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Monday, June 6, 2011

Before Market

Here it is just weeks before market. I know our showroom is busy organizing and displaying our product lines...but I have to wonder if all if our lines have shipped their merchandise to them. If they have not they are missing a HUGE OPPORTUNITY! Send your samples early when the key showroom people are planning what lines & products will be featured and where. If you don't have all of your physical samples, phone them and email them photos of what will be coming. Give them an accurate date they will have your samples in hand and make sure it is a week at least before market starts. No one can sell what they cannot show.

1. Send New Product to Showroom
2. Send Updated/New Catalogs to Showroom
3. Send current files with new product/pricing for Accounting/Sales System
4. Create any market specials you want for retailers or sales reps

Monday, May 30, 2011

Level your Expectations

Once your sales reps have the tools and incentives to suceed, give them the time they need to cultivate sales. Sales reps will be able to tell you how much they will able to sell and expand your base within a couple of weeks.

Early in 2011, we worked with a manufacturer who we all felt could become a high revenue line. Their product was well made, they offered a shipping special and their price point was reasonable. Three months later it became hard to reach them by phone and virtually impossible by internet.  Four months later we are no longer working with this company.

The sales reps were disappointed because the product/line potential was there. Just like with growing crops, you need to tend the land. But before you tend the land you need the tools.

Sales tools did not arrive until six weeks later. By this time, sales reps were organized without their line and  future appointments were made. Each added the tools into their arsenal and begin calling on companies.Those powerful weeks after market were gone. Time was wasted.

So, four months into this relationship the company bailed from the showroom because the sales reps had not sold enough. Don't be shortsighted.

Saturday, May 21, 2011

Who is Mabyn Shingleton?

Sometimes I need my drive to be put into perspective for me. My husband is right. I live off of trying to make things better. That represents the best and worst in me. My vantage point is excellent since I have owned a company and understand the obstacles with that, my fields of expertise have included public relations and marketing with a special emphasis on the computer graphics end, I have been involved in creating and manufacturing a product and finally, I have been a road representative and showroom representative. I recently had a former employee engage me to help him with a customer of his. He introduced me as a "branding expert." I was highly complimented.  It is definitely a strength I have. 

However, it is hard to tame the beast in me. I see things so clearly. It is impossible for me to "just be a salesperson." I want to help the product line I work with, showroom (if I am working for one) and most of all the customer.  I think I'll just keep writing thoughts on this blog. 

Monday, April 25, 2011

Pay timely

Does it matter if you pay your Sales group (Showroom, etc) regularly? YES. It may be subliminal but if you do not regularly pay the fees & commissions you owe, it will affect future sales. Always make your sales team feel that they MATTER to you. Paying them timely and regularly is a very important business aspect. If you agree to pay monthly, pay monthly on the day you are expected to. Everyone has bills and your showroom has to pay the fees for the space they have, any promotions they do and their sales reps have to pay for business supplies, hotel accommodations and gas. If it hurts you a little to get this done, realize that it will pay off big in the future.

Sunday, April 17, 2011

Choosing a Sales Group

Let me help you decide what the issues may be if your sales are lagging from where you expect them to be. Many factors make up the mix to well selling product lines. It may or may not be your showroom. Ask yourself the following questions.

Your Showroom -
  1. Is their general reputation good or bad?
  2. Is their sales team cohesive or out to get one another?
  3. If they work digitally, have all their files been updated to their system?
  4. What services does your showroom offer?
  5. Are your best selling items/newest items prominently displayed?
  6. Do you make sure to check to see if you need to send current catalogs prior to each market?
  7. Does your showroom have your latest (and/or best selling) products on display?
  8. Do you get your materials/products to the showroom well before gift markets?
  9. Sales representatives - Have you supplied each of them with sales/promotional materials and samples?

Your Sales/Promotional materials -
  1. Do you have a printed catalog/current sales sheet? 
  2. How often do you offer promotions? How are your customers and sales team informed? 
  3. If appropriate, do you offer display packages? 
  4. Do you regularly communicate with your sales team? Do they know how you would sell your products?
Your Accounting -
  1. Silly to say, but have you regularly paid Showroom Fees? 
  2. Are you current with paying Commissions? 
Business is business. It costs you to manufacture and it also costs to market your product line. Many sales reps are paid strictly by commission. This means they need as much marketing support as possible. They provide all of their road expenses so making sure commissions, fees and bonuses are paid is very important.

