Financial Stability...A luxury or a necessity?

What do you think? Is financial stability on today's marketplace a luxury or a necessity? I think you could ask many people this question and you would get a variety of answers.

For those of us who work with a company that is on firm footing financially the answer is pretty clear. It is an absolute must to run a professional organization in an efficient manner that one maintains their financial independence.

Paying your bills to vendors on time and paying your workers on time is not a negotiable point if you are to be successful today.

All too often we get phone calls from people where this is not the case. Have you ever sold an order only to find that your firm no longer has credit with the vendor? have you been asked to collect deposits from customers when you never had to do this before?

Have you been told that your commission structure is changing and not for the better? If you are a business owner are you paying everyone else but yourself?

I heard this personally from several owners. They give and give and give of themselves but at the end of the day there is nothing left for them to make a living.

I am hear to tell you that it does not need to be this way in 2010. Whether you are an owner or a salesperson working for someone else you owe it to yourself to be good to numero uno (that is YOU) in 2010.

There are many good companies that are out there today who will be willing to work with you to provide you with that firm financial footing. I am biased obviously when I say that The Vernon Company is one of those firms but I will also be quick to say the following....

Some Tips for those exploring new employment options in 2010

1. You need to fully investigate to see if a company is a match for you
2. Be wary of a company that says we are a fit before ever speaking with you
3. Do not be squeamish about asking to see the financial records of a prospective employer or at the very least ask for a current Dun and Bradstreet Report showing their credit rating.
4. Ask about the amount of debt that a company has, both short term and long term
5. Take a home office visit if possible to meet members of the support team
6. Make sure that you speak with some sales reps that sell a similar level of sales volume as you do and ask lots of questions, lots of questions...

If you decide that a change may be in your future I recommend that you contact three companies before making any changes. A good idea is to talk to some of your key supplier friends to ask them about companies that they feel are stable from a financial perspective. This needs to be your first focus! Again it is a necessity ,not a luxury!

Lots of companies make promises!

Lots of companies make a lot of buzz in the short term but are not around in the long term! If you are only interested in a short term career then they may be good options for you!

Lots of companies need to borrow money over and over again! Why is that and how long will it last?

Offering a wide variety of perks to reps and employees while losing money year after year is not an equation that I ever understood from my math classes growing up! It will not last long.

Too many salespeople have learned this lesson the hard way being forced to find a new home for their business every other year.

If stability is what you want in a NEW employer it begins with your search criteria. Don't be fooled by all the hype. Do your due diligence!

You owe it to yourself!

Check out opportunities to meet with Vernon's Management Team by clicking the link below

Vernon Information Open House

Out with the old and in with the new...

2009 Year In Review

WOW! What a year it has been? Click on the link below to get insights as to how The Vernon Company did. I will talk about some of our achievements and what we are looking at as we head into 2010. Good riddance to 2009!

Come see us in Orlando or Las Vegas

We hope to get a chance to visit with you.

See you soon!

What does the future hold?

See my recent comments posted in response to a PROMO 35 Group Guest Interview....

Again, this is just my opinion...


promo35: "What will 2010 be like?" with Dave Regan - Vice President of Vernon Company





1. Describe what 2010 will be like for our industry in one word.

Rebound


2. Will 2010 be up, down, about the same compared to 2009?

Up, up, and up!


3. Do you see major changes happening to our industry in 2010 and the next few years?

Not really…I know this probably sounds like I have my head in the sand but while I recognize that there will be lots of other things to be concerned with such as product safety issues and social media opportunities at the end of the day our industry relies on relationships! Salespeople, distributors and suppliers who are good at forming and strengthening relationships will be successful. Those that cannot develop and maintain solid relationships at all levels with suppliers, manufacturers, salespeople and customers will falter.


4. What is something good we have going for our industry moving forward?

Our best attribute is our people! To be more specific it is the resiliency of the people in this industry. For more than 100 years this industry has been successful. We have weathered the great depression, two world wars and several recessions. In the end it is the grass roots nature of our business that enables us to endure.


5. What is something not so good that might hurt us moving forward?

The one thing that is sure to create some heartaches in the weeks and months ahead involves restrictive and confusing government legislation. Issues like the pharmaceutical laws, the product safety and compliance guidelines and restrictions on purchases by doctors have created a flurry of different interpretations by everyone involved in the supply chain.

It is absolutely critical that everyone in the supply chain is committed to educating themselves and their staff to stay up to speed in all these areas. This includes manufacturers, suppliers, distributors, distributor salespeople and the end buyers. If our education efforts are not successful with any of these groups it is fair to say that the value proposition of promotional products will not be communicated properly.

My fear in looking down the road is that due to the extremely fragmented nature of industry, namely the fact that small distributors and suppliers number in the thousands, that we will not have a unified approach to these issues in general and the industry as a whole will be negatively impacted by the transgressions of a few who choose not to pay attention to the serious nature of some of these areas of concern. A good example of this is where someone chooses to promote and sell a product that is cheaper, but NOT safe. I think we all know what the damaging impact of that type of a decision can mean for the industry!

Remember...I've got feelings!

Actually the title is not about me, but it could be! We all know that the last year has been a very trying one for all people, not just those of us in the promotional products, but those all around the country. As an executive of one of the larger distributors in the US I have been caught up in what most people have been doing, aligning costs with the sales revenue.

Yes this includes the fun stuff (I say this 100 % sarcastically) of making budget cuts, laying off people, reducing benefits, etc. I have been involved in countless projections of sales and profits and more analysis than I care to think of. It has not been fun but it has been a necessary evil that has had to be done.

One of my responses to the economic challenges of this year involved me drastically cutting back on some travel during the second half of the calendar year. This seems to make sense…right? Again if there was a good reason to fly to the east coast or the west coast I would be on a plane tomorrow. We all still need to go about our business, unless we are closing up shop and this is certainly not a factor with our company. But again in an effort to be fiscally responsible we cut back on some discretionary travel trips.

