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Relay Foods launches mobile site, expands delivery location

Relay Foods, the online delivery and drop-off service for locally sourced products, recently launched its mobile website. According to Matthew Smith, art director for Relay, customers can now "complete their entire shopping order from their mobile phone."
 
Within two weeks, Smith says mobile users will be able to collaborate on the same list the way they can on Relay's main website. The mobile website "works on any device with a modern browser," says Smith, "not just Apple or Android."
 
Relay cofounder Arnie Katz launched the company in 2009 in southern Virginia and has since expanded to serve Annapolis, Baltimore, D.C., and Philadelphia. According to Katz, Relay is expanding its delivery services to Fredericksburg in the next few weeks and will turn its attention to North and South Carolina in 2014.
 
"We deliver groceries to places where customers congregate," Katz says. Instead of delivering to customers' doorsteps, which is costly, Relay sends its customers' orders to pick-up locations—apartment or office buildings, or other public areas. "We reduce delivery fees to zero and we can offer prices comparable to those at the grocery store." Home delivery is available for an additional fee.

Katz says he believes that food transparency is "the number one way to fix the food system in the United States. Relay is known for transparency, for knowing where [the food we source] was produced and how it got from farm to plate," he says.
According to Katz, transparency helps both consumers and producers. For consumers who want to eat locally sourced food, Relay makes it easy for them to know where the meat, dairy and produce on their plates are coming from. For the farmers, Katz explains, "transparency builds brand…and reduces price pressure, which results in better food products."

Customers seem to like Relay. "We're growing quickly," Katz says.
 
Relay Foods is offering a $30 discount on orders of $50 or more. Enter the code "SAVE30" to receive the discount.

Writer: Allyson Jacob
Source: Matthew Smith, Relay Foods
 


Online food ordering firm spending up to $2M to add new franchises

Canton online food ordering company OrderUp is adding more franchises to its current 14 as the company prepares to take a bigger bite of the $188 billion quick-service food industry. The company will be spending an initial $1.5 million to $2 million this year to support that initiative, says CEO Chris Jeffery.

The company is currently working with new franchise owners to launch in several new markets over the next few months. Jeffery says franchise units generally have a population of about 100,000, and include 200 to 400 restaurants.

OrderUp has identified thousands of units around the country that meet what Jeffery calls, “benchmarks for growth.” With OrderUp’s digital franchise model, the initial franchise fee is $32,500.

Many franchisees buy multiple units. Jeffery cites Norfolk, Va., as an example of a franchisee that bought two units that cover the city’s downtown area.

OrderUp facilitates local online meal orders for delivery or pick-up. OrderUp runs the Baltimore market, where residents can order from 65 restaurants, including the Cross Street Kabob House, Grilled Cheese & Co. and Ultimate Pizza. The company is starting to expand into Baltimore County.

Chris Jeffery and Jason Kwicien cofounded OrderUp in 2009, when they saw the growing consumer demand for an online food delivery service that aggregated the menus of a fragmented restaurant industry.  In December 2012, OrderUp adopted a new business model to establish its own national online food delivery brand selling franchise units to entrepreneurs in local markets across the country.

“OrderUp is the liaison between the restaurant and the consumer,” Jeffery says.

In addition to expanding its franchise reach, OrderUp this year is updating its technology platform and providing franchisees with training and support in using social media tools.

Jeffery says OrderUp has doubled revenue in 2013, with 36 months of straight growth.

OrderUp is privately financed. The company has 28 employees, of whom 16 work from its Canton headquarters. The company is looking to hire three staffers in digital marketing and support.
 
Source: Chris Jeffery, OrderUp
Writer: Barbara Pash




Friends & Farms grocery delivery expands to Baltimore City

Friends & Farms last month launched two pickup sites in Baltimore, in Roland Park and Little Italy. The Columbia-based alternative food provider is starting with 30 customers at the new locations but expects to increase that number and to add additional pickup sites in the future.
 
“We knew there was a community in the city for us,”  says director of marketing Regina McCarthy, who conducted a marketing campaign with an emphasis on social media before the Baltimore launch.
 
“We picked those sites because they are central and north of downtown,” says McCarthy,  “and also because we are working with people who understand what we're doing.”
 
The Baltimore pickup sites are at the Gilman School, at 5407 Roland Ave. and 210 South Central Ave, at Stratford University.

