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Today β€” 23 December 2024Main stream

I visited The Container Store to see why sales are down. The selection was incredible, but the prices were higher than I expected.

23 December 2024 at 09:21
Outside The Container Store in New York City.
The Container Store storefront on Sixth Avenue in New York City.

Mykenna Maniece/Business Insider

  • The Container Store, a home storage and organization chain, filed for bankruptcy on December 22.
  • I visited the store's Manhattan location in September.
  • I loved the wide variety of options but concluded I'm not the store's target customer for now.

Before I moved to New York City, everyone warned me about the shoebox apartments I'd have to get used to.

They weren't wrong.

Living in a one-bedroom apartment definitely requires some innovative storage solutions. In the past year, I've looked to stores like Target, Ikea, Walmart, and Amazon for homeware items, but I can't stop my Type-A mind from searching for options to make my space more efficient.

Enter The Container Store, a home storage and organization retailer founded in 1978 in Texas. The company now has 102 stores across the US.

However, while the company boasts a cult-like following, sales have struggled. On December 22, the company filed for bankruptcy, revealing in court documents that it's $230 million in debt. Still, CEO and president Satish Malhotra said, "The Container Store is here to stay."

The filing comes after months of other documented financial struggles. In June, The Container Store reported that first fiscal quarter sales were down 12.2% compared to the same period in 2023. The following month, Modern Retail reported that the company hadn't "posted a full-year profit" since 2021.

In September, I visited The Container Store's Sixth Avenue location in Manhattan to see if the storage solutions were right for me and if I could understand the brand's sales decline.

Here's what I found.

When I entered the Manhattan store, I was happy to see it lived up to its name, with aisles and aisles of β€”Β you guessed it β€” containers.
A view of inside The Container Store. There are white pillars spaced on the right side of the frame headed to the back of the store with signs that say "Closet" and "Bath." There are drawers in the front as well as a red sale sign in the right foreground.
This was my view when I first walked into the store.

Mykenna Maniece/Business Insider

As soon as I stepped inside, I was shocked at the massive space. According to the retailer's website, stores have "an average size of approximately >24,000 square feet (18,000 selling square feet)."

Though this location spanned just one floor, all I could see were aisles and aisles of items lining its perimeter and throughout its center.

The store was largely sectioned by the room you're looking to organize, such as the closet, bathroom, kitchen, garage, office, and more.

I started with the closet section and loved the look β€” but not the price β€” of these Drop-Front Shoe Boxes.
A clear shoe organizer.
The Container Store's Large Translucent Drop-Front Shoe Box Case of 6.

Mykenna Maniece/Business Insider

During my visit, a case of six was on sale for $59.99, but I still couldn't justify purchasing these, given that my boyfriend and I easily have about 30 pairs of shoes β€” it would cost us about $300 at a minimum.

But even if we were comfortable justifying the price, I wouldn't expect these boxes to be very apartment-friendly given their size; one case of six measures 11 1/16 inches by 14 7/16 inches by 7 1/4 inches.

As much as I would love to include these in a future dressing room, I had to pass.

As expected, there were plenty of decorative bins, like this Scalloped Maize Storage Bin.
The author holding the Scalloped Maize Storage Bin.
I liked the quality of the Scalloped Maize Storage Bin.

Mykenna Maniece/Business Insider

This one was a good size at 11 inches by 15 inches by 8 1/2 inches and retailed for $29.99.

There was no shortage of hangers.
A wall of different types of hangers in different shades.
There was a wide variety of hangers available.

Mykenna Maniece/Business Insider

My favorite was the Non-Slip Velvet Suit Hangers, which retailed for $9.99 for a 10-pack.

Though I didn't need any more hangers, I would definitely consider purchasing from here in the future, thanks to the wide selection of colors and materials.

I loved these jewelry boxes by Stackers.
The author holding Stackers' Classic Jewelry Drawer.
I loved how customizable these Stackers jewelry drawers were.

Mykenna Maniece/Business Insider

There were plenty of drawer options customers could "stack" to build their perfect custom jewelry box, which I loved.

However, I had difficulty locating the prices of each drawer type on the shelves.

The Stackers Belt Organizer seemed like a great practical gift for the holidays.
A belt organizer.
The Stackers Belt Organizer retails for $24.99.

Mykenna Maniece/Business Insider

This belt organizer, retailing for $24.99, could sit on a closet shelf or in a drawer next to similar organizers.

