About the Author:
Kay Kotan is a published author and the founder of Independence, Missouri-based You Unlimited. She knows of many promotional products distributors (PPDs) who were not able to make it in the industry. Here are her top ten reasons why promotional products distributors fail:
10. They don’t surround themselves with the right kind of people.
PPDs traditionally start out in a spare bedroom of their home—alone. Soon they have questions, but no one to turn to for answers. From day one, find a mentor to steer you along the path. Even if it costs you, it is well worth it. It will save you so much time, money, and the dreaded learning curve. Join associations like ASI and PPAI, as well as local chamber and business organizations. Buy training materials and become a sponge. Don’t isolate yourself.
9. They don’t offer graphic design services.
I’m not suggesting you must become a graphic designer to be a PPD, but have a contractor or employee who can do graphic design work for you. Particularly when working with small businesses, you’ll find they typically don’t have the means or the knowledge to produce the graphics you need to create quality products. Align yourself with a graphic designer from the very beginning.
8. They wait for the customer to call them.
Many PPDs don’t want to “bother” their customers. I’m not suggesting you call every day, but become a business partner with your customers. If they typically order pens twice a year, call them four to five months after their last pen order or sooner if there is a special buy on the particular type/brand of pen they prefer. If a customer is an exhibitor at a March trade show, call him or her in November or December to start planning giveaways for the show. If you track these kinds of purchases and get the customer started on them early, you won’t be shuffling at the last minute trying to pull the rabbit out of the hat because the customer failed to call you early enough.
7. It’s OK, you can pay me next month.
Why are we so afraid of accounts receivable? It is like the taboo of business communications. Be upfront with your payment policies from the very beginning. Train your customers to pay you on-time every time. It is quite acceptable to ask for half to full payment upfront for new customers. If you don’t receive timely customer payments, not only are you not getting paid your profit on the job, but you will have to take money out of your pocket to pay the vendor. Be very careful with extending credit. Offer a discount for timely payment if needed. Stay on top of your accounts receivable at any cost.
6. “They” won’t do anything to help me.
Customers don’t want to hear excuses about how a manufacturer, a decorator or a shipper is causing a problem. Your customers want to know what you are going to do to help them with their situation. Customers want to feel like they’re talking to the person in charge—not an expensive middleman who is preventing them from getting the best price and service. Refer to “my warehouse” or “the plant” or “the shop,” etc. Don’t’ cast blame on anyone else. Ultimately, you are the product provider to the customer. Take the customer service attitude that proves it to your customer.
5. Here is a picture of the product. Isn’t that good enough?
If a customer is willing to invest in a product, don’t they deserve the right to feel, see and test the product? Yet, so many PPDs expect their customers to purchase out of catalogs. Customers have a greater comfort level when they have been able to hold the product in their hands and take it for a test drive. Use product samples. A show room is also a big plus.
4. Over promise and under deliver.
Because PPDs are anxious to get the business, they sometimes tell the customer what they want to hear while knowing full well a miracle will have to occur to make it happen. Instead, be realistic with your customer and yourself. If the expected delivery time is ten days, tell your customer 14 days. If all goes well and the product arrives within the expected ten days, you will be a champion in the eyes of your customers. If you have unexpected delays, you still have four days of cushion to eliminate/resolve the issues and still deliver within the promised timeframe. Remember, under promise and over deliver.
3. They make the decision to play small.
Many PPDs start out thinking they’ll be fine if they can just make a certain amount each month or year. Why not decide in the very beginning to play big? If you start out playing on a small level, you might miss opportunities for the big game since you are not even showing up on the field. Why not start calling on larger businesses from the very beginning?
2. I have the best price in town.
Why has it become so honorable to be the low cost leader? By being the cheapest price in town, what message are you communicating to your customer base? You certainly want to be competitive, but you are in business to earn a living. By becoming the low cost leader, you will attract customers who are price shoppers only. You will not attract and retain loyal customers. Become know for quality products at competitive pricing with exceptional service.
1. As long as I have an answering machine to answer my calls, I’ll be fine.
How many times have you wished you could dial the phone and have a live person answer it on the first ring or two, without having to punch in a bunch of numbers? You must have normal business hours where your phone is answered nearly, if not all, of the time. Customers want to have their questions answered today. If a new customer has to leave a message on an answering machine, he or she will most likely call the next PPD in the phone book or on the web. The same goes for e-mail; answer e-mails promptly and submit bids in a timely fashion. Quick, efficient and accurate communication with customers is the ultimate key to winning them over and keeping them as a lifelong business partner.
If you would like to know if you are on the road to success, take a free assessment of your promotional products business online at www.ppdassessment.com.
Learn more about Kay and her business by visiting www.kaykotan.com, calling (816) 350-0333 or by e-mailing [email protected].
