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Tradespeople Insights

How to Help Your Sales Team Quote with Clear Guidelines

by | Mar 16, 2016 | Uncategorized

This post originally appeared on INSIGHT2PROFIT.com

Does this sound familiar? A new customer promised they would place a $30,000 order, but only at an average price per unit of $0.16. The sales rep ran the requested price through their internal process, and because $0.16 was above the required 20 percent margin, the sales rep approved the discount. End of consideration.

But here’s where the story gets interesting. After looking at the average price points for the top 20 customers of this product, the pricing manager determined that significantly bigger customers – with purchase volumes in excess of $100,000 – were paying $0.18 to $0.22 per unit on average. In fact, the third largest customer, at $468,000 in volume, was paying a $0.22 average sale price.

What was the justification for the lower price for the smaller customer – other than the fact that the customer simply asked for it?

For many companies, pricing decisions are largely made in a vacuum, without regard to pricing data, market circumstances, product value or customer differentiation. The situation is usually exacerbated by a compensation structure that rewards revenue and volume over margins and profitability.

The solution, therefore, typically requires a completely new mindset for the sales team and organization—one focused on margins over top-line revenue.

It All Begins with Pricing Data Visibility

The beauty of the role of data in pricing decisions is that it lends an important clarity to difficult choices. A sales rep is naturally inclined to want to make the customer happy. But if you are armed with the right data, you can not only rationalize why a price discount might be a poor decision, you can also provide informed alternatives the sales rep can present to the customer – providing an opportunity for the sales rep to save face, the customer to get a great price and your organization to get the margin it needs.

In our story above, for example, you can start by showing the sales rep the list of average price points. This puts the requested price discount in an important context – that the discount amounts to asking the organization to offer better treatment to a relatively small customer than it offers to its third largest customer.

The Power of Informed Pricing Options

You can also take this reasoning a step further. Rather than saying “No” outright, you can provide alternatives. For instance, the sales rep could tell the customer that $0.16 is possible, but only with a certain volume of purchases. If the customer is willing to increase the size of its order, you’ll be happy to provide the more favorable price. Or, if the customer is unable to purchase more than the anticipated $30,000, the sales rep can offer a price in the range of $0.18 to $0.19 – still a significant discount, but more in line with the organization’s average selling prices.

Always Look at the Big Picture

When it comes to pricing, you should never make decisions without looking at the big picture. Think it through. Take the time to look at similar customer segments so you can see the prices and margins other customers are paying. And always make sure the volume justifies the price.

After all, the goal in business is not to just gain market share. It’s to gain profitable market share. Consistently offering a low-ball price eventually hurts everyone in the industry; ultimately, you’re creating pressure to make prices so low no one will be able to compete profitably – and everyone will lose. But with the right data, you can make more informed decisions and provide the options that will help your team win the sale without giving away the house.

Learn more about how top executives approach pricing decisions in our eBook: B2B Pricing without Fear.

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If Your Company Could Speak, What Would It Say?

by | Mar 15, 2016 | Marketing Tips, Uncategorized

Today, we have a guest post from Jeff Guritza on the importance of brand identity.

The market wants to know: who are you and what does your business stand for? Said differently, what is your brand promise, and how is your business perceived in the marketplace?

Go ahead and think for a minute about your organization. Take a moment and really ask yourself:

  • “Who the heck are we?!”
  • “How different is our company than the competition?”
  • “What makes working with us unique and compelling?”

All strong brands take a well-defined position, one cemented in a foundation of consistency and sincerity. It is from this position that market alliances are formed, customer relationships are fortified and market share is defended or expanded.

Does your company speak to the market in a clear, consistent manner?

This isn’t just about messaging. This isn’t about a value proposition or pithy mission statement. This is about being real. Proper branding is about having a long-standing, consistent, predictable and definable presence in the market.

“This Is How We Do Things Here”

I believe branding matters today more than ever. Your brand identity will exist whether you’re actively participating in its development or not. You’ve got to clearly define what you stand for, or you will end up standing for nothing at all.

No brand, yours included, will ever hold universal appeal, but that’s the beauty of it. As a successful business selling similar solutions as your competitors, it’s valuable to be able to say to a customer, “If you want to do business this way, then do business with us.” It’s up to you and your brand to define what this way means.

A strong brand opens doors to new customers while protecting the customers you already have. There’s an opportunity for brand building each and every time you engage a customer or potential customer.

It’s human nature to find comfort in the known. If both your brand and your behavior are consistent and predictable, you’re on to something. If you hire or fire with no process, randomly price products in a vacuum or acquire new lines or businesses without a clearly defined assimilation strategy, it’s a recipe for brand insignificance. The devil’s in the details of a finely crafted plan.

The Power Online

Today, customers can be more fickle as they have more options, more opinions and more channels from which to arrive at their buying decision. Years ago, you took someone’s word as to who was the best source for the products needed. Today, everything can be validated or refuted via an immediate, online search.

Buying a new car? Jump online and you’ll instantly compare makes, models, trim levels, dealerships, reliability reports, reviews, recall notices and prices. After an hour’s effort, you’ll become a quasi-expert on virtually every aspect of the planned purchase: what you need, where to buy and what to pay.

