SURFACES | StonExpo Blog

Posts Tagged ‘sales’

In the 1980’s, Ronald Reagan was president of the USA, the economy was strong, and you were asking yourself, “Do I need a computer?” In the 1990’s, the economy was weak, people were watching Jerry Springer, and you were asking yourself, “Do I need a cell phone?” Came the new millennium, there’s a Starbucks® on every corner, we were all concerned about security, and you were asking yourself “Do I need a Web site?” Somehow, you made it through all these changes, proving that you’re really good at handling change, even technology change.

But, change hasn’t stopped. The economy’s weak again and you’re asking yourself “Do I need to do something about another round of communications technologies – social media?” What should you do, and how do you get started?

Here are a few “technology tools and techniques” you and your staff can use right now as you figure out the rest of your social media strategy:

-Ask your staff to spend time looking through your Web site. Then have them each take you on a tour of your Web site. This way you’ll be certain they know what’s on your Web site! (Your customers know what’s there, and your staff should know as much or more than your customers do.) You might even ask them to present at least part of their tour to each other in a staff meeting, including how they would use that information or that part of the Web site with customers.

-Search for your store on Google and consumer review sites (like angieslist.com, yelp.com and complaints.com). Act on the complaints you find and fix what customers are complaining about.

-Ask your measurers to make narrated videos of the planned installations. Show the videos to the installers before they go to the job. Ask installers to send pictures or videos of issues they encounter on the job to the salesman or measurer – this will increase the speed and quality of resolving the issues and increase customer satisfaction. And, your business will show customers that it’s a market leader through its use of technology.

Good luck with these technology tools and techniques. I’ll have more in the SURFACES │StonExpo/Marmomacc Americas 2012 seminar that Paul Friederichsen and I are presenting titled “Making Marketing and Sales Work Together”: http://connect.surfaces.com/connect/public/SessionDetails.aspx?SessionID=7264&maxSessions=89&aeid=257,258

It still amazes me how so many of top business executives shy away from social media. In fact, I’ve run across corporate online “social phobia”: a fear that disgruntled customers will run amuck if given the chance at a digital soap box. These otherwise shrewd and enlightened professionals still believe that things like Facebook and Twitter are just the purview of their teenaged kids – much like their grandparents thought television would never amount to anything when there’s perfectly good radio to listen to. Are they in denial or what?

Consider a few of the many unbelievably compelling growth stats since 2005:

• Facebook has gone from 6 million members to an estimated 750 million today.
• Female Boomers are the fastest growing Facebook demographic.
• Twitter began in 2005 and has 110 million users.
• YouTube’s domain name was activated in 2005 and is now 2^nd only to Google

… and owned by Google.

• Online advertising expenditures surpassed radio advertising.
• ~ 40% of US Companies use blogs for marketing purposes.
• More mobile devices are used in the US than TV’s and PC’s combined.
• 75% of the millennial demographic group has an online profile.

Whether you agree with it or not, social media is here to stay. It is the hottest communication channel in the known universe. Ignore it and scoff at it at your peril. The written word may be rapidly dying in newspapers across the country, but it is alive and well, having migrated to cyberspace thank you very much.

The definition of marketing is selling more things to more people more often. One way you do that successfully is to go where the people are. Which is why marketers are also discovering smart phones. Smart phone penetration is reaching upwards of 75%. Now combine that with how often each of us check our own smart phone each day for tweets, Facebook wall posts, LinkedIn updates, emails, texts, news, scores, etc. and you have an understanding about the rise in popularity of these devices to the marketer. Learn more at http://www.madisonavemedia.com/.

Granted, we will still continue to watch TV, listen to radio and read magazines. But any media strategy for any advertiser of any size for any product or service must build on a social foundation. If you’re one of those who still believe it’s a bunch of hype or kid’s stuff, I’ve got a buggy whip factory I’d like to sell you.

Want to get really psyched about this topic? Go to: http://www.youtube.com/watch?v=3SuNx0UrnEo

Every time you price a residential or commercial project, you are rolling the dice and gambling with your financial assets, reputation, and very business survival.  How you go about identifying potential risk will likely determine your probable success.

First off, it’s always helpful to have a checklist of questions like the following:

What’s the job really worth in your market area? What is the likelihood that you can make a profit at or above your average gross profit? How would you peg your chances of success?  Based upon what criteria?

