PK #59 – Kirby Hasseman, Delivering Marketing Joy

kirbyKirby Hasseman is the owner of Hasseman Marketing and Communications and the author of multiple business books including his latest, Delivering Marketing Joy: Using Promo To Grow Your Business The Right Way. A compelling content creator with over fifteen years experience, Kirby hails from the birthplace of the promotional products industry (listen to hear the story!) and is growing his distributorship into a dynamic creative agency that believes strongly in a service-over-sales model. Tune in to learn how you can grow your business the right way with Kirby Hasseman!

This conversation was sponsored by our friends at Essent. As the leading provider of business management and commerce solutions in the promotional products industry, Essent makes managing a promotional products business easier.

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Amazon Supply for B2B: Is Promo Next?

amazonsupplyb2b3Not surprisingly, Amazon is looking to extend its reach into the $8 Trillion B2B wholesale market. Their B2B site, amazonsupply.com, already boasts 2.2 million SKUs and they are on a hiring tear to help them in their quest to “rebuild civilization.”

My good friends, Danny Rosin and Robert Fiveash of BrandFuel, talk of a doomsday scenario where they wake up one day and learn that the biggest suppliers in the industry have just started selling direct. They call it “Supplier Monday” and it’s when all of the normal rules about the promotional products industry change.

We may be in store for “Amazon Monday” at some point in the near future. I spent some time taking a look at what this might look like and whether it actually spells the end of the industry as we know or whether it gives us an opportunity to challenge Amazon head on.

Let’s start by taking a look at the pricing comparisons on some basic commodities in our industry. I am using the Gildan 2300 Tshirt and the Gildan 18600 Hooded Sweatshirt as examples.

Hooded Sweatshirt (Sport Gray, S-XL)
Amazon $19.47
Leading Wearables Supplier $12.49
 
Tshirt (Sport Gray, S-XL)
Amazon $9.56
Leading Wearables Supplier $3.96
 

Amazon is 141% more expensive for the Tshirt and 56% more expensive for the hooded sweatshirt (at the time of this writing, June 23, 2014). And you are only able to order 100 units maximum. This seems like a surprisingly uncompetitive start for a company whose founder, Jeff Bezos, has said “your margin is my opportunity.”

While Amazon Supply doesn’t look like much of a threat at the moment, I wonder what a competitively priced Amazon would look like for our industry. Here are some of my thoughts:

1. Amazon would likely target the blank business first as warehousing and shipping product is what they do best. Granted they also print books on demand in their Kindle division, but from a product perspective, Amazon is currently optimized to ship blank product that sits on their shelves.

The wearables segment in our industry represents about 45% of the $18BN in annual promotional products sales. If you break down that figure, the margin that Jeff Bezos sees as his opportunity is split between (i) the manufacturer (i.e Gildan) (ii) the wholesaler (ie. SanMar, Alpha Broder, Bodek) (iii) the decorator and (iv) the distributor.

In my opinion, the easiest target for Amazon is the blank clothing wholesaler like SanMar, Alpha Broder, Bodek etc. Amazon could deal directly with mills like Gildan, Fruit of the Loom, American Apparel, etc and sway them with massive volume commitments. Given their focus on selling at the lowest price, Amazon could conceivably win the distributors’ business by offering the lowest price and the quickest service on these commodities (two key reasons why distributors buy Tshirts). Amazon has a bigger warehouse network than any wholesaler in the industry and they’re starting to pilot same day service in major markets as we speak (with drone service coming in a few years if things go Bezos’s way).

If Amazon can create a wholesale site that’s as easy to use as amazon.com, then this could conceivably work. It worked for destroying the book store 10 years ago, so there’s no reason it couldn’t work in the wholesale market.

2.  I believe that blank product wholesalers have more to lose in an Amazon world.  Wholesalers sell commodities while distributors and decorators sell something more individualized on account of the program design and embellishment services they offer. A distributor/decorator lives in a fussy world where decoration, creative services and brand development are at the core of their model. These services are harder to replicate online than selling a blank Tshirt. To be sure, there are several web retailers like branders.com, 4imprint.com, etc that help a customer to customize their Tshirt and mug online, but my central point is that Amazon Supply would be more apt to focus on quick and easy to turn blank merchandise (at least in the short term).

3. I don’t believe that distributors would get off that easy in an Amazon world though. Amazon does not care about the structure of our industry. They’ll sell to anyone with a pulse and a valid credit card. This means that it’ll be easier than ever for end clients to buy blank promotional goods from Amazon and manage decoration themselves. While I will argue that it’s not that hard for an end user to buy direct from mills today (American Apparel makes wholesale accounts available to anyone), very few have the marketing and distribution power of Amazon.

