A Bead of Profitability

A spring break family trip to Florida turned into a second-generation business for Jeff Cousin. It has also led to a relationship with the world's largest retailer that has turned out far more beneficial than most people would like to think.

Now serving as president of Cousin Corp. of America, Cousin oversees the entire operation from its Largo offices and warehouse at 12333 Enterprise Blvd. The company distributes decorative beads and crystals to chains such as Walmart, Michaels and Jo-Ann, offering 10,000 different products.

Numerous adjustments have been made over the last 40 years since Cousin's parents, George and Rita Cousin, opened Bead World in the old Sunshine Mall in Clearwater. Years later the business incorporated into Cousin Corp. after becoming a mail-order service for out-of-town customers shopping for beads and other craft materials they couldn't find back home.

Its distribution business eventually began serving small local craft stores, but as larger retail chains began squeezing those out of business, Cousin Corp. established stronger ties with the overseas manufacturers that supplied its products. The company also scrapped its jewelry-making side for distribution of beads and other crafting parts and tools.

“It's like a journey of a thousand miles, one step at a time,” says Cousin, who now has 138 employees and posted annual revenue close to $52 million last year. “We've redesigned and redeveloped our company several times.”

The journey dates back to 1968, when Cousin's family moved to the Tampa Bay area from Wisconsin after traveling down on vacation in previous years, preferring the much warmer climate. His father left a job in retail there to come down here, and his mother decided to start an art supply store in 1970 that specialized in decorative beads.

Cousin's parents are now retired, his brother Michael is semi-retired and his sister Chris isn't with the company, yet he emphasizes maintaining a family atmosphere within its 100,000-square-foot local operations. He points out that more than half of the company's employees have been there at least five years and nearly a third are reporting to work for at least a decade.

Growth has forced the company to work better, though not differently, Cousin says. For example, contracting with Walmart has led the company to operate with greater efficiency, thereby saving customers money while maintaining vendors' profit margins.

“They get a bad rap in a lot of cases,” Cousin says of Walmart, which carries products distributed by Cousin Corp. in its North American stores. “No question, they make the final decision and they offer a lot of guidance. They want to deal with partners they know and trust, who know the business and know what is expected of them. They're tough but they're fair.”

Taking costs out of merchandising systems is a constant mantra of Walmart, which prompted Cousin Corp. to convert to an electronic “picking” system for boxing shipments in which employees are better able to pull items from inventory and move them out quickly from the warehouse to store-bound trucks. In turn, Cousin Corp. works with its raw product suppliers in China and India to make sure their factories are working efficiently.

Cousin says Walmart understands that its suppliers need to turn a profit in order to continue growing and meeting vendor requirements. “They give you all the necessary tools to run the business and they will monitor progress, but they expect you to do the things you need to do.”

Other merchants with whom Cousin Corp. has supplier contracts aren't as stringent as Walmart, though Cousin says the disciplined approach helps the company all around. “You're dealing with different personalities,” he says. “We have great relationships with all of our key customers. A lot of that is understanding what customers want and being able to give it to them.”

The company's strong track record of meeting customer needs has also led to additional business with some highly recognizable names, Cousin says. For instance, Cousin Corp. will soon begin supplying beads to Kathy Ireland, former supermodel turned fashion entrepreneur, for a new line of jewelry she plans to introduce next year.

— Carl Cronan