'Net sales add chapter to success story

By LINDA HALFREY

PEABODY _ Perhaps it's no coincidence that Christian Book Distributors' headquarters are located on Summit Street in Peabody.

The company is at the peak of the religious book industry.

President and founder Stephen Hendrickson says CBD is the largest company exclusively selling religious products on the Internet. While its online site is generating strong sales, its catalogs remain the company's bread and butter.

"The best market information tells us that we are in a very strong position in the Christian catalog market," said Hendrickson. "We are many times the size of our nearest competitor."

"That was our core from the start and we've chosen not to stray too far away from that direct marketing," he added. "What the Internet has done is given us an opportunity to service people in a different medium."

Hendrickson believes part of CBD's success is the heart behind the corporate logo. After all, the company's name does start with the word `Christian.'

"`Christian' says something about how we do business. We value people and we treat them that way," he said. "It's a family business, not just another peg in the corporate structure."

That belief laid CBD's foundation, which in 20 years has become a pioneer in the religious book industry, providing materials nationwide and operating one of the most prominent businesses of its kind.

Four years ago, before CBD first ventured online, Hendrickson investigated other catalog sites, finding they didn't offer real choices or real shopping.

Now its site, Christianbook.com, offers everything the catalogs do _ and more.

"We always exceeded what other catalog stores were offering," he said, pointing to a multi-page site.

Within about six months, that first site became outdated and was trashed in favor of a brand-new model.

The new site is the result of a growing Internet department at the company, nicknamed `Web World.' It employs about 30 workers who create its editorial content, marketing, imaging and graphics.

"That department continues to grow," said Hendrickson. "We want to have continuous improvement."

By keeping the technology experts in the same department as marketing, communication has improved to make a better product, Hendrickson said.

"One hand knows what the other is doing," he said.

Ultimately, the key is delivering the products directly to the consumers and providing them with one place for their shopping needs, he said.

"We are in a very strong leadership position and we are looking to grow that," he said.

In 2000, the company acquired iChristian.com, an Internet provider of religious materials based in Oregon.

iChristian.com began in November 1999 when a venture capital team began backing it. But this past spring, when dot-coms went from Wall Street darlings to dogs, the company ran out of cash and the opportunity for CBD to purchase iChristian.com came along.

CBD has taken over its marketing and customer service and relocated the iChristian operation to its headquarters in Peabody.

CBD is fortunate, Hendrickson said, because his philosophy includes self-funding the company's own growth, whether that means expanding its 230,000-square-foot physical plant or plugging its profits into new ventures like the Internet.

The market for CBD's products continues to grow. In fact, sales of such books more than doubled over the last decade, from $425 million in 1982 to $979 million in 1994, according to estimates by the Association of American Publishers.

Although CBD sells to a broad Christian market, with primarily Protestant customers, clients also include Catholics, Fundamentalists and Evangelists. By offering books and bibles that serve a broad range of beliefs, CBD remains an industry leader, Hendrickson said.

The cornerstones of CBD's business are books and spiritual items that range widely, from items like brass Jesus doorknockers, a man's tie printed with the Lord's Prayer to inspirational pet collar tags.

"We target our products according to our audience needs," he said. "We are generally not going to limit our customer's choices. We choose what's of value to them."

As a young many growing up in Lynn, Hendrickson attended church, watching his father _ as Assemblies of God minister _ preach.

During his sophomore year studying music at Central Bible College in Missouri, Hendrickson began a small business selling religious reading materials.

By the time he was a senior, he had a decision to make: Grow the business or close it.

Coming home to the North Shore after graduation, his brother, Ray, helped him continue the tiny business after school. They became partners in the venture.

The rest is history, he said.

After running the company from their parents' basement, today CBD distributes to homes and schools all over the country and in Canada and employs 450 permanent employees.

Ray Hendrickson left the company two years ago.

Since then, "We've been pleased with the people who've stepped up," Stephen Hendrickson said. "No one's indispensable. There's always an opportunity to advance."

Will CBD ever go public?

Not likely at this point, Hendrickson said, but not out of the question, either.

"We enjoy and appreciate having the opportunity to not have to keep Wall Street happy from quarter to quarter," he said. "There is not a bureaucracy in getting decisions made."

Private companies like CBD have a chance to make longer-term decisions without having to make those quarter-to-quarter decisions.

"I'm a happy private owner," said Hendrickson.