Friends & Farms sells weekly baskets of fresh, locally-grown produce and other items year-round. Customers pick up their baskets at designated sites on designated days. Since its founding last year, the company has grown from three sites to seven and from 30 customers to over 250. Sites are located in Anne Arundel, Baltimore and Howard counties besides Baltimore. It's one of several companies that are delivering farm-fresh produce and meat
 
McCarthy says that co-founders Philip Gottwals and Tim Hosking not only wanted to offer an alternative food system to consumers but to give farmers financial security. Before the growing season, company staffers meet with about 70 local farmers to plan crops for the baskets. The company also works with local bakeries, creameries, meat processors, fishermen and people who make honey and preserves.
 
Weekly baskets vary in size: one-person at $40 per week, two-person at $51 per week and four-person at $76 per week. A vegetarian basket runs $55 per week. New this year are gluten-free and dairy-free options.
 
Each basket contains enough food for one week, including  fresh produce,  two proteins (fish, poultry, meat or vegetarian),  bread and dairy. Food selection varies with the seasons. The company sends customers a weekly newsletter with recipes and updates on the farmers, and sponsors a yearly tour of the farms.

Friends & Farms has a staff of nine, and may be hiring additional staffers this fall.

 
Source: Regina McCarthy, Friends &Farms
Writer: Barbara Pash
 
 
 
 
 
 
 

Canton e-commerce company SalesWarp seeks $10M in funding

SalesWarp recently closed its second round of financing and is planning a third round before the end of the year. The Canton e-commerce company is also adding five employees in engineering and product management to its current full-time staff of 16.
 
Private investors funded the first and second rounds, CEO David Potts says. He declined to give specific numbers but says that to date, SaleWarp has raised under $5 million.
 
He says that the third round of financing will be “more traditional,” intended for venture capital investors and with a goal of $5 million to $10 million.
 
SalesWarp’s Storefront Management System is an enterprise software product for retail environments from online stores to warehouse systems. It manages data from product to market, and processes orders.
 
“Our software filled a gap we found in the market,” says Potts.
 
SalesWarp originally worked with service providers to integrate its software with clients’ systems. However, about a year ago, SalesWarp decided to service its clients directly, “to make sure all the systems work. It gives us a higher quality product at the end of the day," says Potts. 
 
SalesWarp retains partnerships with service providers for some aspects of e-commerce like front-end merchandising and branding and marketing, if the client chooses.
 
“It allows us to offer an array of services beyond SalesWarp,” says Potts. The third financing round will be used to continue building services for clients.
 
According to Potts, sales have been growing quarter to quarter 50 to 100 percent for the past six quarters.
 
Within a year of launching its system in 2009, the company had acquired the top 10 retailers in the country as clients, he says. This summer, additional clients in the high-end fashion and shoe industries will be announced. He declined to specify brands but says their names will “resonate in those spaces.”
 
6th Street Commerce developed and is the corporate entity for SalesWarp. The privately financed SalesWarp is located in the incubator Emerging Technology Center at Canton. Potts hasn’t decided if  the company will move with the ETC to it new location in Highlandtown in October.
 
Whatever the decision, he says SalesWarp will need an office for at least 20 people. Last year, the company doubled the number of full-time employees from eight to 16. 
 
Source: David Potts, SalesWarp
Writer: Barbara Pash

Ripken Gourmet Burgers hit a home run in sales

Baltimore County's Roseda Beef expects to hit $5 million in sales this year thanks to the expanded distribution of Ripken Gourmet Burgers.

Named after baseball’s Hall of Fame and former Baltimore Orioles baseball star Cal Ripken Jr., the burgers will help bring in an extra $2 million in sales, says Mike Brannon, vice president of Roseda Beef. The number of outlets for the burgers nearly doubled in one year, from 173 stores last year, when the product was originally introduced, to more than 400 stores last month.

Located at Roseda Black Angus Farm in northern Baltimore County's Monkton, Roseda Beef makes and markets the frozen and boxed burgers. Roseda Beef is part of Roseda Black Angus Farm and Old Line Custom Meat Co., a meat processor located in a 17,000-square-foot plant at 1600 South Monroe St. in Southwest Baltimore. 
 
