For retailers that sell a wide array of products and also have stores in a fairly large number of markets, advertising has long been both extremely valuable and very complicated. In the two and a half decades that TSI concentrated its work on the advertising departments of these retailers advertising was expensive. Newspapers in major markets charged over $100 per column-inch for ads, and the department stores and big-box retailers bought their ads1 by the page (126-132 column inches), not the column inch. Therefore, the advertising departments were charged by the management of these retailers with 1) negotiating the best rates possible, 2) using the mix of media that provided the most bang for the buck, and 3) designing and producing the ads that produced the most sales.
Most large retail advertising departments were divided into roughly the same areas with which we had become familiar at advertising agencies: media, production, and finance. The years that we had spent working with advertising agencies helped us understand some of their issues. However, the differences were many and complicated:
A primary difference was that retail advertising was event-based rather than campaign-based. Most retail events were the same from one one year to the next: Presidents Day, Easter, Mother’s Day, Father’s Day, etc. The dates might change a little, but the approaches were usually similar.
Another fundamental difference was the calendar. Most retailers organized their finances and advertising using a 4-5-4 retail calendar2. The first month of the year was usually February. Most retailers divided the year into two “seasons”, spring and fall. Fall began in August.
The large organizations had a separate manager for each major media: newspapers, direct mail, and broadcast. A few also had a magazine manager. Inserts (the pull-out flyers in newspapers) were usually treated like direct mail in the production area, but were ordered by the newspaper area.
Newspapers were much more important for retailers than for other types of businesses, especially in the nineties when potential customers still started their day by reading the local newspaper.
Each retailer negotiated an annual contract with each paper. The contracts often provided significant discounts for the quantity (column-inches) or nature of the advertising. For example, one retailer got some of its full-page ads in one of its major papers free if it met established criteria for other ads! On the other hand, if a retailer ran too little advertising for the contract period, the penalties could be staggering.
Not all newspapers were the same dimensions. There were two basic sizes, tabloid and broadsheet, but the actual dimensions varied somewhat. Sometimes ads were just photo-reduced to fit, sometimes different versions were necessary.
Inserts were included in the contract, but the rules as to how they were counted varied.
Some ads (called “spreads”) covered two full pages and the marginal area in the middle (“the gutter”).
Merchandise suppliers often paid for part of the cost of ads that featured their products. This was called “co-op”.
Most large retailers needed to know the net (of co-op) cost of ads for each merchandise area. The bonuses for the merchandise managers depended upon their sales markups less net advertising expenses.
Many retailers with a large number of stores needed to know the net (of co-op) cost of ads for each store. This was tricky for markets that included multiple stores.
Many chains had more than one logo (name on the front of the store). They required different versions for production purposes.
A few chains had more than one financial entity. This was challenging.
The financial books absolutely had to be closed within a few days of the end of the month. In some cases, especially in the May Company divisions, a set of corporate reports in specified formats were required every month.
No agency that TSI had dealt with had a photo studio, but many of the retailers did.
The production area of most of these retailers borrowed merchandise from the selling departments. The merchandise was sent to a photo studio, either in the department or outside. After the shoot the merchandise needed to be returned or at least accounted for. A special area called the “loan room” or “merch room” managed this activity.
Most retailers did a high percentage of their business in the second half of November and December. Many of them froze their computer systems (no purchases, no upgrades, no testing) during this period, which might extend in either direction.
No law specified that every retailer must follow every tenet listed above. Every AdDept installation required some custom code.
The sales pitch: After only two or three installations I had felt comfortable talking with ad agency executives. They generally knew nothing about computers. For the most part they cared little about efficiency; we could almost never point to a position that could be eliminated. It was therefore difficult to persuade them that the computer would save them money. I generally focused on three things: 1) how careful record-keeping could help them locate which clients were unprofitable; 2) how the GrandAd media system would allow improved cash flow; and 3) how a computer system could help if they got a chance to win a big client. I called the last one of these the “reaching for the brass ring” argument.
These arguments did not translate well when we tried to persuade retail advertisers. Usually the retailer had already decided whether or not to get a system for reasons that we could not control. Something had happened that made the current method of handling the work no longer feasible. Macy’s acquisition of the Gimbles stores overwhelmed the system that the advertising department had been using. Hecht’s was in a similar situation after it acquired John Wanamaker. Belk desperately needed help when they consolidated five divisions into one in Charlotte.
Although this phrase is now popular, I had never heard it before I started using it in the ’90s.
Often I would not be acquainted with the circumstances that motivated the important players. I always emphasized the value of having one central set of data to which everyone could contribute and from which everyone could draw. I called this approach “one version of the truth” by which “everyone could benefit from the work done by others.” Everyone could appreciate these notions, but placing a dollar value on the idea of shared data was difficult. Fairly often I would find something in my talks with employees that was horrendously inefficient or even dangerous or illegal, but I could not count on it.
An equally difficult problem was trying to figure out which individual(s) needed to be convinced. In some cases the IT department might not even participate in the software search, but they may have veto power over the final decision. Finding out where the sale stood often required someone from TSI who was willing and able to spend a great deal of time communicating by mail and phone. This was something that I was definitely loathe to do. Fortunately, I found someone, Doug Pease, who was quite good at it. Much more about him is posted here.
One thing that we did not need to worry about was competition. No other software company was crazy enough to attempt to address this market. A few retailers tried to develop something in-house. They all ended up spending millions of dollars or giving up or both.
Difficulties after the installation: I disliked two things about dealing with advertising agencies as clients: 1) It was sometimes difficult to get them to pay their bills; 2) they tended to go out of business or merge with competitors without warning.
We had no problems with retailers paying their bills except when they declared bankruptcy. The first time that this happened I was totally unprepared. A few smaller clients later closed down entirely, but none of these events was catastrophic to TSI.
An equally vexing problem was when one chain of stores acquired another. If the other chain had no system, this usually worked in our favor. If they both used AdDept (TSI’s administrative system for large retail advertising departments described here), we lost one client, but the remaining one usually became more dependent on our support and services. They often also asked us to help with the transition as well.
In the end, however, most of our biggest clients were acquired by Macy’s. The advertising was all managed by one department in New York. That process spelled doom for AdDept because by the time that it happened, Macy’s no longer used AdDept.
One other trend usually produced a little work on the AdDept side, the outsourcing of newspaper buying. We were usually asked to design and implement interfaces with the company that bought the ads. Unfortunately, this same process had a dire effect on AxN, TSI’s method of delivering and managing insertion orders online. When Dick’s Sporting Goods announced in 2014 that it was outsourcing its buying of newspaper space, we decided to shut down TSI.
Decision-making: The ways that decisions were made in retail advertising departments differed fundamentally differed from the way that entrepreneurs like advertising agency executives did. If I could talk to one of the principals at the agency, I could explain why the GrandAd system could produce positive results that could affect 1) the agency’s bottom line, and 2) the agency’s reputation. The situation was totally different in the advertising departments of large retailers.
The department either had a budget for a system or it did not. These were two entirely different cases. If the department had a budget, it was probably because of some huge external factor involving a merger or a takeover. In that case, the eventual purchase was almost a foregone conclusion. The challenge was to fashion a proposal that was within the budget, but not by much.
If the department was not in that position, the process was completely different. The first step was to find a person who had enough authority to requisition funds. This was usually the advertising director. However, advertising directors seldom requested information from us. Our contacts were generally much lower on the totem pole, usually the manager of the business office in the advertising department. So, we would first need to convince our contact and then convince the advertising director either directly, if possible, or indirectly.
We then depended upon the advertising director to requisition the funds. We might not have any idea who would evaluate the request. Sometimes it was someone in corporate finance, sometimes it was someone in the IT department, and in the large organizations approval might be necessary by a holding company such as the May Company, Federated, or Tandy.
At this point it was important for us to recognize which was the case. I was poor at this part of the job, but Doug Pease was much better. If he could connect me with the right person, I could usually frame the arguments for him or her. If no money was available, of course, we probably would not get the sale anyway. During some periods retailers were all tightening their belts. In tough times nobody in retail considered any capital purchase that did not generate sales.
If the final decision needed approval from the holding company, it was extremely difficult for us to influence them directly. In some cases like the May Company and Tandy, it worked out amazingly well for us. TSI’s problems with Federated are documented in detail here.
I began to appreciate the complexity of the situation when one customer told me that “Christmas only comes once.” He meant that the department had a budget at that point, but it had to spend the entire amount in that fiscal year. After that they would be strapped for cash. In general, that was how things worked.
