Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, April 7, 1994 TAG: 9404070156
SECTION: NEIGHBORS PAGE: S-4 EDITION: METRO
SOURCE: By JOHN A. MONTGOMERY SPECIAL TO THE ROANOKE TIMES & WORLD-NEWS
DATELINE: LENGTH: Medium
As more family members joined the original business, which supplied personalized premiums to various industries, sales jumped. And, as the size of the family increased, so did the number of family-owned businesses with the addition of a travel agency.
Seems like there ought to be a prize for that. Perhaps a trip to . . . the destination of your choice!
Fifteen years ago, Tom and his wife, Jo Ann, opened Robertson Marketing Group. During the 1980s, sons Tom Jr., John and David joined the firm as each finished school.
In 1991, Tom Sr., John and John's wife, Debbie, purchased a second business, Travel Network. Debbie runs the travel agency on a day-to-day basis. For the Robertsons, the agency was a natural fit. After all, an exotic trip can be one of the best prizes available.
"RMG designs, develops and administers incentive programs," John, 29, said. "You can romance a program better if you've got travel in it," Tom Sr., 59, added.
The Robertsons were familiar with the mechanics of travel agencies because they often consulted them as they prepared proposals. But by the time RMG included its markup, the company often found it was not price-competitive. RMG's solution was to buy its own agency.
"Debbie had indicated some interest in the travel business, and with her background [corporate sales at Hotel Roanoke and supervisory experience at Allstate Insurance] and personality, we thought she could run it," Tom Sr. said.
Tom Sr.'s hunches have paid off before. He left a secure job as vice president of marketing at Mountain Trust Bank in 1975 to sell premiums for Sperry & Hutchinson, a company perhaps best remembered for its S&H green stamps.
"That was a big departure, taking a sales job," Tom Sr. said. "It was less of a risk to leave S&H and go into business for myself."
RMG has grown exponentially. The Salem-based company now employs 44 and operates offices in Charlotte, Virginia Beach and Washington, D.C. RMG's clients include Mobil Oil, Pepsi, USA Today, Time-Life Books/Music and MCI.
RMG's sales have increased seven or eight times since Tom Jr., 31, came on board in late-1985, Tom Sr. said. The main office is preparing for its third expansion.
The Robertsons are not caught up in titles, but each of the sons has a specific area to manage.
"First, we all act as account executives," John said. "Then, Tom [Jr.] has the outside sales force and sales offices. I'm in charge of national accounts and strategic planning, and David [27] takes care of personnel."
The Robertsons describe RMG as a regional company, with territory ranging to Kentucky, South Carolina and Maryland.
"Big companies like a turnkey operation," Tom Sr. said, explaining RMG's success in landing major accounts. "We offer screen printing, embroidery, pad printing and warehousing - all at one location."
The travel agency is several miles away in Roanoke County. "We took over an existing travel agency," Tom Sr. said. "The computer, the furniture, the location was here. Why not hitchhike on that?"
Tom Sr.'s former boss in the banking business had left the industry years before and bought the franchise rights for Travel Network in Virginia, West Virginia and Washington. When the Roanoke franchise became available, the Robertsons took a chance.
"We thought it would be fun," Tom Sr. said.
The Robertsons concede that the travel business is extremely competitive, and that it is difficult to make a profit. It helps that RMG is one of Travel Network's better customers and a good source of referrals.
"To survive, you have to have a strong corporate base," John said. "We include travel incentives in the accounts we pursue [at RMG]."
"They say it takes five years to turn a profit in travel," Tom Sr. said. "Our approach is long-term."
"Our lead time is two to three years out," Debbie said. "We're handling groups for '95, and we're bidding on '96."
Debbie said that 87 percent of her agency's business is airline bookings.
Travel Network's staff of five is headed by manager Keith Perkins, a veteran of the travel industry. "Keith is the pin that holds everything together," John said.
John emphasized that it is a common misconception that travel agencies increase the cost of travel. "Travel agencies can save you money, because they can see where all the specials are," he said. "We sell products and get a commission, but we don't have a markup."
Travel Network is at 2050 Electric Road, Suite 119; the telephone number is 772-7906. The Robertson Marketing Group is at 1301 Southside Drive, Salem; the telephone number is 389-0014.
by CNB