When was the last time you talked to an Amazon representative or outside sales person? How about never? Amazon’s face-to-the-customer is devoid of humanity: no names, emails, etc. When you think about it, their “brand” is basically a logo, web address and your online account.

The information superhighway has forced leaders to reassess how they go to market (externally) and how they run their business (internally.) The transparency today leaves little place to hide; employees and customers alike have phones with broadband connections to instantly share their opinions with the planet. Your best defense? A strong brand that’s clearly defined and omnipresent.

Brand Building Isn’t For Sissies

Brand building isn’t like building a house. When building a house, you can delegate some of the work. And as needed, you can make quick executive decisions that cut costs or save time.

Brand building is more like training for a marathon. With true brand building, there are no shortcuts or steps to skip. Either you commit to it fully, or you don’t. Everything matters.

Like marathon running, brand building requires relentless and sustainable dedication, focus, vision and patience. Skipping a few runs and eating poorly has a negative impact on your training. Similarly, neglecting your brand via undisciplined communications, mediocre account management, and misaligned strategies produces poor results.

Here’s a five-step exercise to help get you more refined in your branding discipline:

1. Assess your brand situation/status. Take time to understand the current state of your brand. Are you as committed to your organization’s brand as you can be? Remember: you must always behave/operate in accordance with your brand’s promise. If you’re known for speedy service, you can’t slow-pay vendors.

2. Latch on to a story, and tell it. Every company has a history and a story. This story is the foundation of your brand. Be sure you have that story established, mastered, and shared by every customer-facing associate. Be direct and avoid ambiguity.

3. Think broadly. A brand’s impact and influence is far-reaching. Do not limit your thinking to any existing, narrow-cast set of parameters. Expand your vision beyond the present and explore unchartered markets, pricing models, corporate structures, and product groups.

4. Think digitally. In this era of online everything, at a bare minimum you can’t forget the digital user interface (UI) and the overall digital user experience (UX.) Know that e-mail footers, web sites, invoice templates, etc. are all branding opportunities. Social media has us all interconnected; your brand must tap into this.

5. Be consistently present in the marketplace. Attend industry events. Walk around at trade shows. Hire new associates with fresh ideas.  Blog about your vision for your business or industry. Sponsor community events.  Bottom line: make sure you become a master of brand continuity in the minds of your customers.

Branding Is The W-H-Y

Which leads me to my point: why do customers do business with you? Why do folks choose you over your competition? Why do people pay the prices you charge?

It’s because of your brand. It’s having your people, your processes and your products all strategically wrapped into a compelling, original and authentic package. Proper branding gives an organization its soul. Without a soul, companies tend to behave in awkward and uninspired ways. And this ultimately leads to irrelevance.

Branding requires relentless customer centricity, unwavering internal controls, leadership accountability, laser-focus on corporate metrics and a steady, positive attitude. Your brand is why you matter to your customers. Therefore your brand matters.

Don’t become irrelevant.

Now with The M. K. Morse Company, Jeff Guritza has successfully led sales, marketing and product management initiatives within global organizations and markets for more than 20 years. His work involves creative branding strategies tied to product launches, channel development, structured training programs, corporate acquisitions, and executive long-range planning.

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Over 21,000 Industry Recognized Skill Credentials Issued by NIMS in 2015

by | Mar 9, 2016 | Uncategorized

By Miles Free of PMPA. This post originally appeared on pmpaspeakingofprecision.com and is reposted with permission.

21,420 to be exact. This is a 20% increase in the number of credentials issued in the United States from 2014. It is a great start toward the 100,000 skilled jobs that industry will need to fill over the next decade…

20% more credentials issued in 2015 over 2014

PMPA is an original founding partner of NIMS, and continues to support its mission to develop and certify industry recognized credentials for our workforce through consensus skill standards.

NIMS has developed skills standards ranging from entry-level to master-level that cover the breadth of metalworking operations and industrial technology maintenance. NIMS certifies individuals’ skills against these national standards via credentials that companies can use to recruit, hire, place, and promote individual workers. Schools and employer training programs incorporate the credentials as performance and completion measures to deliver high quality training to industry standards. NIMS will soon add credentials in Industrial Technology Maintenance and Computer-Aided Manufacturing (CAM) to its portfolio of offerings in 2016-2017.

NIMS works to ensure all individuals entering the workforce are equipped with the skills needed to be successful on the job from day one.

“Executives from PMPA member shops all tell us that they would hire people with skills -even if they did not have an immediate opening,”  says Bernie Nagle, Executive Director of PMPA. “Our support of NIMS, and the RIGHT SKILLS NOW program is one way that PMPA and our members are addressing the issue of lack of skilled workforce. We congratulate NIMS, and their entire team, on the growth in credentials issued in 2015.”

PMPA congratulates NIMS, all of its partner and sponsoring organizations, and the professionals doing the work that made 2015 a record year for credentials issued. This record is evidence of both the commitment  and achievement of developing a competitive workforce through our NIMS community.