However, some advertising departments had figured out a way around this. They charged the merchandise managers more than the ads cost. I do not know how they accounted for the difference, but they were sometimes had accumulated enough money in this fashion to circumvent the decision-makers in finance and IT. I know for a fact that the AdDept system was financed this way in a couple of cases.
The finance people generally were not upset when they found out about the unauthorized purchase. It was usually easy to determine that AdDept reducee administrative costs fairly rapidly. The IT department, however, might be more upset, especially if the AS/400 was not on their list of approved hardware systems.
Ancillary expenses: For entrepreneurs like ad agencies all expenses came out of the same checking account. The retail advertising departments had a different perspective. Sales tax and travel expenses probably did not hit the advertising department’s line on the income statement. No one ever complained about either type of billing, and they were always paid promptly.
However, the company may have had some rules about travel expenses. I was once grilled about flying first class for a training session. I had to provide proof that I purchased an economy fare and was upgraded by the airline. Some retailers insisted that I stay at a hotel at which they had a special rate. This was usually folly on their part. I liked to stay at Hampton Inns because of the free breakfast and the Hilton Honors points. Hampton’s rates were almost always lower than the “special rate” of the designated hotel.
1. Display ads in newspapers are always called ROP. It is not an acronym; the three letters, which stand for “run of press”, are always pronounced individually.
2. Every week starts with a Sunday. Every month has four or five weeks (twenty-eight or thirty-five days). The purpose of this arrangement and many examples are provided here.
When we were still living in Detroit, Sue Comparetto founded TSI Tailored Systems as sole proprietor. I helped her occasionally in the early days, but for the most part she did it alone. She never had any employees or, as far as I know, a business plan. She inherited a handful of accounts from her former employer. At first she had an office in Highland Park, a small and dangerous city surrounded by Detroit. Then, when TSI somehow obtained an IBM 5120 computer, she set up shop in the spare room in our house in Detroit.
Having the computer in Detroit allowed me to learn BASIC. Having access to the programs and listings from AIS, the company that wrote most of the software that Sue supported, allowed me to learn how business programs could be structured. We were self-taught. I had taken exactly one college-level programming class at Michigan in 19661; Sue had none. Neither of us had ever taken an accounting or marketing class. In fact, neither of us had ever even sold or helped market anything.
The partnership’s logo as it appeared on the first set of ring binders.
When we moved back to Connecticut, Sue registered TSI as a partnership. We worked together, but we never really agreed on who was responsible for what. I considered myself much better at programming than Sue was. I therefore expected to do the bulk of the coding (including software for TSI to use) and for her to handle nearly everything else. The way I thought of this was: she does the phone stuff; I do the computer stuff.
The first additional task that I felt obliged to take over was marketing. In Detroit Sue had never needed to find new clients. She was given a bunch of them, and she hoped that IBM would provide her with additional leads. When we moved back to Connecticut, however, we lost the ties with the Detroit IBM office, and it was difficult to make new arrangements. We had only a few clients and lousy credentials.
I copied company names and addresses from the Yellow Pages.
We scrambled to get a few custom programming jobs. I did nearly all the design, coding, implementation, and training. I pulled together a mailing list from phone books at the library and wrote letters to businesses that I thought might be interested in systems designed for our clients. We never made a lot of money this way, but it did generate some business. Eventually, IBM also gave us some leads.
We hired a receptionist/bookkeeper, Debbie Priola, and a programmer, Denise Bessette. The former freed up time for Sue almost immediately. The latter consumed quite a bit of my time for a couple of months, but eventually she helped a lot. Unfortunately, she decided to return to college and cut back on her hours at TSI. More details about the early years of TSI can be read here.
Enjoyable but frustrating.
Both Sue and I found most of the decade of the eighties to be enjoyable but frustrating. The programming was fun and very challenging. Almost all of TSI’s customers appreciated our approach. However, we never came up with a good way of monetizing our efforts. The ad agency system, GrandAd, did better than the “anything for a buck” approach that we had been forced to use in the beginning. However, our market was effectively limited to agencies that were within driving distance and were too large for a PC system. In that reduced market, it was difficult to make enough sales to get by. Eventually there were so few reasonable prospects remaining that a change in strategy was essential.
I was convinced that our future lay in selling AdDept to large retail advertisers across the country. There was no real competition, and there seemed to be a good number of prospects.
What about “sell”?
I don’t think that Sue agreed with this change in focus. She had always favored local businesses over large corporations when purchasing something, and I am pretty sure that she also preferred dealing with smaller businesses over dealing with corporate executives. The fact that both of our first two AdDept clients declared bankruptcy and left us with tens of thousands of dollars of noncollectable invoices reinforced her attitude.
Sue had always been a night person. I was the opposite. I always was out of bed by 5AM or earlier. I usually became very sleepy around 9:30PM. I then took a shower and read a few pages of a book in bed. I was almost always asleep within a minute or two of turning off the lights. I stuck to this routine for decades, and I still do in 2021.
At some point in the eighties Sue developed a sleeping problem. She liked to watch late-night television, but she almost always dozed off in her chair. She slept very fitfully, waking up with a start and then falling back asleep. This went on for a long time—months, maybe years. Finally she went to a doctor. He prescribed a sleep study. It was not a surprise that it confirmed that she had sleep apnea. For reasons that I have never understood Sue was reluctant to purchase and then use the sleep machine. The models sold in those days were big, expensive, and ungainly. Even so, breathing well while sleeping is critical to good health.
I suspect strongly that this long period in which she was not getting enough oxygen when she slept impaired her performance at work and elsewhere. She regularly came in to the office late—very late. She was late for appointments. She missed appointments all together. The books were never closed on time. She repeatedly put off providing the accountant with tax information, even though the company’s operation was not a bit complicated. There were many other issues, but the worst thing, from my perspective, was that she made employees call the people with whom she had appointments in order to make excuses for her.
To the best of my knowledge none of the people whom I listed relapsed even once.
In 1987 or 1988 Sue gave up smoking. At almost exactly the same time, Denise did, too. So did Patti Corcoran, Sue’s best friend, and, halfway across the country, my dad. This was like a dream come true for me. I had never taken a puff, but for years I had worked in smoky offices and had taken Excedrin for headaches. When TSI’s office was declared smoke-free, my headaches went away forthwith, and they never returned.
Sue, in contrast, had a very difficult time quitting. She put on quite a bit of weight, which amplified the sleep apnea problem. She was also more irritable at work and at home.
I must mention one other factor: Sue never throws anything away. Okay, if it has mold on it, or it is starting to stink, she will discard it. Otherwise she stuffs things for which she has no immediate use in bags or boxes.
When I first met Sue, she was renting one room in the basement of someone’s house. It was not cluttered at all. She seemed to have no possessions except a water bed, a record player, and a few albums. By the early nineties we had a house of our own with two rooms that had no assigned function, a garage, an attic, and a full basement. All of them soon became full of junk. Both of our cars had to park outside because the garage was wall-to-wall miscellany.
Fire hydrants!
Junk.
Really old junk.
Sue is not the only hoarder in her family. These photos were taken in the lot behind the Slanetz Corp. office.
TSI’s headquarters in Enfield was nearly as bad. Sue’s very large office was the worst. Strewn about were boxes and paper sacks full of correspondence and memorabilia. Her desk was always completely covered, and post-it notes were everywhere.
In the rest of the office stood several file cabinets. Of course, every business must retain records, and one never knew when the company might get audited. It was also critically important to maintain good records about contacts with clients and prospects, and our business, in particular, needed up-to-date listings of programs, which we had by the thousands. So, we had a lot of important paperwork.
No more mainframe announcements, please.
However, in TSI’s office could be found many other things, which by any measure were totally useless. One day I undertook to throw away the announcements that we constantly received from IBM about its products. These documents formed a stack about four feet high. 90 percent of these missives were about mainframe products. There was absolutely no chance that we would ever work with any of these machines. Even the remaining ones (all of which I intended to keep) were seldom of any value because the information might have been contradicted by a subsequent notice.
Sue asked me what I was doing, and I told her. She immediately got very upset and even started to cry. She just could not stand for anyone to make the decision to discard anything that she considered hers. I realized at that moment this was a reflection of a very serious problem. I put all the notices back in the file cabinet.2
1994 was a good year for J2P2, too.
1994: It was the best of times; it was the worst of times.
The business was finally taking off. Our new salesman, Doug Pease, was demonstrating that he was ideal for the job. The nationwide retail recession had ended. The retail conglomerates with money (or credit) were gobbling up smaller chains, and in most cases this worked to our advantage. We were approaching a position in which we need not ever worry about competition. Most of us were working very hard, but we were getting new clients, and it was exciting.
The problem was Sue. She was hardly involved in any of this at all. Her behavior was becoming really unprofessional. Doug complained about her often. She kept hiring assistants, and they kept quitting. I could not find out where we stood financially because our books were so out of date.
