a family of his own, felt the same way.
Dayton is about as far west as possible in the eastern time zone. It was still light after 9:00 in the evening.
I made several trips to E-B for training and exploration of further software development. On most occasions I flew to the Cincinnati airport, rented a car there, and drove north. I usually stayed at the Holiday Inn2 in Franklin, OH. The door in every room in this hotel opened onto a corridor that went all the way around a huge pool. I was never tempted to enter the pool, but for some reason this configuration appealed to me. Perhaps it was the persistent odor of the chlorine.
I usually arrived at the hotel rather late at night. In the morning I ate breakfast somewhere and then drove to Moraine. On the way I was startled to see a sign at the office of a company with the name Tailored Systems Incorporated3.
EB’s glamorous headquarters on El-Bee Road in Moraine.
In the preparatory phase of the installation I worked mostly with Debra Edwards4, E-B’s Advertising Director. Doug and I had met her in Cleveland when we were pitching an AdDept system for May Ohio. That division was abruptly folded into Kaufmann’s before TSI even made a proposal. A description of that event has been posted here.
Thereafter TSI’s primary contacts at E-B were with the business office manager, whose name I don’t remember, and Julie, the ROP manager who had the misfortune to attend the large state university in Columbus. Fortunately, all of this occurred during a stretch of dominance by the Wolverines in The Game.
We did not do a lot of custom programming for Elder-Beerman. I am sure that they had a few peculiarities, but the only two that I can remember were 1) the advertising calendar, which had separate columns for the days of the week, but Sunday had two columns, and Monday and Tuesday were crammed into one, and 2) the six-digit department numbers. AdDept’s system design provided for only three-digit. One thousand different departments was for some reason not enough for E-B. I came up with a workaround, but it would not have worked if they had wanted to enter measurements or use the productivity or cost accounting programs. They never did.
From October of 1995 to December of 1997 E-B was under Chapter 11 bankruptcy protection. Nevertheless, I don’t remember that TSI suffered much, if at all, from this situation. The regional department store model that had generated huge profits in the eighties and early nineties was clearly no longer reliable. For the most part the retailers that used AdDept seemed to adapt to this new reality better than the ones that didn’t.
Lori is on the right. I did not record the names of the other ladies, and I don’t remember them.
Lori Brunswick worked in the advertising business office when we started the installation. By 1999 she was the manager. In 2021 I found some notes that I had written about her management style: “Lori is an interesting case. She doesn’t even let me talk to any of the people that work for her.” Nevertheless, I found everyone at E-B rather easy to work with. We never had a crisis that I can recall.
I found another note from the same period that asked, “What ever happened to the project to convert Elder-Beerman’s debit memo system?” At a distance of over twenty years, I could not tell you what a “debit memo” was in the context of their operation. I certainly don’t remember whether they hired TSI to code a system to replace the one that they had.
For the next couple of years the hardest work that TSI did for E-B was opening the envelopes containing the checks for software maintenance. However, in 2003 E-B, a publicly owned corporation, was acquired by another TSI client, the Bon-Ton5 of York, PA. Almost all of the jobs at the EB headquarters were immediately eliminated. By 2018 all of the E-B stores had been closed and sold to liquidators.
A very thorough documentation of the entire history of Elder-Beerman is available at this website.
Jack Mullen
1. I dealt with Jack Mullen several times after he left E-B in 1999. His LinkedIn page is here.
2. This Holiday Inn has, I think, been converted into a Holiday Inn Express with two much smaller indoor pools.
3. This company still has a status of “active”, but its principal contact is a lawyer whose office is in Dayton.
The Bon-Ton was a chain of department stores based in York, PA. For nearly a century the company was owned and operated by the Grumbacher family. In fact, Tim Grumbacher only retired from the company’s Board of Directors in 2017. So, for 119 out of the company’s 120 years of existence members of the family were closely involved with the ownership and/or management of the company.
In the years that TSI was involved with B-T, it was expanding fairly rapidly. I am pretty sure that the original call to TSI inquiring about the AdDept system was received in 1996 or 1997 and came from Jo Harnish1, who was the Production and Finance Manager for the advertising department at B-T. This was an extremely unusual combination of responsibilities. Ordinarily the production manager and finance manager were separate people with markedly different skills.
Doug Pease, TSI’s Marketing Director, talked with her and arranged for the two of us to come to York to make a presentation. We were surprised when they suggested that the easiest way to get to York was to fly to BWI Airport, which is south of Baltimore, MD, rent a car, and drive north for more than an hour. That’s what we did. At the time US Airways offered several nonstop flights to BWI every day.
My recollection is that the entrance was in that little alcove to the right of the Burlington Coat factory. That entire area later was transformed into a Walmart Supercenter.
The address that we were given for B-T’s corporate headquarters was 2801 E. Market St. It turned out to be in the middle of a fairly large strip mall. The door through which we entered was next to a Burlington Coat Factory outlet. There was only a very small sign on the door that indicated that the corporate offices lay within. I frankly wondered what kind of operation we were getting involved with.
Jo Harnish.
I am sure that on that first trip we met with Jo and Tom Vranich2, the Senior VP of advertising. I already knew Tom. My recollection is that I had talked with him briefly at the Retail Advertising Conference3 that Tom Moran and I had attended in Chicago in the early nineties. At the time Tom V. was the Advertising Director at Hess’s, a chain of department stores based in Allentown, PA.
I remember few of the details of B-T’s requirements. I seem to recall that the paper in York still printed twice a day. I am pretty certain that none of the requirements seemed insuperably difficult to me.
I also don’t recall much about the installation itself or the support trips to the Bon-Ton offices in the subsequent years. What I mostly remember was the time in the rental car. The drive to and from BWI was not particularly difficult, but it was time consuming.
I think that the hotel in which I stayed was behind the strip mall in which the Bon-Ton office was located, but the route to get back and forth was circuitous. I probably stayed at the Hampton Inn that was (and still is in 2022) located in that vicinity. I don’t remember any restaurants that I frequented in York. I think that I generally got take-out and ate in the hotel room. On the other hand, I can visualize parts of the highway and the Market St. area rather clearly.
Bethann Matroni.
At some point Bethann Matroni4 became the head of the advertising business office and our primary contact. The only notes that I could locate indicated that in 2001 she requested that we add a third rate for ROP (display ads for newspapers). The two rates that were already on AdDept’s media schedule file and the rate table represented the actual rate charged by the paper and a marked-up rate that was shown to the merchandise departments and, for co-op advertising, the vendors. The former was often called “net” and the latter “gross”, but because those terms were also used to mean something else, we just called them rate 1 and rate 2. I don’t recall that we ever added a rate 3 to these files.
At about the same time I talked with someone named Tina Hagarman, maintained the schedule for newspaper advertising and ordered the ads. According to my notes, she had just returned from maternity leave. I think that I was in York to explain to her how AxN5, TSI’s system for management of insertion orders over the Internet, worked. The Bon-Ton was one of the first users of that system. I also promised to send Tina a copy of the booklet that I had made about inserts, the preprinted flyers that are sometimes included with the newspaper.