Brannon says the Ripken burgers, priced at $10 per box for four six-ounce patties, is a first for the company. “It’s a big undertaking, our first pre-packed, co-branded product,” he says.
 
Roseda Beef sells fresh meat under its own name to restaurants and grocery stores like Graul’s Market, a local chain. “We raise cattle and sell strip and tenderloin. But selling the ground beef is a challenge. The Ripken burgers enable us to sell more of the middle meat,” says Brannon.
 
Roseda Beef and Ripken signed the deal in 2012. A portion of sales goes to Ripken himself and to the Cal Ripken Sr. Foundation. Ahold USA’s Giant Food grocery chain  is the exclusive outlet for the product because, says Brannon, “Ripken had a relationship with Giant through his community baseball projects.”
 
Ripken burgers were originally sold in 173 Giant stores in Maryland and Washington, D.C. Sales were so strong that this spring the product was introduced into more than 200 stores in Pennsylvania, Virginia and West Virginia as well. In the latter two states, the stores operate under the name Martin’s Food Market. Brannon says there is a possibility of expanding to even more Ahold USA stores in the future.
 
Roseda hired the Florida-based Studio Spear to organize and conduct a social media and public relations campaign. The campaign kicks off this month, officially designated as National Hamburger Month and the start of the “grilling season,”  Brannon says.
 
Ripken is scheduled to promote the product through appearances at a Little League baseball clinic at his Aberdeen Stadium and an end-of-summer picnic to be held at the Roseda Black Angus Farm.
 
A contest for tickets to attend the picnic will be held this summer via Giant and promoted on the Ripken baseball website that becomes operational the end of this month.
 
Source: Mike Brannon, Roseda Beef
Writer: Barbara Pash

City tourism group offering 3-D map app on Android devices

Baltimore's tourism bureau is expanding its free app for tourists and convention planners to new platforms and neighborhoods.

The 3-D app of the city, known as BaltimoreInSite, will be available free for Android devices and downloadable from Visit Baltimore's website by mid-2013. The app is currently available on the iPhone. Since it was launched last year, 60 people have downloaded the app. 

The app's map will cover about half the city by this summer and the rest by next year, says Brian Russell, integrated practice manager at Ayers Saint Gross Inc. The Baltimore architectural firm developed the app, which currently covers about one-fourth of the city. 

“We are applying video game technology to telling about the city in a unique way,” Russell says. 

Baltimore InSite now covers the Inner Harbor to Amtrak’s Penn Station, including Canton, Fort McHenry and Locust Point. Future coverage will extend to Station North Arts & Entertainment District and the Charles Street corridor along with major institutions and attractions like Johns Hopkins University, the Baltimore Museum of Art, the Maryland Zoo in Baltimore Zoo and M&T Bank Stadium. The app links to hotels, restaurants, retail and attractions that are Visit Baltimore members.
 
Visit Baltimore  CEO Tom Noonan says the app has several uses. Convention and hotel sales teams use it to show potential convention customers the layout of the city and its attractions. It is a media planning guide to find restaurants, caterers and venues. Tourists use the app to find attractions and walking tours.
 
Noonan says the app is an ongoing project.  The web version will link to other websites, and new buildings and attractions like Horseshoe Casino will be added as they open.
 
The app cost about $40,000 to develop, paid by Visit Baltimore and Ayers Saint Gross, which also contributed pro bono work to the project. 
 
Sources: Brian Russell, Ayers Saint Gross; Tom Noonan, Visit Baltimore
Writer: Barbara Pash

Columbia Startup Introduces Smart-Phone Enabled Winter Gloves

Blue Infusion Technologies has introduced its first product this month — a glove outfitted with Bluetooth technology that lets  the wearer operate a smart phone while keeping his hands warm. The Columbia startup is selling its BEARTek Gloves online before placing them in retail stores by fall/winter of 2013.

Blue Infusion Technologies' second product, a motorsports glove with Bluetooth technology, is being launched at the same time, also online first and later in retail stores.

“This is the first time the products are available for purchase,” says CEO Willie Blount, who founded the company two years ago. Blount is referring to the launches on Kickstarter.com, a competitive process that required sending a proposal, product descriptions and video demonstrating that it has a viable product.
 