On a couple of occasions I was stretched so thin that I asked Sue to take trips to clients for me. I did not think that technical expertise would be involved. I just needed someone to find out what the users needed. The first one was to Macy’s East in New York. Sue never told me what happened, but the people at Macy’s told me years later that they had made voodoo dolls representing her and stuck pins in them.
The other trip was to Foley’s in Houston. Sue flew all the way there and then realized that she had brought no cash. Her credit cards had all been canceled by the issuers. Fortunately, she had a checkbook, and Beverly Ingraham, the Advertising Director at Foley’s, cashed a check for her.
In May of 1994 Sue and I took a very important road trip to Pittsburgh. We met with Blattner/Brunner, an ad agency (described here), and Kaufmann’s, a chain of department stores (described here). Both of these sessions went quite well. When we returned to Enfield, I was required to spend a lot of time working on the proposal for Kaufmann’s. It was the most complicated and difficult one that I had ever done, and if I did not do a good job of analyzing and estimating the difficulty of each element, we could suffer for this for years.
So, I asked Sue to follow up on Blattner/Brunner while I was working on Kaufmann’s. Sue had been there for the session in Pittsburgh. There was no one else I could turn to. She completely fumbled the ball. I was quite angry, but I knew that it would do no good to nag her about it.
On the other hand, I appreciated the fact that she was the founder of the company. These opportunities never would have happened if she had not started the ball rolling back in Detroit.
The day finally came when I just could not take it any more. I told her to go home and not to come in to work any more. There was no argument and no tears. She told me that I was making a big mistake and just left.
No one else thought that it was a mistake.
Within a day or so I approached Sue with the following arrangement: TSI Tailored Systems Inc. would be registered as a Chapter C corporation.
I would be president and have 55 percent of the stock, and Sue would would be treasurer with 45 percent. We would hire a new accountant to handle the corporation, and the bookkeeper would report to me. It would be my responsibility to make sure that the books were closed on time, and the taxes were paid on time. I would also do our personal taxes. We would fund the corporation with the difference between our accounts receivable and our accounts payable. If it needed cash (as it did a few times), I would loan as much as necessary to the corporation at a reasonable interest rate.
Sue was not happy about it, but she agreed to this. She did not even argue about the salary amounts that I set.
Amazon sells these.
Our new accountant’s name was Sal Rossitto2. He guided us through the transition. He advised us to set up an Limited Liability Company3, but I insisted on a true corporate entity that issued stock to its owners.
Setting up the new corporation was fairly straightforward. We had to open a new bank account. I found it to be a fairly simple matter to close the books every month within a day or two of the end of the month. We also set up a 401K with matching funds, a profit-sharing plan, and a good health and disability insurance plan from Anthem. None of this was difficult.
I am not sure who took over handling of the payroll after Sue left. TSI eventually hired Paychex to do it. Denise collected the time cards from the employees and submitted the requisite forms to Paychex.
Our accountants loved our Nov. fiscal year. They could work on our taxes in a less busy season.
I made one very good decision. We set our fiscal year to run from December 1 through November 30. We paid bonuses and made contributions in November. This gave all the employees the entire month of December to spend or save for tax purposes.
Dissolving TSI was a much more complicated task. Sue and Sal met often over the course of several months to unravel issues in the partnership’s books. I remember, among other things, some kind of ugly situation with regard to sales tax in California regarding the way that the installation at Gottschalks occurred. At the end of this process Sal confided to me that he now understood why I wanted to set up a real corporation.
The new logo as it appeared on invoices and letterhead.
We also ordered new letterhead. Ken Owen worked with me on the logo. I eliminated the stripes and the lean of TSI. The color around the TSI was pure blue. The colors to the left of that block went from a very light blue gradually darker almost to pure blue. The effect worked better on the computer screen than it did when printed.
For me the most important thing was to reestablish blue as the company’s color. It started with a light blue as shown at the top of the page, but over the years it had somehow evolved into something that was more green than blue. I hated it.
The next few years were boom years for TSI. I worked my tail off, and my travel schedule was a killer. I didn’t care. We had finally turned the corner, and the future looked very bright.
Life at home, however, was very difficult. Sue was obviously unhappy. She probably thought that I intended to dump her. I still loved her; I just did not want to work with her any more. I was quite sure that the company would do better without her.
displayed no interest in finding a job. This surprised me. She had had quite a few jobs since I met her. She really liked a few of them. She could summon up a great deal of enthusiasm about new projects, and she loved meeting new people. I could think of several occupations that she would fit very well.
Instead, she leased some space in an old office building in a questionable part of downtown Springfield, MA. She then fixed it up and rented it out to dance teachers who needed a place to give lessons. I don’t know how much of our money she lost on this venture. I am not sure that she even kept records of it. She certainly didn’t ask my opinion about it.
On weekends we still drove to Wethersfield to visit our old friends, the Corcorans, regularly. That helped quite a bit.
At one point Sue awarded herself a vacation. She drove to New Orleans to see a guy that she knew from high school who was into social dancing. She stopped at some other places along the way. I never asked her about what happened on this trip. When she returned she did not offer any details.
Eventually things got a little better. After the trip to Hawaii (described here) in December 1995 the situation became more tolerable for both of. At least we had some money to spend and save for the first time ever in our relationship.
1. The course that I took as a freshman at U-M taught a programming language that was unknown outside of Ann Arbor. It was called MAD, which stood for Michigan Algorithm Decoder. We wrote our programs on 80-column punch cards.
2. Perhaps you are wondering why I gave in without an argument. It was because I recognized quite early in our relationship that Sue was expert at playing the “Why don’t you …? Yes, but …” game described by Eric Berne in his best-selling book Games People Play. A pretty good write-up of the “game” is posted here. This is also the reason that I did not press her about the sleep apnea.
2. Sal Rossitto died in 2002. His obituary is here.
3. The purpose of an LLC is to protect the “members” from being personally responsible for debts and obligations undertaken by the company, but it is not as completely separated as a true corporation.
We installed at least part of the GrandAd system at all of the companies listed below. A few may have actually been Datamaster clients. My recollections of some installations are very dim. In a few I had little or no involvement
Visitors to O&P went through this red door on Elm St.
Although Keiler Advertising evidently had a famous red door in the twenty-first century, in the eighties the most famous red door in Hartford’s advertising community belonged to O’Neal & Prelle1 (O&P), the agency that was housed across the street from Bushnell Park in Hartford. Our negotiation was with Bill Ervin2, who was, I think, already the president of the agency.
We got this account because of a phone call from Paul Schrenker, the graduate student hired by our marketing company (described here). Paul called dozens of presidents of ad agencies. Bill responded that he was interested in our system. This was probably the only positive outcome from that endeavor.
I seem to remember that O&P bought a model 5364 from TSI. I do not remember doing any custom programming, but we almost always at least customized the invoices that they sent to clients.
I worked mostly with Liz Dickman, who was the bookkeeper. Of all of our agency liaisons, she was among the best to work with. She was able to do the reconciliations by herself more quickly than anyone else. I am not sure who drew the following beautiful schematic of the installation. It certainly is not my handiwork.
Evidently we installed a 5363. A 5364 would not have supported so many devices.
Here are my most vivid memories:
On one visit I had to carry something down to the basement. Halfway down the staircase I felt a stabbing pain in my right knee. It did not last, but it was the first time that I had felt pain there since I recovered from the operation in 1974, as described here.
If I was at O&P at lunch time, I generally bought a couple of tacos from one of the food trucks. I then sat alone on a bench in Bushnell Park and chowed down. One day while I sat with my legs crossed a starling popped up on my right shoe, which was about six inches off the ground. He perched there for at least a minute or two to see if I would reward him for his clever trick. When I failed to do so, he flew away.
I recall Liz informing me that she planned to take the CPA exam as a flyer. She said that she did not study for it, or at least not much. She was legitimately shocked when she later learned that she had passed. Perhaps it dawned on her that she was suddenly overqualified for her job. They made her a vice-president.
The installation really went downhill after Liz departed. The guy who operated the computer called TSI and asked for some training. We scheduled a day for him at our office in East Windsor. He was shocked when we billed O&P for it. Evidently either no one told him that TSI had a contract with O&P that clearly designated how much free training (plenty) they received, or someone gave him some bad advice. O&P didn’t pay the bill, and shortly thereafter the agency announced its liquidation.
I am pretty sure that we sold a model 5364 to Eric Tulin Inc.4 of Hartford, CT. It might have been TSI’s developmental system. I can remember spending a few days at the office on Hamilton St. The primary operator was a guy, but I don’t remember too much about him. I must have met with Eric as well, but I don’t remember the occasion.