I think that I went into this store in Westfield once, but I don’t recall if I bought anything.
In 1998 I was startled to learn that the Bon-Ton6 was opening a store on Route 20 in Westfield, MA, which was not far at all from where my sister Jamie and her family were living at the time in West Springfield. The surprising thing was that it was the only Bon-Ton store in New England. I had to wonder how it could possibly be profitable to run only one store in an area. This was not part of an acquisition either. Someone at the Bon-Ton just decided that it would be a good idea to locate one of their department stores in this strip mall on the outskirts of a rather small town in western Massachusetts. It was also the last outpost of civilization before the sparsely populated Berkshires.
In 2003 the Bon-Ton surprised most of the retail world by acquiring the stores run by Elder-Beerman, another department store chain that had been using AdDept to manage its advertising. This move approximately doubled the size of the company in terms of the number of stores. The signage for the acquired stores still referenced Elder-Beerman, but management of the advertising for the combined operation was done at the Bon-Ton headquarters in York. Because both of the advertising departments already used both AdDept and AxN, the transition was rather smooth. I don’t think that I even made a trip to York to oversee it.
I don’ t know how much the Bon-Ton paid for the logo.
In 2005 Bon-Ton somehow came up with $1.1 billion in cash to purchase the Northern Department Store group from Saks Inc. This group consisted of three former users of AdDept: P.A. Bergner, Younkers, and Herberger’s7. So, for the second time in two years the company doubled in size.
The advertising for this group was run out of Milwaukee. The facility in Milwaukee was much larger than the one in York. It had a large area devoted to the production of ads as well as a photo studio. The Bon-Ton closed the department with which we had worked in York and moved all of the advertising to Milwaukee. None of the people that we knew in York made the move to Milwaukee.
B-T’s incursion into New England did not stop at Westfield. This store in Concord, NH, was closed in 2018.
I knew very well that there was no possibility of persuading the Senior VP in Milwaukee, Ed Carroll, to use AdDept even if we agreed to let them use it for free. However, I did make an effort to contact the newspaper manager to see if we might interest them in using AxN. It would have been difficult to construct an interface, but the new organization ran a lot of advertising in a very large number of papers. If I had succeeded in convincing him to use AxN, TSI might have been able to limp along until the entire Bon-Ton retail empire after many consecutive unprofitable years gave up the ghost in 2018 and ended up selling all of its properties to liquidators.
I might have been mistaken about the Bon-Ton store in Westfield. It stayed open until the Bon-Ton declared bankruptcy in 2018. I don’t know whether it was ever profitable.
2. Tom Vranich’s LinkedIn page is here. On it he claims (three times) that he worked as Senior VP at the Bon-Ton for over thirty years. I am almost positive that for most of that period he was actually employed at other stores that were eventually acquired directly or indirectly by B-T. Also, since his name was not Grumbacher, I doubt that he started as Senior VP.
3. The adventures of Tom and Mike at the RAC in Chicago have been described here.
4. I could find little on the Internet about Bethann Matroni. I think that in 2022 she may be known as Bethann Brodbeck.
5. A detailed description of the genesis of the AxN system has been posted here. Details about its structure can be found here.
6. A very detailed account of the long history of the Bon-Ton is posted here. Unfortunately it stops in 2001 just before things got really interesting.
Herberger’s (known locally as Herbie’s) was a chain of department stores arrayed across the northern tier of the Midwest. It was the last Saks Inc. division to employ the AdDept system to manage its advertising. Prior to 1997 it was apparently an employee-owned company and, at least according to an article posted here, a wonderful place to work. The writer speculated that Herberger’s went downhill rapidly after it was acquired by the company then known as Proffitt’s Inc.
The Herberger’s on St. Germain St. in St. Cloud was still unoccupied in 2023.
One of the moves that occurred shortly after the acquisition was the direction by Proffitt’s Marketing Group (PMG) to install TSI’s AdDept system in the advertising department on an upper floor (there were only three floors) of the flagship store in St. Cloud, MN.
I visited St. Cloud a total of three times in 1998 and 1999. I found only a few notes and two photographs to help me remember the experience. Furthermore, I cannot recall the names of most of the people with whom I worked, and I was unable to find any references on the Internet. So, this account will mostly depend upon my increasingly unreliable memory.
The purposes of my first trip to St. Cloud were to install the AdDept system on the AS/400 that had been purchased from and installed by IBM and to train the people who would be responsible for setting up the tables and entering the ads. St. Cloud is north of the Twin Cities, just far enough away to be considered an independent city. On that first occasion I flew Northwest Airlines from Bradley to the very nice Minneapolis-Saint Paul International Airport. I then took a long hike to my connecting flight, At the time1 a regional company flying with a Northwest flight number made the trip back and forth several times a day. I described it in one of my emails to Denise Bessette:
We boarded for St. Cloud at 8:20. We rode on a seatless bus to the plane. Then we sat on the plane for a while. Then we taxied for a while. We left at 9:05. We arrived at St. Cloud at 9:22. 45 minutes on the ground; 17 in the air.
On the subsequent trips I just rented a car at the airport in Minneapolis and drove to St. Cloud.
On all of my visits I stayed at a hotel2 that was only a couple of blocks from Herbie’s. I walked there and used the employees’ entrance from the parking lot behind the store.
Anne Hof.
I think that Josh Hill from PMG was present for all of my visits. PMG owned the system and insisted that there would be no custom programming. This made it extremely difficult for the president of a company with “Tailored” in its name. It came at a time when our programming staff was up to its armpits in alligators; that was good. However, for the first time in my life I knew that I sometimes could not provide what the client wanted or, sometimes, even what they needed.
Al DeCamillis and Christie Vierzba in the training room.
The people: I have pictures of three Herbie’s employees: Al DeCamillis3, the Business Office Manager, Christie Vierzba3, the Direct Mail Manager, and Anne Hof. I remember little or nothing about Christie, Ann, and the other workers in the department.
I think that Al was hired between my first and second trip. He was eager to use AdDept for all of the accounting, but he could not use it for his closing. The method he used was “closing to plan,” which meant that the expenses and income that he reported to corporate accounting always matched the planned amount to the penny. The offsetting entry was to a slush account. Evidently this was what he had always done. It meant that the monthly figures in every advertising account were, for purposes of analysis, worthless. No one could ever determine from the general ledger where too much or too little was spent.
My life in St. Cloud: My first visit to Herbie’s was an eye-opener. By that time I had visited the headquarters of twenty or more retailers. Each was either a free-standing structure or the upper floors of a huge store. Herbie’s was indeed in an upper story of a store, but although the building occupied the entire 600 block on St. Germain Street, it was only two or three stories high. It would never have been considered as a setting for a movie about a department store. It was just a store with departments. It even had a good-sized parking lot. The town itself had a much more Midwestern feel than any that I had been in.
I have remarkably few memories of my time in St. Cloud. I cannot remember any restaurants. My only recollection of the hotel was that there was definitely an iron and an ironing board in my room.
