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Fishing For New Clients? Drop Your Line In Fresher Waters.
By: Jen Alexander, Associate Editor
Issue: 2009jun
If you've had the same clients with the same needs for many years and those fish aren't biting as often, perhaps it's time to discover who's making the most of the tough economic climate. Emerging or perpetually successful markets, and the companies that make up these sectors, should be moved to the top of your prospect list.
Who's Still In The Money?
While statistics from the U.S. Department of Labor in April showed an increase in hiring in transportation, education, health services, utilities, trades and government agencies—an indicator that these areas provide continuously needed services—your area of the country and even your hometown may reflect positive growth in slightly different specialties.
Some markets are picking up steam because they're geared toward frugal-minded customers, while others are surviving because they provide services that are always needed by someone, somewhere. A glance at the business section of your hometown newspaper and the local evening news will often reveal feature stories about successful upstarts and thriving establishments.
Jason Hancock, president of Nashville, Tennessee-based distributor Hancock Advertising (UPIC: Hancock) says local businesses like check-cashing operations and pawn shops are thriving in the recession, and his existing relationships with these companies means his own business is benefitting.
"[Distributors] should look at local industries that haven¡¦t been as affected by the economy," he says.
One tried-and-true method for meeting new prospects in previously untapped markets is to market yourself through old-fashioned networking. Join civic and professional organizations to learn who's doing what in your community. The more others know about your business, the more likely you are to do business with them. Business Network International (www.bni.com) is a gold mine for learning about the power of referrals. The organization bills itself as the largest of its kind, with chapters across the U.S. and throughout the world.
Warm Up The Cold Call
Whether you're new to promotional products or an old veteran, the cold call is one tool you should never retire. Some swear by cold calls day in and day out, while others hope for the day when they'll never have to beat the bushes for clients again.
Denny Gorman, MAS, sees value in making cold calls. "I think it's good for the salesperson," he says. "It keeps you sharp and on the ball."
However, a first cold call rarely leads to an instant sell. Gorman, who runs Conestoga, Pennsylvania-based Gorman Consulting (UPIC: Dgorman), says what salespeople do accomplish in those first encounters is building relationships with people who can lead them to the decision maker. "In many cases, you're starting with the security guard, the receptionist or the secretary. You develop a rapport and then ask to speak to the [purchasing agent]," he says.
Karie Cowden, MAS, president of Phoenix, Arizona-based distributor Connect The Dots Promotions LLC (UPIC: ctdpromo), says cold calls are not her favorite method of approaching new business, but she acknowledges that they can be beneficial. "With cold calling you have a longer way to go, but you've got to be out there meeting people," says Cowden. "You can't just sit at your desk waiting for calls to come in."
Regardless of your opinion, you can make any cold call potentially more successful by first doing a bit of research. Few things are more embarrassing than walking into a business named "Bob's Pick And Pull," ready to pitch to an auto-parts salvage company, only to discover you¡¦re in the office of a dentist with a twisted sense of humor.
Many salespeople fail to research the prospective client before crafting a sales pitch, says Joel Schaffer, MAS, CEO of Randolph, New Jersey-based supplier Sound Line LLC (UPIC: 1SOUNDLN). "You need a tremendous amount of knowledge before entering the marketplace."
What's more, he adds, just walking into a prospect's office with a sample isn't going to seal the deal. "There's a difference between tangible and intangible sales," he says. "Solving a business problem starts out as an intangible. If you're there to solve a problem, you don't need a sample."
Samples that are unique or creative can be useful once a solution has been crafted—this is where the tangible sale begins.
"In my experience," Gorman says, "it's best to ask about a business and find out about its needs and how you can fill them. Walking in with a product is putting the cart before the horse. Too often we tend to wing it. In this day and age, distributors need to do their homework so that they can really be consultants."
Cowden says she does bring products with her on calls but as self-promotions rather than samples. She actually records who she gives her self-promotion items to and what comes of the visit. "I'm keeping track of the outcome. In the end, I'll know if I've spent my money wisely," Cowden says.
Redefine Your Product
For many suppliers and their reps, promotional products function primarily as giveaways. However, Schaffer says to be successful in emerging or previously untapped markets, salespeople in the industry need to begin looking at their products differently. "Suppliers need to ask themselves, 'Where can my branded product replace a non-branded product?'"
One of the more obvious examples he gives is office supplies. "We're not schooled to go to the purchasing agent, but when we attempt to sell products that can be used in lieu of office products, as a commodity, we can preempt or displace a retail sale," Schaffer says.