The agency was not very large at the time. I don’t think that they had more than five or six employees.
I recall even less about Knorr Marketing5, which was (and still is) located in Traverse City, MI, which is in the northwest part of Michigan’s lower peninsula. The agency, which must have already purchased a S/36, called TSI one day out of the blue.
We sent them some materials, and even though they had never sen a demo, they purchased some portion of the GrandAd system. We sent Kate Behart to do the installation and training. Because we used almost exactly the same system for our record-keeping, Kate knew the accounting and job costing portions of the system. So, I assume that we did not install the media portion.
Kate must have done a good job. We hardly ever heard from them, but Knorr Marketing sent us a Christmas card for many years.
Another mystery GrandAd client for me was Brannigan-DeMarco of New York. They purchased their hardware from IBM. Sue took care of this account. I am not sure how much of the GrandAd system they used.
Sue worked closely with Angela Vaccaro, who was the primary operator of the system. She called for support every few months. Sue always took care of her problems.
Similarly, I know very little about Sullivan & Brownell6 of Randolph,VT. Sue handled everything about this account, too. She visited them occasionally. Sue did not need much of an excuse to schedule a trip to Vermont. She has always loved the whole state.
The only thing that I recall about the account was the fact that the media director was a Black woman. That would not ordinarily be even a little surprising, but this was, after all Vermont. In 1990 there were a grand total of 1,951 Black people in the state, including exactly zero lawyers and judges. In fact, only eleven Black people in total lived in Randolph.
Sue told me that the media director and her husband had a farm in the vicinity. Sue told me that she might have stayed overnight there once or twice.
Using a chain saw the husband carved a fox out of a tree trunk and gave it to Sue. It sat placidly on guard out in the grass just beyond the parking spaces of our office in Enfield for many years. In 2021 it wards off coyotes in our back yard. I took a photo of it. It has seen better days.
I handled most of TSI’s interactions with Knudsen-Moore (K-M), an advertising agency located in Stamford, CT. I thought of this as an important account because it finally gave us a toehold in the southeastern (wealthy) part of the state. I also thought that it was cool that one of our clients did business with both King Oscar and the WWE (then known as the WWF).
The audience for my demo was the seventy-two year-old7 bookkeeper whose name was Irene. I must have brought a PC, our 5364, and a terminal that we were evaluating for another client. Its screen was very large for the time. This became important because the bookkeeper had very bad vision. In fact, she later confided to me that the reason that she insisted that they choose TSI’s system was because of that terminal. Ordinarily my strikingly good looks are the deciding factor, but as I mentioned, her vision was poor.
The McMahons never showed up at their ad agency when I was there.
It took us several months, for reasons that will soon be apparent, to get them up and running. During this period the agency changed hands not once, but twice. Its final name, which persists to May of 2021 was CDHM8.
The holdups for going live with the system were the balances in accounts payable and accounts receivable. The values in these accounts are generally positive for A/R and negative for A/P. If a vendor bills you $100, and you immediately bill the client with a 10 percent markup, A/P will have a transaction with a value of -100, and the entry in A/R will be +110. There will also be offsetting entries, of course. The point is that every company should be able to justify its A/P with a stack of unpaid bills from vendors and its A/R with a stack of open invoices sent to clients.
I entered in all of the open A/P and A/R into GrandAd. I printed a list of each with totals. The system’s totals did not agree with what Irene’s hand-written worksheets said were the current balances. Not only that; her balances, which were reflected in the company’s official general ledger, had the wrong sign! The A/P showed a positive balance, and the A/R showed a negative balance. According to these figures the agency’s vendors owed them money, and they were in debt to their clients!
Irene still insisted that her figures were right. I asked for a meeting with the president, Bill Hoag. The bookkeeper attended, as did a couple of other people. Their accountant was not present. I explained the situation with words similar to those of the previous paragraph. She insisted that her numbers were correct because she had checked every entry. She knew this because there was a little dot next to each figure. Much screaming ensued.
The lady had been using the “balance forward” method. After each transaction a new balance is calculated. This is OK, but at least monthly this balance must be checked against the list of invoices. She had NEVER done this. I later looked over her sheets. They were replete with errors. She simply could not read her own handwriting.
The irony of the situation did not strike me until much later. If someone had caught this egregious error earlier, we would not have won the contract. She recommended us solely because of the big screen on the terminal, remember?
How in the world could an agency with books in this deplorable condition be sold twice? I don’t know.
They asked the bookkeeper to retire. The guy that replaced her was, in some ways, worse.
I am pretty sure that his first name was George. I don’t remember his last name, but I do remember that he insisted that any communication to him include the title “Esq.” Now, I don’t pretend to know who gets to use that title, but I would be willing to bet that not many of them lived at the YMCA, which is where this character lived. George got into arguments with us all the time, and he was abusive to TSI’s employees.
For the first and only time, I finally called the agency’s president about George’s behavior. He said that he would look into it. He called me back less than hour later. He said that the guy had not been in all week, and he was now officially terminated.
The next week the president told me that they had hired a new person. I think that his name was Roger. He was very easy to work with, and he had the record-keeping straightened out in short order.
I drove to CHM an least half a dozen times. I never saw Vince or any other McMahon. It was a big disappointment.
Sue handled the account of Charmer Industries of the Astoria section of Queens. The company distributed wine and liquor products. This was probably a referral from Quique Rodriguez, an IBM rep with whom we had a good relationship.
Sue and I drove there on, as I remember it, a Sunday, carried their computer and printer into the building, and made sure that they were working. Then we drove back to Rockville. I found the whole drive within the city terrifying. I wanted to stop, get out of the car, and kiss the earth when we were back in Connecticut. I have been to NYC many times, but I have never driven inside the city limits.
Ed Wolfe.
Charmer had a lot of companies. One specialized in the design of point-of-sale products in bars and liquor stores. Over the years it went by a number of names, including ACC Marketing and the Sukon Group. These were the people who used our system.
Our final liaison in the nineties was Ed Wolfe. As I recall, the company later decided to purchase a small AS/400, the system that replaced the S/36. The AS/400 is described in some detail here. I took the train to New York a couple of times to help with the setup of the new system. Ed was a nice guy and a good client.
Doherty-Tzoumas occupied this building on Dwight Street in Springfield.
I have always thought of Doherty-Tzoumas of Springfield, MA, as a bizarre advertising agency. Dianne Doherty9 was the president. She was totally unsuited to running this agency or any other business. Her husband was a very prominent lawyer. I think that he must have set her up in this business, perhaps for tax reasons. I can only speculate.
Her partner, Marsha Tzoumas10, knew her way around advertising and the business world at least a little, and she was very nice. I felt a little sorry for her.
The agency certainly tried hard to succeed. It always seemed to be a beehive of activity. Quite a few employees had been hired. They liked to hold “focus groups”11 for their clients’ products or services, an idea that I had never previously encountered.
I worked with Marsha and the agency’s bookkeeper to set up the system, and for the most part it seemed to go rather smoothly. However, when we showed the reports for the first monthly closing to Dianne she was overwhelmed.
Dianne hired a financial consultant to help her run the business. He might have been the company’s accountant, but that is not my recollection. I was in a few meetings with him. Most of them were fine, but in one meeting we were discussing the general ledger. Dianne made a very peculiar request. She asked if there were just two or three accounts that she should concentrate on. The request was, in my opinion, absurd. There might be a few that she could pretty much ignore, but to try to focus on any small subset of a company’s books was unthinkable. Most small businesses fail, and there are many paths to failure.
Nevertheless, the consultant took the bait and named a few accounts. I can’t even remember which ones he chose. I assume that cash was one. It is generally a good idea to know how much cash you have. He probably also picked A/P and A/R.
At any rate I knew in that instant that this business was doomed. I was right. In 1991 we received a letter from Dianne’s husband Paul proclaiming that the business was being liquidated. It was the only such letter that we ever received from an ad agency. They owed us less than $100, and so we did not consider suing for it.
I remember that on one occasion Marsha mentioned that she was looking for a good book to read. I recommended Larry McMurtry’s Lonesome Dove. I wonder if she took my advice.
In 1987 Rossin Greenberg Seronick and Hill (RGS&H)12 was the hottest agency in Boston, MA. The president, Neal Hill13, was not an advertising guy. Although I never met any of the other three partners, I am sure that they all had a good deal of advertising experience.
The agency had enjoyed two years of explosive growth. It wanted a computerized system for word and data processing. Neal and Ernie Capobianco14, the director of finance, interviewed us and all of our principal competitors. Their choice of the GrandAd system was a real feather in our cap. We were confident that we could do a great job for them, and we hoped that it would open the Boston market, which we had previously never been able to crack, for us.
