Today, I want to answer a question I hear frequently, a question that seems to be on the minds of many promotional products distributors. The question is: How can a small distributor compete with the online discounters and large companies like Walmart entering our industry?
Here’s the reality. If you’re just trying to compete on price you’re going to have a very hard time, because the truth is the large online promotional products companies and stores like Walmart are working on a completely different business model than you are, and even if you get EQP they may be able to beat that price. So, what’s a small promotional products distributor to do?
Here’s what you can do. You need to position yourself differently than the online wholesalers. Instead of positioning yourself as just another promotional products distributor company, you need to position yourself as a promotional marketing consultant and expert. A professional who digs deeper into what your client is trying to accomplish and then comes up with ideas and resources that they can’t get from an online wholesaler.
Here’s what I mean by that. You need to have a thorough understanding of your client’s business. You need to understand their product line, who their end users are and what they are trying to accomplish with the promotion. You need to understand what a successful promotion means to them.
You need to differentiate your company from the competition by offering valuable marketing resources and expertise that they can’t get from an online discounter such as: a mini marketing plan to make sure they get the results they want to achieve with the promotion, or trade show marketing tips, or graphic design services or unique packaging. Anything that’s going to give you the competitive edge or save your prospect or client time and effort.
You need to emphasize that you are a promotional marketing professional. You are going to guarantee the product is delivered on time, that it’s a quality product and if need be, safety certified.
Here are a few more things, that will give you the small distributor the competitive edge.
- You’re local. Many business people like to support other local businesses. Always emphasize that you’re local and can respond faster. You can be in their office with ideas the same day, something the large online businesses can’t do.
- You can build an ongoing relationship. Nothing beats personal contact. People like to do business with others they know, like and trust. Build a personal connection by taking a genuine interest in your client’s business and becoming an extension of their marketing department. Invite your clients to breakfast or lunch, get to know them on a more personal level.
- You have vast experience. As a promotional marketing expert, you have the knowledge and experience to create a promotional marketing campaign and recommend the right products from quality suppliers and help them get the results they want to achieve.
- You have the latest technology. You don’t have to be an industry giant, or spend a fortune, to have an updated website using the most current technology. You too, can have a website that’s easy to navigate, enables your clients to order online (should they so desire) and that is mobile friendly and has case histories and marketing tips to spark their imagination.
What if you have a prospect or client that is only looking for the lowest price and always comparing your prices to online discounters? Those are the prospects and clients you don’t want, because I know from experience, they won’t be loyal and someone can always beat your price.
My answer is yes, you can compete, but only if you’re providing value that’s important to the client. Value they can’t get by ordering online from a large online discounter or retail chain.
Rosalie Marcus, The Promo Biz Coach, is a promotional products business expert, coach and speaker. Combining her skills and years of experience in promotional sales, she helps her clients sell more at higher profit margins and dramatically increase their incomes. Get a free special report: 10 Proven Ways to Thrive in Promotional Products Sales… in Any Economy at www.promobizcoach.com. Contact her at Rosalie@promobizcoach.com.