As I write this I am returning from a sales meeting in Ohio attended by about 25 of our sales reps. I will let you know that we have almost 400 sales reps around the United States, most employees but some 1099 status folks who are compensated 100 % on straight commission. At this meeting we had a mix of long time seasoned veterans (some with over 30 years with our company) and some exciting new hires who had aligned with us recently for a variety of reasons. I would like to say that they “saw the light” and realized we were the place to be but for one reason or another we seem to fit their needs!

After a day and a half of teaching, listening and learning I was overcome with the realization that these people are real and that these people have feelings. For the past several months of analysis and projections I have been seeing their names and their sales numbers, volumes, commissions, profits, etc. on reports. Mind you I have known some of these people a long time so that this week was not my first introduction to them.

The overwhelming reality that I faced was that while I have been reviewing budgets and projecting future sales and expenses these folks have been trying to live and get by day to day in many cases. As a salaried manager with bonus opportunities and a vested interest in the company it is not as if I am just skating by with absolutely no impact on my income. I have been affected but not to the extent that the sales people on the street have experienced. I saw and heard cases of 20, 30 and 40 % losses in income. Again I knew this because I see the reports however this week it touched me more than a name on a piece of paper!

Have I been stuck in the ivory tower? Yes I think I have!

I think at the end of the day, as a person responsible for managing the business, many decisions that have been made would be the same. What I do think could be different is the way you arrive at the decisions and the manner in which you communicate them could be more compassionate.

Whether you own and run a small distributorship or a supplier or a large national firm does not really matter. Perhaps in a larger company it might be easier to “forget” about the personal side of the business if you are not interacting with the reps on a daily basis. The bottom line is that salespeople have feelings! They want to be heard! They want to be appreciated!

I have a special line that I use in our company at certain times. In those situations where someone is complaining about the actions of a particular rep I attempt to get to the core of the issue and see what happened. Sometimes it becomes apparent that a person would rather complain about the salesperson than remedy the situation. It is at that time that I will say in a very sobering tone straight faced as I can be…

”well maybe we should consider eliminating all of the sales reps. I think if we did that things would go much smoother around here. Don’t you think?”

We all know how ludicrous that this sounds. We all need salespeople! They are at the heart of our who we are and what we do. Nothing happens until something is sold!

The wake up call that I got this week was to never forget the salesperson on the street and what they go through. Stay in tune with who they are and what they do! Spend some real face time with them. Listen to them! Find out firsthand what their challenges they are encountering and discuss ways to overcome them together.

If we can remember to do these things, especially at times like this, our companies will all be better off. We need each other, management and sales, more than either side will admit but it is true!

R-E-S-P-E-C-T

Don’t worry! I am not going to break out singing like Aretha Franklin. Of course, if I could sing like Aretha I do not believe you would find me in the promotional products industry.

I write the word respect as the heading for this blog because it is that time of year when we need to stop and think before we speak sometimes. Believe me when I say that I have to do this every day. This is the peak season for orders and business even in a year like this. Peak orders mean peak problems. Peak problems mean peak frustrations!

I also bring up the good old fashioned, tried and true “golden rule” that says “to treat people the way that you would like to be treated”. Before someone thinks that this is a message from the home office to all the sales people in the field let me very clear that this is a message for everyone, including myself!

I struggle to compose myself many times during this season but what I have to keep coming back to is the fact that we are on the same team. We should be working to a common goal of satisfying the customers by delivering the product they requested in the condition and of the quality that they requested by the date they requested. Sounds simple? Heck no…we all know that! You can have a spirited (I use this rather than the word heated…it sounds better, doesn’t it?) discussion one minute and then hang up only to have to answer the call a second later to speak with someone who knows nothing about the call that you just had. It is critical that we greet this new caller with respect just like it was the first call of a bright new day. Answering the call with “what do you want now” is certainly not the way to set a positive tone.

Again this message can be appropriate for all of us. Inside, outside, support staff, executive management…..we should all heed this advice! Have you ever taken out your frustrations on someone on the phone even though you know that they are only the messenger? I have and most times after I have done it I recognize that this poor person who just got the brunt of my anger, that she did not create the problem. Or reversing roles, have you ever found yourself telling a salesperson right after their order was cancelled due to no fault of their own, that they should get over it and move on? Remember most sales reps do not get paid if they do not get an order!

So when you find yourself in that position where the top of your head is ready to explode…yes I know, everyone knows this feeling…we should all attempt to take a deep breath. Hold off before clicking the SEND button on that message. Consider saving it until the morning. If you wake up and read the message in the morning and it seems good then go ahead, click and send. Many times I think we will see that it needs some softening if it is to be received in a constructive manner by the party at the other end. This brings me to my next pet peeve…

To call or not to call…

Does anyone use the phone anymore? I know that I fall into this trap as much as anyone. Recently when walking through a department I noticed it was eerily silent so I remarked that “it appeared pretty slow”. Oh my goodness did I get an earful! Almost in unison they proceeded to tell me that they were swamped. How could that be as I heard nothing?

The fact of the matter was and is that so much of our communication today is done via email. I acknowledge that we have announced at meetings loud and clear to all who would listen that this is the preferred method of communication. We say this because it is quick and easy to track! It helps to provide all parties with documentation of the correspondence. It is also NOT perfect!

Emails do not always get noticed! Emails do not always get delivered! It is hard to pick out an urgent problem from a list of 62 emails in my In Box. The point to be made here is that there are times when an actual phone call is more appropriate. Have you sent a few emails and they have gone unanswered? This may be a great time to make a call and, if nothing else, let the recipient know that you had sent two emails inquiring as to whether or not they were received, and then attempting to resolve the problem on the phone once and for all. Do you need the corporate office to help out ASAP? Perhaps a well placed phone call to one of the support staff will elevate your request up and above the 61 emails ahead of yours in the In Box?

Today with Spam Filters and Junk Email being handled by 100’s of different internet providers, all with different rules, we know lots of emails get blocked. Most companies cannot control what gets through and what gets blocked.

