by tradesmeninsights | Sep 11, 2012 | Marketing Tools
Do you read industry blogs and wonder if your company should get involved in blogging? Blogging can be a valuable marketing tool that gives your organization a way to prove its expertise.
In order to tap into the values that blogs offer, manufacturers need to ask themselves certain questions and make several decisions before their blog goes live. This webinar will help participants find out if a blog should be a part of their marketing plans and what all is involved in starting one.
Join us on September 25th at 2:00 p.m. EDT for the free one-hour webinar.
This webinar is available for viewing on our YouTube channel – click here.
by tradesmeninsights | Nov 3, 2010 | Uncategorized
A friend of mine, Abe WalkingBear, developer of a copyrighted profit system that focuses on improving cash flow, has agreed to share some of his insights (some are truly unique) on how manufacturers can help distributors. He’s written books, is an international speaker and co-authored STAFDA’s Foundations of Business 2007.
Old military funny money finds new life in business. During this time of slow sales and extended delays in business credit customers’ payments, an old idea is reborn.
During the Vietnam War, U.S troops and sailors in Asia were paid in funny money, i.e. MPC (military payment certificate). This funny money, which was also called “monopoly money” or “script,” was in use up until 1973. Members of the American military could convert MPCs to US dollars upon leaving a designated MPC zone, but while in these zones, all you could do with it was go to the Post Exchange (PX) or the Ship’s store and convert it to the local currency. MPC in Vietnam had pictures of movie stars on it and I can’t remember for sure, but I think that Marilyn Monroe was on the $20 bill.
Interesting, but what does this have to do with improved cash flow and more sales?
Distributors sometimes offer their business credit customers a 2-10-N30 payment term. i.e. the customer can take a 2% discount off the invoice amount if they pay it within 10 days, otherwise the full invoice amount is due in 30 days.
The idea behind the early pay discount being to spur cash flow.
Any business customer not taking advantage of a 2-10-N30 early pay discount fails to do so for one of two reasons:
1) they don’t have the financial ability to do so…no money
2) the sales and credit guys failed to explain that a 2-10-N30 is worth a 37.24% Annual Rate of Return…where else can you get 37.24% return with no risk?
Formula:
The Problem:
There are several problems with early pay discounts:
First, business customers sometimes will issue a check for payment on an invoice, less the 2%, on the the 10th day, but will not release the check until the 30th day or the 60th day thus defeating the very reason why the discount was offered in the first place.
Second, the taking of “unauthorized discounts” by the business customer by failing to pay within the 10 days creates additional work and cost for both the distributor and the business customer in the pursuit of the unearned discount. And this in turn can actually lead to the loss of customer good will and of future Sales.
I’ve never liked 2-10-N30 terms for these reasons.
The Best of MPCs and Early Pay Discounts
There is a way to use an early pay discount to improve cash flow and also bring business customers back to buy again thus gaining the most profitable sale, the repeat sale.
Instead of offering a 2-10-N30 term, a distributor can send out, along with an invoice, a VCDC; A Valued Customer Discount Certificate for 2% of the invoice amount…and they can put the selling company’s CEO’s picture or the selling salesperson’s picture on the certificate…or Marilyn Monroe’s picture.
Each VCDC would carry the same # as the invoice it applies to and thus would be easy to track.
The VCDC would clearly state that if the invoice that the VCDC applies to must be paid within 10 days of the invoice date for the customer to use the VCDC on their next purchase.
If a business customer pays within 15 days..they should be cut some slack and the VCDC accepted…on that next and most profitable purchase, the repeat.
The end result: Improved cash flow and repeat sales.
All too often in business we walk a mental rut, we do the same thing over and over again in the same way, until the rut becomes a mental trench and then we think we can see the horizon for oncoming danger or new business opportunities when in effect all we really see is a wall. And that’s not to say that a trench can’t be comfortable and easy to navigate, but God help you if things change and the walls give way.
During this time of slow sales and extended delays in business credit customers’ payments, manufacturers can add value to their distributors by sharing with them an old idea reborn anew on how to gain a competitve advantage while improving cash flow and repeat sales.
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by tradesmeninsights | Jun 15, 2010 | Marketing Tips, Traditional Marketing
Many of the clients we represent go to market through independent reps, so I thought I’d have one of the leading ones give manufacturers some tips on how to hire one.
Bill Via, who is President of CSV Marketing, has been a long-time friend and represents some key lines in the Industrial/Construction markets. I’ve asked him to give his insight on how to hire a rep. Enjoy.