This means that only the very best distributors will come out ahead in an “Amazon as your supplier and competitor world.” A distributor that offers hard to replicate services like program design, branding, web design, company stores and embellishment services will stand a much better chance.

Someone once told me that in the “absence of value, the only thing you can compete on is price.” I believe this mantra has always applied to the promotional products industry. You see it every day in this industry, be it a distributor beating up a supplier on price or an end user relentlessly shopping multiple distributors. This is the world that Amazon thrives in. If value is nebulous, then why would you buy from anyone other than a company that can ship you goods overnight (or same day) at the lowest possible price?

Of course, the very best distributors and suppliers in the industry have already armed themselves against a possible incursion by Amazon. Examples include: deep inventory programs, embellishment services, deep understanding of end user’s marketing objectives, customer service and field sales teams. In addition to this, I believe that suppliers and distributors who truly collaborate and share information with one another will always be two steps ahead of Amazon and their low cost model.

If this is a rallying cry for the industry to get its act together, then so be it. While we have a lot to be proud of, I also worry about the increasingly lazy approach that some suppliers take with distributors when it comes to offering truly great ideas. Equally, I worry about distributors that fail to bring their suppliers into their businesses and treat them like genuine partners. This is nothing to say of the end user who’s left to buy promotional products out of a catalog foisted upon them by a reactive distributor.

When neither side adds value, the system breaks down which makes this $18 Billion industry vulnerable to attack by more innovative outside forces. I think we have it in us to prevent Amazon Monday.

Mark Graham, @heymarkgraham

Demographics Disconnect the Social Selling Model

1602080Adages in sales have existed as long as salespeople.

  • Plan your work, work your plan
  • Inspect what you expect.
  • Fail to plan, plan to fail.

Adages like these are ingrained in the minds of most sales professionals, and many a sales manager rightly employ them as an integral aspect of their professional belief system.

Salespeople and managers alike agree that successful selling is an activity-based endeavor.  Without consistent and effective activity, sales do not follow.  Activity review remains the single best predictor of success for any salesperson, and any effective sales manager integrates some method of activity review as a part of their salesperson dashboarding.

While there is very little room for discussion about the need for activity, there is significant debate afoot about what should be considered as acceptable activity in a salespersons workday, and much of the debate has to do with social media.

Granted, the opportunity for time spent unproductively on social media sites is extraordinary, and it is difficult to differentiate between active prospecting using these tools and the umpteenth view of an angry cat video without micromanagement, but, social media has proven itself to be an effective and efficient means of acquiring information pertinent to any salespersons selling efforts.

So, what’s a sales manager to do?  This is where the demographic challenge of social media starts to reveal itself.

It’s not a stretch to assume that sales managers are generally older than the salespeople they manage.  While this age-gap is not usually considered a hindrance to the manager-employee relationship, it’s a huge issue when the manager doesn’t have a solid understanding of the correct and effective use of social as a part of their salespersons toolkit.  This is most frequently the result of a manager not personally and/or actively participating on these platforms; many managers can coach a salesperson on the finer points of the hugely ineffective cold-call, precious few are able to identify a buying prospect and craft an effective LinkedIn InMail message for their salespeople to deliver, much less determine the appropriate social listening schedule for their salesperson to follow for a target prospect.

Consequently, a quiet bullpen, often the bane of any selling organization, is commonplace more and more often, as salespeople use tools other than the telephone to achieve their activity targets.  When these results don’t equate to revenue, the knee-jerk reaction is to surmise that the quiet bullpen has been the result of a lack of activity.

Until this older segment of sales managers evolve their skill set or are ultimately replaced by younger, more social savvy leaders, sales organizations will continue to struggle with effective activity creation and management, as expecting your salespeople to be more effective by making more cold calls is merely a path that will lead to a merry-go-round of firing and hiring.

 

8 Tips on Being Positive and Productive

productivityWithin the last couple of weeks I have had quite a few people ask me how I “get so much done.”  It’s an interesting question because I am always wanting to do more.  I don’t feel like I am doing all I want!  My wife would probably agree!  (Love ya Amy!).

During that same time I have had several people ask me how I “stay positive.”  It seems (to me at least) that the two go hand in hand, so I thought I would share my “Positive Productivity” tips for each day.

