Good-Better-Best

Merchandising 101

They make it real simple stupid for you.  Good - Better - Best

Dont confuse the customer.  Offer good - better -best in each category or style.  This is where alot of business fail.  They believe they cant lose the sale so they try to be and sell everything to everybody.  Business need to understand who their customer is. 

Keep it simple like it is done here with King Heaters.  They make it simple no brainer for you.  They TELL you want is good and what is better..and what is best.  They clearly mark the difference in warranty the wattage differences. If you didnt know anything about heaters.  You know BETTER is better than good.

If I was merchandising a decorative showroom...I would carry good - better - best in two traditional vendors, two transition vendors, and two contemporary vendors.  With this you have two options at each price points and two options at each design level.

A certain showroom in NY..which I wont name is very successful in qualifying the client.  If the client is looking for mid price transitional product...the showroom only brings out the displays and walls of the "better" pricepoint with 3 brand/style options and perhaps a 4th in the "best" pricepoint for inspiration.  They dont bring out the "good" pricepoint or have knockoffs or other random contemporary brands or pricepoints to confuse the customer.

Keep it simple and tight.  Give the consumer a small range of choice.  You make the sale.

Distribution

If you think about it.  Its all about distribution.

Beer distributor delivering beer to my gas station.

If you really think about it, our life is touched by distribution daily.  What do I mean by this?  There are basic three parts to our existence.   

#1.  The producer.  This is the manufacturer, the farmer, the maker, the good provider...

#2. The distributor.  This is the process of getting the finished goods from the manufacturer to the retailers and consumers.  Some through various channels, some direct to consumers.

#3.  The consumer.  This is the public, consuming the goods the producer made that was delivered and processed by the distributor.

Think about your daily life.  The coffee you drink.  The gas you buy.  The lunch you ate.  The clothes you wear, the movie you watched, or the song you downloaded..it was all distributed to you.

The core business being a producer or distributor and what really matters in business.   I've been thinking alot about being a producer and or a distributor.  Master the producer or distribution.  Special things will happen.

To Be GRATE

To be GREAT...one must go above and beyond the call of duty. 

Something is rusting.  Is it our grate or is it something external?

I used to remember a saying from my Home Depot days that drove me nuts.  "Its not my job."  The question is what is your job?  Your job is to do everything possible to make the situation better.

In order to be great, you have to choose to go above and beyond.

Here we have a situation where our grate appears to be rusting.  Our manufacturer says its surface and negligent during install.  The developer and home building says its the grate.  Both are very important as we represent one...and the other one we want to keep buying from us.  

So even though its not my "job."  since I am a sales person.  I decided to be great and go above and beyond.  I decided to take the grates and with a few secrets tools, some elbow grease.....restore the grates to their beautiful origins.

Did I have to do this?  No, the contractor could have.  But with effort on my part, the manufacturer did not have to waste time and money with new grates or repairing these..and the contractor has his grates right before move in...saving him the headache.

Choose to be GRATE (GREAT)

Separation In The Packaging

Perception Is Everything

Isnt ketchup all the same?

Burger King has been in the news recently purchasing Tim Hortons and decided to move their HQ to Canada to lower corporate taxes.

One part of the story that is missing is before their new 30 something year old CEO took over, Burger King tried to go upstream premium by putting their product in boxes.  Burger King was the first to pride itself on having it your way…and was considered premium compared to the likes of McDonalds.  Wendy's like Burger King went premium with its packaging earlier.

Whats funny and why I posted about Ketchup, is cause Burger Kings decided to streamline costs and the menu and actually went back to wrapping their burgers in paper vs boxes.

The ketchup I received recently seemed to have just caught up to the previous Burger King branding.  

Guess the whole point of this post is that even on such a small thing as free ketchup that is considered a "commodity."  Design and packaging made me take notice.  Its reflects the brand.  Makes me feel like I am getting something premium.

I appreciate the effort into the color, the logo and the packaging.  If I had to choose, you know what packet I was going for.

Does A Pen Reflect The Brand?

My definition of brand:  Everything you do must reflect the image and brand you are/portray/represent

Two branded pen giveaways from two opposite spectrums.  Guess which one is the premium brand.

Guess they heard my thoughts....

much better

This may all seem silly.  But in order to reflect the price and the brand and the feeling you get from the "brand."  You must have collateral, brochures, catalogs, showroom, environment, packaging, signs, marketing...and so on .....no confusion or disconnect on what you are selling.

We are selling luxury.  We are selling lifestyle.  We are selling status.  We are selling feelings.

We are selling brand.

Otherwise, go use or the Bic pen you got at the Best Western to sell your product.

