1. If you’re a tad reluctant walking into a room full of strangers, try and seek out  a familiar face. Even if you’ve only met the person one time that may help to get over the initital akwardness you’re feeling.
2. When you meet somebody for the 1st time repeat their name – this will help you commit it to memory.
3. Listen and ask questions but don’t do all the talking or you won’t get to know the people you’re meeting.
4. Be a connector… if you’re in a conversation with somebody and another person walks up, be sure and introduce those people.
5. You have 48 hours to follow up with somebody after you have met them or studies show that they will completly forget about you.

When did privilege become a pre-requisite to purchase?  We’re all familiar with the “chicken or the egg” theory and surely you’ve heard of “putting the carrot in front of the horse”, but just when did EQP become a matter of expectation rather than recognition?

Many years ago when we started as multi-line reps we heard a seldom used, but often sought after, term called EQP.  The frequency with which this special allocation was utilized made one think it was the “Holy Grail” of the promotional world. To be considered worthy of this wondrous, rarely granted status placed a distributor in the ranks of few, but the admiration of many.  You were special.

Now, “do we get EQP?” seems to be the standard response to … “let me show you what’s new”.  What was once the elite recognition for performance has now become the expectation for consideration!  “If we don’t get EQP … we can’t sell your line.”  Quite frankly, we understand.

What started as a well-deserved reward for performance and loyalty has now turned into another option to promote a suppliers line.  As multi-line reps, we are caught between the policies of our suppliers and the opportunities provided by the distributors doing the actual selling. For us, the balance between our livelihood and maintaining a line is strictly a matter of Risk vs. Reward.  Do we risk throwing out EQP to every distributor savvy enough to ask … for the reward of potential business?  Or do we reward the few that have earned the right?  And what exactly is this right?

We’re reps, not lawyers, so don’t hold us to any legal issue regarding the Robinson-Patman Act or fair trade agreements.  The whole EQP issue now is a matter of “should we” or “shouldn’t we?”  Do you deserve end quantity pricing because you’ve been a loyal and dedicated distributor that helped build a supplier’s business and you do a legitimate dollar volume? Or, do we grant you this seemingly more attractive pricing to allow you to try to build you business to become a loyal and dedicated distributor? Remember, don’t shoot the messenger!

In fairness to both sides of this issue, let’s explore the factors that may affect such decisions.  As a supplier there are true costs involved including; actual cost of goods, maintaining inventory, support materials, personnel, decoration costs, shipping and more.  Based on the unique standards of pricing within our industry the suppliers have determined the least amount acceptable to maintain profitable margins based on specific quantities purchased. Please note … quantity!  In order to maintain a legitimate profit on a specific product the supplier must meet these levels.  In other words, selling an item at the lowest cost at minimum quantities isn’t profitable.

The distributor, on the other hand, needs to be competitive and also wishes to maintain certain levels of profit margin.  Looking at the different pricing columns and realizing that the least expensive (EQP) would allow for an acceptable margin the automatic response is … “do we get EQP?”  Most likely, one of your competitors is getting this pricing, so why shouldn’t you?  We completely understand!

Unfortunately, somewhere the line between performance and profitability became clouded. Part of the actual foundation of our business, recognition for achievement, has been eroded by a new structure of doing things faster and cheaper, but not necessarily better.  But let’s save the topic of service for another article.  It doesn’t appear that we really have any pricing structure left within our industry … so why the big mystique over EQP?

Let’s face it, suppliers know their bottom line. It’s pretty safe to assume that the EQP figure is just that … the least they can sell a product for while maintaining a profit margin that is acceptable.  Distributors realize that there’s a magic number … so why not ask?

Now, let’s consider the original premise behind EQP.  It appears that once a distributor reached a specific level of sales they were rewarded with the lowest price point on all the merchandise that supplier offered, allowing them to attract new business through aggressive pricing.  A very simple form of a loyalty program.  Not much different than scanning your Kroger card to get the “lowest price” featured on the yellow sticker.  You’re special!  Until the person behind you claims to be a loyal shopper (without their card, of course) and the clerk uses the manager’s override button to “reward” them with your special price.  How fair is that?

We’d like to think that we’re considerably different than the Kroger cashier, but when the override button is an option … why not use it?  Maybe you’ve been shopping elsewhere and if we give you the “yellow sticker” price you’ll come back again.  Our suppliers hear us say that …” they have tremendous potential” and “if we provide EQP they’ll become a loyal customer.”  We hear you say … “if we don’t get EQP we can’t sell your product.”  We hear our supplier say … “they haven’t purchased from us before.”  Do we throw out the carrot in hope of future business or do we save the “Holy Grail” for only those that have proven their worth?

We’re caught in the middle of an ugly situation.  Our income is dependent on sales, so we’re inclined to push for opportunities that increase a distributor’s odds.  However, our suppliers write our checks and we appreciate that profitability has a direct affect on commissions.  Ah yes, the chicken or the egg? 

Going back to the original premise of EQP … recognition for a job well done … there is another side to this saga.  What about the distributor that has worked diligently on a supplier’s behalf to build sales? We can only assume that they aren’t too happy about their competitor receiving EQP if they’ve never purchased before.  Should the playing field be level?

We’re not sure when it happened, but at some point greed reared its ugly head.  It only took one seemingly unscrupulous supplier to change an entire industry’s pricing structure.  Once the snowball started rolling it became impossible to stop the momentum and now the term EQP is bantered about without consideration for loyalty.

We don’t blame distributors for asking, but where exactly does this cycle of entitlement stop? When does performance and loyalty become valued again? How do suppliers recognize those that perform versus those that claim they will?  Where do you draw the line? 

