2008 Dynamic Dozen, No. 8: Russell Cellular

Here’s the long-range plan for Russell Cellular: There isn’t one.

“We get up every day and look at the next 60, 90 days,” says Kym Russell, vice president. “We do what our gut tells us to do.”

So far, that daily method has worked out well for Russell and her husband, Jeff. Their company, which celebrates its 15th anniversary in December, is the largest national Alltel agent in terms of locations. The company has 64 stores in six states: Missouri, Arkansas, Oklahoma, Texas, Louisiana and Illinois.

In 2004, Russell Cellular garnered top honors among Springfield Business Journal’s Dynamic Dozen, with just more than $10 million in revenues. After modest revenue growth mid-decade and some restructuring and middle-management changes, the company’s revenues in 2007 jumped to $21 million, up from $13.3 million in 2006, making 2007 the company’s best year to date, Kym Russell said.

Not bad for a young couple from Arkansas who didn’t set out to build one of the fastest-growing business in the Ozarks.

The Russells married when Kym was 17 and Jeff was 19. When his father became ill, Jeff took over the family’s turkey farm business.

“He always wanted to be a businessman,” Kym Russell said of her husband. “He fits better in a suit than he does in rubber boots … but if I’d known, I’d have taken more pictures in those rubber boots, because nobody believes it.”

After Jeff Russell’s father died, the farm was sold and Jeff Russell went to work for Alltel’s landline division in Harrison, Ark.

When the Russells came to Springfield they didn’t have a plan then, either.

“We had nowhere to live. We just gave notice and moved here,” Kym Russell said.

Jeff Russell got a job selling cell phones, and that work led to an offer with a different company, but the move didn’t work out well. Still, he was able to learn how to sell cell phones fairly quickly, and when an opportunity to open an Alltel store in Bolivar arose, the Russells jumped at it.

With short notice and $1,500 borrowed from Jeff’s mother, the couple outfitted the store and advertised with hand-delivered flyers.

“Our goal was to sell 26 plans a month,” Kym Russell said. “If we could sell 26, that was the most money we ever made.”

They sold 60 phones that first weekend and paid Jeff’s mom back in 30 days.

It’s possible that Russell Cellular, which also is an agent for Dish Network and DirecTV, could reach the 100-store milestone in the next couple of years, but Jeff Russell said that goal isn’t written in stone.

“We want to grow, but only if it’s the right opportunity,” he said.

Finding the right opportunities means locating in the right spot in the right city. The ideal spot, according to Jeff Russell, is the “million-dollar mile” on a town’s main drag.

“We drive through a town 10 to 20 times,” Kym Russell said, asking themselves: “Where’s the place people drive by the most?”

As a national Alltel agent, Russell Cellular can go anywhere, but regional expansion makes sense, Jeff Russell added, noting that Russell Cellular will open in a new Oklahoma market by midyear.

Existing customers generate 55 percent of new business for Russell Cellular. Russell has developed a 10-step follow-up program – up from eight steps two years ago – that includes a welcome card from him.

“From the time of that sale, during the next 21 months, that customer is going to hear from us 10 different times,” he said, noting that each sale is tracked so stores know what’s driving traffic.

Beyond customer satisfaction, Kym Russell said keeping the sales force motivated also is key – and she credits her husband with doing just that.

“Everything we do is because Jeff Russell makes it happen,” she said.

Information accurate at the time of the honor.