Moving on to bathrooms, there were plenty of countertop organizers.
A wall of bathroom organizers like toothbrush holders, acrylic trays, and glass jars.
There were plenty of bathroom organizers.

Mykenna Maniece/Business Insider

There were plenty of decorative storage options, from soap dispensers and toothbrush holders to apothecary jars and trays.

But I don't understand the appeal of acrylic.
A large acrylic tray.
I couldn't justify purchasing this acrylic tray.

Mykenna Maniece/Business Insider

The Luxe Acrylic Large Tray pictured above satisfies an itch in my brain that loves the aesthetically pleasing bathrooms I see on Pinterest and TikTok.

But, having been fooled by acrylic pieces, I think these dishes seem more trouble than they're worth. Given the likelihood of dried water, toothpaste, and soap drips, this tray could easily become an eyesore, just like my old acrylic toothbrush holder did.

These pieces don't appear to serve much purpose, especially at a cost of $24.99.

I was shocked to see this makeup organizer retailing for $60.99.
The Luxe Acrylic Makeup Organizer and Storage Kit.
The Luxe Acrylic Makeup Organizer and Storage Kit retails for $60.99 at The Container Store.

Mykenna Maniece/Business Insider

As smart as this storage kit looked, I would never spend this amount when similar options on Amazon are sold at fractions of the price.

And I'm not sure how useful a toilet roll dispenser could really be.
A MindSet Toilet Roll Dispenser by brabantia.
I don't understand why a toilet roll dispenser would be necessary.

Mykenna Maniece/Business Insider

Maybe I'm missing out β€”Β and maybe it speaks to the space I have in my bathroom β€” but for $49.99, I'd rather just grab a new roll of toilet paper from the pack when I need it.

However, I really liked these hair tool storage options.
Storage solutions for hair tools.
The Container Store had multiple options for storing hair tools.

Mykenna Maniece/Business Insider

My hair dryer and diffuser attachment have a bad habit of getting tangled under my sink, so I could see this being a great addition to my bathroom that would be worth the $25.

And I enjoyed browsing the mock closets by Custom Spaces.
Mock closet organization at The Container Store.
I gained a lot of inspiration from the Custom Spaces displays.

Mykenna Maniece/Business Insider

One thing I didn't know about The Container Store before my visit was that it has staff designers available to help curate "Custom Spaces."

In collaboration with acquisitions Elfa and Closet Works, "Custom Spaces" was identified as a key part of the company's growth strategy.

Launched in November 2022 as a rebranded expansion of the company's "Custom Closets," The Container Store's Custom Spaces "is defined by three areas of the home: Closet Spaces, Living Spaces, and Garage Spaces," the company said at the time.

As part of this effort, The Container Store launched a new "Garage + Elfa" line in October 2023 and expanded its "Decor+ by Elfa" line in June 2024. Elfa was not included in the bankruptcy.

My favorite section to explore was all of the aisles dedicated to kitchens.
A wall of kitchen storage solutions.
There was so much kitchen storage available.

Mykenna Maniece/Business Insider

Look at all these storage options!

These Montana Jars were added to my holiday wishlist immediately.
Three different-sized glass jars with wooden lids.
I loved the Montana Jars collection.

Mykenna Maniece/Business Insider

These jars appeared straight out of my Pinterest dreams and seem perfect for holding baking ingredients like flour and sugar.

The collection includes three jar sizes: 1.5 quarts, 2 quarts, and 3 quarts. They retail for $19.99, $21.99, and $26.99, respectively, making the full collection about $69.

Plastic and stainless-steel scoops were also available on another shelf nearby.

This water bottle organizer also deserves a spot in my cabinets.
A water bottle organizer.
I've never seen a water bottle organizer like this.

Mykenna Maniece/Business Insider

YouCopia's Upspace Bottle Organizer 2-Shelf holds eight to 10 bottles and costs $24.99.

This bakeware organizer makes great sense, especially in a small living space.
The Container Store's "Commercial Cabinet Drawer Bakeware Organizer."
This organizer would help keep all my baking sheets and cutting boards together.

Mykenna Maniece/Business Insider

Even if I'm not happy with its $65.99 price tag.

I also appreciated this shopper-friendly display for mapping drawer organizers.
An interactive display showing how certain organizers would fit in a kitchen drawer.
There were a variety of different-size bins to make a drawer as functional as possible.

Mykenna Maniece/Business Insider

If you're looking for something specific, visit the store with measurements in mind so you don't have to guess what product would best fit your space.

