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Fun and Collections Can, and Do, Mix
By Bessy Honig Birmingham, Ala.-based AmSher Receivables Management has found a way to not only be profitable in the collection industry but also to have fun doing it. Company owners and co-CEOs David and Martin Sher give their collectors such perks as Friday pie- throwing parties, free lunches, laptop computers, big screen TVs, even cruises. The biggest prizes go the the collectors who show a combination of the best quarterly collections, attendance, lowest nonsufficient funds rate and most imporvement. The brothers aren't above joining the fray themselves. Martin, for example, did the hula in costume because agency collectors made their June collection targets. The brothers also believe in having fun with their advertising, which is done mainly in print. They distribute ads at conferences and in the emails they send to future and current clients. The advertisements take potshots at the negative image collectors have with the general public. Some typical AmSher ad copy -- "Thugs and goons are just so, like, last century"..."Sometimes when people hear the term 'bill collector' they instintively cover their kneecaps. What's that all about?" The goal of such irreverent ads: "To make our clients raving fans," Martin says. Adds David: "We consider ourselves the fun collection agency." Fun seems to be working for the Sher brothers. From 2003 to 2005, AmSher showed revenue increases of more than $1 million each year. Revenues grew from $4.05 million in 2003 to $7.8 million in 2005. AmSher more than doubles its number of employees, or teammates as the brothers routinely describe them, in that time as well, from 60 in 2003 to today's 150. AmSher serves 100 clients, primarily in the medical, banking, retail and cellular phone industries. Roughly 20 clients account for 90 percent of agency revenue. The company's Web site includes testimonials from such clients as Coca-Cola Bottling Company, Unishippers, Memorial Health University Physicians and American Family Care. AmSher is also being notices by more than its clients. In July 2006, the agency was profiles by the Birmingham Business Journal. In 1995, it was named a Blue Chip Enterprise Company by the National Chamber of Commerce. Not bad for an agency that started 20 years ago with more employees than clients. David, 62, and Martin, 54, grew up in Birmingham. When each turned 8, they began workin for their father's credit clothing store turned credit furniture business specializing in sales to people with questionable credit. Part of their jobs was to collect on those accoutns. Martin recalls makin his first collection call at the age of 10. Years later, and with the store having long since sold its last furniture, the brothers decided to use what they had learned to venture into debt collection.
The Essence of AmSher Those core values are honesty, treating people with dignity and respect, continuous improvement and fun. From working with their dad, David found that to be successful at collecting money, infusing tact and empathy into every call goes a long way to achieving your goal. The brother each have their own ideas on why their company is staying successful. "We find out what our clients want and we give it to them," says Martin. While David says: "Companies we represent are concerned about public relations. We try to instill consistency and persistence without being overly aggressive." Besides following their core values, the brothers have invested to increase their productivity and expand service. Those efforts include getting licensed in all 50 states, spending more than $100,000 to pass a security audit, building a national sales organization, and moving into a 17,000 square-foot facility. The new building is 7,000 square feet larger than the previous location in nearby Vestavia. Melanie Sher, David's daughter and president of AmSher, has been with the company since 1996. She has led the national expansion effort. Along with two sales people, she specializes in getting nationwide business for AmSher, primarily in the banking, retail and cellular phone sectors. AmSher's big changes began five years ago when it obtained a large contract with a major cell phone company and it obtained licenses in all 50 states to handle the work. Local networking also helped the agency grow. David chairs the executive committee of the Birmingham Chamber of Commerce and is the immediate past chairman of the Birmingham Regional Chamber of Commerce. It hasn't all been fun and games. On July 17, 2004, due to a fire safety issue at their Vestavia office, the brothers were informed that the local building inspector was requiring an immediate, mandatory evacuation. "Our clients depend on the cash flow we generate and closing down would have put us out of business," recalls David. The next day, they were permitted to move many of their employees to the first floor of that building temporarily. They found a new site that afternoon and proceeded to do a double move. According to Martin, AmSher never missed a day's work as collectors were either helping with the move or making collection calls. They moved the entire facility into the new building on July 23, 2004, six days later. "The success fo this emergency move is all about our employees. Our staff was unbelievable. They were willing to do whatever it took," David says. In 2005, AmSher outgrew that locaiton and moved into a building that could accommodate its current capacity and still have room for future growth. The Sher brothers are optimistic about the future. They hope the IRS will enlist the company in helping to collect an estimated $250 billion in delinquent federal income taxes. The company's AmSher Outsourcing unit, launched 10 years ago, continues to add clients from industries like cable and health, which turn over managment of their current accounts receivables to AmSher. Growth definitely seems to be in the cards for the Sher brothers and AmSher. And it's fair to assume they'll be having a lot of fun along the way. 
© 2006 Credit Life |