School-Pak grows by taking hassle out of shopping ritual
Any parent who has taken a child shopping for school supplies knows the annual drill. What might begin as a day of parent-child bonding often disintegrates into a frantic cross-town trek as a second-grader fights back tears of fear that he will be the only kid in his class without a SpongeBob SquarePants folder.
Gene and Terri Schulist had been through the school supply shopping experience dozens of times with their sons, Jason and Nick. About 10 years ago, after witnessing an argument between a mother and daughter in the school supply aisle of a department store, the Schulists decided there had to be a better way to shop for school supplies.
So, they started School-Pak Inc., a Milwaukee business that sells customized packs of school supplies. School-Pak works with schools to reach teachers and parents, and then works directly with school supply manufacturers to obtain the products requested.
Packages are assembled in the School-Pak plant at 4701 W. Woolworth Ave. and delivered to schools and homes.
The Schulists started their business out of their kitchen in 1991 and signed St. Catherine’s School in Milwaukee, which their sons attended at the time, to be their first client. Eight more schools signed up, and in that first year, the Schulists assembled the packs in their home and delivered them with their car.
Three years later, their client base had increased to 40 schools, and School-Pak was being run out of rented gymnasium space at Corpus Christi School on Villard Street in Milwaukee. Business kept growing, and in 1996 School-Pak moved to its current facility on Milwaukee’s north side.
"We’re parents, so we know what kind of quality items parents want for their kids," Terri said. "When we’re deciding what supplies to offer our clients, we ask ourselves, ‘Is this something we would buy for our kids?’"
School-Pak now is an international company, with clients in about 15 states and abroad, including China. The company has experienced about a 20% increase in sales over last year at this time. In 2001, sales were up about 29% over the previous year, and in 2000, the company saw growth of about 45%, the Schulists said.
With that growth came the need for more business savvy. Although Gene has a background in sales, he and Terri wanted to bring on board someone with the most up-to-date business and marketing knowledge for the business. That person happened to be their son, Jason.
Jason Schulist graduated from Marquette University in 1991 and later received a master’s degree in business administration from the Massachusetts Institute of Technology. He worked in management at General Motors Corp., a job which sent him to England and Poland, where he ran the production operation at a GM body shop.
Jason had been an informal consultant to his parents over the years, but he and his wife, Kasia, moved to Milwaukee in July so Jason could become School-Pak’s chief executive officer.
School-Pak’s business philosophy is based on the notions of efficiency, quality and employee responsibility, and the philosophy is played out daily in the company’s plant.
One contact
When the Schulists go to a client school, they set up a program for the whole school. Basically, through one point of contact, typically a school principal, they reach a large customer base of parents and teachers, Gene Schulist said.
School-Pak contracts with name-brand suppliers such as Crayola and Elmer’s, so School-Pak’s customers receive the same school supplies they would buy at a local retailer.
"If you go to Target or Wal-Mart, you can’t always find what you want, or things may be out of stock," Gene said. "But with us, you order whatever you need, and we deliver it to you. We’re much more flexible."
Flexible down to the fact that if a parent or teacher only needs three pencils, they can order three pencils, rather than buying a whole box as they would have to at stores like Target or Wal-Mart.
Also, School-Pak’s online store at www.SchoolPak.com is open to anyone, even if a parent or teacher’s school is not a School-Pak client.
About a year ago, School-Pak received national attention when The Wall Street Journal judged it the best overall value against competitors such as Staples and Office Max.
School-Pak also is doing its part to stem the "brain drain" that analysts fear is plaguing Wisconsin. Besides bringing Jason, 32, and his wife, Kasia, 26, who also has an MBA, into the business, the Schulists employ teenagers, including a 16-year-old production manager and a 17-year-old warehouse manager.
Gene calls it "responsible empowerment," and it’s what he says business owners and managers must do if they want to attract and retain young, educated employees.
Challenging the young
"Companies in Wisconsin and Milwaukee need to not be afraid to bring in young professionals, give them real responsibility and show them that they have a future in the company," Gene said. "If you put them in a middle-level job with no chance to excel, they’ll leave."
Jason calls the antidote to brain drain "brain recharge."
"You have to sell interesting jobs, give people responsibility, sell a future in the company and sell your city," he said. "Smaller companies have an advantage in this way, because they likely have interesting jobs where you won’t have to sit around in a corporate environment for 20 years before getting some real responsibility or stake in the business. You have more opportunities to move up more quickly in a small business."
School-Pak employs 26 workers from May to September, its peak season. Most of the workers are 14- to 18-year-olds.
"Last year, we had 99.98% accuracy in our efficiency rate, and this is using teenagers," Gene said. "Age doesn’t make a difference. We give employees responsibility, and we recognize their talents and accomplishments."
With Jason and Kasia on board, the Schulists hope to triple their business in a year. Gene will have more time to concentrate on the sales aspect of the business, while Jason runs the operations.
"It’s all about ensuring your employees continuously want to improve in their jobs," Gene said. "And that will happen if they know what they do matters and they will be recognized for their work."
Aug. 16, 2002 Small Business Times, Milwaukee