BEARTek Gloves are priced at $150/pair and is outfitted with Bluetooth technology. A Bluetooth module contains a battery and custom hardware that enable a connection to a smart phone. Touching the thumb activates touchpoints on the fingertips, says Blount.
 
“You touch the thumb to a designated fingertip to make calls,” says Blount. “Skiers can call for emergency help if they aren’t carrying a phone or without reaching for a phone inside a jacket.” The motorsports glove is in the same price range and uses the same technology.
 
Blue Infusion Technologies is a virtual company that collaborates with the Maryland Center for Entrepreneurship, part of the Howard County Economic Development Authority. It is a Maryland-certified minority-owned business.
 
Last spring, the company received help on glove technology and product development from the Space Alliance Technology Outreach Program, which is funded by the National Aeronautical and Space Administration. In August, it received a $148,500 award from the Maryland Industrial Partnership to collaborate with Dr. Marc Cohen, a research scientist at the University of Maryland College Park, on the technology.
 
Blount says the idea for BEARTek and motorsports gloves came from his experiences and those of his business partner and COO Tarik Rodgers’ experiences. Blount is a former US Marine who has also worked for the US government as a specialist in electronics and aviation. Rodges, an engineer, is an experienced skier.
 
The company has arranged manufacturing of the gloves in a US factory, says Blount, who, with Rodgers, are the company’s two employees.  The company is a state-certified minority-owned business.
 
Source: Willie Blount, Blue Infusion Technologies
Writer: Barbara Pash
 

Romney Campaign Benefits Canton Tech Firm

Mitt Romney lost the presidential election but the Canton company that created the Romney shop on the Republican Party candidate’s website says it emerged a winner.

Digital agency Groove Commerce implemented and ran Romney’s e-commerce site, which they say attracted thousands of orders per day and is still operational.The campaign job has given the company a boost in the e-commerce world. "It's helped our visibility and reputation," says Groove Commerce CEO Ethan Giffin.

The company has 22 employees and is currently hiring four to six additional staffers, in particular skilled PHP developers, front-end developers, online marketers and an executive assistant.

Giffin emphasizes that Groove Commerce is not a politically focused organization. Rather, the company saw the offer to build a scalable website for a presidential candidate, a first for them, as a challenge.The Romney campaign set the prices for items in the store, from T-shirts for $30 to bumper stickers for $5. Also for sale are hats, posters, lawn signs, iPhone cases, water bottles and lapel pins.
 
Giffin does not know when the campaign website will be shut down. He can’t disclose sales information, which were donations to the campaign. He can say that at certain points in the campaign – such as when Congressman Paul Ryan was announced as the vice presidential candidate and during the Republican National Convention – the shop got thousands of orders per day.

The Romney campaign approached the Emerging Technology Center company because of its partnership with Magento, an e-commerce software firm headquartered in California. The campaign was interested in using Magento, an open source platform that has lots of services and add-ons that can be integrated and is highly scalable.

"It's very popular in e-commerce circles," he says of Magento. "It was a perfect fit in scale"  for the campaign shop. “It was a very cool project,” he says.
 
Groove Commerce began working on the website shop last spring. It officially launched a few days before July 4th weekend with an offer on Facebook for a discounted Romney T-shirt. More than 20,000 T-shirts were sold.
 
Giffin says the company brought a new approach to the campaign online store. “Most political online stores are very basic and bland. Their focus is the political space but they don’t know the tactics the average retailer uses to sell more products,” he says. “We wanted it to be more of a retailer-shopping experience.”
 
The privately funded Groove Commerce was founded in 2007. It moved to a 2,000-square foot space in the Emerging Technology Center in 2010; it now occupies 4,500 square feet.
 
The company focuses on web design and development and on inbound marketing. Giffin describes the latter as using aspects of search engine optimization, content creation and blogging, email marketing and paperclick advertising – “getting people to take action once they come to the website,” he says.
 
Groove Commerce has 50 clients, ranging from Lax World, lacrosse retailers, to Corsair Memory, a builder of computer memory, and the state’s Habitat for Humanity chapter.
 
 
Source: Ethan Giffin, Groove Commerce
Writer: Barbara Pash

Baltimore Ravens Torrey Smith To Pitch Energy Startup

Baltimore Ravens wide receiver Torrey Smith makes his debut this month as a spokesman for PointClickSwitch.com, a website that offers one-stop comparison shopping for residential and commercial electricity consumers.  

