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At Work with Jacobson Distributing Company

Libby Barsky
THE JEWISH STATE
November 13, 2009

Name:Jacobson Distributing Company

Type of Business: Retail and wholesale seller of appliances, electronics, and mattresses

Address: 725 Rahway Ave., Elizabeth

Telephone number: (908) 354-8533

Web site: ApplianceDistributorsUSA.com

Number of Employees: 15

Founded: 1948

Hours: Late nights: 10 a.m.-8 p.m. Monday and Thursday; 10 a.m.-6 p.m. Tuesday, Wednesday, and Friday; 10 a.m.-5 p.m. Saturday; closed on Sunday

Top Officer: Allen Jacobson, president

How would you describe your business?

"We are a wholesale and retail appliance distributor of refrigerators, washers, dryers, freezers, water heaters, humidifiers, and TV's selling to the trade-builders, school systems, and the general public," said owner Allen Jacobson. "We offer installation on appliances but we don't do repairs. We recommend outside service. We deliver locally in New Jersey and to every state in the union we send deliveries."

What makes your business special?

"Our business is special in the way we treat customers. We always try to have the lowest possible price and if a customer tells us that it's not the lowest we try to make it the lowest. We try to make the customer happy.

"Most of our salespeople have been with us for 15-20 years and their children have worked for us as well. We are very family-oriented. The employees are extremely knowledgeable and very familiar with products. "Customer satisfaction is very important to us. I have a satisfaction guaranteed motto, because I don't want any customer to be mad at me. If you're not satisfied, I'd just as soon give you the money back. Many of our customers' parents and grandparents bought their appliances here.

"We've been here for 60 years so we must be doing something right."

What goals do you have for the business?

"The goal in this recessionary period is to stay in business -- to keep the staff working and to keep the business profitable."

How has your business changed?

"The products in our business have changed -- from regular TV to flat panel TV; from top loading washers to front load washers; from top freezer refrigerator to a French side by side door and a bottom freezer -- but our location has not moved in 60 years.

"In 1948 my father had a gas station in Elizabeth and sold TV, then branched out to a second store to this store, selling the gas station and only selling appliances. The location hasn't moved since that time."

What was your most important deal?

"The biggest thing in our business was when Elizabeth became an Urban Enterprise Zone, which allows us to charge 3-and-a-half percent tax, which is 50 percent of the 7 percent sales tax. It makes us much more competitive with the box stores. Now Energy State and similar products are the new thing to encourage people to save a lot of money on energy.

"There is going to be an appliance stimulus due to start in November, which will be discounts from $50 to $200 based on the item. The stimulus program will be strictly for appliances that save energy, i.e. dishwashers, refrigerators, washers, dryers, freezers, humidifiers, air conditions, and will only last a couple of weeks. That is beside the regular manufacturer rebates that are available right now. If you buy an Energy Star refrigerator, they will pay you $30 for any working old refrigerator, pick it up, and scrap it for you. They want it out of commission."

What changes do you expect in the next 10 years?

"I think in the next 10 years everything will be oriented more toward 'green' initiatives -- more energy-efficient machines that don't emit toxins into the air with everything based on the solar system, so appliances are more efficient and keep the ozone out of the air.

"I think our business will continue to grow with our reputation for customer satisfaction."

What is the most important thing you've learned in your business?

"Customer satisfaction. The customer is always right -- even when they are wrong. I enjoy this business -- it's fun because the people I deal with aren't strangers. No one comes in here with a chip on their shoulder. It's always a friendly transaction.

What advice would you give to someone considering your line of work?

"Unless you have a lot of money, you couldn't start up a business like this. In order to stay competitive you have to be in a buying co-operative, which costs a lot of money in order to be a member. If you work in the retail business you have to be prepared to work six to seven days a week, 60 to 70 hours."

Is there anything else you would rather be doing?

"No. I love the business. It's been my whole life. I started here when I was 17 and in high school, went to college, spent two years in the army, and returned to work here. I was raised doing this business."