A Wang word processing terminal.
The holdup was the word processing element. Neal loved Wang’s approach to word processing, and he thought that DisplayWrite/36 (DW/36) was inferior. However, no ad agency software had ever been written for Wang’s operating system. In fact, I had never encountered anyone who used it for anything other WP.
When Neal told us that they had decided to use our system, he asked what we would recommend for word processing. I said that I was not an expert, but the future was in PC’s. Furthermore, if they planned to use the S/36 only for GrandAd, a 5362, which could support up to twenty-eight locally attached devices, would be more than sufficient.
WordPerfect running in DOS did not look like the answer.
My assessment turned out to be correct, but in 1987 buying PC’s with good word processing software (the most popular at the time was WordPerfect) and connecting them would have been a formidable task. Personal computers in those days were still really personal.
Neal insisted that one system should address all the needs. IBM persuaded Neal that a model 5360 with DW/36 would serve their needs.
Neal approved the purchase of a 5360 (the washer-drier model) directly from IBM.
In the meantime I received a phone call from a salesman at Wang. He wanted us to convert our software to run on Wang’s equipment. I informed him that this would be a monumental task, and, although we had dozens of successful installations on IBM hardware, we had absolutely no experience with Wang’s approach. He told me that if we agreed to convert, he had an agency lined up that would use our system. I asked him if he was referring to RGS&H. When he confirmed it, I told him that they had already signed a contract with us. This was news to him.
The system that IBM proposed included terminals for almost all of the employees. The ones with PC’s got 5250 emulation adapters. Our end of the installation went fine. We did a great deal of custom coding for them. They had spent a lot of money on the system, and they reasonably insisted that it do exactly what they wanted.
Then the bombshell exploded. Microsoft let the world know that Neal Hill had written a letter to them. In it he bragged that RGS&H had poached the copywriter and artist from the agency that had handled advertising for Lotus Development, which at that time was considered Microsoft’s biggest competitor. Microsoft had not yet assembled its Office package, and Lotus 123 and Approach were very popular applications. Neal said that RGS&H knew what Lotus was up to, or words to that effect. He also sent them two plane tickets from Seattle to Boston.
I could sympathize. Evidently no one checked Neal Hill’s work either.
This episode caused a major scandal that has been widely written about in legal, advertising, and business circles as well as in the local press. In fact, if you google the agency’s name you will get several pages of articles about it. There are so many that is very difficult to find any other information about the agency.
Neal resigned in December of 1987. Ernie was named as the interim president. Our system was fully functional by this time. Ivan Dunmire served as our liaison. He did an excellent job.
TSI indirectly got swept up in this brouhaha. The articles in the local press mentioned that RGS&H had recently purchased a computer system that was characterized either as a mainframe or as a system that was much too large for the company. So, despite the fact that the people who actually used our software appreciated greatly what we had done, we never had the good reference account in Boston that we had hoped for.
Here are some of my recollections of my experiences with RGS&H:
You can’t make it in thirty minutes if you are afraid to exceed 10 miles per hour.
When I was driving Ernie to lunch one day he complained that my car smelled like tobacco smoke. It must have been Sue’s. Nobody previously had mentioned it. Evidently I was “nose blind” to it.
One of the two contenders for the most harrowing experience of my life (the other, getting caught in the Blizzard of ’77, is described here) occurred when driving back to Rockville. It was snowing lightly, and the traffic was moving at a fairly steady pace on the Mass Pike when I reached Exit #9 for I-84 near Sturbridge. To my surprise I-84 was nearly empty. There were no tracks in the road at all. I could clearly see the reflective markers on both sides of the road, and I used them for navigation. There really was no place to stop between Sturbridge and Rockville. The Celica and I passed no one, and we were only passed by one car traveling at perhaps 30 mph. A mile or so later I saw a car that had slid into the median; I assume that it was the one that had passed me. I did not consider stopping. When I finally reached the exit for Rockville, I had to guess where it was; the asphalt was covered with several inches of snow and there were no tire tracks. I did not think that my car would make it up the steep hills in Rockville, but it did. Sue was very worried; there were no cellphones in those days.
After we moved the office to Enfield in 1988, I usually drove to Springfield, took a Peter Pan bus to Boston, and walked a few blocks to the RGS’s offices. By that time “&H” had been dropped from the agency’s name.
I loved working with Ernie, Ivan, and the other people at the agency. There were no quarrels or misunderstandings.
I remember that I usually walked to McDonald’s for lunch and ate a Quarter-Pounder with Cheese and a Big Mac.
In the nineties Ivan called us a few times for support. By that time PC networks were becoming widespread, and people were touting the idea of “client-server” systems, a term that simply meant that the data was on one system used by everyone, but each person’s computer had its own set of programs. However, Ivan said that many of the people at the agency did not understand this. They thought that the term designated a system constructed to provide better service to the agency’s clients, and they wanted to know why RGS did not have one.
I tried to recruit Ivan to work for TSI, but he turned us down. I am not exactly sure what role he would have played at TSI, but I am pretty sure that he would have done a good job.
Our other installation in Boston, Rizzo Simons Cohn (RSC), was an even bigger fiasco. I was surprised to discover that Sue has almost completely repressed the memory of The Sign of the Three.
We had been contacted by a firm called Computer Detectives (CD). The guy on the phone told us that his company had been hired by the agency to find a computer system for them. It turned out that CD was a two-person company, the guy with whom we talked and his wife. His name was Larry Ponemon16. I don’t recall hers. We dealt almost exclusively with Larry.
Sue and I went to supper at a Chinese restaurant with them. The both ordered moo shu pork; this is the only thing that Sue remembered about them. They were very surprised when we told them that we had never really had a vacation.
We showed them the system, and they liked what they saw. We gave them a proposal for the GrandAd system running on a S/36 model 5363.
AT&T 3B2 model 400.
Larry called us to tell us that they had recommended our system to RSC, but the agency preferred to run its system on 3B2, a UNIX computer manufactured by AT&T. They asked us if we could convert our system to run on it.
We researched whether the S/36 version of Workstation Basic17 would work on a 3B2, and we were assured by the company that wrote and marketed it that it would. We told CD that we were pretty sure that it would, but we would need to adjust our quote to cover the conversion costs. We did so.
We then got to meet another consultant, who, among other things, sold and marketed AT&T computers. We told him that we were accustomed to working with IBM, and we trusted its commitment to support. If he sold the system to RSC, we wanted to know whom we would contact when we had problems or questions. He said that he was our contact. Remember that there were no cellphones, and this guy practically lived in his car. We would need to leave messages. The best that we could hope for was a beeper. Then we would need to depend on him to find someone who was willing and able help us. We were used to dialing 1-800-IBMSERV from anywhere. Someone ALWAYS answered.
The CD people were there at the meeting. They and the AT&T guy assured us that we and the agency’s users would get all the support that we needed.
We converted the software to work on Unix without an inordinate amount of difficulty. That, however, did not mean that it would efficiently do everything that RSC wanted in their environment. We knew nothing about how the operating system would perform when numerous users were working on the same files at the same time. Sue spent several days at RSC trying to get the system to work, but she ran into one roadblock after another, and no one was available to help her.
After a few weeks of this foolishness, the agency got fed up. CD had not disclosed to RSC, who had paid them handsomely to conduct the search, that they were being paid a “finder’s fee” both by us and by the AT&T guy. RSC had never voiced any preference for hardware; that was just a lie. Evidently they had told RSC quite a few whoppers, too. RSC sued CD, and Sue testified for the agency. AT&T took the hardware back and refunded at least part of the cost.
RSC reopened the software search. We submitted the same proposal that we had previously given to CD. Since we had already been paid for the UNIX version, we charged nothing for the GrandAd software or for the customizations. The other contender was a New York company (I can’t remember the name) against whom we often competed. Its software ran on UNIX.
I called the finance guy at RSC, Jonathan Ezrin18, and asked about their decision. He informed me that they had chosen the other vendor. I asked him what the basis for the decision was. He responded that mostly it was the cost. The answer astounded me. I asked him what the other software company had bid. It was about $10,000 higher than ours. I asked him how they could have considered this less than our bid. He said that to be fair they had included the cost of the software in our original proposal when making the comparison.
I assured him that we were not going to give that money back. I then told him frankly that theirs was the stupidest line of reasoning that I had ever heard, and I slammed down the phone.
RSC dissolved in 1990, less than a year after that phone call. I don’t know what happened to CD. I found no trace of them on the Internet, although Lavinia Harris has published a series of novels about a young couple who call themselves “computer detectives”.