Have you really thought about this bid in the context of your other business?  If you get the job, will it require all out effort that will take away from other business? Have you done this type of project before or will this be a new experience? Will I have to hire more personnel to perform the work? 

How about the publicity angle for you, either good or bad? What will this do for or to your reputation if you are successful or unsuccessful?

Does getting this job really make sense, or is it ego?

Will you run a credit check or Dun & Bradstreet report on the client prior to signing a contract, if so, at what dollar level?  What was my previous experience like with this client?  Do I have an existing credit line for the product purchases?  Will my cash flow from current operations permit timely supplier and installer payments for this job? 

Do you really need the hassle, i.e., how difficult, challenging, and time-consuming will this project become?  Have you considered a “worse case scenario” (a real job meltdown) and how you’d handle it?

If you’ve considered these questions, here are some comments based on my experience and battle scars: 

If you don’t know what the job is really worth, don’t bid it.  You should do enough research to know the “going rates” in your area.  IF you have a lot of experience, then you can structure your bid more aggressively; with minimal experience make sure you’ve allowed profit for the unknown.

If this one job will make or break your reputation, make sure it’s worth it.  Don’t bid on a whim and then burn your bridges by non-performance.  If you wind up on the front page of the local paper, make sure it enhances rather than destroys your reputation.  Watch your ego.

Spend the money to do a credit check, no exceptions, beyond a certain dollar amount.  If you had to grit your teeth the last time you worked with that client, or had trouble getting paid, don’t go there again.  Some things don’t change, at least for the better. You build your financial strength over the years, so don’t squander it on one, ill-advised project.

Finally, when in doubt, put another “set of eyes” on the project before you turn in that bid.  If it feels right, and you have all the answers, take the risk.  If not, swallow hard and live to compete another day.

Dave Stafford is a former flooring contractor, has been in the industry for over 25 years, is a business consultant, and specializes in government contracts.  He may be contacted at dave@dsainfo.com.

Michael Schrage, a research fellow at MIT Sloan School’s Center for Digital Business asked on the HBR Blog: “Should Your Best Customers Be Stupid?”  It reminded me of Syms famous tagline “An Educated Consumer is Our Best Customer.”  Schrage then challenged us to ask our colleagues whether we “make most of our margins from our ‘smartest’ customers or from our ‘stupidest’ ones?”  Ouch!  That question hurts because it smacks of an issue that is pervasive throughout the floor covering industry.

Stupidity is a poor strategy in an era where information is king, when consumers often know more than sales people and retailers must be consumer centric.      

SURFACES │StonExpo/Marmomacc Americas is another example.  Many of your retail competitors will not be there.  Why?  My guess is they are either not bright enough to understand the value, broke or someone has determined they are more useful to them if they are ‘stupid.’ 

Exploring the global market by attending SURFACES │StonExpo/Marmomacc Americas and other industry shows makes you a better retailer and business person; more aware of the market solutions, trends, critical issues and opportunities.  You may never know what “could have been” if you are not at SURFACES │StonExpo/Marmomacc Americas.  It may be that break-out product that changes your company.  This is particularly true as the industry moves away from carpet to hard surfaces and domestic products to imported products.  All while consumers increasingly prefer home centers or the internet over specialty businesses. 

A retailer recently told me they were not attending SURFACES │StonExpo/Marmomacc Americas because her largest supplier would not be there either.  My response was that their absence was the top reason she needed to attend.  Why?  Because the suppliers you do not know are there; that is where you need to spend your time.  They are showing their products and offering you the opportunity to create differentiation between you and your competitors.  In an era of sameness and the commoditization of floor products, differentiation is your Holy Grail. 

It is not that you cannot depend on your suppliers or buying group.  It is that you must not abdicate your most important responsibility to anyone else.  Your bandwidth manifests into profit.  Industry wide events provide that opportunity.  You do not operate in a vacuum and your problems are not unique to you.  The seminars and products are presented to provide you a 360˚ on the marketplace without bias.  SURFACES │StonExpo/Marmomacc Americas and all industry shows provide a platform for you to innovate to ensure your organization is growing beyond an industry box.  Your attendance should not be optional; you have to be there.