Hopefully you can sense our frustration as multi-line reps and understand how we’re caught in the middle.  We’re not complaining … all we can do is continue fighting for distributors and promoting our suppliers according to the guidelines provided.  But please realize, whether you’re a supplier or distributor … we’re on your side!

1. Look at your top 50 customers and make sure you have touched every department within that organization.
2. Create a marketing campaign that reminds your current customers of the services and value you offer.
3. Include in your marketing messages “new” products and services you offer but your customers do not take advantage of…you must stay in front of your customer.
4. Remember Clarke American’s motto: “If You’re Not Talking to the Customer Someone Else Is.”

Michele Bell is the Senior Editor for Counselor Magazine and she also pens her own industry blog. If you have not had a chance to check out her blog, do yourself a favor and take 5 minutes to read it. She’s funny, to the point and she does not hold back about her “slanted view of the world”! http://bellwether-asicentral.com/bellblog/

Why, you might ask? Picture this… a supplier comes walking into your office wheeling a piece of luggage that could easily fit enough stuff for a year-long stay in Antarctica and if you’re like me, as they are unpacking every product in their catalog, all you can see is the phone calls and emails stacking up because it’s easily going to take at least an hour and a half to get through all of these items.

The supplier that I met with today told me point-blank that when he walks into a client meeting that he is dragging the suitcase BUT the first thing he tells his clients is, “my presentation lasts 14 minutes because I respect your time. However, if you would like me to stay longer and answer additional questions or go over specific products, i’d be happy to do that.” The key to this is two-fold: #1) he respects their time and #2) he gives them a choice to have him stay longer therefore if they ask him to stay, then it’s on their terms. Voila – your meeting just went from something that’s dreaded to something that everybody is happy to be attending!

If you’re a supplier and you’re reading this before you start sending hate mail, please remember what I said earlier. I’m a fan of supplier meetings. But, I think the key to any successful meeting is that each party must be respectful of the other’s time and even if you have an agenda you want to cover, remember that the ultimate reason you’re there is to help and educate the other person so be flexible if your agenda needs to change. If you keep those two key points in mind, your meeting is sure to be successful and build lasting relationships!

On the flip side of the coin, we’d love to hear from suppliers… what can distributors do to make these meetings mutually beneficial?

P.s. Distributors – these same rules apply to end user meetings!

#1) If you have not already set up a facebook, twitter, LinkedIn and YouTube account, it’s time to jump in!

• Social Media is the Ultimate Rolodex.  The keys to success on Facebook are:

>Do Not Sell

>Be Relevant and Transparent

>Live as if your Mom is Watching

>Remember if you are mixing:  >Don’t play games during business hours  >Don’t drink and Post

• Social Media Key Words:

Transparency

Viral

Conversation

• Social Media is just another lane to your Networking Highway

The Lanes are:  Phone, Email, Sales Calls and Social Media

26 years ago a small group of distributors and suppliers met at a country club in San Antonio to talk about how they could form a local organization of likeminded promotional products professionals. They believed in the spirit of helping one another and wanted to share this philosophy with other people in our industry on a regional level. The organization that was formed many years ago is what is currently known as CAPPA, The Corridor Area Promotional Products Association.

Throughout the years CAPPA has grown by leaps and bounds. We now have over 100 members, host an annual trade show that brings national suppliers to our backyard and offer various other events throughout the year.

CAPPA has seen many presidents, board of directors and officers, and other volunteers that have given their time and knowledge to help CAPPA succeed and for that we’re sincerely grateful.

However, there is one person who stands out above the crowd. For 26 years she has been with CAPPA in one form or fashion, starting in 1984 as a founding member, then later spending many years as the CAPPA Administrator, and finally serving on the board of directors in every position from a director to the President of the association.  To say that we’re thankful for the time and support she has given CAPPA over the years does not seem adequate. However, we are!

So today we’re proud to announce The Marsha Jones Education Scholarship Fund to honor a person who has gone above and beyond and made a signification contribution to CAPPA.

The Education Scholarship will be awarded annually to 1 supplier and 1 distributor CAPPA member. Each winner will be given a $250 voucher to be spent on continuing your education within the promotional products industry. Applications for the 2010 scholarship will be available online by the end of May and will be due by the end of the year. The board of directors will select the winners and they will be announced at next year’s Professional Development Workshop.

If you’ve ever spent any time talking with Marsha you’ll know that she is an advocate of getting education to set yourself apart from your competition and to rise to the level of an industry professional. Marsha has her MAS Certification and in fact so many hours of continuing education that I believe PPAI quit counting in 2006!!

For those of you have been involved with CAPPA for some time, you know that no person is more deserving of this recognition than Marsha and for those of you who are new to CAPPA, I sincerely hope you’ll take the time to get to know her. When 1 1^st started in this industry in 2006 I met Marsha at a CAPPA event and today I’m lucky to call her not only my colleague, who is always willing to help me but most importantly,  my friend.

I speak for the entire 2010 board of directors and every person who has been involved with CAPPA over the years, when I say that we truly appreciate your wisdom and are indebted to you for your service to CAPPA over the years. Our greatest hope is that we can take the organization that you care so deeply for and continue to help it grow and prosper. Thank you again for everything!

From left to right: Jennifer Brown, Darlene Kirk, Dave Degreef, Marsha Jones, Debra Stovall, Matt Gledhill and Scott Harris

(online registration ends today at 5pm. If you don’t register before the cutoff time, we will be accepting registrations and payments the morning of the event)