Here is one of my tricks of sales.  When a vendor comes to town, or when a brand is specific topic with a dealer, I will try to use that/their pen.  Makes them feel special.  I have also done the opposite where I use a direct competitor pen to discuss the brand I am selling.  They see it as ironic.  I see it a talking point and to discuss why our brand is better than theirs...without ever mentioning their brand (cause its on the pen).  

Let Me Tell You The Benefits Of Ice

Is the glass half full or half empty? 

I recently saw a MEME on facebook about the benefits of Ice.  I found this post by someone who thought the same thing and I wanted to share for this week's blog post.

Sales Isn't About Selling: 3 Questions Rock Star Sales Reps Ask

--by Rebecca A --Business Development Lead at Blue Danube Productions

The Pessimist says the glass is half empty; The Optimist says the glass is half full: The Sales Rep says "Let's talk about ice".

I've seen about a half-dozen versions of this meme this week: some with blue glasses, some with green glasses, some changing it up a bit to emphasize the "benefits of ice". I am completely confused why this is getting so much traction! I understand that it's catchy and fun, and as a sales rep myself I had a "heck yes!" moment, but in my experience the "up sell" isn't always the best approach.

I never pictured myself as a sales rep. The word "sales" used to make me cringe; a mental image of Gordon Gekko from Wall Street (the 1987 version) flashing in my head - gross! I was going to be a creative event designer - a rock star sales team would bring me clients willing to spend a year's salary on an event. The reality: I needed to start by becoming a member of said rock star sales team, which is where I am now, learning to be a rock star. In my sales journey, however, I realized sales is not about selling at all; it's about consulting.

Here are 3 things my rock-star-sales-rep self would say:

1) Are you happy with the contents of your glass?

Don't try to push a product or service on a client that is truly happy with what they've got. By forcing a sale, you risk damaging the trust you've worked so hard to build. Who will your client go to the next time they need a glass of water if they no longer trust you?

I can hear it now: "but that's the whole point of sales!" - not an incorrect statement, to a point. There is a fine line between pushing a product or service that is genuinely unwanted or unneeded and showing a client an option they may not have realized existed.

2) What don't you like about the contents of your glass?

Figure out why the client isn't happy with their current product or service; figure out what problem they are trying to solve. It's easy to assume the client wants ice - but what if they want hot water or no water so the glass can be re-purposed?

3) What will make you happy with the contents of your glass?

Establish the client's end goal and guide them to selecting the right product or service to reach that goal. This does two things: the client feels satisfied by selecting a course of action (as opposed to having one forced upon them) and opens a level of trust for the client to come back and ask your opinion for future beverages.

Notice a theme here? The goal of the rock-star-sales-rep is to make the client happy.

With that, I leave you with my version of the “let’s talk about ice” meme:

Green Straws

What a 10 year old taught / reminded me this week

I had a choice of green straws

My neighbor's daughter Violet is forever an entrepreneur.  She is always hustling.  This past week, her lemonade stand is up because its been hot in Seattle.  She was selling lemonade for $1.00 a cup.  I could of swear last time it was $.50  #inflation #cogs #CPI  #COLA  LOL

So after a long day, and the fact I always want to support her hustle.  As I ordered my lemonade, I was the last customer for that hour and she was going to close down.  She was out of inventory.  So what did she do?  She made a new batch for me.  And then after she served me,  She asked if I would like the dark green or the light green straw.  I chose the dark green straw. 

What did she teach or remind me?  Have inventory.  You never know how much you can sell if you run out of inventory.  We had a saying at Home Depot, stack it high and watch it fly..you will never know what you can sell if you always run out...you lose sales, and never have enough for the spikes in sales.

Secondly, the choice of green or light green.  Granted this had really nothing to do with the lemonade...it gave me a choice.  And in my business choice is luxury. Notice it was still the same green, just a different shade of green.  I chose, so I felt good.  Forgetting the wait and the lack of inventory.  I gave her $2.00 for that $1.00 lemonade.

She made $40 in only one hour of work at her stand before she closed.  She really is the smart one.

Customer Loyalty Rewards

You are probably part of a dozen of these customer loyalty reward programs.

Anyone can do a customer loyalty rewards program

Grocery, Pharmacy, Gas Station, Lunch places, Coffee Shops...Credit card points, Hotel Points..and the most famous of them all:  Air Miles.

So I went to one of my favorite teriyaki joints in Bellevue for lunch one day.  Instead of having a punch card, they had this from FiveStars.  A loyalty reward program tied into the their register system.

Got me thinking.  Why cant all business do this?  Larger companies provide rebates, trips, prizes, gifts, a catalog of product if you buy "x" amount of product.