However, I wasn't sold on this $45 spice rack.
A metal spice rack.
I couldn't justify spending $45 on this spice rack.

Mykenna Maniece/Business Insider

Call me picky, but I wouldn't like picking through the bottles to find the spice I'm looking for, and I'm not a huge fan of labels.

But if you are a fan of labels, they have plenty.
A wall of labeling supplies.
I was impressed with the labeling options.

Mykenna Maniece/Business Insider

Near the crafting section were packs of labels for kitchens, laundry rooms, bathrooms, playrooms, and more.

Each pack from the "Everything Organizer Collection" retailed for $12.99.

I moved on to more storage options for clothing.
A wall of different laundry baskets.
I saw some laundry baskets for $11.99 and others for $169.99.

Mykenna Maniece/Business Insider

This section included plenty of laundry baskets to choose from.

I have closet organizers like these, which've been a lifesaver for small spaces.
A wall of hanging closet storage.
The additional closet shelving has been helpful from my college dorms to starter apartments.

Mykenna Maniece/Business Insider

They're perfect for maximizing closet space when there isn't much room for dressers.

I also found a few kid-friendly storage options.
Kid-friendly storage bins decorated with different animals like a porcupine, rhinoceros, peacock, sheep, owl, and fox.
The colorful animals ranged from rhinos to foxes.

Mykenna Maniece/Business Insider

These animal-themed bins seemed perfect for a child's bedroom or an elementary school classroom, but I was a bit surprised by the cost.

For example, the peacock storage cube was listed for $19.99, but another unpictured sloth cube was listed for $26.99.

There were also sets of rainbow-colored storage bins and rolling chests.

I was surprised to see Jason and Kylie Kelce while walking through the garage section.
A display for Jason and Kylie Kelce's garage transformation.
Jason and Kylie Kelce collaborated with The Container Store.

Mykenna Maniece/Business Insider

Malhotra told Modern Retail in July that the brand is "starting to do more collaborations."

"I think the partnership we did with the Kelces was really encouraging for customers to see," he said. "Oftentimes, they think that expense is a reason why things are not done, and they look at someone like the Kelces and they go, 'Obviously money is not an issue for them.' Their issue was knowledge, time, and solutions, and that's why they wanted to work with The Container Store."

There were plenty of options for trash cans, too.
A wall of different trashcans ranging in material, shape, and size.
I appreciated the number of options.

Mykenna Maniece/Business Insider

Ranging in size, color, and material, I loved the variety available.

I also enjoyed browsing the office and stationery sections.
A table of stationery supplies ranging from pens and highlighters to notebooks and trinkets.
I love browsing through stationery.

Mykenna Maniece/Business Insider

There were so many trinkets, pens, and notepads to choose from.

There were fun options, like this candy-themed highlighter pack.
Sugar High highlighter pack.
The Sugar High highlighter pack retails for $8.99.

Mykenna Maniece/Business Insider

I would've loved having these in my pencil pouch in elementary school.

I liked the simplicity of this to-do list by Ramona & Ruth.
A today to-do list by Ramona & Ruth.
I'm always looking for new notepads and notebooks to add to my collection.

Mykenna Maniece/Business Insider

If I didn't already own four different notebooks and calendars, this would've been a very easy $15.99 out of my wallet.

I was also surprised by the number of seemingly random trinkets available.
The Woobles "Fred the Dinosaur" beginner crochet kit.
The Woobles "Fred the Dinosaur" crochet kit was so cute.

Mykenna Maniece/Business Insider

Like this beginner crochet kit.

Here's another example: mushroom bookmarks.
Magic Sprout mushroom bookmarks.
I've never seen bookmarks like these.

Mykenna Maniece/Business Insider

I'm still unsure if this design makes much sense, but it is cute.

At this point, I started losing track of what aisles I'd already toured.
A wall of different style baskets.
There were so many aisles of baskets around the store.

Mykenna Maniece/Business Insider

There were just so many choices.

Here are some more options in case you haven't seen enough.
More large plastic storage bins organized on the floor and in shelves in the background.
The Weathertight Clear Totes looked like a great option for moving.

Mykenna Maniece/Business Insider

The Weathertight Clear Totes looked like a great choice for reusable moving boxes and basement storage.

Prices ranged from $14.99 for a 6.5-quart tote to $34.99 for a 74-quart tote.

