selling merchandise in a recession
DESCRIPTION
Some great tips on selling merchandise in a recessionTRANSCRIPT
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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