The Baltimore startup, a division of state licensed electricity broker Maryland Energy Advisors, is using the football player to promote its Nov. 13 launch in Maryland and four other states.
 
Phil Croskey, founder and CEO of PointClickSwitch.com, says the company approached the National Football League winning-team member because it was looking for someone with name recognition in the Maryland market.
 
“He’s a class act, a high-character individual and we appreciate that,” Croskey says.
 
PointClickSwitch.com operates in two states, Maryland and Illinois. It is currently going through the licensing process in three additional jurisdictions – New York State, Ohio and Washington, D.C. Croskey expects it to be operational in all three jurisdictions by mid-2013.
 
PointClickSwitch.com provides a listing of energy suppliers and their current rates per kilowatt hour, the standard measure of electricity. There is no fee for consumers to use the website or to change suppliers. The suppliers pay the company a marketing fee per customer but the rate to consumers is the same whether through PointClickSwitch.com or directly from them.
 
Suppliers on the website include familiar names like Constellation Energy, Con Edison, Castle Bridge Energy and Pepco, along with a lesser known company like Cool Currents, which offers electricity from renewable energy sources. Maryland residents can sign up for any supplier on the list, depending on the supplier’s regional arrangements.
 
“We serve everything from studio apartments to heavy industrial users, although large commercial projects need a more customized approach, which we also do,” says Croskey, who notes that customers can save up to 20 percent on their electricity bill by comparison shopping.

“We have suppliers charging 9.1 cents versus 7.69 cents per kilowatt hour,” he says.

Croskey, former director of economic development for the Baltimore Development Corp., founded PointClickSwitch.com in 2010. It is a portfolio company of Wasabi Ventures Accelerator at Loyola University of Maryland, and operates out of an office in downtown Baltimore.

As the company expands into new markets, Croskey expects to hire three to five employees to add to its current staff of three. He is looking for employees to focus on the new markets, although they can work from Baltimore to do so. He is also looking for an IT person to manage the company’s social media.
 
The company is privately funded although Croskey does not rule out a financing round as it expands.
 
Source: Phil Croskey, PointClickSwitch.com
Writer: Barbara Pash

Towson Economist Says Maryland Lost $1B in Economic Activity From Sandy

Hurricane Sandy has cost Maryland an estimated $1.6 billion in its total economic activity, according to a Towson University economics professor. 

That's everything from lost wages and productivity as businesses closed during the storm to lost sales at hotels, restaurants and stores, says Daraius Irani, director of the Regional Economic Studies Institute at Towson. That figure doesn't include damages, which is estimated to be as high as $50 billion across all the impacted states. Irani says he doesn't have a damage figure for Maryland. 

Irani says the figure is based on the loss of commerce from people not going out to eat or buying cars and not going to work. It's also based on comparisons with Hurricane Isabel in 2003 and Hurricane Irene in 2011. While Isabel had a greater impact on Baltimore City, Sandy's impact is more wide spreading, walloping parts of Western Maryland and the Eastern Shore. Still, Maryland didn't suffer the same devastation as Manhattan's flooded subway system, Staten Island or New Jersey.

At this point, Irani appears to be the only researcher with a dollar estimate of the effects of Hurricane Sandy. Karen Glenn Hood, spokesperson for the Maryland Department of Business and Economic Development, replied to an inquiry that the department is working on an economic impact report.
 
Likewise, Tom Sadowski, President and CEO of Economic Alliance of Greater Baltimore, says the nonprofit may have figures later but at the moment, it only has anecdotal evidence.
 
Sadowski says he has heard of lost time in the office, missed business opportunities and shuttered stores. On the other hand, there was enough warning of the impending hurricane that people were able to make arrangements to work from home. 
 
Says Sadowski, “Mainly, people were happy it wasn’t worse.”
 
Patrick Donoho, President of the Maryland Retailers Association, says that in the Baltimore metro area, many grocery stores stayed open on Monday and Tuesday during the height of the hurricane albeit with limited staff and limited hours. He says he personally heard from Giant, Safeway, Mars and Santoni’s supermarkets that they were open, as were two large hardware stores in the area.
 
By Wednesday, Oct. 31, almost all grocery stores in the area had reopened, Donoho says.
 