I’m amazed at how Manufacturers choose Manufacturers Reps. Over the years, I’ve sat through hundreds of interviews either in person or on the phone and very few of those spent more than a couple of minutes talking about specific account details, in fact, I’m reasonably sure that they themselves had never spoken with their own customer base located in the territory. It seems the decision is often largely based on an initial personal connection.
Some years ago, I sat through a workshop at the now dissolved National Independent Representative Association on this very subject; the conclusion of the presenter and the attendees was that the decision on who was to be anointed as the manufacturers newest agent was made within the first three minutes of meeting the rep!
Why is it that we’re treated differently than if that Manufacturer was hiring a direct salesperson, when often the existing commissions might be multiples of the cost of a direct sales person.
Here are 6 things you should do before hiring a new manufacturers rep:
- Prior to the initial call, contact existing accounts and find out whom they work with, who helps them move product.
- On the initial call, ask the rep what his or her main accounts are and would it be acceptable to contact them for an endorsement.
- Ask for details on each Regional Manager to identify commonality or expertise within the group.
- Now it’s time to make a face-to-face visit and not at the Bob Evans closest to the airport. You need to get a clear picture of your potential new partner and the facilities and means of support they offer.
- The next question will have some of my Rep brethren squirming. How many lines do you have and where do we fit in the ranking? It’s fair to get an understanding at the time commitment available to your products.
- Finally, your new prospect should give you every Principles contact information they have and you should consider contacting them for an endorsement.
Reps take one of two directions, growth through acquisition (adding lines) or you can pick Product line partners that fit your focus, philosophy and long-term expectations. Your entering into a relationship that could last an entire business lifetime and like a marriage, it’s best to take your time during the courtship.
Bill can be reached at bvia@csvmarketing.com or 440.967.9300.
by tradesmeninsights | Mar 25, 2010 | Marketing Tips, Social Marketing, Traditional Marketing
From time to time I post some of the more popular posts to refresh the ideas for those who might have read them and for those who haven’t had a chance to look at some of the more popular ones. Enjoy.
- Many tradespeople feel they don’t really need to have anything to do with social media. Perhaps because their business comes mostly through referrals, or they don’t see immediate value in social media, or they feel it may take up too much time and they need to be out getting new business. And many tradespeople feel intimidated by social media. Read more...
- Would it surprise you to learn that the biggest gains in who’s using social media are among older users? According to a report in eMarketer, “Consumer Internet Barometer” U.S. Internet users who visited a social site in the second quarter of ‘09 rose 16% over last year. Females still lead males in usage and 70% of users were under the age of 35. The most popular sites in order were: Facebook, MySpace, LinkedIn and Twitter. Read more...
- Engagement marketing is developing a two-way conversation with a customer or prospect. Engagement happens when people look forward to hearing from you and find your communications meaningful and helpful. Engagement marketing creates a common purpose between a manufacturer and its customers. It’s not a “Push” or “Pull” strategy, rather a collaborative one. Read more…
- We all have limits on our time and those of us who have dived into social media have to find time in our schedules if we want these marketing tools to work. The key, like anything, is organization and setting priorities so you optimize your time spent. Read more…
- Whether you’re using traditional marketing tools or social media, one of your key objectives should be to become the thought leader in your market or category. Read more…
by tradesmeninsights | Sep 1, 2009 | Marketing Trends, Social Marketing
Everyone is trying to get the most out of what they’re spending this year and the manufacturing sector is no exception. With B-to-B leads from traditional sources slowing down, marketers are looking for other avenues. Many are shifting dollars to online options as they are less expensive and easily measurable.
According to a recent report from Global Spec, Trends in Industrial Marketing 2009: How Manufacturers are Marketing Today, the number-one focus of marketers is to keep the customers they have and generate new high quality leads. Marketers are under pressure to choose programs that are measurable. So where is the money coming from? Many industrial marketers are reducing trade shows and print ads. 29% of respondents said they already are spending more than half of their budget online. 48% said online will account for a bigger proportion of their budgets for the balance of ’09.
The top 3 online marketing channels for companies are:
- online directories/web sites
- e-marketing using in-house lists
- SEO
It looks like online and digital are going to become an ever-increasing portion of marketing budgets moving forward. Forrester Research predicts that by 2014, interactive spending will hit 55 billion ( pproximately 21% of total marketing spends). The Forrester study also indicated that much of the interactive dollars will come out of traditional spends.
What’s your feeling on this subject? Are you doing more online? I’d like to hear your thoughts.
