A Class Act A Kansas City company makes the grade with school supplies and equipment.
By Linda Cruse
Big Chief tablets, crayons and pencil boxes rekindle nostalgic childhood memories for many entrepreneurs. But to Mike Sigsbee, school supply purchases are just another day on the job.
Sigsbee is the founder of one of Kansas City’s fastest-growing businesses, School Solutions, Inc. Since opening in 1999, the Kansas City-based school furniture, supply and equipment company has experienced exceptional expansion, with sales tripling during its first two years in operation.
School Solution’s sales topped $1 million its first year in business and exceeded $4.3 million in 2002, according to Sigsbee, who began selling school supplies immediately after graduating from college.
“I graduated from college on Sunday, May 20, and went to work the next day,” said Sigsbee. “I was eager to get started and make some money. And although I did well as a salesman, my ultimate goal was to own my own business.”
Sigsbee interviewed for his first job in a double-breasted suit, which amused his new employers. “They told me I was going to be selling pencils, not investments,” he said.
Pencil Pusher Sigsbee is a native of Duncanville, Texas, a suburb of Dallas. After attending Navarro College in Corsicana, Texas, he completed his degree—a bachelor of arts with concentrations in business and international relations—at Austin College in Sherman, Texas.
Shortly before graduating, Sigsbee interviewed with Hoover Brothers, a school supply and equipment company. He was named salesman for the company’s Western Missouri territory. Sigsbee soon discovered that he excelled at sales, rapidly doubling his territory’s sales figures.
“In 1997 I grew sales in the territory to $2.7 million,” he said. “By 1998, sales nearly doubled—to $4.2 million in my territory.”
At about that time, Hoover Brothers was purchased by another school supply business. The new owners made changes in company operations, including reducing Sigsbee’s salary.
“I was selling nearly double the amount of the previous year, but I was making less,” he said. “That’s when I decided I needed to start my own business.”
Short Learning Curve In addition to dissatisfaction with his new employers, Sigsbee became an entrepreneur for another reason: he recognized an opening for a new school supply vendor.
“When I started in the industry, there were about seven major school equipment and supply companies,” he said. “With buyouts and consolidations, that number dropped to two. I saw an opportunity for another vendor.”
Because school districts are required to obtain bids on large purchases, Sigsbee knew he would have valuable bidding opportunities.
“Even if the schools didn’t select my company, I knew there would be opportunities to get my prices before them because they were required to obtain a certain number of bids,” Sigsbee explained.
School Solutions, Inc. got its start in the West Bottoms of Kansas City, Mo. Rapid growth forced the company to move to a larger space on Raytown Road in the fall of 2000.
The new office features a display area showcasing everything from early childhood furniture to cafeteria tables to sleek European chairs and desks.
Experience Earns an “A” Sigsbee’s previous experience as a school supply salesman proved beneficial when starting his new company. “I was able to get my foot in the door because I had already met many school district buying agents,” he said.
Sigsbee’s customers include public school districts, private schools and early learning centers, as well as colleges and churches.
Cathy Hare, lower school secretary at Pembroke Hill School, said the private school relied on Sigsbee for school equipment both before and after he went into business for himself.
“Mike has always been great to work with—very reliable and personable—so we were excited when he told us he was starting his own business,” Hare said.
Hare said Sigsbee’s expertise has been invaluable to school district staff. “His knowledge of inventory, quality and prices and his ability to make recommendations has been extremely helpful,” she said.
Both Sigsbee and the company’s second sales representative, Pete Brockmeier, have more than a decade of school supply experience with major players in the school furniture, supply and equipment industry.
“In addition, our office personnel—who are former customers and school purchasing agents—have more than 80 years of purchasing and customer service experience working with local school districts and businesses in the Kansas City area,” he said. “We can credit our rapid growth to providing our clients with superior service and products based on our combined years of experience.”
In addition to Sigsbee and Brockmeier, the company employs Carol Vernava, director of operations and purchasing, a former purchasing agent for both the Kansas City School District and La Petite Academy; Delores Ballard, sales support; and Julie Cash, customer service.
From Crayons to Coat Lockers Initially, School Solutions offered standard school furniture and equipment products. Furniture for school libraries, offices, and science and computer labs as well as early childhood furniture for preschools and day care centers were the company’s standard offerings.
School Solutions soon began carrying more specialized and exclusive products, such as furniture that transforms from cafeteria tables to benches with backs for meetings and auditorium seating.
The company has more than 100 vendors.
Sigsbee noted that the company is designing a new catalog featuring the company’s expanded products, which now range from chairs and desks, tables, book displays, library equipment, storage equipment, teacher and office equipment, room dividers, signs, lockers, play kitchens, soft furniture, play mats, rest mats and cots.
“We offer virtually every type of school furniture, equipment and supplies now, with the exception of textbooks,” Sigsbee said. “We’ve expanded our lines significantly since we started.”
The company’s territories have expanded as well. Initially focused on Kansas City and St. Louis, the company is exploring markets in Nebraska, Iowa and Kansas. And Sigsbee is currently seeking a new salesperson—preferably a retired school administrator or principal—to develop these new markets.
Ongoing Success School Solutions is in the process of adding a computer platform that will allow its salespeople access to company information via the Internet.
“Previously, all orders have been hand-written and faxed to our support staff,” Sigsbee explained. “This new technology will enable us to handle all orders electronically.”
Sigsbee also plans to continue visiting each customer twice a year to ensure that sales remain steady during harsh economic times.
“State budgets are down and school districts are losing money, but we’ll be fine as long as we continue to maintain contact with all of our customers,” he said. “Spending time with our buyers is the best way to promote our business and our services.”
Linda Cruse is managing editor of Kansas City Small Business Monthly.
Entrepreneur: Mike Sigsbee
Company Name: School Solutions, Inc. 6608 Raytown Road, Suite 200 Kansas City, MO 64133 (816) 737-3308 www.schoolsolutionsinc.com
Year Founded: 1999
Type of Business: School furniture, supplies and equipment
Number of Employees: 5
Keys to Success: “Our rapid growth comes from providing clients with superior service and products.” - Mike Sigsbee
