No.9, Whitaker Publishing

Started in 1998 by Radio 2000, 417 Magazine was reborn in May 2001 when it was purchased by Gary and Joan Whitaker.
The couple first came into contact with 417 through their marketing and public relations company, Whitaker Marketing LLC.
The Whitakers put together a marketing plan for the struggling publication, and Radio 2000 executives liked their ideas. But what came next was a surprise. Rather than buying into the Whitakers’ plan, the Radio 2000 execs recommended the Whitakers buy the magazine and execute the plan themselves.
After the meeting, Gary Whitaker recalled, “Joan was convinced that it was a waste of time.”
She laughed. “I was wrong. I admit it.”
The Whitakers did some research through the University of Missouri School of Journalism and determined there was a viable niche for the publication they envisioned.
Mizzou noted that a magazine focused on service journalism – highlighting the best way to do things, the best things to do and the best places to go – had potential in the Springfield metro market. Mizzou also recommended the couple look into the City and Regional Magazine Association, of which 417 Magazine is now a member.
Based on that research, “We basically hocked the house and everything we had,” Gary Whitaker said, raising enough capital to purchase the magazine and fund operations.
“When we bought the magazine it was losing about $15,000 a month,” Joan Whitaker added. “We had enough equity in our home to last about six months.”
That turned out to be an optimistic estimate. “We got within about $70 of maxing out our home equity loan at four months” she said, when the magazine started to take off.
In order to build 417 readership, one of the first things the Whitakers did was to purchase a mailing list of 2,000 waiting rooms, including doctors’ offices and salons, providing free subscriptions that put 417 in the hands of readers.
These days 417 boasts 7,000 paid subscribers. Subscribers pay $19 a year for 15 issues, including the Home & Garden and Menu Guide editions.
In April, the company will print 15,000 copies, with 7,000 going to homes, 3,000 to waiting rooms, 2,000 to hotels and condominiums and another 3,000 offered for sale on the newsstand, Gary Whitaker said.
Since its first year, Whitaker Publishing LLC’s revenue growth has been phenomenal. It exceeded $500,000 in 2002, $880,000 in 2003 and hit approximately $1.4 million in 2004.
“Of course, when you’re losing $15,000 a month, anything looks like growth, but after we got over that first hump, that first year, we hit a half-million, and now, ($1.4) million,” Gary Whitaker said. “That’s pretty dramatic.”
In fact, the City and Regional Magazine Association has recognized 417 Magazine as the fastest growing city magazine in the nation in number of advertising pages.
Approximately 90 percent to 95 percent of 417 Magazine’s revenue comes from advertising and the remainder from subscriptions, Gary Whitaker said.
The Whitakers said that rapid revenue growth is attributable to the strategy of Director of Sales Angie Henshaw.
Henshaw was sales manager at TV station KSPR when Gary Whitaker was the station’s general manager, and knowing her abilities, the Whitakers wanted her to join the 417 staff from the start.
“We begged every day,” Joan said, laughing. “‘Angie, we didn’t lose the house, will you come to work now?’ ‘Angie, we made $5 last month, will you come to work now?’”
“From the time (Angie) started, revenue really started to go,” Gary added. “Angie is the catalyst for higher revenue growth.” That growth funded investments in editorial staff, photography, graphics and new publications, including twice yearly editions of 417 Home & Garden and 417 Bride, and the Annual 417 Menu Guide.
The magazine’s content is under the direction of Editor Gregory Holman, who graduated from the University of Missouri-Columbia Journalism School and previously worked at Men’s Health magazine.
The distinctive look of 417 is the vision of Art Director Hope Brooks.
The Whitakers started out with a core staff of six that has since grown to 17. The latest addition is Kelly Dorrance in the newly created position of director of marketing and promotions. Dorrance oversees 417 events such as the Feb. 27 Best of 417 Party, which drew an estimated 1,800 to 1,900 attendees.
Part of 417’s marketing strategy is to partner with local nonprofits, getting the 417 name out while generating dollars for charitable causes.
In addition to the Best of 417 Party, which benefits Good Samaritan Boys Ranch, 417 also sponsors the 417 Celebration of Women with The Kitchen.
Recently the company’s events have grown to include the 417 Magazine Cook-ing Class series, featuring area chefs at the Metro Builders Supply demonstration kitchen, and the company says there’s more on the horizon.
The Whitakers will launch The 417 Taste Club, presented by Brown Derby, in April. It’s not a wine-tasting club, Gary Whitaker said. “Sometimes it’ll be wine, sometimes it’ll be spirits, sometimes it may be specialty beers.” In fact, the first program won’t be a tasting at all, but a presentation on how different types of wine glasses affect the taste of wine, he added.
Also, “We’re launching a new magazine in July,” Joan Whitaker said. The new publication, 417 Encore, will target baby boomers and will be sent to subscribers with the July edition of 417.
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