This post is a collaboration with Annette Klaus, a fellow sales rep who covers New Jersey for several of the same lines I represent. You can reach her at (609) 268-5786 or giftsnj@yahoo.com. (This was originally posted June 10, 2015 on my former blog.)
When my friend Annette shared a recent experience with me, I sensed an interesting blog post and asked her to brainstorm with me to flesh out our thoughts on the topic.
Annette visited a customer who does business with her vendors but does not order with her, so she decided to ask him directly if he ever works with his sales reps. He responded, "Sure, I work with reps when they provide value." Her subsequent chat with him was enlightening and led to some insights.
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| Don't we all? |
Eleven years ago, I opened a retail store and can remember two specific instances where a sales rep was the difference between success and disappointment.
I decided to stock Byers Choice carolers during a period when Byers Choice had eliminated sales people and handled accounts in-house. I spent several thousand dollars of my budget unwisely because I got no guidance on building my assortment. Soon after I opened, the company re-hired its road force. By that time, however, I had so much money tied up in slow-moving inventory that I didn't make a proper investment in new introductions.
On the flip side of that coin, I also decided to carry Crabtree & Evelyn and had the great fortune to work with Mary Anne Kauffman - who convinced me that I really did need to stock the Gardener's Hand Crème despite my resistance. I still remember the look on her face when she gently prodded "People will ask for it." She was 100% correct, and I'm so grateful for her advice.
Our companies hire us for the same reason you as a retailer hire store associates. You cannot do it all and need to stay focused on managing - and growing - your business while sourcing new product that will keep your assortment fresh. Manufacturers hire us so they can spend time managing their businesses and developing new product so they can provide you with fresh product each season.
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| You know you are. |
Annette and I pared down our thoughts to identify 5 ways your sales reps provide value that are not so obvious.
1. We are your eyes and ears in the marketplace.
We gain broad exposure to other retailers and suppliers because we are in stores daily. We are happy to share clever display ideas, sales success stories and out-of-the-box merchandising tips. We can also answer that FAQ "What are other retailers selling this for?"
In addition to traveling our territories, we work gift shows and learn quickly what's hot and what's not. We get to connect with retailers from outside our territories who are eager to share their own success stories that we can pass along to you.
While working at Vance Kitira's showroom in Atlanta a few seasons ago, Annette and I observed a savvy buyer who put together some candle colors in a unique way that even Vance himself had not considered. We were able to suggest that idea to our own retailers when selling on the road. The assortment was so well-received that Vance added it to his line as a gift set the following season.
2. You can benefit from the relationships we cultivate with our companies.
Experience teaches us the quirks of each company so we can navigate them to keep your business running smoothly. Many times we don't even bore you with the details - we just do it!
A few examples of how your sales rep can build a bridge to get you solutions:
- We know which company policies can bend - and the ones for which we can get an outright exception
- We know who can get your credit terms set up quickly so your order is not delayed
- We can get claims expedited so that we can all get it off our desk
- We can advise you when a vendor is shipping slowly during the holidays so you can order early and prevent lost sales
- We can advise you when a company ships promptly during the holidays so you don't need to pack your stock room
Allow us to be your problem solvers. You'll find that we can be proactive and anticipate - even prevent - problems before they occur.
If you don't order with us, we don't always know how to prevent problems by going to bat for you with the vendor. If you do, we can get ahead of the potential problem and avoid hassle for you.
Below are 3 examples from my career when I was able to utilize my good relationship with vendors to provide additional value to my customers.
- A retailer needed some items for Christmas, but the vendor was out of stock until the new year. Because I've worked with the company for years, I was able to locate the exact items she needed, have them shipped to me and delivered them to her with several days to spare.
- Another retailer was about $1,000 shy of maintaining her platinum status (and the benefits that came with it), and I was able to alert her in early November so she could qualify without any last minute scramble.
- A loyal retailer was waiting on some special order items just 10 days before Christmas from a jewelry company that was alarmingly behind on shipping and low on stock. She allowed me to manage her special orders and through daily phone calls and updates from the vendor, she had everything in-hand by December 23rd and didn't disappoint any of her customers.
3. Just like you, we are local small business owners.
Even when we don't live in your community, it's likely we contribute to your local economy when we stay in hotels, buy meals and fill our gas tanks. We also pay the same state taxes as you do, and believe me we make many deposits into the state's gas tax coffers.
Since we're able to visit your store, we gain a clearer understanding of your business and your vision. That means we pre-shop our line package and come prepared so that we don't waste your time showing product lines that don't fit your shop. We can also direct you to regional best sellers that are probably different than a company's nationwide best seller list.
Don't tell our manufacturers this, but if you are pondering an item that we know is a slow seller we will advise you not to order it. That doesn't make us special - any good sales rep would do the same. We don't want to see our merchandise on your markdown table on a future visit. Yes, it stings.
You're also likely to reach us outside of traditional office hours. I've gotten calls on weekends where I was able to answer a question or solve a problem right away. When a company is in a different time zone that makes it inconvenient for you to connect, just put your issue on our plate and don't fret about it.
We're aware that companies are making it easier for you to order online these days. It's so convenient, isn't it? Please remember, too, that companies such as Amazon and Wayfair are making it easy for your retail customers to do the same. That money does not return to the local economy.
4. We can prevent product from getting saturated in your area.
Our companies rely on us to understand our particular markets. They cannot know the dynamics of all trading areas and make informed decisions on whether an area can support multiple accounts.
To the extent that a vendor supports our efforts, we monitor which retailers carry our lines in each area to avoid opening new accounts that create a conflict. If you aren't working with me, then I don't know to refrain from showing my lines to your neighbors.
We know how important it is for you as a specialty retailer to offer unique product that makes you stand out and makes customers return to you instead of drifting to your local competitors.
Annette and I both have declined new accounts to avoid conflicts with existing customers - even though it is not always in our best interest financially. Do you know how often this happens and we don't tell you?
It is easier and more cost-effective for us to build one committed retailer for a line than work on several smaller ones. In return for this consideration, we ask that you make a broad and conspicuous presentation. Allow us to work with you, and we can agree on a reasonable area of exclusivity.
Of course there are product lines for which this doesn't make sense, and sometimes a company has no policy except "ship any order we can get." We can still manage how it is being priced since many companies expect accounts to abide by their MAP pricing.
5. We bring you lines first - or ones that you won't find at market.
As we write this, Annette and I represent 2 lines that do not show at market. Anywhere. You won't find them at a gift show this summer - and neither will your neighbors. We want to show them to you
first so you can offer your customers another fresh, unique product or (in one case) custom products.
As independent reps, we are always on the lookout for new lines and have the luxury to work only with companies we believe in. We attend markets and build networks to connect with product lines that we believe will be hits.
If you're not working with your reps, you may miss out on being the first to see new companies that grow into real profit centers.
We appreciate the store owners who support our efforts and take chances on our new companies. Thank you for helping establish these product lines and securing your status as an early adapter.
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| The new way of building your business |
In the modern world, our role as sales people is evolving just as your role as a retailer is evolving. And just like you, we are looking for ways to create more value for our customers - while social media and communications technology keep changing the way we interact. It's an exciting challenge that can be frustrating at times when we believe we have mastered technology only to have something new introduced!
Thank you to all the retailers and other businesses who partner with us and allow us to evolve together. The sales chain means that if we make it easy for you to build your sales, we're simultaneously building our sales. Even though we work in different segments of the industry, our common goal is
always sales.