Not much of great note or interest actually happened either in the store or in the town while I was there. By far the most memorable event for me was the stress that I underwent while worrying about what was happening back in Enfield. That tale has been related here.
The location for one very unusual event involving Herbie’s occurred during one of my visits to Birmingham. It has been described here.
The logo that was used after the move to Milwaukee.
Epilogue: The installation at Herberger’s was not a happy one for anyone. In 2000 Saks Inc. decided to transfer the administration of the stores to Carson’s in Milwaukee. The jobs for 260 administrative employees in St. Cloud were eliminated. The stores retained the Herberger’s name but they also replaced the flower with a circle of red hexagons that Carson’s displayed on all of its stores. Eventually Carson’s was renamed the Northern Division. It was then sold to the Bon Ton in 2005. By 2017 all of the Herberger’s stores were closed. In 2023 there were still rumors that the brand might be resuscitated, but I found no evidence that any Herberger’s stores had been reopened.
1. In 2023 the only flights to and from the St. Cloud Regional Airport connected the town with Mesa AZ, Punta Garda FL, and Laughlin NV.
2. It was not part of a chain then. I think that it might be a Marriott Courtyard in 2023.
We had a very good record of closing AdDept sales. Most of the whiffs fell into one of two categories:
Divisions of Federated Department Stores. Our relationships with various Federated divisions are described in detail here. They are not included in this entry.
Companies that did not advertise enough to justify a high-quality multi-user centralized database. We actually sold the AdDept system to a couple of these anyway.
TSI’s first efforts to market AdDept were concentrated around New York and New England. I figured that there were not very many retailers who could afford the system to keep track of advertising, but, then again, I did not really expect to justify the cost of the system at Macy’s in the very first module that we activated—ad measurement.
The strip mall in which the Enfield store was located was named after Caldor.
Our first attempt was a quintessential whiff. Kate Behart (much more about her here) had been in contact with someone in the advertising department at Caldor, a discount department store based in Norwalk, CT. Kate arranged for me to give a presentation to them at the IBM office in Norwalk. Of course, we had to make sure that the office had the BASIC program, and I had to install both the AdDept programs and some data that I had dummied up from Macy’s real data.
My presentation was flawless. The only problem that I encountered that day was the lack of an audience. No one from Caldor showed up. We never did find out why not. Kate called them repeatedly, but no one returned her calls. It may have had something to do with the fact that in 1989, the year that we installed the first AdDept system at Macy’s, the May Company sold Caldor to a group of investment houses.
Caldor went out of business in 1999.
I also paid a visit to another local retailer, Davidson and Leventhal, commonly known as D&L. Theirs were not exactly department stores, but they had fairly large stores that sold both men’s and women’s clothing. So, they had quite a few departments. The stores had a good reputation locally. The headquarters was in New Britain, CT.
This D&L ad was on the back cover of the issue of Northeast that featured my story (described here).
The advertising department only employed three or four employees. They wanted to know if they could use the computer for both D&L ads and ads for Weathervane, another store that they owned, as well. That seemed vaguely feasible to me, and so I said they could. In fact, we later did this for Stage Stores and for the Tandy Corporation, but both of those companies were much larger, and I had a much better understanding by then of what it entailed.
I didn’t even write up a proposal for D&L. The person with whom I spoke made it clear that what we were offering was way out of their price range.
D&L went out of business in 1994, only a few years after our meeting. Weathervane lasted until 2005.
I have only a vague recollection of doing a demonstration at IBM’s big facility in Waltham, MA, for a chain of auto parts retailers from Phoenix. The name of the chain at the time was Northern Automotive. My recollection is that I spoke with a man and a woman. If they told me how they heard about AdDept, I don’t remember it. After a very short time it was clear that AdDept was much more than the company needed. Although Northern Automotive had a lot of stores with four different logos, it only ran one ad per week. So there was really not much to keep track of. I had the distinct impression that the demo was just an excuse for the couple to take a vacation in New England on the company’s dime.
I don’t remember either of their names, but the experience list on LinkedIn for a guy named Paul Thompson (posted here) makes him a strong candidate. Northern Automotive changed its name to CSK Auto, Inc. not long after our meeting. In 2008 CSK was purchased by O’Reilly Auto Parts.
Won’t Paul be surprised to be busted thirty years later in an obscure blog?
Tom Moran (more details here) set up an appointment with employees of Genovese Drugs at its headquarters in Melville, NY. The two of us drove to Long Island to meet with them.
I probably should have talked to someone there over the phone before we left. The only impression that I remember getting from the meeting was that they were not at all serious about getting a system. We had a great deal of trouble getting them to describe what the advertising department did at the time and what they wanted to do. I was frustrated because I had considered this a relatively cheap opportunity to learn how chains of pharmacies handled their advertising. It was actually a waste of time and energy.
Tom tried to follow up, but he got nowhere. We did not submit a proposal.
J.C. Penney bought the company in 1998 and rebranded all the stores as Eckerd pharmacies.
Woodies’ flagship store in downtown Washington.
While I was working on the software installation at Hecht’s in 1991, Tom Moran coordinated our attempt to land the other big department store in the Washington, DC, area, Woodward & Lothrop, locally known as Woodies. I found a folder that contains references to correspondence with them. Tom worked with an IBM rep named Allison Volpert1. Our contacts at Woodies were Joel Nichols, the Divisional VP, and Ella Kaszubski, the Production Manager.
As I browsed through the file, I detected a few warning signs. The advertising department was reportedly in the process of asking for capital for digital photography, which was in its (very expensive) infancy in 1991. Tom was told that they hoped to “slip in” AdDept as part of the photography project. Furthermore, the fact that we were not dealing with anyone in the financial area did not bode well.
Someone wrote this book about Woodies.
Finally, we had no choice other than to let IBM propose the hardware. Their method of doing this always led to vastly higher hardware and system software costs than we considered necessary. I found a copy of IBM’s configuration. The bottom line was over $147,000 and another $48,600 for IBM software. This dwarfed what Hecht’s had spent. If the cost of AdDept was added in, they probably were facing a purchase price of over a quarter of a million dollars! That is an awful lot to “slip in”.
I don’t recall the details, but I remember having an elegant lunch during this period with someone from Woodies in the restaurant of the main store. It may have been Joel Nichols. It seemed like a very positive experience to me. He seemed eager to automate the department.
We lost contact with Woodies after early 1992. I seriously doubt that the advertising department even purchased the photography equipment that they had coveted. The early nineties were very bad for retailers. By 1994 the owner of Woodies and the John Wanamaker chain based in Philadelphia declared bankruptcy and then sold the stores to JC Penney and the May Company. Many of the stores were rebranded as Hecht’s or Lord and Taylor.
In some ways Fred Meyer, a chain of department stores based in Portland, OR, seemed like a perfect match for TSI. At the time they were almost unique, and we usually excelled at programming unusual ideas. Their approach to retail included what are now called “hypermarket” (department store plus groceries) stores, although they definitely had some much smaller stores as well. The one in downtown Portland was very small. I really thought that we had a good shot at getting this account, largely due to the fact that the IT department already had one or two AS/400’s. So, the hardware cost would probably be minimal.