Statewide, Donoho says that the Eastern Shore was hardest hit as far as roads being closed and people being able to get to the stores that were open. “Baltimore metro saw less damage than farther north, in Harford, Cecil and some of Carroll counties,” he says.
 
“I don’t know what the day’s losses [per store] were but I do know that they’re gone. You never regain them,” says Donoho.
 
Mike Niemira, Chief Economist and Director of Research of the International Council of Shopping Centers, says the New York-headquartered members’ association, will be assessing the economic impact on malls and retailers over the next month.
 
So far, all he could say was that “a lot” of members had been affected, with the biggest impact in southern New Jersey and Philadelphia because of the storm’s path.
 
The Restaurant Association of Maryland says it had no data yet to report.

Sources: Towson University Regional Economic Studies Institute, Economic Alliance of Greater Baltimore, Maryland Retailers Association, International Council of Shopping Centers, Maryland Department of Business and Economic Development
Writer: Barbara Pash
 

Randallstown Walmart to Open Oct. 17

The Walmart Super Center in northwest Baltimore County is hiring 350 full- and part-time employees, Baltimore County and Walmart officials said at a press conference today. The store, located in the Liberty Plaza shopping center, at Liberty and Brenbrook roads in Randallstown, is tentatively expected to open Oct.17. 
 
Walmart is hiring for permanent, hourly jobs, with full- and part-time positions available. Jobs include sales and inventory associates, cashiers, overnight stockers, lawn and garden specialists and deli, bakery and grocery workers. A row of vacant stores was demolished to make way for the $9 million, 160,000-square-foot Walmart, which will also have groceries and a pharmacy. 

Kenneth Oliver, 4th District County Councilman in whose district the Walmart is located, called it a big plus for Randallstown as it eliminates a vacant shopping center. He said it was a seven-year-long community effort to attract the Walmart.

Nina Albert, Walmart's director of community affairs for the DC Metro Region, which includes Maryland, said the company does extensive market research before choosing store sites, and Randallstown seemed  "a logical place for us."  She said there has been a "good hiring push." Some of the people who've already been hired are now working in the store stocking shelves. She expects to have all positions filled by the time the store opens. 
 
Baltimore County Department of Economic Development, the Maryland Workforce Exchange and Walmart’s human resources staff are working together to streamline the application process and to schedule interviews.
 
The county has set up an informational Randallstown Walmart Jobs Hotline at 410-887-4666. Walmart is accepting job applications online and Maryland Workforce Exchange is scheduling in-person job interviews in advance.
 
Source: Kenneth Oliver, Baltimore County Council; Fronda Cohen, Baltimore County Department of Economic Development; Nina Albert, Walmart
Writer: Barbara Pash
 
 
 
 

New Wegmans Hiring More Than 500 Employees for Anne Arundel Store

Foodies might be reveling in the sushi and endless array of cheeses at the Wegmans Food Market's latest Maryland store in Columbia. 

But soon, the Rochester, N.Y., chain will open its sixth store in Anne Arundel County and is hiring 520 full- and part-time employees to staff the Gambrills store. Currently under construction, the store is scheduled to open Oct. 28.

Of the 520 employees, the store is hiring 160 full-time and 470 part-time, Store Manager Gerry Troisi says. Applications are available online at the Wegmans' Web site.

The new 125,000-square foot store will open at new shopping plaza Waugh Chapel Towne Centre, off Route 3. It includes a Target, Dick's Sporting Goods, Coal Fire Pizza and Panera Bread. It is adjacent to the Village at Waught Chapel South. Troisi says the site was chosen about five years ago because of its proximity to Annapolis, which has one of the highest income-populations in the region.

Wegmans currently operates 79 stores. The one-story Gambrills' Wegmans will have the latest developments in the chain, including fresh cut fish, an extensive cheese selection and a prepared food Market Cafe with seating for more than 200 indoors and 100 outdoors on a patio. Triosi says the store will have "fresh cut" fruit and vegetable stations where produce bought in the store can be sliced, diced and chopped to customers' specifications.

Source: Gerry Troisi, Wegmans Food Market
Writer: Barbara Pash; [email protected]


Printing Company Adds Packaging Division

RPM Solutions Group has turned a small package into a big win. 

In less than a year, the printing company's small carton packaging division has 50 customers, including out-of-state in California and Kansas.