Today I listened to some economists talking about, well, the economy on a radio program today and heard an amazing story about Apple. I love Apple. I’m typing this on an Apple laptop right now and make no secret that I crave an iPad (Note: my birthday’s coming up in a couple of months.)

Now we all know Apple has finally surpassed Microsoft in value and even, at least for a few days, Exxon Mobile as the largest company in the U.S. But did you know that Apple has more cash on hand ($72 billion) than Uncle Sam? When I heard this I almost wrecked. More than the government that can print more money when it wants too? Evidently. How’s that possible?

There are lots of reasons you can point to, the brilliance of Steve Jobs, the persistence of the company, the fanaticism of its followers. Note I said “followers” not “customers” … there’s a difference and I’m one of them. I’d like to suggest they’ve succeeded and continue to succeed by virtue of their ideas. Great ideas. Inventive ideas. BIG IDEAS.

Apple ideas take many forms, obviously. From their unique operating system to the way they package the lowly computer mouse. It began with an idea summed-up as “A computer for the rest of us” and went from there. Sure, they’ve had some duds. Even Babe Ruth struck out a lot. But Apple has defined our culture in ways no one believed a little engine that could ever could.

Big ideas are original. They take you where your competition has dared not go. They creatively solve problems for customers. And as we all know, they become followers. Just ask Apple.

Following trends is one of the most important things you can do for your business.  Certainly trends are an integral part of your headlights to which I referred in an earlier blog.  The changes and trends are dramatic.  The floor covering industry will look substantially different in 20 years.       

One of the hottest business trends in South Florida is the growth of hamburger restaurants and gourmet hamburgers; perhaps your community is experiencing the same.  There are few things better than a really good cheeseburger when you’re trying to bulk-up.  And, the burger industry is a bit smarter about the new products; they do not open new stores or chains without clear differentiation. 

My home overlooks a restaurant at the Mandarin Oriental Hotel that offers a Kobe beef cheeseburger for $27; fries come with it too.  The meat, fresh bread, fresh tomatoes, fresh onions and pickles, view, service, silverware and china, location, attention to detail, table cloth, etc. are all spectacular.  On the other end of the spectrum, and several miles down the street, McDonald’s plugs burgers at a price near $1.00.  Who do you think makes more money?  Frankly, they probably both do fine.  But, on a unit basis the answer becomes clear; in fact the tip at 20% (thanks to lessons from Krista Eliason) is equivalent to about five McDonald’s hamburgers. 

So who do you want to be?  Or perhaps more precisely, who would you prefer to sell to, the Mandarin Oriental customer or the McDonald’s customer?  Fortunately there is room for both.  Unfortunately, in the floor covering industry there seems to be a race for the McDonald’s customer.  Even Wendy’s, Burger King, Krystal and McDonald’s have solid differentiation between them, albeit they all serve fast food that tastes mediocre.  But, success for most burger restaurants, as well as most floor covering stores, will be stepping-up the quality and finding differentiation between what you offer and what the low-end gang offers.  Each manifests into a stronger customer base and loyalty.           

Success will go to those who differentiate themselves from the competition.  Differentiation is the reason Five Guys Burgers and Fries, Burger and Beer Joint, Shake Shack, One Burger, 8 oz. Burger Bar and a myriad of other burger places can open and thrive in the same community.  It is also why you can buy a beer at Burger King and a local Denny’s restaurant is attached to a Denny’s Lounge.  Even franchise owners understand the need to differentiate and elevate themselves.  I add the latter example because it seems to me, and perhaps to you, that a Denny’s Lounge is absurd and would never be successful.  Is there anything sexy about a Denny’s Lounge?  But, they are busy and I assume successful.  To me, success and money are sexy.     

So, who are you going to be?  Which trends will you follow and which customers will you serve?  Perhaps you should find the absurd and then leverage it too.  There is plenty of room for innovation in the flooring industry and, frankly, there is no reason to exist if you don’t differentiate from your competition.    

I will be presenting more on this topic at SURFACES │ StonExpo/Marmomacc Americas and I hope that you will attend my session, 7 Trends that are Going to Change Your Life and the Floor Covering Industry on Tuesday, January 24, 2012.