If you are at the point to work with a sales group, make sure you are ready to give them the reins to really market your product line. Be as organized and communicative as possible. How fast will customers receive the product? It doesn't have to be in 24 hours but the sales representative DOES need to know the achievable turnaround. Good luck, there are many good showrooms out there.



      Thursday, April 14, 2011

      Time is Money

      I was raised hearing "time is money." More accurately my mother used to say "time is marching." They mean similar things to me. Time is important. How quickly you complete a task can determine success or failure.

      Each sales representative has their own time table they work on. For me, due to prior commitments, I travel very little during the first quarter of the year. However, from mid-March through June I am traveling constantly. I have a large region to cover and most likely will have ONE OPPORTUNITY to introduce new lines in person to everyone. If they like what they see I may have more chances. However, if a new line has not sent me samples and a catalog when I visit 'Morgan City, LA,' that opportunity will be lost.

      It may be inconvenient to get literature and samples to sales reps quickly. It may feel like you are rushing to do this and then - nothing. But it is only your product that is not being sold or shown. Others are. Sales reps typically pay for their gas, hotel rooms, and office supplies themselves. If you want to operate on your own schedule, hire your own sales staff and pay them a salary plus commission and expenses. Otherwise, do yourself and your sales representatives a favor and help them help you.

      Tuesday, April 12, 2011

      How to set a Wholesale Price

      Years ago I created a product to be sold wholesale. I spoke to numerous successful business owners trying to avoid obvious errors. I was repeatedly told that marketing was the biggest expense. When working on my wholesale price, I tried to add in that cost and I miserably failed. Hopefully I can help you if that is what you are needing.

      There is a very delicate balance in creating a wholesale price. I've run across numerous formulas each claiming to create a wholesale price. I've learned that there is no magic pill to create a wholesale price  but the price you set is very important. If it is too low you may lose money and if it is too high you won't sell your product(s) fast enough.


      Every article will tell you that you need to look at:

      Cost of Goods- Price paid for the product (actual)
             - Shipping cost to get the product to you

      Overhead Expense

            - Allocate a percentage of operating your business (no personnel costs in this)
      Labor Cost

            - Include taxes, insurance, etc.

      You are to add the costs together to find the break-even price for one item. This is the lowest price you can charge to cover your operating expenses. To this number you add to make a profit to grow your line.


      Are you manufacturing the product(s) or are you distributing them? If you are distributing them with very little direct involvement other than sales, warehouse and shipping, use a multiplier anywhere from 2 to 2.5 times your Cost. If what you do is more labor intensive your number may increase up to 3.5 times. Remember though that the retailer will also mark the product up somewhere between 2.0-2.5 times. That is not a negotiable formula for most small businesses. The products I am thinking about are not prestige products where name recognition or status plays a part.

      As a wholesaler you will direct the course of your business. If you get feedback about price, don't ignore it. As much as retailers may love your product it must be able to "retail" at a price the buying public will accept.

      Monday, April 11, 2011

      A Retail Lesson Learned

      Today I met with a quite successful small retail business owner. This lady had a very large well-stocked gift store. Her products range from Vera Bradley to frames to baby items to spa items. She has it all out and there is a rhythm about it. It does not come across as a hodge podge but rather guides you from area to area. In addition it was easy to nice how friendly and attractive all of her staff was.

      Watching her select from my product lines I jokingly said "I don't know how you can buy so well and so quickly." She laughed and said experience has taught her that you must always make a statement with  line or you will doom it. One of the hardest lessons she learned was that she cannot just pick a few products in a line and hope it moves. She stressed how important product displays are to the success of her business. This lady knows how to buy. It is all very calculated and organized in her head. It was impressive.

      Thursday, April 7, 2011

      We don't need a showroom.

      One of our manufacturers recently told me this. All I could do was shake my head in a disappointment. After all of the work we do promoting product lines to hear this is truly disheartening. All sales order are not written "at market."  Customers attend various markets and some just wait for sales reps to visit them. A good sales team works year-round educating potential customers.

      Company A joined our showroom last summer. When the reps arrived at market we knew nothing about the product line since we had not been sent literature/samples before we got there. Before (or at the start of) market would have been a great time to educate the sales representatives. We would have wanted to know the key selling features of the product line. Where do the products sell the best? Are there any skeletons in the closet? Are we going to hear negative or odd things from former customers? Do we have a former and current customer list for each territory? We would have wanted to learn about product displays and what type of delivery we would be working with. That market was not good for Company A. By the time sales reps arrived home they were armed with flyers and a few products but no explanation regarding them except to say that it was best to visit their website for the most current information.

