After posting 20% sales growth in 2001, MBI Publishing president and CEO Rich Freese is looking to get really aggressive in 2002. "I've got one of the best jobs in publishing," Freese told PW, pointing to the mandate he has received from the company's owners to increase MBI's revenues from its current level of $35 million to $100 million over the next five years.
To attain that growth, Freese is searching for acquisitions in MBI's core areas of transportation and military history, as well as in such complementary segments as Americana, collectibles and sports. Freese, who joined MBI in August from National Book Network, also plans to expand MBI's distribution business, which currently represents about 35% of the company's total revenues. MBI is the exclusive North American distributor for more than 35 publishers and promotes titles for dozens more through its "Classic Motorbooks," "Zenith Books" and "Classic Railroad Books" catalogues. Among its exclusive clients are Bicycle Books, Fisher Books, Haynes Publishing and Osprey Publishing. Freese believes that the combination of MBI's own titles plus those of its distribution clients makes MBI "the dominant publisher in transportation."
Through its Motorbooks, MBI, Crestline and Bayview imprints, MBI released 250 new titles last year, doing particularly well with a number of books on Dale Earnhardt. MBI is trimming its list this year to about 225 books, but will upgrade the quality of its books and will publish for a wider audience than the enthusiast market that is its primary customer base. While most of MBI's first printings are in the 8,000 to 12,000 range, several books are slated for release this fall that will have print runs as high as six digits, including a title about the 100th anniversary of Harley-Davidson and a project about a "transportation hobby." Freese is also planning to do more licensing deals with toy manufacturers for book/toy packages. One deal that is already signed is a Hot Wheels page-a-day calendar.
Freese hopes the agreements with toy companies will help spur MBI's push into the mass merchandise markets, a relatively new channel for the company. Bookstores currently account "for the lion's share" of MBI's retail sales, although the publisher also reaches 2,500 special market accounts, including hobby stores, gift shops and museums.
MBI had a solid first quarter, led by terrorism-related books such as Afghan Guerrilla Warfare. It also has a surprise mini-hit on its hands with The Doomsday Scenario, the unedited version of the U.S. government's plan to deal with nuclear war that was released in February. MBI has sold 8,000 copies and has gone back to press for an "aggressive" third printing, according to publicist Connie Balcom.
To help MBI meet its growth targets, Freese has been expanding the company's infrastructure. The publisher moved its headquarters to St. Paul, Minn., from Osceola, Wis., last year and continues to add personnel to its 125-person staff. A three-person office in the U.K. "will drive our program for European expansion," Freese said.
