by Ryan McLaughlin
"I’m
an entrepreneur, and entrepreneurs are risk takers. I’ve always been a
risk taker. I always knew I would have my own business from a young age. I studied
in business school, and it was just a matter of learning about business and
choosing an industry to be in." – Sol Fleising, Founder and President
of SF Marketing, Inc.
A quarter of a century ago Sol Fleising packed up a van with his wife and hit the road – that road has led to the formation of one of Canada’s most successful distributors of professional audio equipment and musical instruments – SF Marketing.
Cutting his teeth in the industry at another leading distributor in the early ’70s, Fleising relayed, "It was my first real job out of university, where I was working for a distributor of musical instruments. I enjoyed the business and felt like it was a good business to be in. I was hired as a general manager, hired to run the office, but I realized that I liked sales – I kind of have ants in my pants, I’m an energetic guy and I wasn’t made to be an accountant and sit behind a desk."
After about two and a half years Fleising made the decision to leave his role with the distributor and head to Québec City where his wife was attending medical school. Once she finished school they determined it was time to get out and see the world (the second such experience for Fleising). "We got a camper and travelled all over North America, down to Mexico. Many of my dealers still remember me coming through in ’78 in that camper," he shared.
After travelling the continent, the couple trekked around the world in 80 days. "We came back and the NAMM show was just starting. It was at the ’79 NAMM show that I really started getting lines. When some people think SF they think sound recording and recording studio equipment, PA equipment, but I first started with instruments. I was selling Deering Banjos, Guild and Kramer when they had the aluminium neck." From these humble beginnings, having launched SF Marketing with only $1,000, the company has grown to be a multi-million dollar business employing over 100 workers.
"I look for integrity in suppliers and employees. I look for people who are what they tell you and are not bullshitting. People who are serious people with a good work ethic and are smart. We do personality and intelligence testing, we’re very careful because when we hire somebody we don’t like to let them go. So we spend quite a bit of time and money before we hire someone."
This high standard of quality has granted SF the good fortune of retaining both employees and lines over the years. "I have many people who have been with me for a long time. People tend not to leave because they have a good thing going. I recently had a new supplier come in and after I gave her a tour of the company she looked at me and said, ‘I’d work for you anytime.’ I think I take good care of people; I treat people the way I would like to be treated. We now have a profit sharing plan, so as the company does better, the employees receive a percentage of the profits every quarter. I think people feel valued, we give them a comfortable place to work, we give them a challenge and we don’t try to micromanage them. We try to find intelligent people that are hard working and let them go for it."
When asked if the company has ever fell upon hard times, or had any major obstacles to overcome, Fleising modestly admitted that they never have. "The company has always grown. When I first started out I had a small bank debt, but that’s over 20 years ago. I’ve been debt free for many years now. I reinvest the profits of the company to grow the business – to train people, increase infrastructure. I’m also not shy to hire support staff."
This success has led SF, who has traditionally handled namely professional sound products, to developing a Musical Instrument Division. MI industry veteran Jeff Sazant is running the new division. He recently returned to Canada after handling operations for both Guitar Center’s flagship Hollywood, CA, store and their Miami location over the past few years. "Jeff was a key factor in us getting into the MI area. We kind of started a company around him. I met him at a wedding, and he seemed interested in coming back to Canada. I wouldn’t have started the MI division on my own because the audio side may have suffered due to lack of time. So, what I try to do is delegate. The MI division is like its own company and that’s what Jeff likes. It’s like running his own business and we give him any support that he needs," Fleising shared.
Located in the St. Laurent berg of Montréal, PQ, the company currently resides in a 40,000 sq. ft. facility that houses all their operations from workforce to warehouse. Unfortunately with the recent expansion into the MI market, the building they’ve called home for the past 12 years is just not large enough. Fleising explained that the company will be looking for a building in the 70,000 sq. ft. ballpark, with added property to expand should the need arise. The new building will also need to be close to where they are currently located as many employees have purchased homes in the area.
Going from $1,000 to a multi-million dollar operation, one employee to over 100 and with plans to double the size of the business in the next four years, Fleising outlined what he feels is the key to SF’s success. "There are two things you have to do as a distributor: You have to buy a lot and pay on time. That’s something we’ve always been able to do. You can have a contract with a supplier, it doesn’t really make that much of a difference, because there’s always an out in a contract. People have to be happy with the job you’re doing ... you can’t just be a middle man transferring the goods to the customer and not adding any support."
Happy 25th Anniversary SF!
Ryan McLaughlin is Assistant Editor of Canadian Music Trade magazine.