She would be lucky to make it in nine hours; there were no direct flights.
I was asked to work with a consultant who, believe it or not, commuted from Buffalo, NY, to Portland, OR. I can’t remember her name. She knew computer systems but virtually nothing about what the advertising department did. She wanted me to tell her what AdDept could do, and she would determine whether the system would work for them. I have always hated it when a “gatekeeper” was placed between me and the users. I understand that they do not trust the users to make a good decision, but advertising is very complicated, and almost no IT consultants know much about it. I would not have minded if the consultant sat in on interviews that I conducted with people in advertising.
If I was allowed to meet with anyone from the scheduling or financial areas of the department, I do not remember it at all. I do remember spending an afternoon with the head of the company’s photography studio. AdDept had a module (that no one used) for managing shoots and another (used by Macy’s East) for managing the merchandise that is loaned to the studio for a shoot.
I remember the photo studio guy mentioning that they also did billable work for outside clients. He mentioned Eddie Bauer by name. He could not believe that I had never heard of it/him.
I probably botched this opportunity. Before agreeing to come out the second time, I should have insisted on meeting with whoever placed their newspaper ads and the person in charge of advertising finance. I did not want to step on the toes of the lady from Buffalo, but I probably should have been more aggressive.
Kate accompanied me on one of these trips. We probably flew on Saturday to save on air fare. On Sunday we drove out to Mt. Hood, where we saw the lodge and the glacier, and visited Multnomah Falls on the way back.
Freddie’s was acquired by Kroger in 1998, but the logos on the stores were maintained. There still is a headquarters in Portland, but I don’t know if ads are still created and/or placed there.
Aside from our dealings with Federated divisions2 TSI had very few whiffs during the period that Doug Pease (described here) worked for us. After one of our mailings Doug received a call from Debra Edwards3, the advertising director at May Ohio, a May Company division that had its headquarters in Cleveland. Doug and I flew Continental non-stop to Cleveland and took the train into downtown. My recollection was that we were able to enter the store from the underground train terminal.
The presentation and the demo went very well. I am quite certain that we would have gotten this account were it not for the fact that in early 1993 the May Company merged the Ohio division with Kaufmann’s in Pittsburgh. Management of the stores was transferred to Pittsburgh. Debra was hired as advertising director at Elder-Beerman Stores.
We stayed overnight in Cleveland and had time to visit the Rock & Roll Hall of Fame, which was right down the street from the huge May Co. building. I cannot say that I was greatly impressed with the exhibits.
A few years later Doug and I undertook a second trip to Cleveland to visit the headquarters of Sherwin Williams. Doug had talked extensively with the lady who was the advertising director there. He was very enthusiastic about the prospect of making this sale. By that time Doug had already closed a few big deals for us, and so I trusted his judgment. However, I could not understand how a company that really only sold one product could possibly need AdDept. Yes, they have thousands of stores, but how many ads do they run?
I don’t honestly remember anything about our discussion with them. Needless to say, Doug did not close this one, although he never stopped trying to revive it.
I don’t really count it as a whiff, but Doug was unable to close the deal with Liberty House in Honolulu after our epic trip to Hawaii in December of 1995. The details are recounted here.
I drove past two of the stores in Texas, but I never went inside.
Just as Marvin Elbaum had backed out of his contract with TSI for a GrandAd system in 1986 (as described here), so also one company signed an agreement for TSI’s AdDept system and, before we had installed the system, changed its mind. There was one big difference in the two situations. The second company was the Tandy Corporation, which had actually ordered installations of AdDept for all three of its retail divisions. At the last minute the company decided to close down Incredible Universe, one of the three divisions. The other two companies became TSI clients in 1997, as is described here.
It was not a big loss for TSI. IU was one of a kind. Its stores were gigantic multi-story combinations of electronics and theater. There were only seventeen stores, and only six were ever profitable. Those six were sold to Fry’s Electronics. The other eleven were sold to real estate developers at pennies on the dollar.
I did a demo for Mervyn’s California, a department store based in Hayward, CA. I think that I must have done the demo after finishing a training/consulting trip at Macy’s West in San Francisco. I cannot imagine that I would have flown out to the west coast to do a demo without spending a day or two gathering specs.
The IBM office nearest to Hayward was in Oakland. I took BART in the late afternoon from San Francisco to Oakland. There was quite a bit of excitement at the Holiday Inn at which I was staying. Someone had been murdered on the street in front of the hotel the previous night. There was one other very peculiar thing about this stay. I checked into a Holiday Inn with no difficulty, but I checked out of a different hotel (maybe a Ramada?). The hotel had been sold, and its ownership had changed while I was asleep.
The demo went fine. The guy who had contacted me—his name was Thiery or something like that—liked what he saw. However, the sale never advanced any further. This was almost always what happened whenever I got talked into doing a demo without taking at least a day to interview the potential users. At the time that I did the demo Mervyn’s was, unbeknownst to me, owned by Target. This might have explained the lack of progress. Target may have been restricting or rejecting any capital purchases at the time.
Mervyn’s was sold to some vulture capitalists in 2004. A much smaller version of the chain went out of business in 2009.
For some reason Doug and I once had a very short meeting with the president of Gottschalks, a chain of department stores based in Fresno, CA. He told Doug and me that he would get all of the other members of the Frederick Atkins Group to install AdDept. This organization (absolutely never abbreviated by its initials) somehow enabled its members to shop for foreign and domestic merchandise as a group. Nearly every department store that was not owned by the May Company or Federated belonged to it.
A few years after he made this promise he (or someone else at Gottschalks) arranged for me to speak before the members at one of their conventions in Naples, FL. I flew to Fort Meyers and rented a car from there. Naples was beautiful and reeked of new money. I gave my little spiel, but I did not have an opportunity to interact with any of the members of the audience. So, I did not get any direct feedback.
We eventually did sign up a few members of the group—notably the Bon-Ton (described here) and Elder-Beerman (described here). I don’t know whether my speech had any effect.
I think that the Frederick Atkins Group is defunct in 2021. The references to it that I could find on the Internet were all from decades past.
In (I think) 1999 Doug Pease and I made an unproductive trip to Columbus, OH, to talk with the IT director of of Value City about the possibility of installing the AdDept system for use by the advertising department. That adventure is described here.
First stop: Norfolk.
TSI got a phone call from a chain of furniture stores in coastal Virginia, Norfolk4, as I recall. As part of my crazy automotive support trip, I stopped by to talk with the advertising director at this company on my journey from Home Quarters Warehouse in Virginia Beach to Hecht’s in Arlington. I spent a couple of hours with him. When I discovered that the company had only three stores, I knew that this was a mistake. I told him that our software could address his problems, but the cost and effort would not be worth it for either of us. I advised him to hire someone who was a wiz with spreadsheets.
I think that I got a free cup of coffee out of it.
I can’t tell you what happened to the company thereafter because I don’t even remember its name.