The bottom line here is that while electronic communication is efficient and fast that there are times when resorting to the good ole phone works best. Keep this in mind! Let’s not be afraid to speak with each other. Some messages are much easier to communicate in the spoken word rather than the written word.

These are my words of wisdom for this month. Now if I can only practice what I preach!

Thanks for listening!

Learning never ends...

Some people drop out of school in high school while others go on to graduate from college and then they even pursue some postgraduate studies that leads to higher degrees. But when do we stop learning?

Here I sit some 30 years removed from college and high school and I believe that I learn something new every day. This only happens if you are receptive to new ideas and other opinions that you encounter in your daily routines.

The economic turmoil that we have all been experiencing for the past year or year and a half has brought a great deal of focus on our abilities to learn and educate ourselves. For some it is a literal thing such as...

"I lost my job and I went back to school to learn a new trade"

For others it may be a little more subtle where they realize...

"I forgot how to make cold calls, now I have to start all over again!"

There are even more extreme examples where salespeople who have worked with the same company for 20 years find themselves in a position where they have to go back out and look for a new home. Perhaps they have owned there own firms for 20 + years however they have come to the realization that they need help or that they want to get out of the rat race where they need to hire people and train and handle all the administrative duties. They see "the light" where they want to go back to what they love best selling and they are okay letting someone else run the business.

In these cases it is also important that they make educated decisions as it is all about their future!

The Vernon Company is a strong believer in education. We spend a good deal of time educating our 160 + people in the home office as to the best ways to support our account executives in the field. Out top management team spends a good deal of time on keeping up with trends in the industry on a variety of different levels. Educating our account executives is the primary goal at every meeting we have and we regularly use industry professionals and trainers to improve the skill set of our salespeople.

Over the next month we will be offering some education to those people who do not work for us today. This education is targeted towards individuals who may be looking for a new home for their promotional products business. We acknowledge that it is extremely important for any person to know what they are getting when they join a new company. We certainly do not want to paint an unrealistic picture as to what we offer. This would not be good for anyone involved.

If you or anyone that you know in this business might find themselves in the unenviable position of having to look around or if you just want to see what is out there for you if you decided to change The Vernon Company is offering a four part series of webinars over the next thirty days.

Click on this link to find out more about how you may participate. Again the goal is educating the general public about who The Vernon Company is and what we might bring to the table.

http://vsales.vernoncompany.com/beginshere

We welcome anyone to click on the link and sign up for a single webinar or for the entire series. This is up to you!

And remember you cannot go wrong if you make educated decisions regarding the future!

Signs, signs, everywhere a sign....

The signs are out there….


But the question is do you even see them? This is the critical question! Do you notice the signs and then do you act accordingly!


In this instance I am talking about the economic signs that are out there. Things like housing sales, unemployment claims and new filings, inventories and the stock market. For as much negative press as the declining stock market received in 2008 you think that more time would be spent talking about the good news, specifically the rebounding of the market this year. The Dow Jones average hit a low point on March 1, 2009 of 6470. As of this minute the Dow Jones Average is at 9852, representing an increase of 3,382 points or a 52 + % gain! I know, I know... there are other factors that affect us all that maybe a lot more pertinent in our daily lives than the averages in the stock market but I think we can all agree that a big part of this recession and our eventual recovery involves our attitudes and our state of mind.


Who likes a whiner or a complainer? No one does…right? This is true even though they might have a real good reason to complain. The fact of the matter is that most of us will try to get away from that person because of the way it affects us.


Now let’s reverse the situation. Have you ever met that person that is always positive? I have met them before. Even in situations where I might say boy this person has a lot of problems going on and they turn around and say “you know Dave, it could be a lot worse…we are just happy to have a good support system!” WOW, talk about looking at things with a different perspective.


Again, getting back to the signs of the economy how is your attitude? There is no busier time of the year in the promotional products industry and for that reason it is critical that you are upbeat and positive in all of your dealings. Remember what we said above that no one likes a whiner or a complainer. Well guess what…no one wants to buy from a whiner or a complainer!


How are you approaching your customers? Are you stopping by or calling to pick up an order or are you visiting them to find out about their needs with the ultimate goal of showing them creative ideas that will help them to grow their sales and meet their own objectives? Which is it? Are you talking about the good signs in the economy or are you stuck in the past lamenting how bad things have been?


It is important that each of us does their own self evaluation to determine what “vibes” they might be giving off when meeting with others. Ask other around you whom you trust about how you might be perceived in this regard. Do they generally view you as positive or negative or in the middle, kind of blah, not too upbeat, but not too negative either.


In a strange way I believe that most of us probably don’t want to know the real answer to this question. Perhaps we are afraid that the famous actor Jack Nicholson, in one of his famous roles, is going to show up and shout at the top of his lungs “you can’t handle the truth!” I sincerely doubt that his is going to happen to any of us. The good thing about all of this is that you control your destiny here. It can all change with the next sales call!


I see the signs of things getting better. Not only do I see these signs in the general economy but I see the signs in our business over the last six weeks. More orders are coming in. Some salespeople are selling some very large orders. Customers are asking for more quotes as they consider new projects involving promotional products.


See the note that I received yesterday from a few of our reps


– “I have been getting only one or two calls per day....left town Thurs and Fri, and there were 9 calls when I got back. I think that I need to leave town more often. Wrote several orders today, and I am making approx. 20 cold calls per week. I never thought I would have to go back out to "walking the streets!" It is what it is “


Another top rep told me that he has over 60 quotes out right now for projects and that he feels like many of these will result in orders. As we spoke he was trying to finalize a nice order for 9,000 umbrellas from HIT. When it rains it pours…this is fantastic news!


These two reps are experiencing the signs of an economic turnaround now. The fact that they are experiencing some successes should be a sign for you and me both. I would like to emphasize a point made in the first example above that many of you may have missed…


The sales rep is making 20 cold calls per week


When I began in this business I was taught that 20 cold calls per day were necessary to succeed. I understand that this number was set out there for the newcomer who was trying to get started in the business. How many cold calls are each of you making?


