Ronco has been a household name since company founder Ron Popeil began starring in his own infomercials in the mid-1950s. From the Ronco Spray Gun to the Veg-o-Matic and Pocket Fisherman, Ronco has generated more than $2 billion from the sale of items "not available in stores."

Popeil sold Ronco to holding company Fi-Tek VII for $40 million in cash and a $16 million note in 2005, but the pioneering infomercial company was in bankruptcy two years later. Ronco was recently taken over by energetic businessman Larry Nusbaum, who has helped the company generate $1 million in EBITDA (earnings before interest, taxes, depreciation and amortization) following 28 months of consecutive losses.

From its inception, Ronco was built upon a business model that called for heavy use of television spots. Already a successful in-person pitchman by the time television reached critical mass in the 1950s, Popeil transitioned his skill set to a medium that allowed him to pitch to thousands at a time. As kitschy as it was, his technique worked: By the 1960s, Popeil and his inventor father Sam became wealthy from the sale of kitchen gadgets like the Dial-O-Matic and Mince-O-Matic. Revenues grew from $200,000 in 1964 to $8.8 million in 1968.

That success continued throughout the ensuing decades because Ronco relied on a simple-yet-effective model: Introduce America to one product at a time with informative, cleverly-pitched infomercials that continuously espoused the item's benefits. Staged shows with audiences would feature "experts" working with and providing testimonials about the quality and usefulness of Ronco's products.

"Everybody knows Ronco," says director of sales Barry Gasmer. "It's a name brand. Whether you get a little snicker or a laugh, they are great products. The rotisseries alone have sold over 10 million [units] worldwide."

Ronco's infomercials use a systematic reduction in price to establish and reinforce a value proposition, and virtually every mention is followed by the ubiquitous "But wait – there's more!" as accessories are added to sweeten the deal.

Popeil went into semi-retirement years ago, though he continues to develop products like the Electric Food Hydrator for his former company. Nusbaum stepped in to lead what is now Ronco Acquisition Corp. out of bankruptcy by restructuring Ronco's direct-response TV business and increasing its retail footprint.

Previous management "did get the product into retail successfully, but they forgot the core channel to sell and promote through the infomercials," Nusbaum says. "They even stopped using Ron's picture and likeness to leverage the brand."

Nusbaum sought to grow the company through retail sales and multi-channel marketing. Nusbaum, who knew Popeil for years before taking over Ronco, says the company's founder had a fear of retail due to chargebacks, markdowns and the concern that lower prices in stores might kill his infomercial business.

When Fi-Tek VII took over in 2005, "all they did was retail — they didn't do television," Nusbaum says. "They flipped [Popeil's] model upside down and it failed." The current business model "is a combination, and one does not preclude the other," he says.

Expanding into stores
Ronco has been able to dramatically expand its market by moving into the retail sector, Gasmer says. Working with various distributors, Ronco has made its products available in stores like Sears, Walmart, Rite Aid, Costco and Kroger. Some of the hottest-selling items in the retail space include the rotisseries and the 25-piece steak knife set that comes with a lifetime warranty; one of the company's most popular products, the Pocket Fisherman, does very well at Walgreens.

"Our core bread-and-butter is still direct response, but we just wanted to bring it more to the masses," Gasmer says. Many consumers "are skeptical and don't want to buy things on television."

The difference between the products offered in retail locations and those sold on TV can vary depending upon the retailer and the time of the year. On television, consumers are often enticed with special offers that include additional complementary products or the option to pay on an installment plan. Those options aren't offered in retail establishments, but purchasing a Ronco product in a store allows the shopper to see it and handle it, carry it home immediately and avoid shipping and handling fees.

"Immediate gratification is what I try to sell or talk to on the retail side," Gasmer says.

In many cases, the Ronco products offered in stores or through retailers' websites feature lower prices than those marketed in the infomercials. The Ronco 4000 Showtime Standard Size Rotisserie, for instance, sells for $99.87 in Walmart stores or at walmart.com; at ronco.com, the unit comes with a 40-piece flatware set and is sold for four payments of $39.95, plus shipping and handling.

Boosting foot traffic
The nature of Ronco's inventory has the company well positioned to sustain itself in the current economic environment, Nusbaum believes. Many retailers are now featuring "As Seen on TV" end caps and sections that specifically carry products from infomercials, and the foot traffic that they generate creates a mutually-beneficial relationship.

"The retailers actually love the exposure," Nusbaum says. "TV drives retail and it drives viewership and awareness. When we spend a lot of money on TV, sales go up; when we're off TV, sales go down." And having products immediately in front of customers is helping build brand awareness that Ronco has never had before.

"To me, that is what is driving people to the stores," Nusbaum says. "It is the impulse, knowing the brand, seeing the products on TV and then walking into Walmart or Sears and our products are right there."