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Forty under forty

Crain’s Detroit Business
Oct. 2000

On the right track – Crain’s judges pick the 40 under 40 for 2000

The Crain’s Detroit Business 40 under 40 for 2000 are, as usual, an eclectic mix of achievers. Included are representatives from dot-coms, nonprofits, sports and a variety of other kinds of business.

Some are start-from-scratch entrepreneurs, while others are leading family businesses or other existing enterprises to new successes. What they have in common is an impressive blend of initiative, drive, scope of achievement, potential for future leadership and community involvement. This year’s group was selected from more than 150 nominees.

In making the selections, Crain’s asked nominees to provide extensive information about their careers and community activities. Professional achievement is the most important qualification considered by the judges.

Raymond Friedrich, 27
Owner and general manager

Christopher Peppo, 36
Owner and director of operations

Sterling Services
Canton Township

Biggest achievement: Starting with zero money and building a business from scratch in a segment that is very mature and requires a lot of capital.

Current goal: To maintain the company’s 15 to 20 percent annual growth rate.

Ray Friedrich and Chris Peppo are the classic case of not knowing any better.

The pair owns Sterling Services, a company that supplies and maintains more than 1,700 vending machines in the metro Detroit area.

“It was something we fell into,” Peppo said. “It was totally by accident.”

The two were high school pals and started the company in 1986 with a budget of zero. In fact, when they secured their first contract, they didn’t even own a vending machine.

Friedrich worked as a waiter and bar manager and Peppo worked as a Denny’s cook for the first three years the business existed. They used that money to fund the company and pay living expenses. To say there were financially pressed would be an understatement.

“We worked all day on the vending business,” Friedrich said. “We didn’t take any money out (of the machines). We worked the other jobs at night. That was our income for the first three years. We both lived at home.”

The company grew into an outfit with $6.5 million in 1999 revenue with an expectation of $7.2 million in 2000. They have 32 employees.

Neither Friedrich nor Peppo has a college degree. Each attended the school of practical experience instead.

“This business has consumed most of our time during the last decade,” Peppo said. Friedrich lives in Livonia as does Peppo, Peppo’s wife, Susan, and daughter Brooklyn.