I think we would be ecstatic if each and every one of you were making 20 new cold contacts each and every week! Can we commit to trying this? As anyone who has committed themselves to doing this will tell you it always pays off. In some cases it may be a form of delayed gratification, meaning calls that you make today end up panning out three months down the road.


On the other side of the coin if you make no sales calls on new prospects I can tell you there is no need to wait for the results. The reward for doing absolutely nothing is nothing and it is immediate!


So today’s message is Attitude and Action…check your attitude to make sure it is positive and upbeat and once you know this to be true get up and out there meeting and greeting existing customers and prospects to find out how you can meet their needs with creative ideas and products. You can do it!


Good luck and Happy Selling!

Where have I been?

Just yesterday I was participating in a sales meeting and we were talking about what our business was going to look like in five years. It was a great discussion and considering the fact that we had about a dozen different people in the room it was interesting to note that we had about a dozen different "visions" of the future.

In an effort to gather some perspective about things we began the session with a ten point quiz about the way things were five years ago in October of 2004. Did I say that this was only five years ago and there were ten questions?

I should point out right at the beginning here that I only answered two questions correctly. I got eight answers wrong and I wasn't even close on five of those answers. To make matters even worse I will embarrass myself even further by stating that I though some of the events listed took place within the last two to three years....certainly not five years ago!

Where on earth does the time go?

Yes, I realize that we are all busy, even with all the newest and latest technology at our fingertips and I will use that as part of my excuse. The sad reality is that I think that I could take a quiz with ten questions about what happened last week and I might not fare any better.

I love blogging. I really enjoy talking about some of our daily challenges, not only in business but in regular life as well. Actually I find it therapeutic to write and vent at times. Today I find myself wondering how time can pass by so fast. I have so many more things that I want to do but not enough time. I understand setting priorities but my list appears to be too long at times.

Am I the only one that feels this way?

Changing the rules? Watch out...

This tough economy has forced lots of suppliers and distributors to make changes to reduce costs. On the surface this seems to make perfect sense. It is important to note that there are consequences to each and every decision that is made by a company's management team. Some of them might read like this:

1. the company saves money
2. orders take longer to process
3. employees are not as happy

Do these sound familiar? Everyone acknowledges that the objective is 1) to save money however if 2) and 3) occur then it is a distinct possibility that the impact on servicing of your existing customers in addition to the negative effect on employee morale might throw your company into a tailspin that is tough to climb out of.

This is happening all over the industry. How do I know this? I know this because of the increasing number of sales reps contacting Vernon for information day in and day out over the last several months. Of course this is a positive for Vernon in that recruiting is very high on our priority list and we are more than happy to provide information and prepare a direct compensation analysis to see how Vernon matches up.

The sad thing is that people's lives are being affected dramatically and not for the better. Rules are changing faster than ever. Profit splits, timing of commissions, reductions in benefits and other changes like this are a real cause for concern if you are a representative.

Vernon is not and has not been immune from having to make some changes in an attempt to reduce costs. We have however focused a great deal on keeping things in place for our reps. By doing this we retain stability among our sales force. Combine this with the impact of other company's cost cutting decisions, essentially sending people out looking for new homes for their business and this is an exciting time for Vernon.

The moral of the story is to be careful when making changes. The consequence of your decision can actually put you and your company in a worse position than you started in.

The second point to be made is that if you find yourself in a place where the rules have been changing and the results are that your income is reduced or your benefits are being taken away or the service levels that you had been accustomed to are no longer in effect then you need to give us a call.

Most of the time I say that the grass is not always greener out there but if you find yourself in one of these places please by all mean check us out at www.vernoncompany.com/a-new-direction

Back to School

Do we all remember those days?

The summer was a great time. Taking trips, hitting the beaches and burning the candle on both ends.

Actually I only burnt the candle on one end staying up to crazy hours and then sleeping in late.

Well the summer is over! It is that "back to school" time. I remember those days as well. They were mixed with a little bit of sadness and a lot of anticipation.

I have spent much of the summer encouraging our Account Execs to get ready, to rest up for the end of the year push.

Well guess what? The time has come!

The economy is showing signs of improvement. Pay attention to those signs. Talk about those signs. Get out there in front of your customers and prospects.

Make sure that they know who you are, where you are, what you offer and how to get in touch with you. Do NOT assume that they know!

We need to hit the streets with energy and enthusiasm from now through the end of the year. We need to be more creative and better organized than any of our competition. We need to emphasize our service and the value that we bring to the table. Actually this should be a year round objective in all our dealings with existing or potential clients.

So the time is now! Are you ready? Are you excited?

Remember that your attitude and outlook can be contagious. This can be a good thing for you or it can kill any chances of a sale if you are not on top of your game.

Be prepared! Just like the stock market that is performing well and working hard to make up for past losses, we can all do the same thing.

One day at a time, trying to sell more today than on this date last year is the way to go. It works if you approach things this way.

Try it!





Dave Regan
The Vernon Company
Vice President of Sales
641-792-9000 ext. 8256
641-275-2835 cell
daver@vernoncompany.com
Follow me on www.justdavesopinion@blogspot.com
Follow Vernon on www.twitter.com/vernonwantsu

Is a psychological tune up in order?