I remember visiting Fern/Hanaway19 of Providence, RI, a few times. The agency had a System/36 that they had bought from IBM. I think that we installed one or two modules there, but I don’t remember which ones.
IBM must have told Arian & Lowe (A&L)20, an advertising agency of sorts in Chicago, IL, about TSI. Sue said that she went there once. She remembers that the floor of their office would have been good for dancing, but the only thing that she remembered about the company was that their main client was the Beef Board. They mostly produced point-of-sale posters and signage.
I installed some modules of the GrandAd system there and flew out for a couple of month ends. I remember several very strange occurrences.
The Director of Financial Operations for the agency was Neta Magnusson21. We generally had lunch together. She always had more than one martini. I could never have concentrated in the afternoon if I had imbibed a small fraction of what she downed. I stuck with Diet Coke or iced tea.
A&L used its S/36 model 5360 for word processing. One time when I was there working on the GrandAd system, they somehow lost some WP documents. A few people blamed me for this. I protested that I had not done anything to any documents. Fortunately I knew enough about how DW/36 worked that I could also demonstrate that I could not possibly have done anything.
I ordinarily stayed at a Holiday Inn that was a short distance from A&L. On one trip I had to stay an extra day. The Holiday Inn had no availability for that extra night, but they found me a place to stay and called a cab to take me there. The cab driver said that I definitely would not want to stay there. Instead, he took me to another place that was in a rather rough part of town. However, the room was OK, and it was only one night. I was, however, happy to be out of there the next morning.
The agency’s was in downtown Chicago. I had to take cabs back and forth to O’Hare. One time I somehow left my glasses in the cab. Believe it or not, the next time that I went to A&L I stopped at the taxi dispatcher. My glasses were in the Lost and Found box safe and sound.
One of the cab drivers spoke no English at all. His girlfriend sat in the front seat and translated for him.
Another cab driver picked me up at A&L. I wanted to go to O’Hare. He asked me for directions. I actually rode with a cab driver in Chicago who did not know how to get to the airport! Fortunately, this was one of my last trips to A&L; I could have given him instructions blindfolded.
The favorite expression of the system operator at A&L was “Have a good one!” I realized that this was cheerful and completely innocuous, but for some reason it really irritated me.
My favorite part of the trips to Chicago was the prospect of having an Italian beef sandwich, either at the airport or bought from a street vendor.
It seems appropriate to end with the bittersweet tale of Charnas Associates of Manchester, CT. TSI and IBM scheduled a presentation to the agency at the IBM office in Hartford. The presentation was scheduled to take two hours. I went to the office early and loaded our GrandAd demo system onto the 5360 at IBM. I also went over my notes for the presentation.
The turnout was unbelievable. Around twenty people showed up from the agency. I was always happy if we got one; I had done worse than that.
I had a lot of experience at this. The format varied by only a little. Someone from IBM acted as the host. He or she was always dressed impeccably and spoke glowingly about how wonderful IBM’s systems and support were and what a close working relationship IBM had with independent software developers like TSI. Then they turned it over to me.
I hated whiteboards after this.
Not this time. The IBMer went around to each and every person in the room and asked them what they would like the computer to do to help with their jobs. After each answer he would rush back to a whiteboard and add it to the list of items that were already on the board. The he would ask them to evaluate how important this was to them. He was hoping that they would attach a monetary value to it, but he was willing to settle for peace of mind or saving time. He dutifully recorded the values as well.
This went on for at least an hour and forty-five minutes. Then he spent a few minutes praising the System/36 before he let me talk for a couple of minutes. I could not possibly do my presentation in less than a half hour. So, I had to forget about my slides and my demo and try to talk about the big picture. The worst part was that damnable list on the whiteboard behind me. Needless to say, our software addressed less than half of the wish list. Of course no one suggested “Help us find which clients are unprofitable and why” or “Help us improve cash flow”.
I was so angry at the IBMer that I could have punched him. If I had not sworn after that fight in the fifth grade with Tom Guilfoyle that I would not engage in fisticuffs, I might have.
We followed up on this, but we never heard from Charnas.
A few years later in 1989 I was scheduled to give my first AS/400 demonstration of the AdDept system that I was still in the process of installing at Macy’s in New York. TSI did not own an AS/400 yet, and so I had made a backup tape at Macy’s. I planned to install Macy’s programs and data, dummy up the data so it was not recognizable, give the demo, and then erase the programs from the disk.
I never finished the first step. Something about the tape made the AS/400 system at IBM hang up. Commands could not even be entered at the system console. I worked with these incredibly reliable machines for twenty-six years. This was the only time that I saw something like this happen.
The IBM people were furious at me. They were certain that the problem occurred because our programs were written in BASIC. I calmly explained that the programs never got restored. Something happened during the restoring process.
Nobody from IBM attended my demo. I went to the demo room to do a song and dance with no accompaniment. Only one person was there, and she was not even one of our invitees. She identified herself as a media buyer at Charnas who had heard about the event from one of her clients. I explained how the GrandAd system worked and which agencies were using it.
She told me that Charnas had a S/36. She did not know the model. I asked her how big it was. “Oh, it’s big!”
She said that they used it only for word processing, and everyone hated it. That guy from the first demo had sold them a 5360 with no software except DisplayWrite36!
I don’t remember what happened after that too clearly. I am sure that I went to Charnas’s office in Manchester at least a few times in the early nineties. I think that I installed an abbreviated media system for them. Then I got heavily involved in the AdDept system.
Charnas apparently went out of business in July of 1992.
While I was looking for information about the agency I came across the book shown at the right. It was commissioned by Robert Bletchman, an attorney from Avon who died in 2008. His obituary is here.
There is only one copy of the book on this website. The title is How to Achieve the Release of Unidentified Flying Object Information from the United States Government.The first reader with $50 can claim it. Shipping is free!
The publication date for this book is in 1985. I am pretty sure that this effort antedated Art Bell’s Coast to Coast AM show on WTIC radio by approximately ten years.
1. O’Neal & Prelle went out of business in 2000.
2. Bill Ervin died suddenly in 2003. His obituary is here.
3. Liz Dickman is now the CEO of Integrated Physicians Management Services in East Hartford. Her LinkedIn page is here.
4. Eric Tulin Inc. changed names and ownership a few times before giving up the ghost in 1991.
6. In 2007, as reported here, Tom Brownell apparently transferred his client list to a group of his employees. They changed the name of the agency to 802 Creative Partners and moved the headquarters to Bethel, VT.
7. By coincidence 72 is my own age as I write this in May 2021. To be honest, if I tried to keep a manual ledger, I probably would not be able to read my handwriting either.
9. Dianne Doherty now goes by Dianne Fuller Doherty. She resides in Longmeadow, MA, in 2021. After the agency’s failure she devoted her life to helping other small businesses, especially those run by women, get started. Her story is described here.
10. Marsha Tzoumas is now known as Marsha Montori. In 2021 she is the Chief Marketing Officer at Six-Point Creative Works, an ad agency in Springfield. Her LinkedIn page is here.
11. I used focus groups in my short story (described here).
12. RGS&H went through five name change. Its final incarnation, GSOD, Inc. dissolved in 2007.
13. Neal Hill landed in Canada. His LinkedIn page is here.
Ernie Capobianco.
14. Ernie Capobianco telephoned me in the early 1990’s. At the time he had just started working at Valentine-Radford, a big ad agency in Kansas City. He arranged for me to meet with some principals and the IT guy. I also visited Ernie’s apartment in Johnson County. I think that I caught him at a bad time. His LinkedIn page, which skips over his time at RGS&H, is here.
15. Ivan Dunmire lives in New York City. His LinkedIn page is here.
Larry Ponemon.
16. I think that Larry Ponemon now runs the Ponemon Institute, which has something to do with privacy, security, and computers. His page on the organization’s website is here.
17. Workstation Basic was designed to emulate the Datamaster version of BASIC running under DOS and later UNIX. More information is here.
18. Jonathan Ezrin apparently now lives in Plymouth, MA. He does not have a LinkedIn page.
19. Fern/Hanaway was dissolved in 1998.
20. It appears that in 1991 A&L was taken over by Daryl Travis. Various versions of Arian, Lowe and Travis (no Oxford comma) existed after that, but I think that the operation in Chicago did not survive for long. The Beef Board account represented a high percentage of its billings.
21. I think that in 2021 Neta Magnusson lives in Geneva, IL, a suburb on the west side of Chicago.
When we moved from Michigan to Rockville, Sue and I knew almost nothing about marketing. When the business was closed over three decades later, we knew a lot more. Unfortunately, at least half of what we had learned was probably wrong.
