Aire-Master unveils new retail product

The giveaways are intended to attract new clients in areas where Aire-Master has franchise locations.

“It’s to be a product business card,” said Jim Roudenis, franchise director.

Aire-Master does the manufacturing and packaging of its hand sanitizer product for about 20 distributors, who sell them under their individual names and logos, Roudenis said.

The sanitizer manufacturing done in Aire-Master’s co-packaging division at its Nixa headquarters has been ongoing for two years, said Doug McCauley, president. Customized products are labeled and colored per the client’s specifications.

“What we’re doing is being a base manufacturer for larger companies that supply hospital, industry, even retail. This has really changed everything,” McCauley said. “We’ve always manufactured our products, but this is getting us into high volume, which makes it less expensive for us to operate.”

As of Oct. 11, Aire-Master began offering its nine-ounce bottles individually or in 24-unit cases for retail purchase by businesses using it on location, Franklin said. The company is targeting businesses such as health clubs, doctors’ and dentists’ offices, and banks.

Marketing the sanitizer at a stand-alone retailer involves buying shelf space, Franklin said. “I’m not sure that (Aire-Master is) going there yet, or that they’re even going to go there,” he said. The focus now is on small outlets using it for their own employees or patrons, he added.

Positive revenues

Orders are climbing, company officials say.

“We got our purchase order last week for $200,000, so that’s the largest order we’ve ever had in our 46-year history,” McCauley said, of a contract recently secured with an Iowa firm that supplies cleaning products to the health care industry.

Manufacturing revenues are up 47 percent for the last 12-month period, McCauley said.

For year-end 2003, Aire-Master hit $14.1 million in revenues for the entire company, McCauley said. Of this figure, $8.6 million came from its 60 franchisees, while $5.5 million derived from the five regional divisions of Nixa’s corporate operation.

Looking ahead to 2004, company officials anticipate selling more than $15 million.

“We’re on track to hit $6 million this year” on the corporate side from routes, manufacturing, co-packaging and private label product sold to distributors, McCauley said. Franchisees are expected to generate about $9.3 million in revenues, he added.

The joint effort in producing and distributing Aire-Master’s sanitizing gel benefits both parties, Roudenis said.

“We are able to help bring a product to market at very low minimums,” Roudenis said. This eliminates the need for an interested firm to invest in lots of machinery and people to see if it will fly, he added.

Another way the company keeps its market gelled is by selling its products to about 150 distributors that operate beyond an established Aire-Master franchise territory.

“Esscents is our own private label line where we can take the products we make and sell it under that label to distributors that are not in our franchise area. Usually, they’re janitorial supply companies looking for a product to add to their product line,” Roudenis added.

Expansion

Giving more horsepower to the production side of Aire-Master’s operations will be the approximately $750,000, 15,000-square-foot expansion it’s planning at its production facilities. The company plans a March 1, 2005, groundbreaking for the project to be designed by Bill Derington AIA and built by Eoff & Associates, McCauley said. The project, which will require two new employees, should be completed by September 2005, he added.

On the franchise end, the company foresees as many as 20 new locations going in next year with Ohio and Florida being areas with expanding territories, Roudenis said. Franchises run about $30,000, he said, and include $8,000 worth of product, two weeks of training and other company-generated support services, he added.

Beyond the 60 franchise territories in place, the corporate office operates its five divisions in southwest Missouri, parts of St. Louis, Tulsa, Okla., all of Mississippi, and a section of Oregon’s coastline, Roudenis said. Employees function in sales, management, administrative and route driver capacities primarily, he added.

Founded in 1958 by Jerry McCauley, Aire-Master manufactures odor control and cleaning products for the janitorial industry. Since 1976 it has also been franchising its brand, said McCauley. The firm has 20,000 square feet of office and production space in Nixa.