My guess is YES! Walking the floor at two recent trade shows in Chicago and Long Beach I was amazed at the number of people who felt obligated to speak about how bad things were. This included both suppliers and distributors.
After walking a few aisles and answering the same question about a dozen and a half times, I felt pummeled emotionally. I felt like going home and pulling the shades down.
I certainly did not feel like attacking the promotional products world and my customers and prospects with new ideas. Maybe it is just me that feels this way, but I doubt it. I go to trade shows to get energized, to get stimulated to go out and sell. This is what I expect when I go to a show.
What is your objective? At one of our sales meetings recently we distributed buttons that said “I refuse to participate in the down economy”. The reality is that we are all in it whether we like it or not, however we do not need to go on and on about how awful things are.
Talking about the weather or the Red Sox and their quest to outlast the Yankees this year (not looking very good right now) is far more therapeutic than bringing up the negatives. We talk about the glass being half full or half empty? This is all about perspective!
My suggestion here is similar to what I was taught when I was just a young child. If you don’t have anything good to say, then don’t say anything at all! At least by following this saying you don’t throw me into an emotional pit far worse than when I walked on to the show room floor.
Can we do this? Can we make a pledge? Can we at least try? Call it a psychological tune up! If we all did this I truly believe that we would find that we would all “run better” after coming out of the shop. This is what we all need right now.
There are too many “clunkers” out there driving around spewing negative emissions about the economy and it is polluting the environment, the environment that I live and work in.
The time is now for everyone to step back and take a deep breath and say today I will say nothing negative. Today I will only talk about positive things. They are out there! They may be a little tougher to find. Check your local paper. The good news is usually on pages 8 to 14, just after all of the negative stuff that the media can find.
If speaking about only positive things for an entire day seems to be too daunting a task, then try doing it just for the morning, or just for a few hours. If someone starts to speak about the negatives please try to turn the conversation around. Tell him or her that you have taken a pledge to talk about only positive things for the day. Challenge them to try the same thing. We might all be surprised that by doing this we can make a difference!

Trade Shows...To do or not to do?

I just got back from three busy days in Chicago at the ASI Show. I have to admit that I love trade shows. All of the activity with suppliers and distributors along with the entertainment make it like one big party. At my age I don't go to as many parties as I used to and I must admit that I arrive later and leave earlier.

Another important point for me to make here is that I am not a commission salesperson. I am in a management role with my company so I get my pay whether I am sitting in the office, at a show or on an airplane traveling.

What about commission reps? For our company we have an online calendar where we post all of the industry shows...PPAI, ASI, Regionals, Traveling showcases, etc. Quite frankly there are too many to remember now! The list fills up the calendar almost every month of the year.

My question is who goes to all of these shows? This question is quickly followed by should they go to all of these shows? Again let me state emphatically that I love shows. I truly believe that they have a place in the industry and if nothing else it allows me a reason to get out of the office and mix and mingle with others in the industry but there comes a point where we need to stop and say where will it end?

I gave up a long time ago believing that we could tell salespeople what shows they should attend and what shows that they could not. We do not do that! I am also reminded of an exchange with a supplier friend of mine about five years ago about this very subject.

I asked him how they could afford to exhibit at every single show that was being held. Of course I know that somehow the cost of attending all those shows gets rolled into the cost of the goods that we buy and sell to our clients. He asked me why all our reps keep attending them. I said because all the suppliers are there to which he quickly shot back "that's because all your salespeople are there".

I think that you get the picture. If we did not immediately recognize the absurdity of our discussion we would still be going back and forth. Who knows where this will all go.

In Chicago there were some suppliers who were not there but most of the biggies were there. Some of the booths were a little bit smaller and the number of staff manning the booth seemed to be reduced. These are all good things in my mind! Some of the booths at the shows seem to be larger than the town I live in and I cringe to think what it costs to move these displays from show to show.

From my perspective I think salespeople need to determine whether or not they attend the show on their return on investment. Most industry reps are straight commission so this means that a day away from selling (I know they still have the blackberry to stay in touch) means no commission dollars coming in. If their are travel expenses such as hotel, meals and gas this means costs are up. What do they get from the show?

Do they really work it?

Do they have a plan?

Have they examined their ROI on any given show?

I am still unsure who will blink first meaning will salespeople really cut back on their attendance or will suppliers cut back on their shows. I think given the soft economy both should be happening as we speak. Time will tell!

Running a business

Running your own business is a great privilege that many of us have in this country. When things are going well most would say that there is nothing better! The flexibility factor along with the earnings potential are perks that they would never consider giving up. They would have it no other way. They could not imagine working for someone else. But these observations are quick to come to mind when things are going good, when the economy is strong, or at the very least growing modestly.

But what about today? What are some of the first things that come up when speaking with business owners? How about this quick list....

1. the poor economy
2. lost accounts and lost sales revenues
3. rising costs
4. unpaid bills, bills and more bills
5. letting go employees

Do I need to go on? It is obvious that times like this can test any business owner's skill and resolve. The fun part of the business seems to be a thing of the past. The advantage of flexibility of your work schedule gives way to long hours trying to figure out how to make ends meet. Math skills , like addition and subtraction, become critical components of our daily work schedule.

There is a story that I once hear about the two brothers who saw a great deal where they could buy some water melons and they decided to go into business for themselves. They found a place where they could buy a dozen water melons (wholesale) for $15 a dozen. Better yet they would not have to pay for them until the end of the week. So off the two brothers went finding a good location to sell their water melons. One brother picked up the water melons with his pick up truck while the other brother decided to set up the stand. He made the signs and almost immediately they had customers stopping by the stand. It appears that selling water melons for $1 each was exactly what the public was looking for.

They sold water melons for a week. They could hardly keep up with the crowds. On Friday it came time to pay for the melons that they had bought so the two excited business owners went back home and began to tally up their sales however when it came time to pay the wholesaler's invoice they immediately recognized that they had a problem. They did not have enough money!

Oh, oh! What would they do? Then the solution became clear. One brother looked at the other and said " I have figured out the problem...next week we need to get a bigger truck so we can sell more melons".

The bottom line here if you are a business owner it that you can not discount your way out of a slump in the economy!

Cutting your profits 20, 30 or 40 % when there are no guarantees that you can gain 20, 30 or 40 % in sales revenues make no sense....yet people do it every day! Not only that, but after doing this and when the economy bounces back, and it will...they are amazed that they cannot get those good 'ole healthy margins back! Huh! Of course you can't as you devalued the product that you sold when things were tough!

Tough times call for tough decisions. Bring your business costs in line with your sales. This is not the same as bringing your product selling prices down 20 % because sales are off 20 %!

Once the business begins to return you can add people (and costs) back into your business if you need to. An interesting things comes out of time like this where we manage to find better, more efficient ways to get some things done. We also realize that some things were being done because this is the way things were...not because they were effective.

