Friday, February 11, 2005

Samples & Brochures

Re: [spiers] Samples & Brochures


> In a message dated 2/9/05 10:57:29 AM, ds_tradingpartners@prodigy.net
> writes:
>
> <> the
> suppliers pictures or provide the sample and brochure (w/o pricing) sent
> by
> the supplier to the reps?>>
>
> I'd recommend no brochures whatsoever... perhaps pictures can be mounted
> on a
> password protected "customer only" website but at out level brochures adn
> catalogs are a waste of time and money.
>

Whether to use photos or samples depends a little bit on a variety of
factors, including the industry, the number and value and complexity of
products sold, the size of the retail organization making the purchase, and
whether there is value in actually touching the merchandise (e.g. clothing
and produce are different in this regard than BBQ sauce and souvenir
spoons -- however, for BBQ sauce and other gourmet foods, taste may be a
factor, so leaving a sample for EACH screened customer can be important.)

In my wife's rep business, she sells 40 lines, which range from five
products (specialty foods) to over 1000 products (souvenir company). Since
she lives out of her car from March through October, it would not be
practical to have a sample of more than one to a few of the more important
or complex items for each line. The next best alternative to samples is
GREAT pictures. For our industry, we use what could be called 'catalog
sheets' (color, 2-sided, 8 1/2 x 11", three hole punched), which go into a
three ring binder, in sections for different categories of customers. When
gift retailers are buying, they want to know, in order:

A) What is the product? (mustard, t-shirts, glassware, jewelry, etc)
B) What is the presentation? (probably most important) -- This is where
photos come in
C) What is the price?
D) What are the terms (credit cards, minimums, case lots, re-orders, first
order incentives, net 30, COD, etc)?

A purchasing decision or objection are typical at this point. Smart
retailers (fewer than you might think) will want to know what the best
sellers are, and what kinds of stores the line has done well in.

When using catalog sheets (8 1/2 x 11 format) in what we call our 3-ring
"pitch" book (which allows the rep and buyer to flip through the lines
quickly, together), we generally design our own sheets, with MS Publisher,
for a couple reasons. First, most of the smaller companies we rep for do not
have sales materials of any kind, so our alternative is to not represent
their products. If we like the products, we are loathe to do that. Second,
most companies, regardless of size, are clueless about how to design and
present a flyer that is effective for wholesale sales (they tend to use
retail/consumer style of copy and layout -- and too much fluffy
information -- which is very different than the needs for wholesale buyers).
If a company has a catalog which meets our needs, we will use it, and label
our contact information on the appropriate spot. Most important is that the
information be presented clearly (along with good, appropriate photos), but
fancy is not necessary, as you are selling with information more than image,
unlike consumer/retail sales where image is paramount.

We do expect any company we represent to supply good quality photos, which
are the backbone of the sales process for our industry. We usually ask them
to mail us a digital copy, or if in the (increasingly) rare case where they
have prints, we scan and use them. (PS We sell mostly to independent gift
retailers, and a couple small chains up to 5-10 stores, as well as
occasional museum shops, C-stores, florist shops, and tourist businesses.)

We print our flyers on a color laser printer for use in the "pitch" book and
offer b/w photocopies tucked in behind each sheet if the customer would like
to review the information later on a particular product or line. If the
buyer wants to see a sample (not usually the case, as they are quite busy),
Sandy will go out to the car and bring out the product, or more often, a
representative product in that category or brand. Occasionally, she will
have a sample shipped direct from the manufacturer or distributor (or
importer). As we grow, we are considering a newsprint catalog, which we can
print 1000 for about $500 up to 48 pages (8 pages color, rest b/w). The
downside of a catalog is that lines and prices change very often, and we
have found that buyers want photos and prices on the same page so they can
make a quick purchase decision. Separate price sheets can work, but they
really slow down the purchasing process in the gift industry, where the
visual presentation must be weighed against the cost. Anything that slows
the sales process or sales decision, reduces sales. We are also
investigating PDF catalogs which can be updated almost instantaneously, and
sent as an email attachment.

Remember that the sales process is quick and dirty. Reps offer multiple
lines, and buyers are busy and always short of time, so you must supply
materials which provide the correct information as succinctly and easily as
possible. (8 1/2 x 11" pages, portrait orientation work best... avoid the
traditional tri-fold brochure -- much harder to make a good presentation
with those, and retailers tend to toss them more quickly in our experience
as they are not standard notebook size.)

I will also say that gift reps do not generally use samples (or brochures)
to the extent that most manufacturers (or importers) think they do. Samples
are often sent, but for a lot of practical reasons (e.g. the size of a car
to travel in), simply cannot be taken along. A good photo is a much better
investment for us. We have an entire room of samples from various lines,
which we often ask them NOT to send... but they do anyway. Samples are
effective for new products, for educating new reps, and where touching the
product is critical to the purchase decision. However, buyers learn to trust
good reps, and if the rep says "For your store, this is a line (or product)
you should try", that is how reps tend to be effective, by looking out for
the retailers interest (i.e. recommending products that sell well). While
the rep may be contracting with you, their long-term success is dependent
upon how well they build the retailer's business (and trust), not on how
much of your products they push down a retailers throat.

We have probably worked at one time or another with nearly 100 companies
over our five years (of learning) in this business, and I can say that only
one company truly understood our needs. They printed color catalog sheets
with outstanding product photos, features and options in tabular form, terms
clearly stated, and a line about an inch from the bottom of the back page
that said "Represented in your area by:" and then left the bottom of the
page blank, for us to put in our contact information label. If everyone did
that, our lives as reps would be much simpler. (They also sent samples, but
for our market and because of the great photos on the sales materials, this
was a waste of their money and time.) Note that you can cost-effectively
include the prices right on the sheets with a system like this, only if your
pricing is fairly stable (e.g. subject to annual changes only). If prices
are included -- always best in our industry -- you would want to reprint
this type of sheet annually or whenever you were adding new products, or
changing the pricing structure. If each flyer is a new product or line, this
could also be a good system.

Last recommendation I can make is... ask your reps what they need from you
to be successful with your line BEFORE you start sending out samples OR
brochures willy nilly. This will reduce your costs, and may alter your sales
material development process. Reps are just another category of customer in
addition to being a business partner, so asking them what they really need,
is a key to your success if this is a market channel you intend to take full
advantage of.

Also, make sure you are using the appropriate type of rep. Reps differ
widely in the size and type of retailers we call on, the categories or lines
we are successful or specialize in, and our geographic saturation. ASK THE
HARD QUESTIONS! Note that our rep business sells mostly 'made in Idaho'
gourmet foods and fine gifts, and Idaho souvenirs (imported by a souvenir
distributor in South Dakota) to small accounts. We would probably not be
successful selling products developed under a business system emphasizing
the John Spiers model of innovation and design of new products in large
amounts. You would need to find reps (and there are lots of them) that
specialize in that type of repping, and work in more populated areas, and
call on larger and/or multi-store accounts.

Happy repping!

Malcolm Dell


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