And who doesn't love a clearance section?
A display of clearance items ranging from bowls and plates to glassware.
When I visited, clearance items were up to 70% off.

Mykenna Maniece/Business Insider

The store's clearance options were robust, with different plates, bowls, glassware, decor pieces, and more.

My favorite clearance item was this marble wine chiller.
Three marble wine chillers on display.
These wine chillers originally sold for $98 each.

Mykenna Maniece/Business Insider

Though this definitely wasn't a need, I'm disappointed I didn't snag one while it was on sale for $29.40.

Overall, my trip to The Container Store made me realize that I'm probably not the brand's target audience ... for now.
Outside The Container Store in New York City.
The Container Store storefront on Sixth Avenue in New York City.

Mykenna Maniece/Business Insider

Malhotra told Modern Retail in July, "There will always be a cheaper alternative to a plastic bin. Our objective is not to compete there because we don't have the scale and buying power to do so."

Instead, he said it's about offering "a white glove experience" through Custom Spaces and the brand's merchandise. He added that The Container Store differentiates itself from the Walmarts and Targets of the world by spending time with customers to help them choose the right products for their space.

Therefore, it seems that The Container Store is looking to target shoppers who have an established home base and plan to invest in it for years to come.

As a 20-something-year-old who plans to bounce from rental to rental for the next few years, I'm nowhere near that phase of my life. So, buying more expensive organizers that may only fit my current apartment isn't worth it.

However, if you have the money, space, and time, I completely understand falling in love with The Container Store. But for now, my visits will simply remain sources of inspiration.

The Container Store did not reply to a request for comment from Business Insider.

Read the original article on Business Insider
Before yesterdayMain stream

The Trump Organization: Everything to know about the Trump family business

13 December 2024 at 12:51
Donald Trump Jr., Donald Trump, and Eric Trump
The Trump family businesses have been involved in everything from real estate to crypto.

AP Photo/Evan Vucci

  • Trump took over the family real estate business in 1971 and used it to build his business brand.
  • As the family's businesses expanded, they faced lawsuits and financial volatility.
  • Here's everything to know about the Trump businesses and increasingly complicated ethical questions.

When President-elect Donald Trump was growing up, he worked in the offices and on the construction sites of his father's real estate business, Elizabeth Trump & Son. By 1973, he had taken over the company and given it a now well-known name: The Trump Organization.

In the decades since, Trump has pursued global real estate development, reality television shows, a media conglomerate, cryptocurrency, and branded products like Bibles. His signature company has faced financial and legal turmoil throughout the years, but has become synonymous with his trademark brand of business success.

When Trump took office in 2017, he handed formal control of the Trump Organization to his two elder sons, Donald Trump Jr. and Eric Trump. Some questioned whether conflicts of interest persisted for the then-president, who had simultaneous political and professional power. Now that Trump has won a second term in the White House, the Trump Organization will again have to navigate a murky business landscape.

Here's everything to know about the Trump Organization and the family's business ventures, including financial volatility, lawsuits, and an increasingly complicated web of ethical questions.

Company history

Fred Trump was born in New York City in 1905. He started building and selling homes in Queens when he was 19, eventually developing properties in Brooklyn and Staten Island as well.

Donald Trump and Fred Trump
Donald Trump took over the business from his father in 1971 and renamed it in 1973.

Sonia Moskowitz/Getty Images

The president-elect was involved with the business since childhood and began officially working for his father shortly after graduating college. He took over the company in 1971 and renamed it in 1973.

Key business areas

Real estate

After taking over, Trump helped expand the business, buying properties in Manhattan and outside of New York. He developed the Grand Hyatt Hotel in 1976, despite not having enough money to buy the property (this is among the early plot points in 'The Apprentice,' a 2024 movie about Trump's business rise).

By the 1980s, Trump had established himself as a real estate mogul, boasting properties like Trump Tower and beginning to pursue casinos in Atlantic City, New Jersey. The Trump Organization faced financial challenges in these years, with multiple Trump-owned properties filing for bankruptcy in the early 1990s. The president-elect used bankruptcy protections to restructure the company's debts and maintained his image as a successful businessman.

Today, the Trump Organization's website lists eight hotels, five of which are in the U.S. It also lists residential properties across the country and globe, with a focus on New York. In addition to the real estate holdings, the organization lists 18 golf courses it owns or is developing.