      After market, all road representatives resumed communications with their customers letting them know about the new lines, one being Company A. Reps sent potential customers to the Company website. Then in January, the Company did not participate in the Showroom.

      About a month after market, Company A sent new sales literature and product. Still the company did not come up with any type of promotion but, rather, suggested their website.

      Not participating at market is not an option in this sales rep's mind. A Company needs a couple of years to determine if a showroom is good for them. I still don't know which of my customer's have purchased this line. Not every customer will contact me, especially if I am sending them to an internet site.  But they do learn about the product from me and repeatedly hear how I feel about it.

      So, if you think your business is truly above having a showroom I can only think that you have an inside sales team or distributors in place.

      Tuesday, April 5, 2011

      We don't need a catalog. True or False?

      Updated printed sales sheets and catalogs used to be the norm for highly successful products. With the advent of the internet, some companies now translate what they post to the web as their catalog. They believe that having something in print is an unnecessary expense. Contrary to this, catalogs and sales sheets are a necessary tool you should not skip over.

      For business direct to consumer, online catalogs and websites work well but if you are wholesaling your products you may be missing much of your market. Whether your potential retailers visit the Market Showroom you are in, your road reps visit them or you work directly with Sales Reps there always needs to be a current leave behind.

      Just having a catalog does not solve all of the issues.  Ideally, sales representatives will receive a new catalog just before market so they can get acquainted with the products/prices. They should be (at worst) in the showroom updated for each market and at each sales representatives door step when they arrive home from market.

      Your sales sheets should take advantage of the various selling periods throughout the year. Any promotion you have should be accompanied by a sales sheet to assist your Sales Representatives. Anytime there is a new product display, that should be featured.

      So, TRUE, if your company is trying to get shelf space in retail gift stores.


      The best catalogs show actual photographs of the products and descriptions of what they are. Separately have a price list that corresponds to your visual catalog that can be updated as needed.

      Saturday, April 2, 2011

      What about "Market"?

      There is no one aspect of promoting a product line that is the end-all.  Having your product represented by a showroom with sales representatives who are engaged with your product is definitely a plus but you cannot rest on that. Manufacturers (or wholesalers) need to offer tools, incentives and communication on a regular basis to be truly successful.


      At the very minimum, your rep group needs a catalog, price list, and samples of your best sellers. This needs to be sent two weeks to a month prior to each major show to the showroom. Rep Group owners will work hard 6 weeks out before a show to freshen the displays and update the lines. Sending it late means that your new items will not get to be studied and learned as well as ones that come in on time.

      Make a checklist and pull it out before each market. It is up to you to make sure these things are current. After all, this is your product line.
      1. Good supply of catalogs in showroom?
      2. New digital files for computer pricing?
      3. Current product samples for floor displays
      4. What about a Show Special?
      The sales representative team usually arrives a few days prior to the start of a market. Ideally, they will spend this time studying your updates, offers and new products.  If your line is new they will ask questions that they feel will be asked of them. If you have a FAQ sheet to help them learn to sell you line with questions retailers may ask and the special features/qualities of your products, make sure they are armed with this information.

      Paying a Market Showroom to display your line definitely can be a boost to your bottom line over time. Look at it as your sales staff who have a presence year-round for you. You pay Showroom Fees and you pay a percentage of sales. If both the showroom and the sales representative are always "armed" with fresh materials, you will get the best coverage possible.

      Thursday, March 31, 2011

      Wholesale Consultantcy Opens

      For over thirty years, Mabyn Kean Shingleton has been advising, coordinating, and creating programs which help business owners reach their goals. For the first twenty years she worked with retailers, financial companies and large corporations with all of their advertising and marketing needs.  For over ten years she has worked as a manufacturer's representative, both independently and through a showroom. Her skill sets complement each other.

      "One of the most frustrating things I have encountered is manufacturers not giving sales reps what they need, when they need it." Knowing what to arm a sales representative with and how often to communicate is vitally important since it completes the marketing circle. Just having a sales rep or showroom is not enough. Depending on what you are selling, they need specific things. If you feel like you are not getting all you should from your sales team or rep group, call Mabyn at 866-353-4287. You have nothing to lose and everything to gain.