If you find you have great luck selling a certain category of products or solving a particular marketing problem, then work to establish a new client niche that could benefit from what you offer. Rosalie Marcus, in How To Make More Money In Promotional Products Sales (Marcus, 2004), says by developing one or several niche markets, you can distinguish your company fom the competition, attract more referrals and build awareness in the marketplace.
Additionally, says Schaffer, positioning promotional products as opportunities to make a client more money can help draw prospects in from emerging markets and businesses. Schaffer cites examples such as Victoria's Secret and Starbucks, which originally used music as promotional material only to later find that music could be branded and sold alongside its products.
"Retailers are looking to increase their register rings; how do they get it?" he asks. "Suppliers must ask themselves, 'What can I produce, package and price to be resold and branded to help people increase sales?'"
He advises that certain markets have parameters for packaging and display, but suppliers and distributors need not look outside the industry for assistance. "Some members of the industry are packaging experts," Schaffer says.
Hancock says he also goes beyond offering products and focuses on providing solutions through creative product presentations. "I don't just give someone a pen and say, 'This is what I do.' I take a more creative approach," he says. "I try to be more of an advisor."
For example, Hancock will use a supplier's web-to-print service to create a single custom item at little cost to himself, and then present that custom item as part of a package to help prospects see how the promotion will benefit them.
Anticipate Client Needs And Concerns
Have you ever gone into a hardware store looking for a hammer and come home with a laser level, a rotary tool and a paint sprayer? Good salesmen show clients solutions to problems they never knew they had. Learning about a prospect's goals and challenges can help you craft a sales pitch that will open their eyes to new marketing angles.
Dr. Dan Bagley, CAS, author of Starting Up, A Proven Approach To Sales Success In The Promotional Products Industry, lists six marketing problems you can help new clients address:
Identity: Does your client need to better position himself with customers and remind them of his presence?
Incentive: Does your client need a way to motivate customers to select or retain his services?
Ingratiation: Does your client need to remind his customers that he's there to fill their needs?
Insurance: Does your client need to insure his business against competition by persuading customers to continue selecting him?
Invitation: Does your client need a way to make new and current customers feel welcome?
Involvement: Does your client need a product that will engage and involve the customer on a continued basis?
John Lindgren, marketing manager at Preston, Washington-based supplier SanMar (UPIC: SNMR), says suppliers can help distributors solve client problems by offering unique products and marketing services. "I think we have a responsibility to come out with new and innovative products that fit our business," Lindgren says. "We believe it's our responsibility to help our customers sell products."
SanMar does this by providing product-related tools to help its distributors build better businesses. "I believe marketing tools are an integral part [of the supplier-distributor relationship]. We build sites for people, we give them flyers—I believe those things are basics. We put a tremendous amount of energy into it," says Lindgren.
What's more, the success of suppliers and distributors rests on building and maintaining a relationship, he adds. "We view it as a partnership—we do not sell the end user, they do. We can't survive without them, and once they sell our product they can't survive without us."
Boost Your Products' Advertising Potential
In your research, you may find clients have used traditional forms of advertising to promote themselves and their services. You may also find they have not had the success they anticipated and are now wary of trying something new.
"In today's economy, a lot of the large corporate entities are using the economy as an excuse to lay off or cut back on marketing," says Gorman. "That's a mistake."
Indeed, it's as important as always to position promotional products as a valuable and successful advertising medium—when used correctly. David Blaise, author of The Power Of Promotional Products (Blaise Drake & Co., 2004), reminds us that promotional products must be seen and used as more than just giveaways. Giveaways have a purpose—to motivate, thank or create an impression—but a promotional product is truly beneficial when it accompanies an actual promotion.
Schaffer says to help loosen the purse strings of potential clients, promotional products salespeople need to educate themselves on the availability and purpose of cooperative advertising budgets. Co-op advertising at its core is two parties with a shared interest in selling a product agreeing to share the cost of advertising.
"There's $50 billion out there, and distributors don't know how to get it," he says. "They're still asking the client to pay for it when the client's vendor will pay for it."
Bottom line, co-op advertising can cut costs while extending the reach of a message. Don't be afraid to ask about it because access to co-op funds only adds to your offer's value.
Selling in a new or emerging market is really no different than selling to the clients you've relied on for years. To make the best first impression you can, arm yourself with research, supporting data and solutions to every problem they can throw at you. Don't forget to emphasize that this streak of economic luck your potential client is having can only be made stronger with promotional products.
