Albert Chung
Starting Econ Enterprises was a bold step back in 1994 for Albert and Yvette Chung.
The couple began their operations on a shoestring budget, supplying promotional items, usually imprinted with a company logo, slogan or name. What they had in their favour was Albert's decade of experience in sales and marketing of similar products, while Yvette had three years of accounting experience before they took the plunge.
"We started with practically nothing and built the business from scratch," Yvette said. "You had to be head-cook and bottle-washer."
Albert added: "We never had the money to stock goods. Yvette encouraged me, saying we could do it."
Desire for expansion
The challenge in starting out with little capital is that the small business has little actual production capacity. "We contracted out the production," Albert explained.
"We wanted to grow the business," said Yvette, the administrative manager. That desire for expansion has meant the development of their internal production capabilities.
An advantage for them is that the production of corporate branded mugs, key rings, bags, calendars and other items is now a big chunk of the advertising market in Jamaica.
"Anything that can be printed on, we print," Yvette said.
Different surface configurations may require different printing solutions however, Albert stated. A rounded surface requires a rotary printer while a flat-bed printer does transfers to level surfaces.
As part of the development of its internal production capabilities, the company has gradually been expanding, and doubled in physical size over the last two years at its present location at 32-38 Slipe Road in Kingston 5, he said. They also acquired a new and more capable rotary printer.
They approached Jamaica National Small Business Loans for trade financing and were able to get a loan after fulfilling the requirements.
The loan also opened the possibility for them to acquire the new printer to replace their manual device, which was reliable but slow and had limited capabilities. He said the new machine "helped us a lot".
"Before we had this new printer, we had to go to other places to get that work done," Albert said. "The machine we have is fantastic. It saves time, increases production, and we no longer have to contract out production."
Frank Whylie, general manager of JNSBL, said the loan helped Econ Enterprises save money.
"The trade financing lowered their costs and they have ploughed the savings back into the business," Whylie said.
Customer satisfaction
He noted that promotional items are widely used in the corporate world due to their affordability and effectiveness.
"But their marketing strategy is not based on price only, but on quality and customer satisfaction."
Those who are not in business may think it is a cut-throat affair, but businesses can only prosper where they develop good working relations with suppliers, agents, the authorities and their customers. Albert's marketing skills have proved essential for their survival and growth.
He learned his skills by trial and error after being offered a sales job by another novelty production company.
"I gave it a try and found I couldn't sell," he said. "An appropriate approach to people wasn't there."
Ultimately, years of persistence paid off, and his sales improved to the point where he became a top salesman. "You see many sales people only once a year when they want to sell you something. I learned to spend time with my customers in the slow periods and they appreciated that."
Keeping customers satisfied depends on making sure to, "Treat them right," he said. "You also have to offer products that are durable and attractive."
Much of their business takes place around the Christmas season when firms want to find a way to show goodwill to their customers, so Econ Enterprises takes on additional staff at this time. They reduce the staff to two skilled workers for the rest of year which is not as busy, apart from the back-to-school periods, Valentine's Day, as well as Father's and Mother's days.
Building solid links with customers was the basis on which Econ Enterprises was started and gradually developed, but at the same time it had to offer a solid business proposition, Yvette said. With two of their three children still in school, she said they are determined to hand over a successful business to the second generation when they retire.
"The business is in a highly competitive field, but the management team is knowledgeable and very determined," Whylie said. "Despite the general business environment, we think their prospects are good."
Additionally, an important line of business for them is the production of branded licence plate frames for car dealers. By supplying plates configured to suit Japanese cars, Econ Enterprises has developed a substantial presence in the second-hand vehicle market.
That market presence has provided a buffer against the recession affecting the wider economy. Albert said: "This is a seasonal business, but things are picking up for the Christmas. In my judgement, things will work themselves out."
Yvette Chung shows a clock and some of the other items the company uses to carry corporate messages.
Jhenell Chung works part-time as an administrative assistant in her parents' business when she is not studying for her marketing degree at the University of the West Indies.