  1. Wake up early:  I find that I can get quite a few things done before everyone else is up or the phone is ringing.
  2. Input Positive Into the Brain First Thing:  I think many people start their day with the local news, Facebook or TV.  That’s fine, but if you know that 90% of what you see (or read) is going to be negative, then that is what you are feeding your brain first.  I try to focus on inspirational articles.  I read Seth Godin’s blog.  I check out Inc.com.  Whatever inspires you…put that in first!  That helps me put things in perspective and get the day started right.
  3. Exercise:  Don’t worry, this doesn’t mean you have to run 15 miles or do P90X each morning (though you can!).  Studies show that just 20 to 30 minutes of walking will help stimulate you physically AND mentally.  So just raise your heart rate and get your blood flowing and you will be more productive (and smarter) all day!
  4. Schedule Important Stuff:  It is so easy to be busy all day but not be productive.  We are all busy.  Frankly I think it’s the most over-used word in our culture.  It’s a cop out.  Life is (and always has been) about choices.  If you want to write a book, schedule just a little time each day when you work on JUST that.  The same is true for exercise.  As the old saying goes, “Put the Big Rocks In First.”  The rest of the day will fill up…don’t worry!
  5. When In Doubt, Do:  I read a book recently called the 10X Rule by Grant Cardone where he said that Fear is fueled by Time.  So if you fearful about what to do, the longer you wait, the bigger the fear gets!  So don’t feed fear with time.  Just act.  Don’t try to figure the whole thing out.  Just do the next right thing.  If you act, you snuff out uncertainty.  (Oh and as a bonus, if you are a little scared, that probably means  you are doing the right thing!).
  6. Try To Make Others Laugh:  It’s amazing how much I get out of others laughing.  It brightens my whole day!
  7. Focus on Activity:  I think in sales and business we can focus too much on certain numbers.  When I want to sell more, I almost always need to increase my activity.  Of course it needs to be the right kind of activity.  But if you do the right things, and do it more than your competitors, you win.
  8. Get Rest:  It’s amazing how many people ignore this.  You can get something extra done by burning the midnight oil…once.  But the more often you go without rest, the less productive your mind becomes.  You lose huge amounts of brainpower each time you deprive your body of rest.  Get more rest and you will be more productive.

I have never pretended to be a productivity guru.  But we all want to get things done.  This is my list of things I try to do to make each day both Positive and Productive.

What are your tips?

kirbyincpic smallKirby Hasseman is the Owner of Hasseman Marketing and the author of Delivering Marketing Joy: Using Promo To Grow Your Business The Right Way.

PK #58 – Reddit, Erik Martin

ErikMartinIn 2012, Time Magazine listed Erik Martin as one of the world’s most influential people. As the Manager of the infamous ‘front page of the internet’, Reddit has become famous for its candid Ask Me Anything interviews with distinguished guests (including Barack Obama). Erik is an outspoken supporter of protecting internet freedom and innovation and before his internet addiction fully took hold, Martin worked as a documentary filmmaker and videographer for Improv Everywhere. Erik is also an alum of the promotional products industry as he worked in the marketing department at BrandFuel Promotions in Raleigh, NC. Join chef-hosts Mark Graham and Danny Rosin as they chat with one of the world wide web’s greatest newsmakers, Erik Martin.

This conversation was sponsored by our friends at SanMar. SanMar believes in the power of promotional products. Since 1971, this family-owned apparel supplier has been dedicated to passionately serving customers through trusted brands like Port Authority, Nike Golf, OGIO, District, District Made, and Sport-Tek. Learn more about SanMar at sanmar.com.

 

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PK #57 – Roni Wright, The Book Company

RoniRoni Wright , Vice President at The Book Company, is one of the most respected individuals in our profession. A 2013 recipient of PPAI’s distinguished Woman of Achievement award  (and, in our opinion, one of the nicest colleagues in the business) Roni sits down with chefs Brad White and Mark Graham to pull back the curtain on what it truly means rise to the ranks of power broker while remaining humble, approachable, and helpful.

Tips in this podcast include: getting outside of your comfort zone, the power of positive thinking, advice on networking, what it’s like to be a female professional in the industry, how to get started in the business when you know no one (and you’re shy!), plus, how to sell books in an Amazonian world. A lifetime of professional advice summed up in a nice convo over coffee. Grab a cup and join us!

This conversation was sponsored by our friends at Essent. As the leading provider of business management and commerce solutions in the promotional products industry, Essent makes managing a promotional products business easier.

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Highlights from the PromoKitchen Podcast, 2014

PromoKitchen Podcast Logo Wide

From time-to-time, the PK podcast crew will highlight the juiciest morsels our chefs and their guests dig into, you can find those delectable bite-sized bits here.

Highlights from Episode #56, The Icebox:

Highlights from the PK conversations are sponsored by our friends at SanMar. SanMar believes in the power of promotional products. Since 1971, this family-owned apparel supplier has been dedicated to passionately serving customers through trusted brands like Port Authority, Nike Golf, OGIO, District, District Made, and Sport-Tek. Learn more about SanMar at sanmar.com.

