Tariffs, Prices, Exchange Rates, Shortages…

Financial news used to be separate from everyday news with different reporters, publications or broadcasts. Today, nothing escapes the financial connection. From politics to crime (at times one and the same!), there is no escaping the influence on our industry and virtually all others as well. 

Distributors and suppliers have transitioned to digital catalogs and/or digital price lists in order to deal with the fluid nature of pricing. A significant negative impact on discussions with clients is that the price of goods is again dominating the subject. Selecting promotional products based on price rather than value is an unfortunate step backwards, especially if there is a strong reliance on ‘selling on the web’.

Back in 1991 when I was training sales professionals in our promotional products media industry, I developed a short list of 6 questions to ask clients. The answers then directed the nature of the promotional products marketing program. Not in original order the questions are 1: What is the objective of the promotion? 2: Who is the target of the marketing? 3: How many contacts will there be? 4: When will the promotion run? 5: What has been done before? 6: What is the budget for the promotion?. 

Budget - while I left that question for last, it is not least important. It allows you to make suggestions based on all the information without any discussion of price, tariffs, discounts or any other financial issues. You tailor the client’s program to fit the budget!

Considering that the multitude of the clients distributors work with (sell to) are regularly engaged in price negotiations, with their customers asking for discounts, extras to be included in the quote for free, expedited delivery etc., it would be expected that your client would expect to do the same to you. But if a budget is established early in the meeting, it becomes an exercise whereby you craft the promotion your client has asked for (by virtue of the answer given) without further discussion of cost or price.

A California based distributor I consulted with two years ago has had several of her sales team use this approach. She said that when a client tells you what they want to accomplish, who they want to market to - and then tells you what they want to invest in the program, it becomes a very comfortable transaction. She commented that they will normally suggest three different products that meet the program requirements, allowing the client to feel even more in control of the project. 

This is but one example. I have received many comments from people that have used this method. Obviously this is not as effective if you rely on a website rather than direct client contact. 

Several suppliers I spoke to said that they are having to price their merchandise on replacement costs rather than actual cost for current inventory. While it is obviously a difficult balancing act for suppliers, it is essential that you have a firm price commitment from suppliers when operating within a client designated budget.

Recommending promotional products that a supplier has on closeout can be done but only if the supplier is willing to put a hold on the goods for a short time to allow you to finalize the project with your client. Be sure your client is willing to make a deposit to guarantee the products stay available for their project.

Perhaps the aspect of budget oriented selling I like most, is that the emphasis on product is removed and replaced by the value of the program for your client. Online product shopping is all but eliminated and discounting is also an unlikely last minute request.

Is this method right for you and your clients?  Give it a try and let me know.