We had two reasonably hot leads in 2000. I had to handle both of them myself. The first was at Bealls department store, which has its headquarters in Bradenton, FL. This was another situation is which I had to deal with the IT department rather than the advertising department. I am pretty sure that the company already had at least one AS/400. I have a few notes from this trip, but it is not clear whether I intended to do the demo on their system or on one at a nearby IBM office.
In any case I think that there was a technical problem that prevented a successful installation of the software needed for the demo. So, I had to improvise, and I did not get to spend much time with the people who would have benefited from the system. The whole thing made me very depressed.
I had some free time, and so I went to the beach. I stopped at a Jacobson’s store to buy a tee shirt to wear at the beach. The cheapest tee shirts in the store cost $100!
The beach was lovely, and it was unbelievably empty. The weather was pretty nice. A beach in Connecticut would have been packed in this type of weather.
All of these stores are gone.
We did not get the account, but the tale has an interesting coda. Bealls is still in business today. For years Bealls could not expand outside of the state of Florida because a different store with exactly the same name was already using it in other states. These Bealls stores were run by Stage Stores, a long-time AdDept client that was based in Houston. Stage Stores was still using AdDept when TSI went out of business in 2014.
In 2019 Stage announced that it was changing all of its stores into Gordmans, its off-price logo (which did not exist while I was working with them). When the company declared bankruptcy Bealls purchased, among other things, the right to use the Bealls name nationwide.
I remember going to Barneys New York in late 2000 to talk with someone in advertising. I also have discovered three emails that I sent to Christine Carter, who was, I think, either in charge of the advertising department or in charge of the financial side. Barneys only had twenty-two stores, and that included some off-price outlets. I don’t know how much they actually advertised.
Flagship store on 60th Street.
We never heard from them after my last email, which emphasized how easily AdDept could be adapted to differing needs even for companies the size of Barneys. By this time the very affordable AS/400 model 150 had been introduced. It would have been perfect for them.
I think that Barneys is dead or nearly so in 2021. All of the stores in the U.S have been closed, and even the “Barneys New York” brand was sold to Saks Fifth Avenue. However, the company also had a Japan division, which is evidently still operational.
I received a very unexpected phone some time in 2001 or 2002. It came from a man who had formerly worked at Saks Fifth Avenue and had taken a job as a Vice President at Sears. He knew that the advertising department at Saks had been doing things with its AdDept system that Sears’ advertising department seemed utterly incapable of. He invited me to the Sears headquarters in Hoffman Estates, IL, to investigate the possibility of installing AdDept at Sears.
At about the same time I had been in contact with the agency in a nearby town that Sears used for buying newspaper space and negotiating newspaper contracts. They wanted to talk with me about the possibility of working together. The agency’s name was three initials. I think that one was an N, but I am not sure.5
I arranged to spend consecutive days at the two places. It was cold on the day that I visited the agency. I learned that it recruited new clients by claiming that they could negotiate better rates for them because they also represented Sears. I suspected that this was baloney. Sears was a bid dog nationwide, but the amount of newspaper ads that they bought in any individual market was not that impressive. They were just in a lot of markets.
After the people explained the services that they offered to clients, I remarked that about 10 percent of what they did overlapped with about 10 percent of what we did. Privately I could not imagine that any of our clients who would benefit from their services.
I told them about AxN, our Internet product. They informed me that the papers did not want to sign on to their website for insertion orders. Of course, they wouldn’t, and they had nothing to hold over the papers.
We ended the meeting with the usual agreement to stay in touch and look for synergies, but privately I considered them the enemy.
I did not see a parking structure. Maybe I entered on the wrong side of the pond.
The next day was bitterly cold, and there was a strong wind. I located the sprawling Sears complex and parked my rented car in a lot that was already nearly full. I had to walk a long way to the main building, and I have never felt as cold as I did on that walk.
I could hardly believe it when I walked into the building. The ground floor was billed with retail establishments—a drug store, a coffee shop, a barber shop, and many more. I had to take the escalator up to get to Sears. I was met there by the woman with whom I had been in contact. She was from the IT department.
OK, now I get it. Our problem was that we did not have enough architects.
She took me up to meet the “advertising team”. Six or eight people were assembled in the room, and they all had assigned roles. I remember that one was the “system architect”, and one was the “database manager”. I almost could not suppress my amusement. What did all these people do? There was no system, and there certainly was no database. At TSI I handled essentially all the roles that everyone at the table described.
They asked me some questions about the AdDept system. When I told them that it ran on the AS/400, the system architect asked me if that system was not considered obsolete. I scoffed at this notion and explained that IBM had introduced in the AS/400 64-bit RISC processors that were state-of-the-art. I also said that, as far as I knew, the AS/400 was the only system that was build on top of a relational database. That made it perfect for what AdDept did.
I wonder how many “OS/2 shops” there were in the world.
They informed me that Sears was an OS/26 shop. I did not know that there was such a thing. In the real world Windows had already left OS/2 in its dust by that time. In all my time dealing with retailers I never heard anyone else even mention OS/2. It might have been a great idea, but IBM never did a good job of positioning it against Windows.
Besides, just because the corporation endorsed OS/2 should not eliminate consideration of multi-user relational databases where appropriate. The devices with OS/2 could serve as clients.
They explained to me that Sears’ advertising department had hundreds of employees, most of whom served as liaisons with the merchandise managers. Most of the ads were placed by agencies. I presume that the newspaper ads were produced in-house. No one whom I talked with seemed to know. The people on the committee did not seem to know anything about how the department did budgeting or planning.
The competition.
Someone talked about Sears’ competitors. The example cited was Home Depot. I don’t know why this surprised me. I must have been taken in by the “softer side of Sears” campaign a few years earlier.
After the meeting my escort took me to a remarkable room that was dedicated to the advertising project. It was a small theater that had ten or so posters on the wall with big Roman numerals at the top: I, II, III, IV, etc. There were no statues, but otherwise I was immediately struck by the resemblance to the Stations of the Cross that can be found in almost any Catholic church in the world. I asked what the posters represented. The answer was that they were the “phases of the project”. I was stunned by the assumption that the project required “a team” and that it was or indefinite duration. No one ever allowed us more than a month or two to have at least portions of the system up and running.
At some point I was allowed to give my presentation. The man who had worked at Saks attended along with a fairly large number of people. Maybe some were from advertising. I was never allowed to speak with them individually.
I never got to read the advertising department’s Wish Book.
My talk explained that AdDept was a relational database that was specifically designed for retail advertising departments. I described a few of the things for which it had been used by other retailers. I could not do much more than that. I had not been able to talk with any of the people in the department, and the IT people were clearly clueless.
When I returned to Connecticut I wrote to both my escort and the man from Saks. I told both of them that I did not know what the next step might be. I had not been given enough access to the advertising department to make a proposal. The whole experience was surreal. If someone had asked me to return, I would only have done it if I were granted unfettered access to potential users.
No one ever contacted us. I told Doug not to bother following up.
One puzzling whiff occurred during the very short period in which Jim Lowe worked for us. The strange case of Wherehouse Music is explored here.
Perhaps the strangest telephone call from a genuine prospect that I ever received was from Albertsons, a very large retailer with is its headquarters in Boise Idaho. The person who called was (or at least claimed to be) the advertising director there.
