Hub Pen Company - Supplier of the Year 2012
By Dave Vagnoni
February, 2012
Built on a strong foundation of family values, Hub Pen has risen from humble beginnings to become an industry leader.
It all started in a Boston apartment in 1954. Without the benefit of a factory of machines, Frank Fleming tirelessly assembled pens by hand, hoping his work would become something much more than just the wild dreams of a young entrepreneur. It turns out that in those long, demanding hours, Fleming (later helped by his wife Rita and seven children) not only founded a company, he established a brand – one that’s become synonymous with quality products, fair pricing and unparalleled service. “We just all care and we have such enthusiasm for what we do,” says Joe Fleming, Frank’s son and president of Counselor Top 40 supplier Hub Pen (asi/61966). “We pay attention to detail and we do our best to make things easier for distributors.”
That philosophy, instilled in the early days of the Braintree, MA, supplier, has held up quite well against the frenzied industry changes of the last six decades. And, while competitors have slipped in the midst of economic challenges, Hub Pen has grown rapidly, breaking records for orders and earning a powerful reputation for overall excellence. In the last five years alone, the company has increased its sales by 52%. Its revenues haven’t leveled off after a momentary boon either, but have climbed over 20% in 2010 and 2011. “Even though we’ve been growing at this rate, we’ve been able to sustain high levels of delivery,” says Andy Arruda, Hub’s national sales manager. “Our goal is not to lose the personal touch.”
Customers believe Hub is succeeding in that goal. “They’re one of my favorite suppliers because they’re so flexible and accommodating,” says Kurt Kaeser, president of Counselor Top 40 distributor Kaeser & Blair (asi/238600). “They never have any inventory issues, and if there’s ever a mistake, they make it right. There’s no red tape.”
Adds Bill Clay, president of firm Walker-Clay (asi/354530): “They’re such a good company to work with. They have great products, pricing and service.”
David Woods, president of Counselor Top 40 distributor Adventures In Advertising (asi/109480), goes even further in his praise. “We feel like we’re part of their family,” he says. “They’re one of our most trusted suppliers.”
Clearly, it’s not just Woods who feels this way. Many others agree. In fact, across several categories and through considerable measures, Hub was rated by distributors as the very best at its craft. It comes as no surprise to its customers that Hub Pen is the winner of the Counselor Supplier of the Year Award for 2012.
Customers Come First
Bob McGaughey learned a valuable lesson 25 years ago in Ft. Worth, TX. Heeding a hotel fire alarm, he raced to get outside to safety. That’s when he caught up with Frank Fleming. “The first thing he asked me was where the orders were,” McGaughey says, “so I ran right back into the building to get them.”
McGaughey, Hub’s general manager, can joke about it now (his hotel never actually was on fire), but Fleming (intentionally or not) taught him something important that day: Customers and their needs come first. It’s a point McGaughey tries to put into practice each day. “I really think it comes from the top down here,” he says. “We do our best to set a good example.”
Certainly, that example is having an effect. Of the tens of thousands of orders placed at Hub every year, only 0.05% have problems for any reason (including errors made by distributors). “What we really do is we sell peace of mind,” says Mike Fleming, Joe’s brother and Hub Pen’s vice president of sales. “It’s an attitude we have to focus on quality. My parents set a good tone with that.”
Of course, Hub Pen’s success isn’t just rooted in making sure orders come out right. The supplier continues to offer new services to help customers increase business. Two of Hub’s most popular programs are its 24-hour service on plastics (must not require proofs) and its free customized metal pen samples. “If we get an order on plastic pens before noon that’s less than 1,000 pieces, we ship it out the next day for no extra charge,” Arruda says. “We also offer three free metal pen personalizations per week to distributor reps. It helps get our pens in the hands of customers.”
What’s also helped Hub’s growth is its abundant inventory. “We specialize and have a focus so we don’t have to start from the beginning with tooling,” says Joe Fleming, who makes two or three trips each year to China to meet face-to-face with vendors. “We’re in a pretty good cash position, and we have no debt.”
People Who Make A Difference
Joe Fleming still calls Angela McDonald “kid.” McDonald doesn’t seem to mind. “Sometimes they treat me better at work than my own family does,” she jokes. “Joe is like a father figure to me.”
McDonald, who started at the company when she was 22, has made the most of her 11 years at Hub Pen. As part of the customer service staff, she’s now responsible for many of the supplier’s largest accounts and has won multiple awards from distributors. “I’ll listen and give the same personal respect to the top company or to someone with a first-time order,” she says.
McDonald is one of 65 people (out of 225) who have worked at Hub Pen for more than a decade. There are about 100 employees who have been at Hub for at least five years. “I started at Hub on July 1, 1968,” says Howard Ernest, who’s now the company’s purchasing manager. “I made $1.60 an hour. I didn’t work that whole first week because of the holiday, but they paid me for 40 hours. That showed me right upfront what kind of company this is.”
Feeling rewarded and appreciated, Hub Pen’s employees simply love their work and they in turn give their all. “This job allows me to support my family,” says Haoqing Ye, a silk screen printer who was born in China and is now an American citizen. “They’ve given me a lot of training and it’s a good environment. I’m so thankful.”
Grateful as well is John King, an 87-year-old Harvard graduate who unretired a decade ago to take a job in Hub’s quality control department. He now works as a proofer. “Everyone is so friendly and this gives me something to do,” he says. “It’s a great way to spend the day.”
Now & Later
At trade shows, Hub Pen’s booth always draws a crowd. It doesn’t hurt that Hub sometimes brings along its high-tech laser-engraver for eye-popping demonstrations. “We like to say we provide spectacular imprints,” says Joe Fleming. “We personalize pens on the spot. It takes seconds.”
There’s little doubt that Hub’s imprinting capabilities are among the best in the industry. The company’s innovations allow pens to be rotated as they’re being engraved, increasing the size of the imprint area and increasing the number of compliments from customers. “We want to be a leader in writing instrument technology and continue to deliver a better experience to our customers,” says Arruda. “We don’t have to report to Wall Street, so profits can be put back into the company.”
In the latest example of its reinvestment approach, Hub is purchasing a state-of-the-art ERP system that will eventually make the company paperless. “We’ll be able to process orders a lot faster,” says McGaughey. “Customers will be kept more up-to-speed. Our service will be even better.”
Dave Vagnoni is a senior writer for Counselor.