In Detroit Sue had depended on IBM for referrals. When we moved we learned that the branch offices had no specific policy on this. Each salesperson knew a few of the independent software companies. Since no one in the Hartford office knew us, it was folly to depend on IBM in Connecticut.
The first year or so was the only time in the first three decades of the company’s existence that I had time on my hands. I wrote a little system on the 5120 to keep track of leads. I got most of my information from the Yellow Pages in the reference room of the Hartford Public Library.
I definitely remember sending a letter to the area’s jewelry stores. I think that we also sent one to construction companies. I do not remember how we did these exactly. Perhaps I just wrote a program on the 5120 to print letters with data from the lead tracking system. It seems unlikely that we had letterhead and company envelopes with our Rockville address yet.
I think that we got the lead for the Harstans account from the jewelry store mailing. I don’t remember any responses from anything in the construction industry. If we received any inquiries, Sue would have dealt with them.
I found a business card from the Detroit days in our basement.
After we had purchased a Datamaster with a letter-quality printer, we converted the lead tracking system to run on the new machine. We also invested in company letterhead and web-mounted company invoices. Both were Nantucket grey with light blue lettering. The TSI was striped in imitation of IBM’s logo, but we used a sans serif font.
We definitely did several mailings to ad agencies. Potter Hazlehurst responded to the first mailing. Other mailings may have at least produced a few lukewarm leads.
We received two free pieces of publicity. The GrandAd installation at Harland-Tine was featured in Basic Society News. This was described here. The other article, an interview with Dick Keiler, was published a few years later in AdWeek New England. It is described here.
We also bought our only ad ever in the same issue of that magazine. It was a waste of money.
By 1983 we began to get quite a few leads from IBM. We closed many of these deals, but most required significant custom programming and offered virtually no opportunity for additional business. What we wanted to sell were ad agency systems that took advantage of work that we had already done.
We participated in a campaign organized by a marketing manager at IBM to allow its salesmen to promote “IBM Advertising Agency Solutions.” He asked the third-party developers of ad agency software to provide a list of how their software could benefit ad agencies. Someone then took all of these items, assembled and sorted them all into one huge list, and put them into an attractive fold-out piece in which each of these advantages was claimed for “IBM solutions.”
Of course, no system marketed by anyone actually did all of those things, and some of the advantages were incompatible with others. Furthermore, none of the names of the companies that marketed and supported the software were included. The pamphlet only mentioned “IBM solutions” until the very last paragraph, which stated, “When you combine the specialized capabilities of IBM Business Partner applications for advertising with the quality control, product support and service that accompanies IBM systems, you have a comprehensive and powerful solution. One that can meet the needs of your agency today—and continue to serve you and your clients tomorrow.”
I was very upset when they sent the finished product. Set aside the atrocious grammar of the last sentence fragment. Who will possibly use this piece? IBM reps could not (or at least should not) use it because it doesn’t indicate which business partner could address which problem. No ethical business partner could hand it out because the prospect might think that the software company was claiming all of these advantages for its own product. I suppose that if we were allowed to white-out the parts that did not apply to our systems, we might be able to use it, but it would not look too professional.
When I explained that this was false advertising because the “IBM solution” described within did not exist, he was taken aback. He honestly thought that we would all be happy just to be associated with IBM. I admitted that we were. However we were ALWAYS in competitive situations. We could not afford to be associated with erroneous claims like “IBM creative applications help your writers and artists work more efficiently.” Our software did not improve the efficiency of the creative staff one iota, and if we tried to get the writers and artists to trade in their Macs for IBM iron, we would be run out of the office on a rail.
In addition, there were a couple of advantages that were unique to our approach. Of course, I had listed them, and they appeared in the pamphlet. I resented that every other Business Partner was authorized to claim these advantages, if only implicitly, for its own software.
With the help of Ken Owen of the Edward Owen Company we developed some leave-behinds that were at least a little professional looking and much less likely to get us sued. We put the write-ups of various aspects of the system in notebooks that had the company’s name and logo on it. The first batch were blue with white lettering. Subsequently we reversed the color scheme.
When we gave presentations. we put all of the handouts in folder like the one shown at left. The cover was generic enough that we could use it for any of our software products.
Our mailings for the ad agency system included self-addressed prepaid bounce-back cards on which the recipient could indicate the agency’s interest in our product. This certainly increased the quantity of positive responses that we got, but it also meant that we needed to spend more time qualifying the leads.
By 1986 Sue and I were frustrated with our sales efforts. We had been in business for more than five years. We had amassed a reliable set of reference accounts, but we were still struggling just to meet our payroll.
Sue set up some kind of business relationship with a guy named Joe Danko. I think that he was a consultant who had somehow come across our GrandAd product. He wanted to be our representative in southeast New England. Since the proposed arrangement involved no investment on our part, we agreed to it.
Sue corresponded with a former IBM VAR (as we were) named Jim Holland, who had started a business in Colorado helping others selling “turnkey systems”. Sue liked his approach, but he sold his business to a company in Paramus, NJ, called Motivational Marketing1. He convinced us to drive there for a “Motivational Marketing Working Session” in January of 1987.
We drove to the company’s offices and met with, I think, one of the founders of the company, Gary Farber2. We told him that we were having trouble closing deals for our software system for advertising agencies. We thought that we needed to hire a salesman, but we were not sure how to do it. He outlined a plan for us. It seemed pretty costly and did not directly address the need for a salesman, but if we scored even one or two deals, it would be worth it.
Two guys from the marketing company came to our office in Rockville. The older guy was named Irving; the younger one was Nick Pitasi. They told us that the first step in their plan was to contact our clients to get a more objective view of TSI’s strengths and weaknesses. Nick called everyone on our list of clients. He reported back to us that our clients loved us, and they particularly liked the fact that we educated them. This was rather nice to hear, but we already knew that we had very good reference accounts. We had thought that we were not doing a good job of using this information to our advantage.
Since we had said that we needed a “closer”, and since we already had a relationship with Joe Danko, Irving invited him to our office to interview for the job of salesman. Irving conducted the interview in Sue’s office upstairs in Rockville. I sat in. Sue might have attended as well, but she doesn’t remember it.
I was astounded at how awful Joe’s performance was. Without being asked about it, he went on and on about his involvement in lawsuits over his divorce. I would never have considered hiring him to take out the trash.
After the interview Irving told us that he thought that Joe would be OK as our salesman. Perhaps we should have cut our losses at this point. Irving and Nick might be able to help us in some way, but they certainly seemed unwilling or unable to address what we considered our most critical problem.
Their next step was to hire someone to call the presidents of ad agencies. We had a pretty good list in our lead tracking system. By this time Nick was handling our account by himself. He engaged a guy named Paul Schrenker for this purpose. Nick wrote a script for him. I could not believe how many presidents talked with him when he asked for them by name. I would have bet that he would not reach any of them.
The only person who accepted Paul’s call and expressed any interest was Bill Ervin at O’Neal and Prelle in Hartford. I visited them a couple of times, and they eventually agreed to a contract. The story of that installation is here.
One day I observed Nick while he was calling one of the presidents. It was impressive. A secretary answered the phone. Nick said, “Put Bill on, please.” When the secretary asked who was calling, he just said with supreme confidence, “It’s Nick from TSI.” The president picked up the phone, and Nick talked with him. I certainly couldn’t have done this.
Nick dropped by the office a couple of times after that. He had been in the office enough to see how things were run. By then he was familiar with how Sue would miss appointments and how disorganized she was. On one occasion I asked him whether he thought that we could make a go of it. He said that he did not see how. What a depressing moment that was.
Maybe I should have given up at that point, but I had no plan B. I was almost forty years old. I had burned through several occupations already. I did not want to start over.
When I first started to work with Sue I figured that I would do most of the programming, and she would do the rest of the work. After all, she had much more experience in business than I did, and she loved to talk on the telephone. She was certainly much more of a “people person” and less of a tireless coder She could figure out how programs worked and fix them, but I had never seen her write so much as a single program.
That was not the way that things worked out. As the years went by I took on more and more of the responsibilities. By the late eighties she was doing the accounting and the payroll, and that was about all. Even so, she could not keep up with it. The answer was not increased staff. We went through as many administrative employees as Murphy Brown.
We needed help with sales. The marketing consultants were nearly as worthless as all the other consultants that we had dealt with. We needed to hire a salesman. We terminated our agreement with Motivational Marketing in February 1988.
On March 2, 1987 (Sue’s thirty-sixth birthday), we sent out out a newsletter to all of our clients. It was three pages of 10-pitch single-spaced type on 8½x11″ paper. Mostly it dealt with hardware, but there was also half a page of information about changes that we were making to the S/36 version of the GrandAd system.