I had heard of Albertsons, but I did not know very much about the company. All I knew was that they were a chain of grocery stores in the west. Since advertising for grocery stores is basically limited to one insert/polybag7 per week, they had never seemed to be great prospects for AdDept. However, I never hung up on someone who expressed interest in the system.
The problem was that this lady insisted that I fly out to Boise to meet with her and her crew the next day. I tried to get her to explain what the situation was, but she said that she had no time to talk. She needed to know if I would make the trip. It was a little tempting for a peculiar reason. Idaho was one of the few states8 that I had never visited. Still, this sounded awfully fishy. I passed.
The incredibly bumpy road that Albertsons has traveled is documented on its Wikipedia page, which is available here. I don’t remember when the call from the advertising director came. I therefore have no way of knowing whether she was in charge of advertising for a region, a division, all of the grocery stores, or none of those. I might well have passed up an opportunity that might have extended the life of the company. Who knows? It looked like a goose, and it honked like a goose, but maybe going to Boise would not have been a wild goose chase.
Jeff Netzer, with whom I had worked in the nineties at Neiman Marcus (recounted here), called me one day in 2010. He asked me if I remembered him. I said that I did; he was the Aggie who worked at Neiman’s.
He informed me that he was now working at Sewell Automotive, the largest Cadillac dealership in the Dallas area. He said that they were looking for help in automating their marketing. I was not sure how well AdDept would work in that environment, but I agreed to visit them. His boss promised to buy me a steak dinner.
I flew Southwest to Dallas, and for the first time my plane landed at Love Field. It was much closer to Sewell than DFW would have been.
I found a great deal out about their operation. I doubted that we could do much for the agency for a reasonable amount of money. On my computer I recently found a three-page document dated September 23, 2010, in which I had listed all of the issues that I learned about at Sewell. A woman named Tucker Pressly entered all of their expense invoices into a SQL Server database. It was inefficient, and there were no programs to help them compare with budgets.
The main objective of the marketing department was to make sure that they were taking advantage of all available co-op dollars from Cadillac and other vendors. We could not help with this unless we wrote a new module. I described my reactions to their issues in a letter to Jeff.
I never heard back from Jeff, who left Sewell in 2012. Nobody ever bought me a steak dinner.
Sewell Automotive is still thriving in 2021.
In 2011 or 2012 I received a phone call from a lady from the advertising department at Shopko, a chain of department stores based in Green Bay, WI. I don’t recall her name. She said that she worked for Jack Mullen, whom I knew very well from both Elder-Beerman and Kaufmann’s. Before Doug Pease came to TSI, he had worked for Jack at G. Fox in Hartford.
I flew out to Packer Land to meet with her. They had a very small advertising department. They basically ran circulars in local newspapers on a weekly basis. As I remember, she and one other person ran the business office.
I worked up a proposal for the most minimal AdDept system that I could come up with and sent it to her. When I had not heard from her after a few weeks I called her. She said that the company was downsizing and, in fact, her position was being eliminated.
Jack also left the company in July of 2012. His LinkedIn page is here. Shopko went out of business in 2019.
1. Allison Volpert apparently still works for IBM in 2021. Her LinkedIn page is here.
2. As I write this I can easily visualize Doug stabbing a box with a pencil after a frustrating telephone conversation with someone from a Federated division.
3. I worked fairly closely with Debra Edwards when I installed the AdDept system at Elder-Beerman stores in Dayton, OH. That installation is described here. She was the Advertising Director there. Her LinkedIn page is here.
4. The “l” in Norfolk is silent, and the “ol” sounds much more like a short u.
5. I later learned that there were actually two affiliated agencies across the street from one another. I encountered the other one, SPM, in my dealings with Proffitt’s Inc./Saks Inc., which are detailed here. The agency was still around in 2023. Its webpage is here.
6. In fact IBM stopped updating OS/2 in 2001 and stopped supporting the operating system in 2006. I cannot imagine how Sears dealt with this. I pity their employees with nothing OS/2 experience at Sears on their résumés.
7. Polybags are the plastic bags that hold a group of flyers from diverse retailers. they are ordinarily distributed to people willy-nilly.
8. The others are Wyoming, Montana, North Dakota, and Alaska. I am not certain of Arkansas. I might have gone there with my grandparents when I was a youngster. The only place that I have been in Utah is the Salt Lake City airport.
By the mid-eighties Sue and I really needed help with marketing. We had some good products to sell, and our service was fantastic. However, our salesmanship was poor. I could often persuade people that I could develop a solution to a difficult problem, but I was not very good at persuading them that TSI’s product and approach were better than those of our competitors.
The first person whom we engaged to represent us was Joe Danko, who lived on Cape Cod. At first the relationship was on a commission-only basis. Later we considered hiring him as our salesman, but we decided against it. The details are described here. Joe was never actually an employee, and we never paid him for his services. I don’t know how much effort, if any, he put in on our behalf.
Trust me; Paul was nothing like this guy.
We hired some consultants to help us. They, in turn, hired a graduate student named Paul Schrenker, to sit in Sue’s office in Rockville when she was on the road. We provided a list of presidents of ad agencies and their phone numbers. In only a few cases was it a direct line, but, even so, quite a few people agreed to talk with him. Ad agency executives were all about relationships. Whether Paul was a potential client or a potential vendor did not matter that much; many agency heads were always on the lookout for connections. So, a surprising number of advertising executives accepted a cold call from a graduate student who knew a lot about biology but very little about any aspect of the business world.
The Patriots debacle was not O&P’s finest hour.
One of the ad agencies, O’Neal & Prelle in Hartford, agreed to an appointment, and we eventually closed the sale. Paul did not participate in closing the sale, but he did make the first appointment.
TSI severed its relationship with the consulting firm. We decided instead to hire a full-time salesman, and we approached it in the same way we had recruited programmers and administrative people—by placing an ad in the newspapers. I think that we interviewed a couple of people. One stood out, Michael Symolon. He seemed excited about the job, and he was quite well-spoken. He was a graduate of Central Connecticut. He had worked in marketing for five years at Triad Systems, a company that specialized in software for dentists.
What about TSI?
I think that we hired Michael at some point in 1987. His LinkedIn page, which can be found here, was no help in this determination. Although he included previous and subsequent employers, he left TSI off of his list of experiences. We paid him a pretty good salary as well as commissions.
I remember that when he first began to work at TSI Michael was gung ho about setting up a nationwide sales organization. He advised me to schedule annual trips to exciting destinations exclusively for the most productive reps of our software systems.
Michael.
This attitude shocked me a little, but he eventually revised his expectations when he discovered how complicated the GrandAd product was. Our competitors could undercut us on price on the hardware, and there was not much that we could do about it. The key to selling was almost always our willingness to customize the system for the prospective client. The idea of setting up a network of sales agents seemed unworkable to me. If I could not deal with the people personally, how could I assess what changes were necessary and feasible?
We gave Michael room to be creative in his approaches, but I was not ready to discuss how to celebrate sales generated by imaginary salesmen.
