THE WHOLESALER® —APRIL 2011•
SMART MANAGEMENT Prepare for professional renovation (Continued from page 8.)
It is often just that simple and hap- pens with a click of the mouse. You get disqualified from the game due to a lack of technicality. For a reprint on e-marketing, e-mail me at Rich@go-
spi.com • Stop thinking that you have a
first-rate website and web store- front if it is more than a year old – Yours may be good but might not be. The bar is being raised on a monthly basis so unless you have updated it recently, you are probably falling be- hind. If you are hearing complaints like, “Customers can’t find products. The data sucks. There are no pictures. It’s slow.” It is time for a professional renovation. • Stop forcing your Information
Technology (IT) team to direct your website and web storefront – Mar- keting should be responsible for your website and web storefront. With the evolution toward all sorts of “E- based” marketing activities, the mar- keting team needs to step up and direct the company’s efforts. Of course, the IT team will be involved in all the technical aspects of the “E-based” marketing but the rest of it is market- ing. To their credit, many companies’ IT teams have sincerely worked to fill the void abdicated by the too-busy, non-techie marketing folks. Many IT
folks have done an amazing job given their limited customer contact, mini- mal product knowledge and lack of any marketing training. That does not change the fact that your company needs a marketing team that under- stands “E-stuff” and puts your com- pany at the forefront of “E-marketing” for your target markets. Recently, our software company
was conducting a web demonstration of our Web storefront software to an IT person who had been given the di- rective, “Get us on the internet.” He did a great job on the technical side but I felt sorry for him as we asked marketing questions relating to the company’s operation and marketing objectives. He had no authority over those areas and was embarrassed that the marketing team didn’t even show up because it involved computer ter- minology that was complicated. • Stop assuming that you under-
stand what your customers need and want – I am not a big fan of sur- veys since even the very best written surveys seldom get to the heart of a customer’s heart. The best way to get information from a customer about what they need and want is to ask them. This is tough since you have to ask sincerely, not be defensive, listen carefully and clarify the heck out of each complaint or suggestion to in-
Bathrooms devoted to well-being (Continued from page 62.)
tion, the new Taliesin Design™ hard- ware collection fuses wood in metal in bold geometric shapes.
Seeing double Why have just one when you can
have two? Consumers are expanding their expectation for double sinks in the master bath to include double
vanities as well as matching free- standing tubs. The idea of two vani- ties just makes sense — twice the storage, twice the personal space — but the concept of double baths is a new idea that is rapidly gaining ground. Victoria & Albert set the stage with its side-by-side Amalfi bathtubs. Having two tubs in a single bathroom is both luxurious and prac- tical. Not only does it make a striking visual statement and add symmetry to the space, it also creates a private re- treat where couples can bathe to- gether in comfort without having to take turns or compromise.
Be well One unhappy trend of our times is BainUltra Vedana
our tendency to work harder and longer without concern for our health or stress levels. Fortunately, a grow- ing awareness of wellness is counter- acting this with a line of products for the bathroom that creates a spa-like retreat using personalized therapies. From soaking tubs and air baths to aromatherapy and steam showers, consumers are appreciating the tech- nology that allows them to bring re-
sure that you really understand what the customer is saying. With this clar- ity, you can adjust how you operate to improve your company in ways that the customers will appreciate. • Stop thinking that pricing man- agement is completed when your costs are updated in the computer – Of course, getting the costs right is part of price management but centrally managed market-based pricing is the goal. Most wholesalers aren’t even close to the goal of providing compet- itive pricing and making fair profit for themselves. That’s what pricing is all about. And as I have said before, if you have sales of $20M or more, you need a good full time pricing manager. They are hard to find and hard to cre- ate but after you have one in place, you will ask yourself why it took you so long to get it done. For a reprint on price management, e-mail me at
Rich@go-spi.com • Stop kidding yourself, your
people don’t understand the reali- ties of your business – They proba- bly don’t know that they are routinely taking orders at profit levels that are below the break-even point for the company. They don’t understand the difference between gross margin and markup. They don’t understand that a 10% discount gives away 10 points of margin. They think that some- where between 20% and 25% is the right gross margin for normal sales.
juvenating treatments into the privacy of their own homes. Bain Ultra’s Vedana system is the first product of its kind to focus on wellness. It doesn’t dispense water in any form but instead is a care center that pro- vides five unique therapies designed to help people release stress and find their inner calm. More and more companies are joining this exciting trend to re-think the bathroom from a grooming center to a space devoted to peace and well-being.
n Linda Jennings is president of Jen-
nings & Company — a public rela- tions, advertising and marketing agency, specializing exclusively in the decorative plumbing and luxury hardware industry. Throughout a 20- year tenure, she has worked with the most significant editors and journal- ists in the consumer home market, identifying trends and providing newsworthy products. Based in Sara- sota, Fla., her agency represents the most progressive manufacturers in the kitchen & bath industry. Jennings is a member of the DPHA (Decora- tive Plumbing & Hardware Associa- tion) and was recently appointed to their Editorial Advisory Committee.
•79
However, they have no problem sell- ing at 12% to 15% when pressed. (So far I have not encountered an industry wholesaler who is profitable in that range.) You have two options: Train them, measure performance, hold them accountable or stop allowing them to do stupid things…remove the authority that allows them to hurt the company. I like option one the best but it takes a fair amount of work ini- tially followed by continuous, relent- less, ongoing review and coaching. In our experience, the minute you stop reviewing and coaching how people price, is the same minute that your profits start to ratchet downward. As always, I know that you can-
not stop doing all these things but take time to pick a couple that will have the biggest impact on your per- formance.
n
Rich Schmitt is president of Schmitt Consulting Group Inc., a manage- ment consulting firm focused on im- proving the profitability of distribution and manufacturing clients.
www.go-scg.com
Rich is also the co-owner of Schmitt ProfitTools Inc. (SPI), a business pro- ducing print, CD-ROM, web and palm-based catalogs as well as pric- ing management and analysis soft- ware for wholesalers.
www.go-spi.com
F Get the look!
Ashley Norton 800/393-1097
www.ashleynorton.com
Atlas Homewares 800/799-6755
www.atlashomewares.com
BainUltra 800/463-2187
www.bainultra.com
Diamond Spas 720/864-9115
www.diamondspas.com
Lasertron 954/846-8600
www.lasertrondirect.com
Novellini 877/273-8816
www.novellini.com
Reveal Designs 914/220-0277
www.reveal-designs.com
Sunrise Specialty 510/729-7277
www.sunrisespecialty.com
ThinkGlass 877/410-GLASS (4527)
www.thinkglass.com Victoria + Albert 800/421-7189
www.vandabaths.com
• Be sure to visit
www.thewholesaler.com for web exclusive articles and videos! •
or more information on the trends mentioned here, go to:
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84