Very short interview 1

Hey everyone,

For this assignment, I chose to interview a family friend named Craig Roth, who has 20 years of experience in the CE (Consumer Electronics) field. Prior to 1996, he worked as a Vice President of Emerson Radio. He decided to create a new company named Memcorp Inc with the EVP, SVP, and an outside investor. They licensed the brand name Memorex and within a few years, Emerson Radio was out of business. They sold Memcorp to another company named Imation in 2007 (it also went out of business shortly after), only to form another CE company that continues to sell electronics to Best Buy, Walmart, and Target. My interview with him was insightful and below is a redacted transcript. 

1. What do you think should be taught in an entrepreneurship course? (skills, mindsets, etc)

You have to be good, fast, and not make mistake with numbers. You have to recognize your true overhead both variable and fixed cost in order to make a profit. So I don't want to say you need an accounting course but it wouldn't hurt. Learn from your mistakes and don't make them a second time. Being a good listener is more important then talking.

2. What do you think gave your companies competitive advantages; why did they succeed? 

In our business of CE there are hundreds of competitors. Years ago before Apple and the likes of Samsung, just to name 2, all products were very similar and the only real difference say between a Memorex TV and Sony was Sony's overhead was much higher predominately due to their R&D and

advertising budget. They commanded a higher retail but in fact their product was not much better then anyone else's. So how did our group beat not only Sony but everyone else? We had a huge entertainment budget. If we didn't have large entertainment receipts at the end of the month we'd be

chastised. Whatever buyers, their kids or wives needed we made sure that somehow the buyers would be happy with our group. All of my buyer friends today now are very high up in the executive areas of many accounts. One must figure out how to get the jump ball if everyone is selling the same basic product. It came down to personality, selling yourself.

3. What were the biggest challenges you faced?

The biggest challenges today are the same as they were 20 years ago. Staying on top of your costs. Knowing how and what to price your goods at based upon retail market conditions and competition. In our business due to tight margins we had and have to manage our inventory very tight. In

today's world that also means keeping up with the Chinese Yuan due to it's devaluation.

4. What unorthodox/unconventional advice do you have for entrepreneurs? 

Easy answer: pay attention to politics. It is really a jungle out there and the challenge persists except that the market in CE has shrunk with the likes of Apple, Samsung, and others now dominating their space. But the space that is left up for grabs by those who get on the better side of the buyers. This is because they see hundreds of other vendors with the same product in different iterations and brands.

This last answer was the one that surprised me the most. I didn't really realize how big a role personal connections played in the CE market. I guess that today, with the field being dominated by only a few corporations, the buying/selling process seems impersonal. You really do have to spend money to make money, but the exact amount of money spent needs to be carefully calculated and worked into the budget. I'm glad that he recommended an accounting degree, as that is what I plan to study here at UF.