Over 50% in Three Months

By Ann Barr

Every once in a while you hear a story that sounds almost too good to be true. But in this case I know it is true.

Last month Mark Walpole of Answerco.com shared a story with me about a client who was looking for a way to increase business. This was a reseller who sold compatible toner cartridges.

Using Mark's idea, the client grew his business over 50% in three months!

The reseller had a good customer base and was doing between $94,000 and $102,000 per month.

After implementing Mark's idea, the reseller's business increased the following month to 113K, then 122K, and 149K in the third month.

How did they do it?

In Mark's words:

"My customer ask me how they could grow their business. This reseller sold only compatible cartridges.  So the big question was how many part numbers / SKU's did the reseller carry?

"The answer:  600 SKU's.

"Can you imagine what the answer is to growing their business over 50% in three months?

"Add new SKU's."

Since drop shipping is offered by many wholesalers in the office equipment supplies business, stocking inventory is not an issue.

Mark went on to say:

"While the compatible business does have great margins, there are a lot of products for which there is no compatible or in some cases, limited availability.  So I told them to add about 1,500 OEM SKU's.

"They had a good customer base, so now they could promote that they have a full line of products.  Why would their loyal customer need to shop anywhere else, especially if this company had all the supplies their customer needed?

"Now their sales reps never have to say :  'NO, we don't carry that.'

"They were able to offer a savings to the customers on their existing compatibles, while providing customers service on the OEM sku's."

Advice from Mark Walpole: "Add as many products as you can sell."

THE CHALLENGE

Getting the word out to existing customers is the next step.  Using three marketing methods puts the message out in front of customers.  Using ALL three will be much more effective than using just one.

           • Telephone Marketing

The most effective and personal way to do this is by calling customers to thank them for their current business and let them know about the variety of products that are available.

            • Instant Marketing

Having an up-to-date email list and sending an informational email blast to all customers is the fastest way to get the word out about new products available.

            • Direct-Mail Marketing

It is always surprising when business owners tell me they do not use direct mail marketing.  In an industry where there is so much competition, where consumers have multiple choices when it comes to buying office equipment and imaging supplies, resellers would benefit from taking every opportunity to connect with prospects and customers.

THREE LOW-COST MARKETING TIPS

You don't need to spend a fortune advertising, in order to make sure customers know about all the products you sell. There are effective and inexpensive ways to keep consumers informed. Here are three low-cost marketing tips to get the word out.

     1. Attach an easily readable, colorful label (sticker) to every product that leaves your company.

These labels should show your company name and telephone number in large enough print to be seen and read from a distance of five feet.

Reason: If someone in your customer's office wants to re-order, and doesn't realize who the products were ordered from - and if your name and phone number are not clearly visible on your products - you may lose sales. The person ordering may look on the Internet or in the Yellow Pages, or they may call one of your competitors to buy products that you sell.

(Exception to #1: If you are a wholesaler selling products to resellers who will be shipping to end users, or if you are drop-shipping directly to your customer's end users, this would not apply to you.)

      2. Put a colorful marketing flyer or monthly sale flyer inside every product shipped out.

Reason: If shipments are sent out with only your products inside, a marketing opportunity is being missed. Every box of products should contain an announcement with: "this month's special" or "new product launch." The only cost to your company is the cost of the paper, toner or ink, development time and the time it takes to make copies. Make sure the person doing the packing, has a large supply of colorful flyers to put into each shipment.

PUT YOUR INVOICES TO WORK FOR YOU

      3. With every invoice sent out, include a short message about additional products or services you provide.

Reason:  Unless your customers pay with cash or credit card up front, every consumer eventually receives a bill from your company. So if you're looking for a way to encourage additional sales, you should put your bills to work for you. There is probably room on your invoices to list add-on products and services you provide. You can also include a colorful flyer with your invoice.

You May be in a Niche

If your company started out by selling only one type of product and later decided to add additional products and services, your customers have put you in a niche.  It takes consistent reminders to let them know you can provide other items than what they purchased in the past from you.

Marketing research has found that it takes seven contacts within 18 months to make a new sale. Selling a new or different product to an existing customer counts as a new sale.  The seven contacts can consist of telephone marketing, email, fax and direct mail marketing, in addition to face-to-face marketing.  Every reminder helps to keep your name in front of customers. u