Backchannelmedia

State Journal Register

By TIM LANDIS Business Editor

Sales often come fast and furious on the QVC Corp. home-shopping network - as in $6,600 per minute.

Gregg Harwood just tried to concentrate.

"One of the things they tell you is most important is that, if someone is on the phone, don't fiddle with the product, pay attention," said Harwood, president of Thermionics Corp., based in Springfield.

The company's premier product - ThermiPaq Hot and Cold Paq - was named the QVC "Decade of Discoveries Product of the Year" during a special showing early last month in San Antonio.

Thermionics has been manufacturing the hot/cold packs in Springfield for more than a decade. The flexible packs have uses ranging from therapeutic applications and food warmers to can wraps and ice-chest coolers.

A patented Thermal Ceramics material that is at the heart of the product is blended from a special mix of clay from Ohio, vacuum- sealed, boxed and shipped from the company warehouse on the south side of Springfield.

ThermiPaq was selected by QVC as "Product of the Year" after a nationwide search that began last year. The contest drew 3,500 entries from entrepreneurs hoping to get a few minutes of fame on a channel that reaches 87 million households a day and has annual sales of approximately $5.7 billion.

Ten finalists were named at each of 10 stops before Thermionics and Harwood were introduced as the winners on air in San Antonio.

"I was shocked and speechless, and I'm never speechless," Harwood said, who is scheduled to make a summer appearance on QVC United Kingdom. The home-shopping network also has channels in Japan and Germany.

Thermionics' initial brush with QVC fame was not quite so successful. Harwood also appeared on the channel in 1994. But it was a brief stay.

"We did not meet their dollar-per-minute requirements," Harwood said. The company was not invited back.

Central Illinois products ranging from outdoor grills to garage- door openers have made it on to QVC from time to time. But the director of vendor relations for QVC said competition for space and minutes is fierce.

"We're always looking for products, and we're always looking for entrepreneurs," said Marilyn Montross. QVC buyers regularly fan out across the country, hunting for product samples to be sent to the QVC headquarters near Philadelphia.

QVC has seven distribution centers worldwide, with more than 4.6 million square feet for product storage. The shopping channel broadcasts live 24 hours a day, seven days a week except for Christmas.

Montross said the network cautions against sending products in unsolicited. Guidelines are posted at qvcproductsearch.com.

"We discourage people from sending in a product sample until we have a look at the information. We can't return the products because there'd be so many of them," Montross said.

Harwood's latest road to QVC began after he took the suggestion of the church secretary at Central Baptist Church in Springfield early last year. He decided to answer what he described as a QVC "cattle call" in St. Louis.

"My expectations were absolutely zero going in, but the secretary at our church said 'try this.' So I decided let's try it and see what happens," Harwood said.

Hundreds of people showed up at the St. Louis stop, held aboard a riverboat casino.

"So many people showed up, they had to set up a staging shoot. My actual time with the (QVC) buyer turned out to be two minutes," he said. It then took several more weeks to learn that his products had made the cut for the "Decade of Discoveries Tour."

It also meant a whirlwind of appearances on the shopping channel and transformation of a business that had its beginnings in 1990.

Thermionics was formed as a Georgia corporation based on thermal technology invented by former NASA engineer Thomas Hughes. Harwood, who previously was in the telecommunications business, met Hughes through a mutual acquaintance in 1991 and invested in the company later that year.

Operations moved to Litchfield in 1994 and to a South Sixth Street location in 1995. As a result of the increased demand from QVC, production was relocated to 1214 Bunn Ave. in The Depot industrial park last summer.

Until last year, retail pharmacies and Wal-Mart accounted for most of Thermionics' annual sales. Harwood estimated QVC accounts for nearly one-third of business, and sales continue to grow.

After the St. Louis show, he was called to the QVC headquarters in August for a one-day training session for his QVC appearance. The sessions included tips ranging from interaction with the on-air host to appropriate behavior during a buyer call.

Thermionics debuted on QVC from San Francisco in September and, in a matter of minutes, sold out of 1,300 ThermiPaqs and took orders for 1,400 more. The sales amounted to $6,600 per minute. At a follow- up show in November, sales hit $6,400 per minute.

And on QVC, it's all about sales and minutes.

"It's really customer interest, and how they buy the products that drives it," said QVC spokeswoman Bonnie Clark.

The company has more than 100 product buyers. New products account for 15 percent of the nearly 1,700 products offered each week. Jewelry remains one of the most popular categories.

Joseph Segel, who also founded The Franklin Mint, founded QVC in 1986. The first full year of sales totaled $112 million.

Thermionics has added workers to meet the demand that has resulted from QVC sales. And even as he prepares for a London launch this summer, Harwood said he tries to keep in mind that the QVC run will last only as long as per-minute sales keep pace.

He also said, while there is hardly a guarantee of success, he doesn't hesitate to suggest a QVC tryout to others.

"I recommend it to anybody to do it, because you just never know," he said.