One of the biggest frustrations for many people is their sense that there is too much to learn in a short period of time. They are bombarded with information from suppliers, service providers and professional associations. Of course, there's always a learning curve in any new endeavor, but the process of selling promotional products can be simplified if new distributors will do the following things:
- Be wary of initial large investment commitments
One such obligation might be the purchase of a software program that claims to lighten the workload. Some cost as much as $20,000 and are only useful to distributors who sell hundreds of orders per year. Only after a distributor has had time to realistically determine his needs should he consider this type of purchase.
Action Step : There are a number of available services that don't cost an arm and a leg. In fact, websites such as www.distributorcentral.com and www.sellpromoproducts.com offer free services, product search capabilities, and useful advice to new distributors, with no strings attached.
- Analyze individual strengths and weaknesses
Many people lack the proper selling skills needed to succeed. Selling can be quite difficult for those not well versed in its principals. Smart new distributors reach out to a mentor in order to learn selling strategies, or obtain some form of sales training before they even begin making calls.
Action Step : The skills that are needed to sell promotional items are no different than the ones needed to sell other goods and services. Effective training that focuses on the basics, such as knowledge, personality, commitment, and follow through, are invaluable to any salesperson.
- Learn products as needed
No distributor knows everything about every product in the industry before going out on a sales call. In fact, it's a waste of time to try to learn it all in advance. The best thing to do is to take “baby steps” by learning the product lines of a small and diverse group of suppliers and effectively presenting those products to suitable prospects.
Action Step : There are numerous regional and weekly traveling supplier shows that take place around the country. They provide an excellent opportunity to learn about products, spend quality time with suppliers, and ask them how to sell their products.
Industry Misconceptions
Some people work for years before learning the real scoop about many things. They operate without really knowing who does what and why they do it. Here are some useful things to know:
- The difference between PPAI and ASI
PPAI (Promotional Products Association International) is a non-profit association that operates by financial support provided by its members who are made up of distributors and suppliers. PPAI charges a yearly fee, which provides members with the chance to attend two trade shows a year, a monthly magazine, and the use of a comprehensive website covering a myriad of topics.
ASI (Advertising Specialty Institute) is a for profit company who charges its customers -- distributors, suppliers, and service providers -- for its services. They provide a large variety of services for purchase including order writing systems, imprinted catalogs, product search programs, and magazines. Distributors who buy ASI services have the opportunity to attend five yearly trade shows.
- The purpose of a regional association
Regional Associations are comprised of distributors, service providers, suppliers, and multi-line reps. They function primarily as networking groups, with most offering monthly luncheons and yearly table top shows. The cost to become a member of a regional association runs in the range of $100, depending on the association.
- Multi-line reps
These are people who represent the products of several suppliers. Multi-line reps are paid by suppliers on a commission basis to make calls on distributors in order to supplement the efforts of their own sales force. Most reps carry several different lines, and frequently function as a bridge between distributors and the suppliers they represent.
- Services like ESP, Distributor Central, and SAGE
Each of these entities offer search engine capabilities to distributors who want to look for products electronically. They also can provide distributors with a variety of other services, usually for fee. Both ESP and SAGE charge for their services; Distributor Central is free.
- Doing business with reputable suppliers
Each year, the promotional products industry increases in size as more and more people become distributors and more companies exhibit as suppliers. The best way for a new distributor to get to know suppliers and build a comfort level is by using common sense and attending shows. Asking trusted peers who they buy from and finding out which suppliers win the most industry awards bestowed by distributors, such as the Distributor Choice awards, are other excellent ways to select good suppliers.
- Competing with established distributors
It's difficult to compete head-on with distributors of long-standing. Smart new distributors don't try to do so initially; instead, they concentrate on calling on friends or smaller entities until they are established. After doing so, you can take on the big boys.
- Working for a large distributor in order to compete
It's not necessary to work for large companies that offer bells and whistles in order to be successful. In fact, success is never guaranteed but it is more likely to be attainted through hard work, a positive personality, good sales skills and honesty.
- Building a good credit rating
The way to be extended terms by suppliers is by placing several orders with them over a period of time. It will probably be necessary to initially pay the orders in full with a credit card. As trust and performance are built, a supplier might ask for half up front and the balance on the back end. Very few distributors have started out with instant credit.The goal should be to attain a good credit rating that is earned by frequency and reliability.
- Getting EQP (end quantity pricing)
Many people focus too much on the end quantity pricing issue and it tends to become quite a distraction. In reality, there's not much difference in column pricing structures, so time is better spent making sales calls and not beating up suppliers for what they charge. The fastest way to get EQP is to talk to suppliers personally about the matter and pledge to send them orders and pay in a timely manner.
The suggestions shown above are just a sampling of the issues that face new distributors. Beyond knowing them, the best way to be a success is by using common sense, taking things slow and remembering to adhere to the basic principals of selling. If done right, the promotional products business can be rewarding and profitable.