9.5 rounded up.
Terri Provost left the company shortly after Michael was hired. Michael interviewed and hired Linda Fieldhouse to take her place as administrative assistant/bookkeeper. Both of them are described here. Michael assured me that Linda was “at least a nine and a half.”
I am pretty sure that Michael and I went on a couple of ad agency sales calls together. I remember driving up to Vermont with someone—it probably was Michael. When I got out of the car I realized that I was wearing the pants for my pin-stripe suit with my blue blazer. We did not get the sale, but I don’t think that my fashion faux pas was the cause. Vermont is not known for haute couture.
I also remember that Michael accompanied me to Keiler Advertising once. Evidently he had once dated Shelly, who at that time was in charge of bookkeeping there. Michael was very embarrassed by the incident. I did not ask him for historical details.
I don’t remember him closing sales of any new GrandAd clients.
We took Amtrak from Hartford’s Union Station to NYC.
Michael also came to New York City with me for at least one very important presentation to Macy’s in 1988. He was almost a hero, as is described here.
Michael invited Sue and me to supper one evening at his house in Farmington. We got to meet his wife and kids. It was a very nice house, but I don’t remember any details.
I am sorry to report that Michael was at the center of TSI’s first great crisis, which is described here.
I ran into Michael at Bradley International one day in late 1988. He told me that he was working for a company that sold advertising software to magazines. I told him that Macy’s had finally signed the contract, that I had been working my tail off to get all the software written and installed, and that TSI would send him his commission check as soon as we got the final check from Macy’s. There did not seem to be any hard feelings.
For a couple of years TSI muddled along without a salesman and with very little effort at marketing. Those were very difficult years in a number of ways. By the spring of 1991 the AdDept system had two pretty substantial accounts, and we felt that it was time to start marketing it seriously nationwide.
Meanwhile, our ad agency clients seemed perfectly content with their current hardware and showed no interest in converting to the AS/400, the system that IBM had introduced in 1988. It is described here.
We hired a young man named Tom Moran to help with marketing. He was a very nice guy, but he knew next to nothing about computers, advertising, retail, or, for that matter, marketing. He was definitely eager to learn, and he was willing to follow up on leads, which was the most important thing. Plus, both Sue and I liked him.
I remember going on two trips with Tom. The first was for a meeting with Hecht’s in Arlington, VA. Sue, Tom, and I drove down to the Washington area. A Motel 6 on the Maryland side of DC kept the light on for us, and I am happy to report that no murders were committed (or at least none reported) there that night. It was the first and last time that I stayed at a Motel 6.
The three of us met with Barbara Shane Jackson, who was in charge of Hecht’s patchwork PC system and her boss, the advertising director, whose name I don’t remember. Tom did not contribute much, but it was a good meeting on the whole. In the end we got the Hecht’s account.
The RAC was held at the Hilton in downtown Chicago.
Tom and I also attended RAC, the Retail Advertising Conference, in Chicago. It was a huge pain to get everything prepared for our booth there. We had to rent an AS/400 from IBM and to hire union employees to set everything up. Nevertheless, we did manage to get our demo computer system working by the time that the attendees came to visit the vendor area.
Some vendors who were familiar to us were there. Camex, the company from Boston that specialized in programming and selling heavy-duty Sun workstations for the production of ads, had an exhibit that was ten times as large as ours and had a dozen or more people. Tapscan, the broadcast software company. was right across the aisle from our booth. One young lady who worked there must have accidentally left her skirt at home. It appeared that over her black pantyhose and high heels, she was wearing a wash cloth that she purloined from her hotel room.
Most of the conventioneers were drunk or at least tipsy by the time that they reached our area. We made one contact with the ad director of Hess’s, a department store chain with headquarters in Pennsylvania. Tom gave him a copy of our sales materials and got all of his contact information. Unfortunately, almost as soon as we had begun correspondence with him, Hess’s was acquired by another retailer, and his position was eliminated.
The convention would have been a complete fiasco except for two things. The first was that I got to introduce Tom to the indescribable pleasure of Italian beef sandwiches purchased from street vendors in the Windy City.
The other redeeming event was the appointment that I had made to do a demo at the convention for Val Walser, the Director of the Advertising Business Office at The Bon Marché, a department store chain in the northwest. The programs worked without a hitch, and she was very impressed with what the system could do. She even invited us out to Seattle for a presentation to the relevant parties at the IBM office there.
Tom accompanied me on that trip, too. Our plane landed in Seattle very late, well after midnight. We checked into our hotel, but we only managed to get a couple of hours sleep. We went to the IBM office, where I checked that all of the software was working correctly. By this time I had been chain-drinking coffee for several hours, and still I felt very sleepy. This was an important presentation, and I had to be at my best.
The demo seemed to go pretty well. Everyone was attentive. The people from the IT department were asking tough questions, which usually boded well for us. I was so tired that I could barely concentrate. As we were putting away our materials I realized that I had been drinking decaffeinated coffee all day.
Nevertheless, I convinced Val and the other important parties. We put together a hardware and software proposal, and they submitted a requisition to the IT department, which also approved it. However, the powers that be at Federated Department Stores1, the mother ship, vetoed it.
This episode taught me that TSI needed someone who could navigate his way through the bureaucratic structure to find out what the hold-up was. Tom was not ready for this kind of responsibility. In the end, we decided that we could not afford someone who just tagged along for demos. In fact, we were really in the position where we could not afford anything.
Fortunately, we were able to use the Hecht’s installation as an entrée into the May Company, which at the time had about ten divisions. Not long after that I persuaded Foley’s in Houston to install the system, too. I also convinced Neiman Marcus in Dallas to get the system.
A grainy photo of Doug in an airport.
Those sales gave TSI both a solid base of accounts and enough revenue that we again looked for a marketing person in 1993. We found what we were looking for in Doug Pease, who had actually worked in the advertising department at G. Fox, the local May Company chain.
At first I had hoped that Doug could do some of the demos, but I soon gave up on that idea. I knew exactly what the system did, what it could potentially do, and what was beyond us. The programmers were generating a lot of code every week, and so these lists were in a constant state of flux. Besides, I had a great deal of experience at public speaking, and Doug did not. I don’t think that I would ever have trusted anyone with the demos.
Doug was a real bulldog once he had a hot lead. He was extremely good at following up on everything. In his first year we closed extremely profitable sales to Lord & Taylor, Filene’s Basement, and Michaels Stores.
Susan Sikorski
In April of 1994 I received an email from a woman named Susan Sikorski, who worked at Ross Roy Communications, Inc. in Bloomfield Hills, MI. The company at the time had eight hundred employees (!) and seven satellite offices. They wanted a production billing system that would feed their Software 2000 accounting system and some internally developed applications.
A few years earlier I would have considered this opportunity a godsend. We had already written interfaces for Software 2000 accounting systems for two AdDept clients. We loved to do interfaces, and the more complicated they were the better. However, we were so busy with programming for clients that Doug had landed that this was my response:
Unfortunately, as I looked over your package, I realized that our system does not really measure up to your requirements. We would have to make very substantial modifications to meet even the minimal requirements. Since we specialize in custom programming, this would not ordinarily be a great issue to us, but at this time we would not even be able to schedule the work for many months. So, I guess that we will have to mass.
