Julian De Salay likens himself to a real-life Michael Scott – the ringleader from the sitcom “The Office,” which follows a mid-size paper and office supply company.
Like the characters from “The Office,” who navigate worldwide fluctuating economic headwinds and job-threatening technology from their small operation, De Salay has had to pivot his own office supply sales business to accommodate changes as global trade became more accessible, enterprise shopping habits evolved and tech-enabled e-commerce behemoths changed the game of online ordering.
Now, the company is pivoting once again to provide insights and solutions for small and medium-sized business.
De Salay, the co-founder of Chatsworth-based JB Holdings Corp., simply known as JB Office, pivoted multiple times: first when he co-founded the company in 2012 after his previous job in the remanufactured ink-and-toner cartridge industry shuttered. He did it again when e-commerce took over website domains and the Covid-19 pandemic hit offices. As technology continues to shape every sector – even the sale and distribution of paper clips and thumbtacks – small businesses like JB Office are finding ways to stay nimble and reinvent themselves.
“We’ve been changing a lot with the times,” De Salay said. “I can’t tell you at any time that the vision for a three- to five-year plan ever came to fruition because within those three to five years, we’ve had to do it again.”
De Salay got his start in the office supply business working in the re-manufactured ink-and-toner cartridge industry – until obtaining and recycling ink cartridges became more expensive than buying fresh new plastic cases of ink from Asia-based manufacturers.
In 2012, the billion-dollar tech sector was focused heavily on consumer software. Meta Platforms Inc., then known as just Facebook, botched its highly anticipated initial public offering. Samsung Electronics Co. and Apple Inc. launched high-definition tablets that were poised to rival laptops. The likes of Twitter – now known as X – and other social network platforms played a large role in the election, with politicians using the medium to speak directly to consumers.
But while the tech industry was largely recognized for shaking up media and communication in 2012, de Salay and his college best friend, Brian Borna, decided to shake up another industry: the office supplies sector. They believed the industry could use a tech-enabled update of its own, and the pair opened JB Office in 2012 with a fresh, easy-to-use website and a platform that allowed the company to sell notepads, pens and binder clips cheaper than competitors and more efficiently. Untethered to the technology that was upending traditional business practices in other sectors, JB Office made a name for itself undercutting competitors, focusing on volume and emphasizing business with repeat customers.
The company became too successful – after a certain revenue threshold, it could no longer be considered a small business. It began competing with bigger players in the office supply space. As e-commerce giants gained a foothold on the sector, JB Office spent less time on the website – what used to be its bread and butter – and decided to pivot its business from just its website to also dealing on platforms like Amazon.com Inc., Walmart Inc. and Newegg Commerce Inc., which allowed JB Office to tap into new customers that weren’t going directly to its website.
“We have a pretty good retention rate (on our website) once we get people to try us. The problem is, most people don’t know who JB Office is,” De Salay said. “When they see our product online at a similar price as a Staples (Inc.) or an Amazon or Walmart, they’re going to buy from those other places even if it’s cheaper at ours because they feel more confident giving them their credit card information.”
During the Covid-19 pandemic, the company’s dedication to expanding its footprint beyond its website paid off. While other office supply companies pivoted to selling pandemic-related supplies, like hand sanitizer and face masks, JB Office managed to increase its revenue 163% from 2020 to 2022 despite companies shuttering office spaces and requiring employees to work from home.
“Whereas all of our competitors were really focused on all the Covid supplies and it got really competitive, everybody took their eyes away from the traditional stuff we were selling before Covid,” De Salay said. “We didn’t really feel comfortable making money off of a pandemic. That was really bizarre. We also didn’t feel comfortable with the products that were actually available.”
Today, the office supply sector is facing a much different reality than it did when JB Office first opened its doors more than a decade ago. Staples, another wholesale office supplier, has pivoted to selling business-specific internet and phone plans through a pilot program with Verizon. The ODP Corporation, better known as Office Depot and OfficeMax, announced in September it will be sold to an affiliate of Atlas Holdings for $28 per share. The company was valued at $1 billion.
“Atlas brings an understanding of our industry, along with the operational expertise, resources and track record of supporting its companies that will fast forward our B2B growth initiatives and strengthen our position as a trusted partner to our customers,” ODP Chief Executive Gerry Smith said in a statement.
Indeed, office supplies are not as in demand as they once were for both home and business use, and large stores filled with stationery products are not as competitive the e-commerce one-stop shops that have taken over in the 2010s.
“Before everybody used to have a printer right next to their desk and they would print, buy a lot more Post-it notes, buy a lot more pens. But (now) you don’t see a lot of that,” De Salay said. “There’s a reason why Staples and Office Depot are closing stores left and right. Because realistically, if you think about the top items, you’re more likely to get it at a Target or a Walmart in a small little section and you (don’t) need a whole supply store.”
JB Office has expanded its role in the office space as well. The company is no longer just a supplier of office materials; it is offering cost-saving solutions and intelligence on how company goods are used. JB Office now works with businesses to find and set up phone plans, research cybersecurity networks and juggle monthly fees for printing cartridges.
“They can focus on their revenue generating activities and we’re there to help them from soup to nuts for all of their expenses,” De Salay said.
