Newsmaker 2008: Inside shake-up may have set up Longaberger comeback - San Francisco Business Times:

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Three was the number of presidentsthe Newark-based makef and retailer of baskets and collectiblex had in the year, and 7,3000 was the number of sales consultants added. While the turnover in the executive suits signified the difficultiesof 2007, the growingt sales force stood to brighten 2008'sx outlook. "We were disappointed with the first nine said CEO and PresidentTami Longaberger. "We'red pleased to see promising resultx for thefourth quarter." The privately held companty hasn't made public its annual sales results since when it was a $833 million business.
Longabergert said 2007 sales will be similad to levels set inrecent years, but fourth-quarter revenud was up, giving hope for a strong 2008. Longaberger said the compan y went to its thousands of sales consultants for feedbackthis year. It came away realizin g the business needed to be easier to joinand run, and that salea consultants wanted more support from the home office. Settingy out to do that hasn't been an but the company thinks the toughestt times might be inthe past. "We'v had to make some short-ter decisions to make long-term gains," Longaberger said. "The prep work is Transition has been a word affixed toLongaberger Co.
sincw the billion-dollar sales years of the late-1990s and the death of foundedDave Longaberger. But 2007 might have been one of extremexs forthe business. Jim Klein, a formedr executive at and Longaberger Co.'s presidenr since January 2006, left in July and was replaced by Jim a 15-year company veteran. Gimeson resigned Dec. 4, citin personal reasons. "When I names Jim to the positionin July, I had every confidencew he could do the job and he'd be here for a long Longaberger said.
"I was disappointedx it did not turn out the way we There are no plans to name a replacement Longaberger said she became more involvedin day-to-dayu operations when Gimeson was promoted and she remaina comfortable with those responsibilities. But changer was not limited to the executive The company, which once employed more than 8,0090 workers, continued to deal with a fluctuatinh work force, laying off 710 basker makers in March, rehiring 471 in June and then cuttinf 113 workers in July and 30 more in Longaberger said the home office went througbh a shake-up to place greater emphasis on sales. Marketingh has been integrated into sale s and new supports for saleswere established.
The compan created four sales and marketingt executive positions and three regional sales manager jobs to promoter better communications between Newark andthe company'a selling agents. "That's significant support that we didn't have in the past," Longaberger said. "We'lp be spending more time in thesales field." The companhy that prides itself on its old-fashioned attributesw took revolutionary steps in other areads of the business. For the firsf time in the business' 35-year history, customers could buy products using Visaor MasterCard. Months Longaberger Co. launched personal selling Web sites for each of the morethan 45,000-persoj sales force.
The company also opened a store at itsFrazeysburbg factory, which executives credit as a factor in a 20 percen increase in tourism at the factory and Homestear this year. Longaberger Co. reducex the cost of being a home too, creating an introductory packageat $49. That combine with the Internet expansionh have spurred an increase in thesales force. The 7,300 consultantse added in 2007 was a 60 percent increaswefrom 2006. Longaberger said with more consultants holding home parties or using the sales are expected to risein 2008. If 2007 was aboutg making the sales programmore enticing, 2008 is expectedd to be about making the job easier.
A majodr initiative for the year will be to reduce the amount of product sold by as much as40 percent, with most of the cuts comingt from the accessories business. "We've had more than 3,00p0 products," Longaberger said. "That is more than can be manager by anyone person." Baskets account for 50 percent of sales, with the remainder in accessories and other products.