I located copies of issues numbered 1 through 6. The fifth issue, dated March 29, 1988, reflects the influence of Michael Symolon, our first marketing director. The first page of this issue announces three new ad agency clients. In addition, the first page is printed on GrandAd stationery that Michael ordered rather than on TSI letterhead. A post-it note attached to the copy that I found indicated that I was slightly annoyed that the subsequent pages did not match the cover page in either color or weight.
This issue is really meaty. I think that Michael or Kate Behart must have done most of the work on this issue and the others in this format. Issue #5 contained six pages of text and a copy of an article from the November 30, 1987, issue of ADWEEK about the installation of the GrandAd system at Rossin, Greenberg, Seronick, and Hill.3
I do not remember how many issues of those newsletters we produced. After I purchased and taught myself how to use PageMaker, the name of the newsletter was changed to Sound Bytes from TSI. At first it was 8½x11″, but the later versions were printed on both sides of 8½x14″ paper and folded to be 8½x7″. They also contained two columns per page, different fonts, and graphics. I located only one copy of each of these formats.
The main purpose of most of the subsequent newsletters was to announce new AdDept clients or new modules developed for existing AdDept clients. There may have also been one focused on TSI’s Internet insertion order system, AxN.
1. I think that Motivational Marketing still exists, but it has now evolved into a call center located in Rochelle Park, NJ. Its website is here.
2. Gary Farber’s LinkedIn page is here.
3. Much more about Michael Symolon’s career at TSI can be read here. More about Kate Behart has been posted here. The description of the installation at RGS&G is here.
A fairly detailed description of the design of the GrandAd System can be found here. More information about IBM’s System/36 (S/36) is posted here.
The purchase of the GrandAd software system in early 1985 by Keiler Advertising (KA) was definitely a milestone for TSI. The agency was one of the two largest in the Hartford area, and its founder and president, Dick Keiler1, was highly respected in the local advertising community.
Although I had recommended to Sandy Procko3, KA’s finance manager and our liaison on the installation, that they buy two Datamasters and a hard drive, IBM had talked her into ordering the recently announced S/36 model 5362. They made the right decision.2 The Datamaster was on its way out, and the S/36 gave them better peripherals and room for growth. It also had many more subtle advantages.
Her decision was a great break for us. We would have needed to convert the system anyway. The sooner that we got started on it the better.
The only problem was that no one at TSI had ever worked on a System/36. We knew that the system had a BASIC interpreter, but we were uncertain about the compatibility of the two versions. IBM provided KA with a huge stack of documentation. I read the BASIC manual thoroughly and was relieved to find that it was very similar to what we were accustomed to. I read enough of the other manuals to get an idea about how to set up their system.
I also had to write the file definitions for each file. We had versions of these created in the Datamaster’s word processing program, but on the S/36 it was important that they be stored as Data Definition Specifications (DDS). The final preliminary step was to write a procedure for creating all of the empty data files from the DDS.
IBM’s office had a 5360, the “washer-dryer” model.
IBM allowed us to work on the S/36 in its downtown Hartford office before KA’s system was delivered. I saved our programs onto 8″ disks. I created a library for them on IBM’s 5360. Then I restored them as text files. I edited them to conform with the S/36 syntax and changed the names of all of the files to use the dot format that SSP required. I then tried to load them in the interpreter. If any lines were rejected, I fixed them and kept trying until the program loaded. Then I went on to the next program, of which there were several hundred.
When I was done with the programs and procedures, I saved the library onto diskettes, brought the diskettes to KA, and restored them. Then I executed the procedures to create all of the files. It never occurred to us that there might some day be a way of populating the data files from files that they had stored on their PC’s. I think that it was possible to save the specs table, which was a fixed-record-length file.
For nearly all of its forty-two years of its existence KA was located in a large house in Farmington, CT. It is portrayed in the photo at the right. During the period in which I was regularly vising the agency, the trees and the bushes were much smaller, and they were surrounded by wood chips. Sandy called Dick “the mulch king” of Farmington.
From the beginning, or shortly thereafter, Sandy was assisted by a younger woman named Shelly. I don’t remember her last name
Getting the code to work on the S/36 caused us fewer problems than one might imagine. By this time we understood how IBM thought about things. The fact that all of our programs followed strict procedures also made it easier to adjust to the differences. I don’t remember encountering any problems that necessitated consulting IBM or anyone else.
Here are my most vivid recollections of the installation.
KA’s 5224 printer was much faster than anything available on a Datamaster.
KA not only had a kitchen. It had a chef who prepared meals for clients and prospects and a dining room as well. I was never invited to one of these occasions.
The parking lot at KA, which was in the back of the house, had a few narrow grass covered areas with skinny trees in them. I parked my Celica to the left of one of them once. When I exited I turned the wheel too soon. The mirror on the right side of the car got caught on the tree and broke off. Thenceforward there was no mirror on the Celica’s right side. Changing lanes to the right required extreme caution.
The first few monthly closings at KA were, as always, difficult. Query/36 sometimes helped the reconciliation process. Nevertheless, on one occasion we had a discrepancy of ten cents in the accounts payable account. Sandy told me not to worry about it, but we had the tools to find it, and so I persisted. I eventually discovered that no vendor was off by a dime. Instead, three invoices were off; all three had discrepancies of more than $100, but they almost perfectly balanced one another.
Sandy taught me that if a discrepancy was divisible by nine, it was probably a transposition error.
On one occasion guys from the Australian national swimming team were in the office for some reason. Sandy and most of the other female staff members thought that they were very hot.
Sandy liked the system’s reports a lot. I am pretty sure that she asked for a couple of revisions, but I do not remember the details. I do remember that, despite the fact that we spent a lot of time making sure that the results of the cost accounting system agreed with the cost accounting system, she never showed any client profitability reports to Dick. She said that that would open a can of worms.
I went to KA once during the period in which I was weak from cat scratch fever (as described here). It happened to be on the day that KA was moving its accounting department from the ground floor to the second floor. I carried a printer or something, but the effort totally exhausted me.
At some point in 1988, I think, Sandy fell out of Dick’s favor. She was reassigned to take charge of the scheduling of production jobs, a clear demotion. I never learned why all of this happened.
Dick hired a woman with experience from a New York agency to replace Sandy. I tried to explain to her why the system’s method of calculating work in process (WIP) was superior to the method advocated by the AAAA, but I don’t think that she bought it.
The last time that I went to KA Shelly was in charge of the finance department, and the New Yorker was gone. On that occasion Michael Symolon, our salesman at the time, accompanied me. Evidently he had gone on a date with Shelly once and was embarrassed about it. He stayed in the background. That was the only time that I ever remember him being shy.
When the system had been working successfully for a few months, Dick Keiler arranged to be interviewed by AdWeek New England about our system. It was a very nice article that heaped praise upon our system. It started on the front page, and it continued for several paragraphs in the middle. I had only one minor quibble: THEY NEVER MENTIONED THE NAME OF THE SOFTWARE OR THE COMPANY THAT DEVELOPED IT!!!
TSI had, for the first and only time in its existence purchased an ad. It appeared somewhat close to the article’s continuation page. However the ad was not precisely the same size as the hole that the magazine needed to fill. The way that they floated it in made it look really unprofessional.
I was quite upset about this. I wrote a letter to the editor complaining about both of these things. He called me. He did not apologize. He said that he did not think that it would have been proper to identify TSI. I reminded him that the article clearly identified the hardware vendor as IBM. What was the difference? He repeated that it just did not seem proper. He also thought that our ad looked fine. I hung up on him.
I made lemonade out of this by writing to all the prospects in the northeast about the article, providing “what AdWeek neglected to mention.” It generated a few inquiries.
1. Dick Keiler founded the agency in 1972. He started his retirement process in 1999 and left the company five years later. In 2021 he lives in Tucson Arizona. The agency went out of business in 2015. The last few years are described here.
2. I am pretty sure that in 2021 Sandy Procko resides in Westbrook, CT.
3. I was slow to come to the realization that when trying to sell systems that generated no revenue for the purchaser, it was best to strike when the iron was hot. One of our clients later told me “Christmas only comes once.” The person recommending the purchase always dreaded making a mistake. He/she most feared the prospect of telling the boss a little later that the company needed to purchase more hardware. I always thought that IBM proposed systems that were bigger and more experience than necessary, but they were more experienced at this process than I was.
4. The S/36 operating system, called SSP, used the term “procedure” for a list of commands that were to be executed sequentially. In addition, BASIC used the same term for a sequential list of BASIC commands that could be executed inside the interpreter. On the Datamaster the user was always in the interpreter, and so there was no confusion.