PK #56 – The Icebox

Icebox: perhaps one of the coolestjordy_hotscott_hot promotional companies on the scene today, are nothing short of refreshing. From humble start-up (an appropriate founding: born on a tabletop, surrounded by cold beverages) to a mega-posse that claims a serious stake in the next generation of Swag Masters. Awash in accolades and awards, one half of the two-person founding partnership sits down to chill with (appropriately) the chef’s in the kitchen. Go grab a beverage and join Mark Graham and Bobby Lehew as they chat with Jordy Gamson about the fast growth of a small company, how he and Scott Alterman add value to their swag business, and building an agency minded enterprise.

This conversation was sponsored by our friends at SanMar. SanMar believes in the power of promotional products. Since 1971, this family-owned apparel supplier has been dedicated to passionately serving customers through trusted brands like Port Authority, Nike Golf, OGIO, District, District Made, and Sport-Tek. Learn more about SanMar at sanmar.com.

 

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What’s the most important trait in a salesperson?

self-awareness

 

The following article was written by Steve Pons, vice president – national sales, at Accolade Promotion Group (APG), a division of Golf Town Canada Inc.

We all agree that good people are what differentiate a good business from an exceptional business. Jim Collins’ widely read book Good to Great talks a lot about getting the “right people on the bus” and the “wrong people off the bus.”

But what I find myself often struggling with is accurately identifying who the “right people” truly are.

This is nothing new. Companies spend a ton of time and energy on evaluating talent and determining if potential employees have the proper skills and are the right fit culturally. We all know about candidate filtering methods such as the Zappos’ famous “Offer” that actually pays people to quit before they start. We also know of many companies that ask people to complete a questionnaire to see if their aptitudes and personality traits match the values and personality of the organization. (At APG, we utilize such a tool in combination with getting people to meet several colleagues and managers throughout the business to see if there is a good fit)

Even with employee screening and interesting sociological methods such as “The Offer” companies still say their number one challenge is finding and retaining the right people…the best people.

I used to believe that the only indicator for someone being successful in any business was if they were well organized and if they displayed a confidence in themselves, what they were talking about, what their passion was, etc. I’ve realized however that those are only the traits that appear when someone has a much more important quality: Self-Awareness.

When reading stories about business success involving people such as Isadore Sharp, Tony Heish, Jeff Bezos and Warren Buffet, all of them in my mind have one consistent trait. They are very self-aware and adapt their business approach to not only their client audience but to those who work with them or for them.

Over the years, I’ve seen a handful of people in the corporate merchandise services business (all of whom I would classify as successful) adapt their style to suit a variety of situations: C-level client conversations, asking team members to work extra hours to meet a deadline and negotiating win-win results with challenging clients or suppliers. In each circumstance the person was not only aware of who they were speaking with and what they were trying to achieve but also how to diffuse tension, instil confidence and make the other party feel comfortable that the salesperson was in control of the situation.

As Matt Dixon speaks of in his book The Challenger Sale, customers respond to confidence and integrity. Salespeople that are confident in sharing what they know (and how that will bring real value to the client’s business) and have the integrity to admit where they are not experts often win over sales reps that unilaterally say “we can do anything!” A self-aware salesperson identifies their shortcomings and proactively seeks out ways to either learn what they feel they should know or to ask others to be a resource for them. They seek to become a greater expert to help teach their clients and provide real insights they may not have considered.

Gone are the days that salespeople could use their greater knowledge of the products, supply chain, partnerships, etc. to demand a higher price. Clients can (and do) all their research often before the sales interaction starts. Virtually every sales rep has already seen this transition in our business over the last 5 years. A self-aware rep has recognized and adapted to this change and has evolved their approach. They seek out guidance and coaching when presented with any challenge but don’t rely on training to be provided by the organization before they take action.

In short, many people may pride themselves on being excellent judges of character and indeed many of you may have had excellent success in hiring and developing talent. But I offer you this test: ask your salespeople to rank their strengths and weaknesses while you independently do the same for them. How do you feel both results would compare? In my experience the reps with the greatest alignment with their manager’s assessment are usually the most successful. (In fact, they are often harder on themselves than their managers are on them!)

While many in the promotional products business feel that growing their salesforce (with a book of business the rep brings with them of course) is their best way to success, I would take an eager self-aware salesperson any day of the week.

Bonus link: Why hasn’t “The Offer” caught on in business?

PK #55 – Jason Lucash, OrigAudio

Jason OrigAudioFounded in 2009, OrigAudio -the ‘origami of audio’- was named to Time Magazine’s 50 Best Inventions of 2009 and appeared on ABC’s ‘Shark Tank’, gaining worldwide recognition. Co-founded with his business partner Mike Szymczak, Jason Lucash was honored as Entrepreneur Magazine’s “Entrepreneur of the Year” for 2013. Join Jason and chefs Mark Graham and Danny Rosin as they discuss key issues and opportunities facing suppliers in the industry, including: how a small supplier can gain traction within a massive industry, using social media to change the conversation with customers, design thinking when developing products, and balancing retail and promotional markets successfully.

 

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