Entertainment ventures

In 1996, Trump bought the Miss Universe Organization, which included Miss USA and Miss Teen USA. He sold the company in 2015, after NBC dropped the show due to remarks he made about Mexican immigrants during his 2016 presidential campaign. The beauty pageant has been awash in controversy in recent years, and some contestants have said that Trump would look at them as they changed backstage.

Donald Trump with Miss Universe contestants
Trump owned the Miss Universe Organization from 1996 to 2015.

Marc Stamas/Getty Images

Trump starred as himself in a reality show, 'The Apprentice,' which he hosted from 2004 to 2015. Aspiring business leaders battled each other in challenges and Trump served as the judge, telling a contestant each week, "You're fired!" The show and its spinoff, 'The Celebrity Apprentice,' helped expand Trump's national reach. NBC cut Trump's ties with the program in 2015.

After leaving the White House in 2017, Trump formed Trump Media & Technology Group and its flagship product, Truth Social. He founded the company after being kicked off of many mainstream social media sites for his actions on January 6 and now owns a majority stake. Trump Media's financial health shifts with the president-elect's political prospects. Many consider it a "meme stock," since its share price doesn't correlate to its profitability.

Trump Media's stock soared after Trump won the 2024 election. The president-elect's stake in the company is his most valuable asset, valued at around $3.5 billion in December, 2024.

Trump-branded products

Since his earliest business days, Trump has profited from branded products, starting with his buildings themselves. During his reality television days, he attached his name to everything from board games to steaks.

Trump has continued to sell branded products as a political figure, and financial disclosures released in August reveal that he made more than $12 million off of NFTs and books alone. He also sells sneakers, cologne, and a Trump Bible.

Trump holding Trump-brand shoes
Trump has attached his name to various products, from steaks to sneakers.

Chip Somodevilla/Getty Images

Leadership and ownership

The Trump Organization is a collection of around 500 privately held companies. Trump ran the day-to-day operations of the company prior to becoming president, but handed control over to his two oldest sons, Donald Trump Jr. and Eric Trump, when he moved into the White House in 2017.

The company's leadership is composed largely of family loyalists. Eric and Donald Trump Jr. are currently the executive vice presidents.

Donald Trump Jr. and Eric Trump
Donald Trump Jr. and Eric Trump now run the family business.

Alex Wong/Getty Images

Since the 1970s, most presidents have put their assets into blind trusts, a financial arrangement whereby an independent trustee controls the holdings. During the 2016 campaign, Trump put his assets into a trust controlled his older sons and Allen Weisselberg, the Trump Organization's chief financial officer at the time. The arrangement was not as extensive as a blind trust structure.

Trump resigned but didn't sell his stake in the company, which promised not to make any new foreign deals while Trump was president. The Trump Organization also hired an outside ethics advisor at the time and said it would donate any profits from foreign governments to the Treasury Department.

Various parties sued Trump over alleged violations of the Constitution's emoluments clause, which prevents presidents from receiving payments or gifts from foreign governments. International governments with interest in US policy decisions spent money at various Trump properties during his term. Three cases about the clause were dismissed without resolution after Trump left office.

Controversies and legal challenges

The company's legal troubles predate Trump's time in the White House, stretching back to the era of Fred Trump's leadership.

In 1973, the Justice Department sued Fred and Donald Trump for alleged racial discrimination. The parties settled and the Trumps didn't admit any wrongdoing. The company's business practices continued to receive scrutiny throughout the rest of the 20th century, especially as it faced financial difficulties.

Trump borrowed money to fund new projects like hotels and casinos, and in 1990 his dad bought more than $3 million worth of casino chips to help a venue make an interest payment. Later, the state of New Jersey found that the transaction was an illegal loan and levied a fine of $65,000.

Over the past three decades, Trump and his companies have been engaged in many lawsuits, ranging from bankruptcy proceedings, to fights with gambling patrons, to personal defamation suits. Recently, the company has been entangled in both a civil and criminal fraud trial in New York.

Trump sits in court
The company has been entangled in a criminal and civil fraud case in New York.

PETER FOLEY

In the civil case, the state's attorney general accused the Trump Organization of misleading banks and insurers about property values. A Manhattan judge found Trump guilty in February 2024 and ordered the company to pay almost $364 million before interest, with Trump personally responsible for nearly $355 million of the penalty. By March, judges had lowered Trump's bond to $175 and the president-elect has appealed the case. As part of this case, Weisselberg, the company's former CFO, was sentenced to jail time after admitting to perjury.

