selling merchandise in a recession

Gordon Glenister - Director General

Selling merchandise and clothing in a recession

Only a third of today’s b2b salespeople have ever sold in a recession.

Most of them will make the same mistakes that salespeople made last time around – and they won’t even know it.

Massive Price reduction is often the biggest

©Neil Rackham 2008

© Neil Rackham, 2004

“If you chase two monkeys, both will escape”

Even in good times, half selling to twice as many prospects is a recipe for big effort and small reward.

In hard times, focus on your best opportunities in depth, especially if you face strong competition.

What considerations buyers have ?

THEIR OPTIONS TV & Radio Internet Advertising Podcast/websites Video/mobile Email Direct Mail Exhibitions Magazine/press advertising Sales promotion Promotional Merchandise

THEIR CONSIDERATIONS Find new customers Retain existing customers Gain referrals Launch new products Communicate to customers Create brand awareness Increase spend and value Work within a budget In a recession ?

Selling – Key tips

Becoming the consultant not order taker – offer advice Find out what the customer’s marketing plans are Focus your business on your key customers (grade them 1 -4) –

Hunt less , farm more Show all your credentials, testimonials, expertise always – provides

re-assurance Focus on multiple opportunities – eg sell the exhibition range –

RANGE SELL Direct mail trials on small numbers Send printed gifts to your clients with powerful message “reminder” Look at vertical markets – be a specialist Go get the business you want not the business you are given !! Additional add ons, design, packaging, fullfillment, 3 day service

Why use merchandise

The Benefits…

Benefits

Sharability - conversation

Personal Inexpensive

Gifts with multiple usage Calculator/ruler

And calendar ?

Benefits

Engaging – touch/feel Multiple Delivery options Direct Mail In person At events Part of a kit/pack

In your face – particularly if desk item

Durability eg Digital photo frame

(Stress ball)

Benefits

Relevance to campaign

Thank you

Personal impacts – keep for 5 years use keys 4 times a day

Impact - 7300

Incentives & Rewards free gift

What markets should you focus on

Schools & workwear Agencies –sales promo Public Sector Food and Drink Automotive Phamaceutical Technology and IT Film UK Tourism

Cosmetics Transport and logistics Education NHS – Healthecare trusts Essential services Utility companies Petcare Financial transactions Security

Advertising & Marketing Sales promotion – Self Liquidating Awards & Rewards (long service schemes) Brand awareness & rebranding Cause awareness Club & School identification Conferences and events Direct Mail Fund raising Health & safety recycling schemes Incentives – resellers/dealers Product launches and roll outs New branches and souvenirs Work wear and uniforms Retail and souvenirs Thank yous and Apology schemes

Common uses in merchandise

The Power of the message

Add message with logo Link product with

message or campaign – will have greater impact

Bespoke products Work with marketing

objectives

“Adapting to your needs”

(use travel adapter)

“Competitively priced”

(use stress £ sign or calculator)

“We deliver more”

(use a large or latte mug)

We go the extra distance

(use a ruler)

Mailings with premiums - ROI

Without Premium With premium

Size of Mailing 500,000 500,000

Response 5.5% 10.20%

Total orders 42,500 51,000

Mailing costs £350 £350

Cost per item £7.95 £6.95

Cost of premium £1.00

Mailing costs £175,000 £175,000

Manufacture £337,875 £354,450

Total with premium £512,875 £580,450

Revenue £720,375 £864,450

GROSS PROFIT £207,500 £284,000

% Lift +28.80% +32.85%

Your Promotional Calendar

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Exhibitions

New Prods

Conference

Sales Prom

Awareness

Snapshot on Research

Bpma research – Whats on your Desk surveyed 400 respondents to understand what promotional items were used. Source E 2007

Why buy Promotional Merchandise…

1. Pens

2. Calendars

3. Mousemat

4. Post-it notes

5. Mug

6. Pencils

7. Desk pad

8. Calculator

9. Diary

10. Notebook

Top 10 items people keep on their desk

1. Usefulness (89%)

2. Memories

3. Value of item

Top 3 reasons why people keep promotional items

92% believe branded promotional merchandise increases company brand awareness

76% say they can name a brand or company/organisation featured on a promotional merchandise on their desk without having to look for confirmation.

Over half (52%) purchased from companies branded on a Promotional merchandise on their desk.

82% would keep an item they were given than give it away.

(National survey carried by Source-e, April 2007)

Because Promotional merchandise really works!

Additional Research from the United States

Survey Methodology

A team of interviewers surveyed businesspeople in four metro areas: New York, Chicago, Los Angeles & Philadelphia

An online survey to additional end-users augmented the in-person survey

618 completed surveys in all

Solution 2—42% of end-users have a MORE favorable impression of an advertiser after receiving the item

Solution 5—Writing Instruments Are The Most-Recalled Promotional Item

Solution 6—The Typical Promotional Product is Kept for 7 Months

Solution 10—Promotional Products Deliver Significant Numbers of Impressions

Solution 12—Advertising Specialties Deliver a Better CPI Than Virtually Any Other Media

Don’t chase business you can’t win. Focus ruthlessly on your best and biggest opportunities.

Make your potential buyer feel safe about doing business with you. So build relationships, ask buyers about their concerns and really listen to their issues.

Negotiate little and negotiate late. Premature negotiation loses sales.

Don’t defend your existing business. Treat existing customers as new business opportunities and sell assertively; attack is the best defence.

©Neil Rackham 2008

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