Make the tough decisions in a timely manner and before you know it you will find yourself back to that state of mind where running your own business is a good thing!

You've got a friend...

Do you have any friends?

I know that this is a personal question and maybe it makes people a bit uneasy but it is important none the less!

Having friends and communicating with friends is an important way to survive when the stress levels get high. This has become increasingly evident as we have negotiated this stormy economy during the past nine months or so.

Recently we were on a company incentive trip to Big Sky Montana and while it was apparent that many of our top reps were hurting due to some large declines in their sales and income this year versus last I also noticed something else happening that was very encouraging.

Salespeople were leaning on other salespeople for support. The sharing of ideas, thoughts and emotions were at an unparalleled level. It is clear that these people were friends, first and foremost, and then peers.

The venue that was provided where they could communicate with each other was more important than any business session or presentation that we could ever put on for them.

James Taylor's song...You've Got A Friend...comes to mind!

Six days in Montana and the mood was upbeat because we knew that we are all in this together. The scenery was beautiful and the camaraderie was even better!

I encourage everyone to make sure that you do not isolate yourself in tough times. You need to reach out to your friends. The old adage that a problem shared is a problem cut in half has served me well over the years. Leaning on others if if they too are hurting has a funny way of picking both parties up.

I think there is a glimmer of hope on the economic horizon out there but you need to be ready. You need to be in the right frame of mind. You need to stay ever positive in front of your clients and prospects. Positivity can be contagious, more contagious than the swine flu.....but you need to be around it to catch it!

Think about it! Do you have friends that you have not called in a while (inside or outside the industry)? You just call...out their name and you know where ever they are....they'll come running...

That is what friends do!

The ABCs of RFPs

Did the title catch your attention? I thought it might but the reality here is that I just wanted to vent a bit about RFPs in general.

Who puts these things together? You have to be kidding me! Do they know anything about our industry and how things flow.

If you read some of these you would be led to believe that as soon as I finish the RFPs that me and a couple of my co-workers head to the basement to begin producing the products.

Am I the only one who feels like this is the case?

In the past few years I have become more and more disenchanted with the process. I certainly do understand an organization's desire to reduce costs and to create efficiencies in the process but is the answer to create a fifty seven page document and send it out to forty three distributors and take three to four months to select a vendor who in all honesty probably can not do half the things that the RFP calls for?

This paragraph may have touched on a couple of things. I work for a large company. We have a lot of resources in both manpower and in the finances. In most RFPs, if we are honest with ourselves and our clients or the prospects requesting the RFP, we cannot or will not to agree to do many of the things that are asked.

We need to guarantee that no labor laws are being violated any where in the production chain of all the products that we supply today or might supply tomorrow. Can anyone promise that knowing how this industry works and considering the flow of products from China and other countries? Of course not, yet on every RFP, someone says yes we can promise this, and worse yet the client bites on this saying why can Sally's Promotions promise this and you can't? The answer is because we are being honest!

I also referenced the fact that we will not agree to many things that are asked and it all comes down to a simple disagreement between our company and the company that is designing and requesting the RFP. We believe that we should be allowed to make a profit and they do NOT!

What is wrong with making a little money?

Think about it...I am the customer and what I would like is for you to supply me with all my promotional products while guaranteeing that they have all been tested and our compliant with a bunch of brand new laws as well as any that might come up and are eco friendly because we want to save the environment and trees. Oh yea, I almost forgot we would like you to be a minority business if possible but don't use any child labor any where in the process.

While your at it, please include the freight in the price of the goods but I am not sure if I will really buy this product and if I do I am not sure how many I might need. Can I take one now and a few dozen in nine months... is that OK?

This all seems very reasonable to most of you I am sure and then they say please supply your net prices and mark up percentages as we will be looking for the low cost provider!

I then say...but what about service and creativity? Many a purchasing director has told me that they do not give a darn about this. Their job is to save money!

This is all enough to make me scream! It used to be that marketing and purchasing departments would have their battles and each side would win some and lose some but that is no longer the case....

Marketing may win a battle here and there but the wars are clearly being won by purchasing in putting together these gigantic bid packages.

If they ever really analyzed the amount of jerking around that goes on in these RFPs and the impact of the false promises and lack of service I would think that most, not all, people would realize this costs them an arm and a leg!

How much is an arm and a leg worth today?

I am not sure...I think I better put out an RFP on "an arm and a leg" in case I ever need one!

Say NO to a SLOW Summer!

You Control the SHOW!

About this time of year I begin my regular rants about the upcoming summer months. I have been in this industry for twenty years now and for twenty years I have heard that the summer is always slow. Is it slow because it is slow or is it slow because our account executives are slow?

Is late December and early January slow because no one is buying or because no one is reaching out and making calls?

I have a theory that it is because of the latter reasoning. Will this year be any different? It should be and let me tell you why. First of all let me say that I do believe that the during the summer months there is not the volume of promotional products being purchased as during some other times of the year. OK…now I hear a few of you saying that I am changing my mind, talking out of both sides of my mouth….a typical salesperson…right?

Here is my point! My goal for our sales force each and every year is to sell more than during the same period last year. Rephrasing that, my goal for the summer months is for it to not be “as slow” as it was last year. Can each executive sell more during June, July and August of 2009 than they did during 2008?

The answer this year is an emphatic YES for a few reasons! First and foremost I believe that there is some pent up demand among our customer buyers. They have been holding off and holding off and many of them are finally saying to themselves what we have been saying all along…Unless you are going out of business for good you need to market yourselves to tell your customers that you are still alive. (A brief side note here…are you letting your customers know that you are still alive?)

True, budgets have been cut, we all know that but in most cases there are still budgets. There are still dollars to be spent with someone so it might as well be you!

My second line of reasoning involves the “hunger factor” that exists within our most competitive reps. Many things motivate successful account executives in this business. Recognition is one key motivating factor but another one that some of you may have heard of is M-O-N-E-Y!!!