Tough economic times, tight budgets and amazing technology has spawned a proliferation of mobile online coupons and resources like Groupon™ and Scoutmob, to name a few. Retailers and restaurants need more traffic to stay viable, so deals and discounts seem like just the thing, and for a while they have been. Groupon™, for example, has skyrocketed in popularity with both retailers, customers and even with creative writers who want to work there. Yes, Groupon™ has raised coupons and discounts to a modern day form of entertaining prose, but is the pendulum beginning to swing the other way?

Recently, I read an article about coupon fatigue among retailers. An observation that’s becoming more prevalent is that coupons are doing nothing to actually build a business. That is, building a business with repeat customers – customers that acquire some degree of loyalty so that they return with or without their smart phone-alerted discounts.

Big Bob’s Flooring and my good friend Scott Perron who is the president there, calls it creating the “invisible non-commissioned sales force.” They’re right to make that a priority because as every business knows, it’s easier and cheaper to keep a customer than to make a new one. The main ingredient is service. Out-service your competition and frankly do things that they aren’t willing to do and you’ll build loyalty.

In the advertising and marketing business, where strategy is king, couponing and discounting is usually dismissed out-of-hand, as in “price is not a strategy.” The reason for that is quite simple… price is a temporary, highly pre-emptible advantage. The other guy can always find a way to beat you on price. There’s always someone willing to do it or sell it cheaper.

Don’t get me wrong, discounts have a place. They’re called “promotions” and naturally promotions can spike sales when needed, create awareness, and yes, drive traffic. But they shouldn’t be relied on to build a business for the long haul. That’s called branding, and done well and consistently, can build the customer loyalty you seek.

Having a vision for your business is key for success.  It has been likened to the difference between driving at night with your lights on or with your lights off.  It is easy to mistake the two.  This is particularly the case when you are selling fewer units, revenue is down and profits have suffered.  To stay alive there are times you have to work in your business rather than on your business.  That time is now gone.  My experience is this, too many leaders get stuck in their business and the reasons are many.  In some cases the lack of liquidity forces a reinvention of the business model.  Other times there is a comfort level with sustaining the present.  To be sure, few businesses associated with products in the home can accept the current environment as the new normal.  There is not enough business to go around. 

Most economists are telling us that home industries are not going to get better any time soon.  Even if we have hit bottom, an unacceptably low percent of home owners remain under water.  This means those consumers who are not able to leverage lower housing prices/better home values across the board, are unlikely to be investing in their homes. 

What is a floor covering company to do?  My suggestion is to reconnoiter. 

If you are still in business it is likely that you have already made substantial changes to your company.  It is time for you to look at your company like an outsider by reconsidering your core competency.  What can you leverage or monetize?  You think you are in the floor covering business.  What happens when you reconsider your real strengths?  It is not about your showroom, samples, inventory or storefront.  Let’s face it; we are in a commodity business where, from a customer’s perspective, all the products look the same.  That is why attending industry shows is so important.  You need to show products that your competition does not know exist.     

Floor covering retailing is unique from other industries for many reasons.  The first to consider is that consumers buy our products only occasionally.  A ten year span between purchases is not unusual.  The second, for purposes of this post, is that we do not leverage the trust we have built by offering our customers, who presumably already trust us, other products that will fulfill their dreams, wants and desires. 

Curiously, the latter point is one of the reasons home centers now own a quarter of the market.  Eventually, independent retailers will recognize that selling other products may be their only hope for survival.  If dance stores can sell milk, gas stations sell fresh baked bread and sandwiches, why can’t floor covering stores reach outside their traditional products?  It reminds me of a quote from John Maynard Keys that I will use during one of my presentations at SURFACES │ StonExpo/Marmomacc Americas in January, “The difficulty lies not so much in developing new ideas as in escaping from old ones.”

Let the debate begin. Almost as essential to the Super Bowl experience as the game are the ads within the game. In 2011 that’s 70+ at a reported $3 million per :30 seconds of air time. This year’s crop was filled with the expected Super Bowl ad clichés: chimpanzees (career builder.com) sleazy sex (go daddy.com) humanistic wildlife on the curvy mountain road (Bridgestone) and others to numerous to mention. Read the rest of this entry »

“For the want of a nail, a shoe was lost” is a perfect way of describing how the smallest things that we don’t do will determine our success or failure.  And so it is with all types of sales or sales management.  Read the rest of this entry »