Hot Markets To Warm Up Your Business
Whether The New York Times calls the healthcare industry recession-proof or you see with your own eyes that the clinic down the street is always full, some businesses are a natural match to promotional products sales.
Don't be afraid to call on companies that may not seem at first to be open to promotional products. In this economy, it's wise to look for new clients anywhere and everywhere—provided you can make a case for your products and programs. "I don't say no to anybody," says Karie Cowden, president of Connect The Dots Promotions LLC in Phoenix, Arizona. "It's an opportunity to educate people [about promotional products]."
Jason Hancock, president of Nashville, Tennessee-based distributor Hancock Advertising, agrees. "I see every job as an opportunity for more business. Because I enjoy what I do, I don't mind taking smaller jobs."
Auto Parts Stores
Cutting costs at home often means either delaying auto repairs or moonlighting as a mechanic. Help major auto parts retailers reach more would-be grease monkeys with promotional keychains, magnets or other auto accessories that promote in-house specials on products and services.
Consignment And Thrift Shops
The bargain is back. Resale, consignment and thrift stores allow consumers to fulfill their retail urges in a more frugal manner. Small, family-owned or entrepreneurial ventures will want a way to stand out as ideal destinations for budget-conscious shopaholics. Help remind shoppers of the value of bargains with reusable shopping bags.
Credit Unions And Community Banks
National banks may be reeling from bad business deals and thus tightening the purse strings, but credit unions and local banks are often in a better position to extend credit to individuals and small businesses. Coin purses, money clips and calculators keep clients finance-focused.
Education
Somewhere in your neck of the woods is a school in need of a brilliant fund-raising idea. Funding cuts to public primary and secondary schools mean many students may lose the opportunity to participate in extracurriculars such as sports teams and music groups, leaving booster clubs and parent-teacher associations scrambling to make up the lost dollars through bake sales, car washes and garage sales. Spirit items such as bullhorns, stadium seat pads and pom-poms are well-suited to fund-raisers.
Family Entertainment
The movie industry is seeing a box-office surge in the midst of the struggling economy, according to the The New York Times. Movie theater companies can offer promotional product perks such as custom popcorn tins and personalized, reusable cups to members of their frequent viewer programs. Families on tighter budgets tend to stay close to home, though; help game manufacturers boost business with promotions that focus on family game nights.
Franchises
Backed by the financial security of the parent company, franchises continue to be solid business opportunities for budding entrepreneurs. The recognizable logos of national chains are all you need to start a creative promotion.
Healthcare
Nursing continues to be one of the most in-demand professions, and nursing programs at colleges and universities could benefit from promotional products that recruit and retain students. Additionally, rehabilitation centers, assisted living and senior communities, as well as nursing home and hospice centers experience a steady stream of clients regardless of the economy. Wallet-sized, laminated cards with healthcare-related checklists and emergency numbers are handy for employees and clients alike.
Rental Properties
The credit crunch is leaving many would-be homebuyers with no option but to rent, while the unemployment uptick is causing others to suddenly move in search of cheaper digs. Apartment locator services can use custom maps and moving-checklist memo pads to showcase their budget-friendly offerings.
Self-Storage Companies
So far, self-storage unit businesses have seen evidence that it¡¦s worth the extra pennies to keep treasures safe in their units while mortgage-crisis victims move to places with less room to hold all their stuff. Keychains of all shapes and sizes, plus packing materials such as customized boxes can help these businesses get the word out.
Working The Network
D.C. Distributor Starts Business Exchange To Help Small Companies Stay Afloat
About the time Washington, D.C., distributor LaTasha Ward was taking her decade-old part-time promotional products business to a full-time venture, she also felt called to help other small businesses grow.
Appreciating that part of her success came through word of mouth, the owner of JKL Promotional Products (UPIC: jklpromo) created the Christian Business Exchange (CBE), a networking group for small businesses.
"God put it on my heart to help small businesses," says Ward. "When you start focusing on others and when you see people helping one another ... it's sow and reap."
Economic climate and the vital role small businesses play in stimulating the economy make networking opportunities even more important. Ward says being part of the exchange "is a way for people to work together for a common goal."
In this way, someone who needs something like auto insurance can in turn help someone who needs their particular service or product.
Starting the CBE has benefitted Ward's blooming business much in the same way helping out her church brought in new business. "I've had some good prospects just from networking with businesses that aren't the same as mine," says Ward. "I'm not in competition with anyone."
For more information on the Christian Business Exhange, visit www.cbenow.com.
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