Has anyone taken a bit of a hit on their income this year? Raise your hand. OK now another question…would anyone like a chance to make up for some of that lost income? I know the answer so there is no need to ask for a show of hands but there is a need to ask if you are willing to work hard to recoup some of your lost commissions.

“Show me the M-O-N-E-Y” is that famous line uttered by Cuba Gooding in the Jerry McGuire movie. The money is there but only those who are out there will have a shot at it.

This will not be a normal slow summer! This is my projection. Every salesperson that is willing to put their nose to the grindstone and make those calls and offer up some creative options for their clients has a chance to make up some lost income. Again, like so many things in this business it is up to you!

Do not let the old saying referencing the “dog days of summer” become a self fulfilling prophesy for you! I can guarantee you one thing if you sit at home during the upcoming summer weeks sipping tea on the porch because “no one is buying”, then no one will buy!

On the other hand if you are out there meeting and greeting your existing customers as well as new prospects, prospects whose reps are “sipping tea” you just might be able to make this one of your best summers ever.

So the ball is in your court, you control the show! I sincerely hope that you are driven to be the best that you can be. Let’s get some of that money back in your pocket. Let us not resign ourselves to saying that the summer is slow. That is a good start!

Thank you for your commitment and determination to be successful!

Make sure you look under the hood...

Make sure that you look under the hood before you buy you car! This seems like common sense...right???

When you are considering buying a house it is almost a given that you would have someone come in to do a "home inspection"...correct?

One of the last things that you want to do would be to buy a vehicle, only to find out later that it had significant water damage from an unexpected drive into a lake...or to buy a home and find out 9 months down the road that there was some considerable damage caused by termites.

One of the results of this economic downturn has been that many people who thought that they had good solid positions with their employers have come to the realization that this is no longer the case. Some very good people have been forced out ending up on the street looking for a new company to process their promotional product business through while some others have been forced to work under ever changing rules in the work place.

Obviously neither scenario is one that we would want to be in. So what do you do if you find yourself in that position?

We strongly recommend that you perform your due diligence, meaning that you do your homework before making any decisions. You owe it to yourself not to make any rash decisions about your future career choices.

Making a change is not an easy decision and acting too quick can result in you making multiple changes in a short period. It is very clear that an account executive who changes employers multiple times in a short period of time does not look good in the eyes of their customers. Yes, I understand that some things are beyond your control and hindsight is always 20/20 but you do have the control when it comes to "checking under the hood" of any company that you are considering!

In an effort to offer you a free inspection, The Vernon Company is conducting a series of information webinars beginning on Wednesday May 20th. The objective will be to impart information that you may find valuable if you are considering a change.

We will attempt to inform any participants about who we are and who we are not, what we offer and what we do not!

The four part series will focus on the four pillars of our success...

Rock Solid
The Good Life
What You Need
We've Got Your Back

If you are interested we encourage you to visit...

www.vernonsales.net/itbeginshere.htm


This series will not only inform you about The Vernon Company but it might help prepare you with questions to ask any potential employer.

Changing companies is too big of a decision to take lightly! We strongly urge that you come and find out more. We may or may not be an option for you but remember education and knowledge are the keys to making an informed decision!

Thank you for your consideration!

Dave

Is there a feeding frenzy out there?

They are circling!

Pictured above are representatives from several leading promotional products distributors who are just waiting for a few "starving" reps to fall by the wayside.

I posed the question about whether or not there is a feeding frenzy out there with respect to companies looking for salespeople to join their firms. Personally I think that there is!

My perspective on this comes from the fact that I spend a good deal of time looking for salespeople to join The Vernon Team. We place ads. We send out emails. We use direct mail in addition to sending out letters. We use word of mouth. We use job or career websites. We have a referral program for suggesting names of individuals who might join Vernon.

We also spend a good deal of time watching what others in the industry are doing and how they are doing it. I know this might sound a little bit like the proverbial "pot calling the kettle black" but who cares here is my two cents on this issue.

It is getting down right nasty out there! The latest fashonable thing to do appears to be to take shots at other companies and their ownership structure. At a recent industry get together there was almost a fight between two of the biggest advertisers in the industry about the truth or "lack of truth" in each of their campaigns. Quite frankly it was embarassing for all who attended this event.

Other recent ads have targeted companies because they are privately held and have been around for a while, passed from generation to generation. I thought longevity of staying in business was a "good" thing. I must have missed the memo!

Way back when when I was just out of college I found myself taking a Dale Carnegie Sales Course. I learned some very valuable things while taking that course but perhaps the most important take away was that you never knock the competition as it makes you look cheap.

Sell your stengths and leave it at that. I only wish some of the others who are placing ads and promoting their companies could have taken that course with me.

Again, I prefaced all of these comments stating that we are recruiting and advertising using the same mediums. And while Vernon has not necessarily been the victim of any of these knocks, other than having successfully passed a business down through four generations (is this a bad thing?) and being called to task for it, I want to ask for a cease fire....

Sell what you have! From my perspective all of these companies have something to sell. Talk to those that are interested about your strengths and what you can do for them. Don't waste your breath on the fact that some company has lawyers involved or not involved in running their organization. Come on... let's all grow up!

There are pros and cons with all of the large distributors out there! Can we all agree on this? I can!

If you are selling any product or service or even just an opportunity to sell promotional products in the marketplace keep the focus on what you do and what you offer. Usually if you lead the discussions this way you will be able to do some direct comparisons with other companies if asked. It is here where you hope that you match up well based on the prospective salesperson's individual's needs.

Are we the best company for candidate A? I don't know as I have not yet talked to him or her. Only after a having an open discussion with the sales prospect will we have some idea as to whether we offer a fit.

And before anyone asks, let me say that many times we recognize early that someone might not be a fit for one reason or another. Understanding this and pointing it out where necessary is the right thing to do. To try and fit a "square peg into a round hole" is not good for anyone.

So at The Vernon Company we are taking the high road. Hopefully others in the industry will follow because it appears that several others are on a different route to their success!

