PW: EDC Sees Better '98

EDC attributed the decline in sales in its home-business division to a change in the compensation structure that was not well received by the sales force. The payment package was improved in June 1997 and other enhancements were made in May 1998. EDC believes it now has an "excellent" compensation program and expects that the home-business division will grow at a faster rate than its publishing division in fiscal 1999. The home-business unit had about 4000 consultants in all 50 states at the end of its fiscal year.The company said the increase in sales through its publishing unit was due to an increase in average order size and deeper market penetration. EDC added 580 new accounts during the last fiscal year.

EDC continues to devote its entire business to the distribution of titles from the U.K.-produced Usborne Publishing Ltd. EDC now carries 900 Usborne titles and has created 52 Kid Kits that combine books with other items. EDC said its relationship with Usborne is excellent and that it has no plans to distribute any other line.