Last month, I critiqued those organizations who seem to try to organize distributors in a combine of some sort to get them EQP and do little or nothing else for the good of their relationship. I was trying to point out a more strategic use for EQP than what was suggested in their emails. I wrote at the close that I would address the “quid pro quo” for a supplier who would give EQP to “total strangers”. For participating suppliers, there are no promises of business, just the hope that EQP is enough to steer an order to them. I am “dubious” that well established distributors will shift orders from “trusted” suppliers simply because of price. Those in the know have scorch marks reminding them that trusted sources are more important than a few extra percentage points.
With apologies to Mel Gibson who starred in a cute “chick flick” … What Women Want, I am going to offer you a thought on what suppliers want in return for EQP. In the movie, Gibson was hit on the head and got the power to read women’s minds. I do not think distributors have that telepathic power.
The takeaway can be put into song…. I give to you, and you give to me. That is quid pro quo. I will give you price, you give me access and loyalty. To this writer, the first step is access. If you get EQP, you need to give that supplier unencumbered access…whether they have a multiline rep, a factory rep, participate in the brilliant Soapbox program or simply send you emails. Consider sending a thank you note to the supplier to open up a new relationship. Let the supplier know you want to be educated, motivated, and activated to present the line with knowledge and enthusiasm. Unlock the great case histories, the strategic ideas on where to sell, how to present, and the details needed to be knowledgeable.
Frankly, a majority of suppliers I know have already factored in EQP for products that come off the shelf and get imprinted. There is no real difference in the cost of goods between 100 and 1,000. 100 blue balloons sitting in inventory cost the same as 1,000 blue balloons. The variable is generally decorating materials, labor, and amortizing fix costs in SG&A. This is different from a custom printing run, custom injection molding, a custom piece of jewelry or custom cut and sew, etc.
I have been a member of dozens of distributor groups who combine for many strategic reasons. I have attended their meetings, exhibited at their shows, and supported them with tender loving care. What I get back in return is loyalty. That is a rare commodity today. These groups try to establish a relationship with only one source for a given product; one vinyl supplier, one jewelry supplier. It “ain’t easy”. There are over 200 suppliers offering pens. It is hard to pick one of our superstores like Leeds or Hit as a partner without duplication of product from another supplier, if the group allowed.
How about those emails? That many have you call “spam”. So, the supplier who just gave you EQP may be blocked or may use a bulk email service that you block. Once again, I strongly suggest you create one mailbox just for emails. Filter all your emails into it. Give the password to anyone who may want to browse. This allows you to see what is new, what is on special, what has a strategic idea along with it without it cluttering your inbox. You can skim the list, open what you want and/or delete them. I, as a supplier, get satisfaction in knowing you will accept the communication. I would rather see that than look at my “unsubscribe list” and see your name there.
If you do not recall, I suggested and presented using EQP as your closing tool and relationship-building tool. Certainly, you can enjoy added profits, however, in the big picture, added sales will add more profit in the long run than a few extra points on a sale. That axiom applies only to those distributors and salespeople writing 250K or more. Those fringe people below this level may need the points to put food on the table.
I offer you a closing story I wrote a few years ago.
Distributor “A”, new to my company having never done business with us before, presented our product. I gave him special pricing as he originated the sale, the idea and was ready to close. The buyer was compelled to get another “bid”. We got a phone call from another distributor (B) who we knew and wrote millions each year. However, we did not do much volume with her. When she described the need we knew this was the bid request. She asked for more than EQP. There was really no quid pro quo for me. I owed the originator of the potential sale my loyalty. She got her price and distributor “A” got the order. To this veteran, it is about relationships, not EQP.
Joel D. Schaffer, MAS is CEO and Founder of Soundline, LLC, the pioneering supplier to the promotional products industry of audio products. Joel has 48 years of promotional product industry experience and proudly heralds “I was a distributor.” He has been on the advisory panel of the business and marketing department of St. John’s University in New York and is a frequent speaker at Rutgers Graduate School of Business. He is an industry Advocate and has appeared before the American Bankers Association, American Marketing Association, National Premium Sales Executives, American Booksellers Association and several other major groups. He has been a management consultant to organizations such as The College Board and helped many suppliers enter this industry. He is a frequent contributor to PPB and Counselor magazines. He has facilitated over 200 classes sharing his industry knowledge nationwide. He is known for his cutting humor and enthusiasm in presenting provocative and motivating programs. He is the only person to have received both the Marvin Spike Industry Lifetime Achievement Award (2002) and PPAI’s Distinguished Service Award (2011). He is a past director of PPAI and has chaired several PPAI committees and task forces. He is a past Chair of the SAAGNY Foundation, Past President of SAAGNY and a SAAGNY Hall of Fame member. He was cited by ASI as one of the 50 most influential people in the industry.