The economy has taken its toll on the printing industry, Joe Cavey, president of RPM, a 26-year-old commercial printer in Baltimore. Small companies in particular could not afford to use printing services, adds Cavey. So the executive came up with the idea for its Short Run Carton Packaging Division to diversify the business. 
 
RPM prints books, pamphlets, brochures, pocket holders and other material. It also does digital printing with variable personalization and has in-house mailing capabilities.
 
The carton division makes small-size containers in small numbers or, in the jargon, runs, from 500 on up to 10,000. The biggest container it makes is 12” wide by 12” deep by 6” tall.
 
Cavey says the small-size containers are used by a variety of companies, including startups, private labels and companies that are rebranding. Cosmetic firms, software firms, pharmaceuticals and confectioners are among its clients. 
 
“They don’t need 20,000 or 30,000 containers," Cavey says of RPM's clients. "They need 1,000 or 5,000 packages to put eyeliner, mascara or soap in,” he says.
 
Customers can provide RPM with their logos or the company will create one for them.
 
Cavey figures he has a handful of competitors on the East Coast.  “We have found a niche for the short runs.”
 
He is operating the carton division with his current 28 employees but says he may hire more staff as it grows.
 
Source: Joe Cavey, RPM Solutions Group
Writer: Barbara Pash

Ad Group Opposes Proposed Tax on Digital Goods

The American Advertising Federation of Baltimore has succeeded in its opposition to a provision in Governor Martin O’Malley’s budget bill that, for the first time, would have taxed digital products and services.

The provision would have imposed a 6 percent tax on digital goods like web videos, software services, sound recordings and apps for newspapers and magazines. Currently, Maryland’s 6 percent sales tax does not cover such products and services.
 
 Cynthia Blake Sanders, chair of the AAF Baltimore. Sanders, along with Ronald Weinholt of the Maryland Chamber of Commerce and Stephen Kranz, on behalf of the regional Digital Goods and Services Coalition, testified against the provision at legislative committees’ hearings.
 
According to Raquel Guillory, the governor’s spokesperson, “there was never an intention to affect advertising agencies.” After lobbying efforts against the provision, it was being rewritten to clarify the language when the Senate Budget and Taxation Committee voted to reject it.

The governor’s original budget bill, Senate Bill 152/House Bill 87, has been split into a four-bill package. The provision ended up in and was removed from Senate Bill 523. The Senate is expected to debate the resulting bill March 21.
 
Sanders detailed her objections to the provision in a letter to the governor, writing that “the broad language of [the provision] captures sales of advertising, design and production services provided by AAF Baltimore members.”
 
There appears to be a movement across the country to tax digital downloads. Guillory says that 30 states tax computer software and 24 states tax digital downloads.
 
The state estimated the provision would have brought in $5 million in taxes. Sanders disputes that claim, based on numbers provided by the national American Advertising Federation.
 
Taxes on digital goods “are new and controversial, and there are conflicting laws,” says Sanders, adding that the tax would put Maryland businesses at a disadvantage to their out-of-state competitors.
 
 
Sources: Cynthia Blake Sanders, American Advertising Federation of Baltimore; Ronald Weinholt, Maryland Chamber of Commerce
Writer: Barbara Pash

WorkingWonders Wants to Become the Whole Foods of Home Goods

Baltimore based green home goods retailer WorkingWonders has made its name as an online retailer of sustainably sourced and green products for homes and families. The company is looking to do something unusual  – make the jump from online retail to traditional brick and mortar.

“WorkingWonders aims to be the first brand nationally recognized for sustainable home & lifestyle retail,” says WorkingWonders CEO BethAnn Lederer. ”In a nutshell, socially and environmentally savvy consumers have the 'Whole Foods' option, but the same does not exist for our homes.”

The company focuses on green products that are manufactured by small and medium sized companies, with the goal of keeping two-thirds of its retail products and production lines coming in from US companies. WorkingWonders is looking to open a flagship style retail location in Baltimore that fulfills this mission.

The WorkingWonders team is developing plans to attract investor interest in the proposed retail location. As they work on this plan for a brick and mortar store, WorkingWonders is continuing to add more sustainable home products to their mix. The company is also accepting applications for internships this year.

Writer: Amy McNeal
Source: BethAnn Lederer, Working Wonders
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