On the same day the AG first filed the civil fraud case, Trump formed "Trump Organization II" in an apparent attempt to protect his holdings. Anticipating that Trump might try to move his holdings to a company that isn't being sued, the judge made him tell a court-appointed monitor about "any corporate restructuring, disposition or dissipation of any significant assets."

New York's criminal suit against Trump ended in 34 convictions, making him the first former president convicted of a felony. A 12-person Manhattan jury found Trump guilty on 34 criminal counts of falsifying business records to hide a $130,000 hush-money payment to Stormy Daniels, an adult film star. The judge in the case has indefinitely postponed Trump's sentencing and the president-elect is now arguing that the case should be thrown out entirely because he has presidential immunity. In July, the Supreme Court ruled that presidents are broadly immune from prosecution, and Trump's legal team is arguing the same should be true for presidents-elect.

Next steps for the Trump Organization and other businesses

Now that Trump is headed back to the White House, the Trump Organization once again finds itself in a thicket of legal and ethical questions. The company may or may not reinstate its ban on foreign deals once Trump is sworn in for a second term and has business in countries central to America's foreign policy agenda, like Saudi Arabia.

In addition to the Trump Organization, Trump Media is another ethical gray area, as people with a vested interest in policy decisions could buy advertisements on Truth Social or shares of stock. Doing so would raise Trump's net worth, given that he owns a majority stake in the company.

Trump speaking at a bitcoin conference.
The Trump family has ventured into the crypto industry.

AP Photo/Mark Humphrey, File

In September, Trump announced a family crypto venture, World Liberty Financial. The platform is marketed as a way for traders to borrow and lend cryptocurrencies. Donald Trump Jr., Eric Trump, and Barron Trump are all involved in the venture. A document from the company lists all four of them as part of the team, but says no Trump family members are employees or officers. Ethics experts have said that World Liberty Financial could also pose conflicts of interest since Trump will oversee crypto regulations as president.

The Trump Organization, Trump Media, and World Liberty Financial did not respond to Business Insider's request for comment.

Read the original article on Business Insider

'It's Trump 5.0': Lobbyists reveal how Trump is changing the influence game

25 November 2024 at 02:07
The US Capital building, surrounded by palm trees
Β 

iStock; Rebecca Zisser/BI

As Donald Trump returns to the White House promising to obliterate business as usual in Washington, the city's lobbyists are preparing for a seismic shift in how β€” and where β€” they do business.

"Florida is becoming the power nexus for the country," Bill Helmich, a lobbyist and close Trump ally, tells Business Insider. "It's where decisions will get made."

It's a sentiment echoed by Evan Power, a lobbyist who's serving as chair of the Florida GOP. "Florida is now the epicenter of Trumplandia," Power says.

A dozen leading lobbyists, some of whom spoke with BI on the condition of anonymity, say that having a significant presence in Florida is now an essential part of doing business in Washington. First and foremost, that means hiring lobbyists in the state to work the hallways and links at Mar-a-Lago, where Trump and his inner circle have been charting the transition and making Cabinet picks. A presence at the resort β€” along with the golf courses Trump owns in West Palm Beach, Doral, and Jupiter β€” is now seen as a major currency in the lobbying game.

Never before, lobbyists say, has the geographic center of power shifted so dramatically with the arrival of a new administration. In many respects, they say, Palm Beach is going to be the new K Street β€” the headquarters of the political-influence industry β€” particularly since Trump no longer owns a luxury hotel blocks from the White House.

"It hasn't been this exciting on Capitol Hill since 1994, when Republicans had their Contract with America."

What's more, the consensus among lobbyists is that anyone who hopes to influence Trump this time around will have to dispense with traditional lobbying conventions. "We can't do this the same old way," says one prominent lobbyist with ties to Trump. "Trump is such a wild card, and that gives him a lot of leverage. Cookie-cutter lobbying efforts probably won't work like they used to."

For Washington lobbyists, that means changing the way they talk about the world to appeal to the hardcore MAGA loyalists who have succeeded at commanding Trump's attention and dominating his inner circle. "This is not Trump 2.0," says Justin Sayfie, a partner at Ballard Partners, a powerhouse lobbying firm with deep Florida roots and an office down the road from Mar-a-Lago. "It's more like Trump 5.0. This is the most anti-Washington president we've elected since maybe Andrew Jackson."