I think more people should do this and reap the rewards of repeat customers.  Now obviously some customers you have already.  But in terms of choosing between the Curry or Pho place next door.

This restaurant will probably earn more of my business because I can get rewards.

Tumi

Tumi.  FORTUNE Magazine article.  Founder Charlie Clifford.

My Tumi Tote Day Bag.  Supplements my carry on, my garment bag, my 17 and TSA 15 briefs.

With the nature of how much I travel...one must use quality and luggage that lasts.  How great was it in this month's Fortune Magazine Aug 11th, a nice article about Charlie Clifford and how Tumi developed as a brand.

In 1983, with the recession hitting hard.  Charlie realized Tumi needed to develop a brand that consumers would go to the stores to look for rather than products that were non branded and just a good value.

How did he do this.  The designed the famous Tumi Wide Opening U- Shaped Zipper...Organization Pockets and a full collection of ballistic nylon bags.  Tumi separated itself.

There was a book a read many many years ago in college that I dont even remember the name of, but the core principle is there are four types of companies in the world.  #1 Innovation Superiority  #2.  Distribution Superiority #3.  Price Superiority  #4.  Service Superiority  Any of these 4 areas if you choose to excel in can make your brand.  Tumi did just that.  Innovate and Design.  Become the brand people desire.

Road Warrior

Catch me if you can

33496 Miles.  394 miles this trip. 8:29p.  Catch me if you can.  Keeping up?  

So I bring my car in for an oil change where I bought the car.  The service guys says.  Wow, 33,000 miles in 11 months?   I say yes.  Work the territory. The whole territory.  Enough said.

I challenge anyone to keep.  Time for a new car.  #carsnob

Thank You

The lost art of Thank You cards

Thank You Cards

Ever watch Jimmy Fallon on the Tonight Show as he does his Thank You Cards?  This is truly a lost art.  Very successful salespeople should always write (hand written) thank you cards.  The impact of receiving one is amazing.  One, to personalize a note to say it.  And Two, to show the person their time was worth your time to do it.

I'm not saying to write thank you cards consistency.  But when something deserves it.  It means alot.  And in turn, that will mean more business and friendships in the long run.

Showrooming And Maybe The Secret To Retail

There is a great problem in the retail world now where people go to physical brick and mortar stores to look at product but then eventually buy it online for a few dollars cheaper.  The phenomenon is known as showrooming and Amazon, our local company is the king of promoting it.

Fry's Electronics in Renton.  Single store per region.

This topic came up as I went to Northgate Mall and one of the favorite stores I like to visit is Tall's Camera.  They closed their shop and consolidated.  It was probably not worth having the lease when more an more people are shopping online.  I used to be one of the people standing in line for Jordan shoes in Seattle.  I dont think Seattle even has a decent street or Jordan Account anymore.  I do give props to stores like 35th North and Alive and Well for continuing the skate lifestyles, but in a region as big as Seattle....we have fewer and fewer stores.  A friend of mine Rachel who recently moved to NY also has commented "A City everyone wants to live in --with no places to shop....

Article references:  http://nypost.com/2014/04/26/the-hidden-proof-the-economy-is-still-awful/

Which leads to always wonder...why did Circuit City, Best Buy, Barnes and Noble ...all these national chains feel they need multiple stores in multiple areas per region.  Perhaps the secret to the new retailing is going back to the old mentality of the big box category killer.  Kill your category, and do it with one super store.  Ala Frys.  Frys as to compete with Amazon, Best Buy, and everyone else on the Internet.  They seem to succeed not because they are any better and cheaper, they become a destination.  Another example maybe that of Video Only.  Focus on one category.  Limited the # of stores per region.  Compete.

Maybe its time for another category killing store.

The Brand

Jordan releases the Jordan Future.  Leading the way to the FUTURE of Jordan

#Jordan

Nike released its Jordan 10 in Feb.  Sold $35 Million on the first day.  For example Adidas sold $40 million of its Derrick Rose shoe in a year.  The Jordan Brand sold 2.25 BILLION Dollars of product in a year.  Why and how?  Remember what I said about what a brand represents?  Hows its packaged, how its marketed?  First and foremost, Jordan is about being a winner.  Six time NBA champion, multiple MVPs and Scoring Titles.  His name defines the best.  Nike took the Jordan Brand and made his signature shoe the latest in cutting edge design and technology.  It represents the best.  And that is why it sells.

all in the details.  #packaging #fingerprint

The Best Is Always A Better Value

Value is not defined by price

A retro ad from Coca Cola that explains it all.  #LAX #RubyDiner

The best is always a better buy.  Value is not about price.  Value is what you get for that price.  Majority of the time, a purchase is an emotional action.  How does it make you feel.  What status does it say about you.  What genre or style does it reflect in your personality.  Some times, the feeling you get from knowing you bought the best and never doubting the quality, the meaning of the brand, and the other non quantifiable qualities.  The Best is always a better buy.  You will never regret it.