Don’t be a prisoner…

Are you a prisoner? Are there days when you feel like you are being held hostage? Are you waiting for someone to come to the rescue to save you from this desperate economy?



This may describe many of you who are reading this article. I have a news flash for you all….

No one is coming to save you!

It is incumbent upon all of us to fend for ourselves. My opinion regarding a lot of this is that we put up our own barriers and we fail to look very hard for ways to escape.

Quite often I hear people tell me the reasons why they cannot accomplish their goals. They are quick to recite a list of things that stand in their way. Do any of these sound familiar?

1. My price is too high!
2. My buyer left the company!
3. The company was bought out by another company!
4. The competitor beat my price!

How about looking at it this way?

1. The price on the item that they requested is too high so I am showing them three exciting new items that will fit into their budget range!
2. I am so sorry that the previous buyer left however it is now presents an opportunity to develop a relationship with the new person. Start romancing them today about why you should be their “go to” person. Do not expect any gimmies!
3. The company was bought out by another company! This can be scary however again it might present an opportunity for an optimist to work their way into the new “parent” company. Begin by finding out who all the key players are and showing them some of the great things you did for their recent acquisition and talking about what you can do for them!
4. The competitor beat my price! Did they? Were we comparing apples with apples? Why do we find ourselves in a bidding situation to begin with? Spending a good deal of time working with buyers to assess their needs and their budget ranges and then coming in to see them with exciting products that meet their needs and their budgets is a great way to keep the competition out and to avoid bids.

We all have heard that old saying about people who think that the grass is always greener in the other person’s yard!

I was thinking about this the other day and I came up with a new saying. See what you think of this….

“If the grass always looks greener in the other person’s yard maybe it is time for you to spread some fertilizer and start watering your yard!”

What do you think?

Once again we come back to the same answer in that you control most if not all of your destiny. There are several common denominators found with successful people.

The harder they work, the luckier they get!

They look for solutions, not obstacles!

They believe that where there is a will, there is a way!

Bigger is NOT always better!

We have all heard the old slogan that bigger is better. Is this true?

The people in Texas would probably tell you....damn straight it is....but I am not so sure.

This economy has a lot of people scrambling for new homes, both on the supplier and the distributor side of this business.

As an individual who is responsible for hiring within our organization I meet first hand with many of these people and hear all their stories. I am on the distributor side working with The Vernon Company. In November I will celebrate 20 years with them and my experience has been a great one.

Listening to the experiences of many of these people I have to count my lucky stars that I am where I am. The truth is, in my opinion that there are lots of good companies out there, big, medium and small.

I do not believe that companies fail strictly because of their size or scope. There are more factors that need to be considered. Conversely companies do not succeed due to their annual sales volume either!

When considering new employment my recommendation would be to ask lots of questions. Sure you can ask about their size and how long they have been in business. Those are two good questions. But other questions should be asked as well. Some others to consider would be...

1. Can I see a copy of your current D & B Credit report or last years audited financial statements? The fact that you want to join a company that is financially stable, a company that is going to be around for years to come should not be construed as a negative. Make sure you closely listen to the answer to this question! Failing to answer this one could be a BIG RED FLAG!

2. If I join your company are there group health and dental benefits available? How about retirement plan options? These are very important to some people!

3. If you do not need those benefits will the company consider paying you a bonus in lieue of the benefits? At The Vernon Company we do offer this because we feel strongly that individuals should not be penalized because they do not need benefits!

4. Can I speak to a number of your top reps to ask about their experiences with your company? Do not take no for an answer here!

The reality here is that I have seen over the years big companies that treat people poorly and small companies that do the same. I have seen way too many salespeople that get locked in to a company, sometimes signing non-competes...please don't do that unless someone is giving you a boat load of money and even then you should think twice about it!

I feel badly when I speak to some of these people who fail to realize that there is a whole other world out there with companies that do value the individual employee rep. They treat you with respect. They listen to and value your opinion and craft tools and policies to meet your needs.

If you find yourself in a position where you need to make a change or are considering making a change please do your homework. I know that a lot of people historically have put more time in buying a "flat screen" television than they have in selecting a company to represent for the future.

Does that make sense?

Do not get caught up on the size of the company! Dig into the history of the company, the financial strength of the company and their reputation!

Talk to others in the industry about them. How do they treat suppliers? Other distributors? Their salespeople?

The lesson is the same as high school and college....if you do your homework...you will end up with better grades.

It has never been more important than today to get good grades as you search for a new place to call your career home!

Good luck!

You must spread the Good News!

Hopefully this subject line gets a little attention!



About six weeks ago I wrote an article suggesting that it might be interesting to see would happen if the media focused on good news or acts of kindness each day. What effect would this shift in their focus have on people?



Low and behold a few weeks later Brian Williams on the 6 PM news began a series where each night for one week he featured good news stories.



While I doubt this was a result of my blog I found myself watching every nighting waiting for the "good news" stories. After each piece I felt that my faith in man kind was restored, that there was good in the world and more often than not the stories brought a tear to my eye.



Well much to my chagrin it appears that the 7 and 1/2 minutes that it dedicated that was too much as the media continues in my opinion to fixate on "all things negative".



Reading a few papers recently I was surprised to see some very good news related to a few of the economic indicators....this is good right???? Yes except for the fact that it was only given two paragraphs on page seven....page seven of my Iowa newspaper!



Positive economic news couldn't get on page one or two in Iowa.



Come on!



I love Iowa but let's be real here, if the mainstream media outlets will not promote the positive things going on in each of our companies or communities then we must step up and take a stand



We all know that positive people attract other positive people... right?



Doesn't it stand to reason that positive news will attract more positive news. I think it does and I will make the assertion here that spreading the good news that we all can see and find in our own little worlds will actually help to "create and cause" good things to happen!



WOW! If you believe this then I think you will agree that this is one more piece of evidence that we can all Make A Difference...but we need to take action!



Make sure that you use all the avenues at your disposal to spread good news whenever and wherever you may observe it.



Thanks for listening!