And it was almost certainly a good thing that I was forced to make that decision. In 1995 Ross Roy Communications was purchased by the mega-agency called Omnicom Group. If TSI had been chosen for the project, I strongly suspect that the plug would have been pulled on it before the system became fully operational. Susan found a new job at Volkswagen in 1996.
Meanwhile, in the next few years Doug managed to get TSI’s AdDept system into all of the remaining May Company divisions, as well as Elder-Beerman, the Bon-Ton, Stage Stores, two Tandy divisions, Gottschalks in California, and all but one of the five divisions of Proffitt’s Inc., which later became Saks Inc..
Doug and I took many sales trips together. The most memorable one was in December of 1997 to Honolulu to pitch Liberty House3, the largest retailer on the islands.
Doug using a client’s AS/400 for something.
We had a little free time while we were there. Doug and I used it to climb to the top of Diamond Head together. He was an enthusiastic mountain biker, he had been a soccer player in college, and he was quite a bit younger than I was. I was in pretty good shape from jogging. So, neither of us held up the other.
Sue accompanied us to Honolulu, and after Doug returned home, she and I had a great time on four different islands, as is described here.
The other trip that was the most memorable for me was when we flew to Fresno, CA, to pitch Gottschalks, a chain of department stores in the central valley.
In those days you could save a lot of money by flying on Saturday rather than Sunday—more than enough to pay for a day’s food and lodging and a car rental. Doug and I considered going to Yosemite on our free day, but there was a problem with the roads there. Instead we decided to drive along the coastal highway from north to south to maximize our views of the coastline.
Somebody else’s photo.
I did not have a camera, but Doug did. His was a real camera of some sort. I was not yet into photography, and I had not brought a disposable camera on the trip. Doug took lots of photos. In fact, he ran out of film. When we stopped for lunch he bought some more film.
Doug took a lot more photos on the rest of the journey, or so he thought. When we got to Fresno he discovered that he had no photos at all after lunch. I don’t remember whether he forgot to load the camera after he took out the film. Maybe he did not wind it, or there was a technical problem. That was not the worst of it. He also somehow lost the first roll of film when we stopped for lunch, and it also contained the photos of his newborn child taken before we left.
But, hey, we got the account.
I guess that Doug is unloading new equipment in Enfield.
Doug and I almost never disagreed about what the company should be doing. However, near the end of his tenure he came up with an idea that I just could not sanction. He wanted us to start a new line of business in which we contracted for large chunks of advertising space from newspapers at a discount and then resold it to small businesses at a profit. Maybe he could have sold a lot of space; maybe he couldn’t. In any case such an undertaking would leverage no TSI products or services and none of the skills that the rest of us possessed. In short, he was asking me to backstop a new source of revenue for him. I declined to do so.
Doug and I made a great team. I gathered specs and did the demos. He attended, met the players, and subsequently followed up on everything. When the prospect had signed the contract, he made sure that all the i’s were dotted and the t’s crossed and ordered the hardware if they bought from TSI or a business partner.4 By 1999 we had more work than the programmers and I could handle. I told him to stop selling new software systems until the programming backlog could be reduced to a more manageable level, which would not be for at least a year. He made the imminently reasonable decision to look for another job.
After TSI moved to East Windsor in late 1999, we hired one more AdDept salesman, Jim Lowe. His previous experience was with a company that marketed hard cider. The challenge was to get retailers to give them adequate shelf space. It was retail experience, but not exactly the kind that we had dealt with.
Jim was a smart guy, and he could have been a good salesman for us. We went on a trip together to Wherehouse Music in Torrance, CA. Wherehouse was a large chain of music stores in California. Jim and I stayed in a nearby Holiday Inn the first night. We used MapQuest to find to the Wherehouse headquarters the next morning. At the very first turn MapQuest advised us to turn right. This seemed wrong to me, and I turned left instead. We reached the building in less than ten minutes. I don’t know when we would have arrived if I had turned right.
It was a very strange meeting. Rusty Hansen, whom I knew from Robinsons-May, had told them about us. We never got to meet with him or anyone else who seemed to know what they wanted. We did get to meet the president of the company, who was wearing jeans and a tee shirt. I never did figure out what this whole episode was about. The company went out of business within a couple of years.
Jim only worked for us for a few months. He took an offer that was very similar to his old job. Before he left he helped me with a mailing that produced some good leads. I sold the last few AdDept systems to some of those retailers by myself.
Jim’s advice to me when he left was that TSI should concentrate on AxN, which is described here. I don’t think that he ever really understood that the horse must precede the cart. We needed retailers to be sending us insertion orders in order to be able to send them to newspapers.
Bob in Denise’s office.
Bob Wroblewski was, as I recall, a relative of Denise’s husband. In November of 2003 Denise came up with the idea of paying Bob to get the newspapers signed up.
I got to know Bob on a trip taken by the two of us to California to persuade Rob-May and Gottschalks to use AxN. We both misjudged how well the two demos went. The people at Gottschalks seemed excited; Rob-May was somewhat cool. However, Rob-May soon came around, and I never did persuade Stephanie at Gottschalks to use AxN.
Here is how the marketing process worked. After a retailer’s advertising department that scheduled its newspaper ads in AdDept agreed to use AxN for insertion orders, it provided us with a list of its newspapers with contact information. I wrote a letter to each paper asking them to subscribe to the service. The letter was printed on the retailer’s letterhead and was signed by the advertising director or ROP manager at the newspaper. However, it was sent by us along with a contract that I had signed. The monthly rate was approximately what the newspaper charged for one column inch in one issue. This was a negligible fraction of what the advertiser spent. Then Bob called each one and persuaded them to sign up.
I don’t know (and I don’t want to know) what Bob said to the papers, but he had a very high success rate. He also earned quite a bit for himself in commissions. At one time we had over four hundred newspapers that subscribed for the service!
Bob’s wife died while he was still working with us. I drove to Providence, which is where he lived, for the wake.
1. Federated Department Stores owned many large chains that were all very promising potential AdDept clients. The rejection of The Bon Marché’s request may have been a blessing in disguise. In January of 1990, shortly after this meeting, Federated filed for Chapter 11 bankruptcy protection. It could have been really ugly.
2. Susan Sikorski is apparently working as a consultant for Avaya in 2021. She is featured as a graduate of Wayne State on this webpage.
3. We learned later that the advertising department at Liberty House had approved the purchase of the AdDept system, but the order was never placed because in March of 1998 Liberty House filed for Chapter 11, and the funds for new systems were frozen.
4. TSI was throughout its existence a certified member of IBM’s Business Partner program. However, because of the size of the company we were bit allowed to sell IBM hardware directly. Instead, we needed to pair up with a “managing Business Partner” who actually could place orders. We dealt extensively with several of these companies—Rich Baran, BPS, Savoir, and Avnet. There may have been others.