Where Business Gets Done

Meals are were the majority of business gets done. 

Nickel Dinner Downtown Los Angeles.  Hot Spot.

Bacon Maple Donut

my darling Tara

Love catching up with this amazing lady.  We talk shop, consulting, social media, food, travel.  Much success to her.  Glad her business is booming.  #empire

gardinerconnections.com  &   facebook.com/gardinerconnections  

DWELL on Design

THE west coast designer boutique trade show by DWELL Magazine

Dornbracht shows for the first time at DWELL.  Launching the new Cyprum Finish, Alape Integration, and Mem Refinement.

Congrats on Americh for their new re-branding and marketing.  They have come a long way in two years.  We are ready to dramatically increase sales.  The new logo is modern, sleek, and ready for primetime.

Infinity Drain is still killing it.  Welcome back Mike to the Infinity Side of the family

My gorgeous friend Ravi

The DWELL magazine DWELL on Design show has become the West Coast version for the designer and decorative industry.  Between ICFF (East Coast) and DWELL (West Coast) These two shows have truly replaced KBIS as the "it" shows for the decorative brands.

Team LMI in full representation on three of our prestigious brands:  Dornbracht, Infinity Drain, and Americh.

I can believe its June and 2014 is already half over.

Booth Design

Example Bad Booth Design

Not very inviting.  Are you scared to go in?

The joke of the show was this booth was called the "Death Star" not because it was all black and reminded people of Darth Vader, but because it had two narrow entrances…Make like Luke Skywalker and fly in!  I'm not trying to hate on this booth design, but 99% of the other booths at the show was open and inviting, but this was not.  I understand what they are trying to do with hiding their product and being "exclusive."  Well, we were working the booth across, and no one entered this booth.  Why, cause the brand…Is not a BRAND that matters yet…or the fact anyone heard or care of.   Where does my opinion come from?  #ISH #KBIS #ICFF #DWELL #SEMA #MAGIC #AVN #CAPSULE #PROJECT

Packaging

Everything you do must reflect the brand

This is my philosophy on branding.  No matter what a company does or where it is positioned in the marketplace.  Everything it does from pricelists, to catalogs, to packaging must always refect the brand.  If you play in the luxury or high end market, you must reflect it.  I remember a brand recently raised their prices close to our brand.  But just because you have the same price doesnt mean you are more valuable.  Our brand made you feel special.  Everything you touch and saw from them said everything about quality and performance.  It made you want to spend the money.  

I recently went to a friends BBQ and this was gift he received.  I know very little about Whiskey or Scotch..but just judging by the exquisite packaging...my assumption is this is good stuff and probably costed more than average.  I knew nothing of the brand, but I know the brand means something.  And how it made me feel.  #luxury 

Camaraderie

Quebec City for the Julien National Sales Meeting

Visited to beautiful city of Quebec City for a National Sales Meeting for Julien.  At first, I thought the trip was far and alot of time out of the market.  But after 4 days, I feel recharged and refreshed and excited to launch all the new rebranding and marketing for the brand.  Besides learning about product improvements and competition...spending the time with fellow sales reps and sales managers sharing experiences and stories really renewed the fire for the brand.  In contrast, this made me think of another manufacturer that only brought the principals of the agencies to a resort setting leaving the staffs behind.  It is amazing the differences it makes when you put a name to a face, shared successes and failures.  Camaraderie!  Amazingly, we are all motivated to make a difference again.  The image in this blog is a restaurant were we made our own food.  Like you already know, I like nothing better than great food and beautiful company :)

Online Sales

Amazon is coming to wholesale distribution

Just read two fascinating articles from Business Insider and Forbes about how Amazon is attacking the wholesale distributor market which is a 7 trillion dollar market vs the 4 trillion retail market.   It will be curious to see what happens as they attempt to go after the high volume low margin business dominated by regional family chains.  

A lot of this is build on consumables..and not speciality product nor product that is specialized to the point where you need a personal interaction.

I have not formed a true opinion yet, but I do believe Amazon is the forefront of making shopping and procurement easier.  

No matter what, I am glad I work in sales and sales of high end, speciality specified product.  The value added by proper sales people and the service is invaluable.  

Amazon maybe great a shipping a book, a screw, or a toothbrush for dentist.  But someone will still have to "sell" "train" and "service" and handle speciality products.