For more information about NIMS : NIMS READY

For more information about Right Skills Now: Right Skills Now

For more information about a career in Precision Machining: Career Overview

Career fact sheet

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Want to Drive Traffic to Your Booth at a Trade Show?

by | Mar 8, 2016 | Events/Trade Shows, Marketing Tips

By Sandy Bucher, Media Engineer, Sonnhalter

Photo courtesy of Viega LLC

Photo courtesy of Viega LLC

Digital display advertising is one way to drive traffic to your booth at a trade show. Depending on the size and location of the trade show you’re exhibiting at, the venue may offer this option. A client of ours recently took advantage of this opportunity at the Las Vegas Convention Center.

The digital display ads appear on various screens located throughout the venue, usually near the high traffic areas such as main lobbies and secondary lobbies, entrances to meeting rooms, near the info desk or near escalators.

Here are some tips when creating your digital display ads to get the best effect:

  • Make the Text Big – designs should be simple, clear and easy to read
  • Use Bold, Non-Serif Fonts – avoid decorative or serif fonts
  • One Message – don’t present a complicated message or numerous images
  • Use Bright, Bold Colors – and design with high contrast
  • Lose the White Space – increase your logo, font sizes and images
  • Be Short and Sweet – your ad will appear for a few seconds each time, so you want it to be a quick read
  • Booth Number – be sure to add it to the ad so people know where to go

Enforce your brand, showcase a new product, offer a giveaway – digital display ads can get your message into the minds of the trade show attendees to get them into your booth where you want them.

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Passion Isn’t the Problem

by | Mar 2, 2016 | Social Marketing

By Chris Ilcin, Account Superintendent, Sonnhalter

I recently listened to a report on NPR about how big companies are analyzing their social media followers to make sure they’re “passionate” enough. It’s not enough for these brands anymore to just rack up followers; they need to re-tweet, blog and be engaged enough to matter.

In manufacturing, the opposite could very easily be said. There’s no shortage of passion, but social media numbers and avenues continue to be a struggle.

Passion side of the argument, the case is easy to make. There simply aren’t people more passionate about their work than skilled craftsmen. It’s part of what makes that jump from simply doing a job, to doing a job right so distinct. And look at the time and effort the average tradesman puts into sharing knowledge with others and the next generation, it’s unmatched in any other field. Lastly, look at the brand loyalty and rivalries that do exist in our industry. The passion generated by Ford/Chevy, Lincoln/Miller, Deere/Case IH, Snap-On/Mac/Matco and a hundred other make Coke/Pepsi look like a kindergarten sandbox dispute.

So how can you use that passion to improve your social media numbers?

  • Be on the Right Channel – Facebook can allow for a more direct line of access, but it can also be demographically wrong. Twitter allows for quick hits of info, but requires more monitoring. LinkedIn is great for professional development, but has a structure that takes some getting used to. You don’t need to have all your eggs in one basket, but you should prioritize your message and messaging.
  • It’s Not All Rah Rah – If you’re only going on social media to talk about the latest products and re-post press releases, stop now. Be a source for more than just self-promotion.
  • Know What Your Audience Wants to be Doing – What do your customers do when they’re not working? Share stories about that every once and a while, so you become a resource.
  • Share the Bigger Picture – Community outreach, training and other industry rather than company issues should be a regular feature of your feed.
  • Don’t Read the Comments, Except When You Do – Part of the passionate rivalries I mentioned above seems to be following the brand you DON’T like, just to constantly comment on how much you don’t like it. Don’t give those comments the time of day (or attention their posters want). However, social media can be an excellent point of contact for legitimate customer issues. Act on those, and quickly.
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Most Effective Ways to Reach the Right B-to-B Decision Makers

by | Mar 1, 2016 | Marketing Tips, Marketing Tools, Marketing Trends

By John Sonnhalter, Rainmaker Journeyman, Sonnhalter

We’re all looking for the best, most effective way to get in front of our prospects. According to a recent survey by eMarketer.com conferences, trade shows and webinars are the three best venues to do that.

Trades shows, although expensive, can be an effective tool in getting in front of the right audience. The big problem for most of us who can’t afford a 100 x 100 foot booth is getting folks to notice you.

Types of Events that US B2B Marketers* Have Hosted or Attended, Sep 2015 (% of respondents)

 

What’s often overlooked are industry conferences where you may either not attend or send only a few of your team. Typically, these are the kinds of events that C-suite folks go to, and most conferences allow plenty of time for networking opportunities. Ideally, it would be nice to be able to present to the group as an industry leader.

Webinars are another great way to get the attention of your target audiences. The best part of webinars is that you’re not competing for their attention, you have 100% of it. The key to a great webinar is having content that users need. This is especially true when talking with engineers (both design and mechanical).

The biggest challenge is getting people to sign up and attend. You naturally want to include existing customers, but ideally, you want to attract new potentials. There are media companies out there like WTWH Media that will help identify and get folks to participate, but will also act as moderators and promote the event both before and after.

The key is to try some of these other activities to aid in your thought leadership.

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