When it comes to lobbying, the big winner of Trump's first term was Ballard Partners. The firm's success offers some lessons for lobbying firms itching to capitalize on their ties to Trump and his inner circle and establish a beachhead in Florida.

Before Trump's unexpected victory in 2016, Ballard Partners had no presence in Washington to speak of. But its founder, Brian Ballard, had been part of Trump's inner sanctum β€” first as a top fundraiser in Florida, then as part of the president-elect's transition team. By leveraging his access to Trump, Ballard Partners was able to compete with the old white-shoe lobbying firms that have been the industry's dominant players for decades.

In 2017, the first year of Trump's term, Ballard added dozens of major clients, including Google, Amazon, Uber, American Airlines, Honda, the tobacco giant Reynolds American, the private-prison firm Geo Group, and the American Health Care Association. By 2020, Ballard ranked as the nation's seventh-largest federal lobbying firm in terms of income β€” an astounding feat for an office that was only 3 years old. Ballard's lobbying business in Florida, meanwhile, regularly ranks among the state's top-earning firms, making it ideally positioned to once again be the go-to lobbying shop for corporations and special interests eager to cozy up to Trump and his MAGA allies in Congress.

Corporate clients need lobbyists who appreciate that Trump is "disrupting the status quo in Washington," Sayfie, the Ballard lobbyist, says. "This creates a sense of both possibility β€” and great worry and anxiety to navigate."

Any presidential transition poses significant challenges for corporations. Business thrives on stability; it's hard to make plans in the middle of all the uncertainty that comes from shifting political philosophies, legislative goals, and regulatory ambitions. But lobbying insiders say Trump's presidential transition has brought a new level of unpredictability β€” one that also represents a golden opportunity, for those able to capitalize on it.

"Trump has a mandate from the American people and is using it," says B. Jeffrey Brooks, a partner at Adams and Reese, a law firm with more than 300 attorneys and lobbyists across the country. "It hasn't been this exciting on Capitol Hill since 1994, when Republicans had their Contract with America."

Through his appointments and his campaign promises, lobbyists say, Trump has clearly signaled his desire to remake Washington in Florida's regulation-slashing, "woke"-fighting image β€” and do so from the comforts of his "Winter White House," now a political redoubt for all seasons. Already, many of the top slots in Trump's administration are going to Floridians who have stuck by him through his many legal and political troubles. Among them are two former Ballard lobbyists: Susie Wiles, whom Trump has tapped to serve as his White House chief of staff, and Pam Bondi, his choice for attorney general.

"Trump's team has distinct, new views that are not old Washington," says Colin Roskey, a principal at the FHP Strategies lobbying firm who served as a deputy assistant secretary of health and human services during the first Trump administration.

Some major companies, lobbyists say, have been caught off guard by the rapid pace of Trump's transition moves. "They're freaking out a little bit," says Dave Wenhold, a partner at Miller/Wenhold Capitol Strategies, which provides clients with lobbying and strategic planning. "Things are going to be coming at them fast and furiously, more than before, and this is where the lobbying community can really show its value."

There's also a new way corporations can seek to influence Trump β€”without disclosing their influence. Unlike his predecessors, Trump is allowing donors β€” including foreign nationals β€” to finance his transition in secret, through unlimited private contributions. Those who bankroll his staff and travel before he takes office, lobbyists say, stand to build connections and curry favor with the once and future commander in chief. "People appreciate people who invested in them," says Power, the chair of the Florida GOP.

Taken together, Trump's singular take-no-prisoners style has lobbyists excited about the possibilities for influence. Scott Mason, a senior policy advisor at the lobbying firm of Holland & Knight who served as the director of congressional relations for Trump's presidential campaign and transition team in 2016, is blunt about the prospects of Trump 2.0: "It'll be a great year for the lobbying world," he says.

Having a good lobbyist, in fact, may be more important than ever. Whatever companies think of Trump and his policies, they now face the prospect of a president who speaks openly about pursuing retribution for what he perceives as slights. On the campaign trail, Trump threatened John Deere with tariffs, called for the prosecution of Google, and tanked Meta's stock price by denouncing Facebook as "an enemy of the people." In an environment of fear and uncertainty, lobbyists expect their business to boom β€” likely surpassing the record $4.2 billion clients spent last year on federal lobbying.

"You have to recognize how Washington affects your business," Mason says. "If you're not at the table, you're on the menu."


Dave Levinthal is an investigative journalist based in Washington D.C. He was a reporter and editor at Business Insider until 2022.

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