Whose Responsibility is Product Safety?

In the past few years there has been a frenzy of activity in our company with respect to product safety issues. Unless you have had your head in the sand you should have noticed some very high profile recalls and cases involving unsafe promotional products being sold and distributed.

There is agreement that cases like these have given a black eye to what you and I do for a living and that each additional case like this threatens our ability to make a living down the road. With that being said I think this is where the agreement ends.

Who is responsible for making sure that the end user recipient receives a safe product? I guess we can say that there is even some ambiguity about what constitutes a safe product. As I have said many times, let me add the disclaimer that I am not an expert in this area but I try to learn as much as I can and then apply some common sense to how our company approaches these types of issues.

I think it is fair to say that no one wants their customer or the end user to receive an unsafe product. Can we agree on that?

If we do then the responsibility can fall in the following respective laps....

1. The buyer can demand that the product they receive meet certain tests and standards
2. The salesperson can promote and present safe products to the buyer emphasizing the features and benefits
3. The distributor can restrict, control and promote the use of vendors whose products meet the testing standards
4. Suppliers can market and promote their lines as being safe with all testing certificates easily available for all to access and see

I would make the claim that all four of the above scenarios have to come in play for this to work. We see several suppliers placing a great deal of emphasis in this area. We also see several large distributors in the industry identifying this as a great area of concern for the future and they are clearly working towards how to incorporate this into their business model. We see few customers requesting this, mainly the larger companies. Mid size and small companies do not seem to have a grasp on this issue or how it could affect them. Last but not least we do not think most salespeople understand what is at stake here.

Let's start by talking about the actual safety and well being of the end recipient. That is at stake! How about the reputation of the customer's brand name? That, too, is at stake! The salesperson's commission is hanging in the balance if a product is found to be defective or not meeting the standards in play. A distributor's reputation and future is at risk. A large order recall or fine or lawsuit could and would force most distributors in this industry to close the doors.

Lat but certainly not least in my book is the reputation and future of the industry, what we do each and every day! If we do not all work to protect the end users and the customers, there may come a time that people say; "Shoot, I am just going to eliminate buying promo products altogether. It is too much of a risk!"

We cannot let it come to this!

Suppliers, Distributors and Salespeople have to develop their value proposition to their buyers and be able to sell the features and the benefits. It might be simplistic to say that since the manufacturing guidelines and testing requirements cost money, that a "safe" product usually costs more money than an unsafe product but I think we can make this statement. Here in lies the rub!

Salespeople, by and large, are fearful of selling or presenting a product that is higher in price than what their competition is offering. This is not anything new.! Is it? I don't think so!

Taking a Dale Carnegie Sales Course (it seems like a hundred years ago but it is still timely today) I learned that in order to overcome a higher price objection one needs to clearly sell the features of the product and how it will benefit the customer and eventually the end recipient. We NEED to do a better job in this area!

Suppliers need to do a better job selling distributors!

Distributors need to do a better job selling their salespeople!

And salespeople need to do a better job selling their buyers!

Unless all three of these things happen we are doomed to fail in this regard!

So whose responsibility is it to assure that end recipients receive a safe product at the end of the day?

Let me say that we should not be pointing fingers at anyone else because it is OUR responsibility, one that we can not take lightly. It is OUR responsibility, whether you are on the supplier side, the distributor side or the sales side. We all play a major role!

I encourage everyone to begin accepting this responsibility today. Suppliers should make sure that they are producing safe products and that their sales literature and selling techniques emphasize the product safety issues. Distributors and sales reps need to make this issue front and center with their customers. Don't wait for them to bring it up! We should bring it up and let them know that we are concerned and committed to the health and well being of the end recipients as well as the company brand, image and reputation and this is why they need to be aware!

By doing this we will all take a giant step forward to securing our future and that of the next generation in this great industry of ours!

Good luck and thanks for taking a few minutes of your valuable time to read this!

Dave

Important Questions to Ask

It seems lately that there a lot more people looking around to either sell their promotional products business or align with someone else so that they do not have to deal with the day to day administrative duties.
This may have something to do with the baby boomers beginning to hit their retirement years. That would be my best guess.
Recently I was contacted by someone asking me if I could help them develop a list of questions to ask of any prospective buyers or employers that they could utilize in their search. Of course I told them that well now that you called me, your search is over!
As soon as the laughter died down, I got back to the business of trying to help this person compile a list of questions or concerns specific to this industry that they could inquire about. I did add to each question how our company handles the specific situtations but I do not think, despite my self serving comments about what we offer, that anyone can dispute the validity of the questions below.
Please feel free to print out and save and to use as you see fit for your own personal situations.
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23 questions to position yourself for the future

1. Ask to see the last two or three year financial records (Vernon will provide this)
2. If (1) is not available ask to see a current Dun and Bradstreet report showing their credit rating and financial risk assessment…this is key as you do not want to make a change and walk into a company in distress! (Vernon has a 4 A1 rating the highest that a company of our size can have)
3. What is the history/tradition of the company? How long have they been around? Are they established and well known? (Vernon is 108 years old and is run by the fourth generation of the Vernon family)
4. Do they have long term employees? What is their turnover of inside people? Of salespeople in the field? Ask to speak to some veteran reps who have been with the company 10 + years? Loyalty among the existing employees and salespeople is very important. (Vernon can and will provide references to speak with – we have reps from 1 year tenure to 50 +)
5. Ask these employees about recent changes in commission structures or compensation plans. Have things stayed the same or are there constantly changes to the rules? If so this is not a good sign because the deal you make today may be gone tomorrow.(Vernon has made no changes to the compensation plan in 10 + years)
6. Would you be an W-2 employee or a 1099 individual or corporation representing the company? This will have potential tax ramifications and not that either one is better or worse, but you just want to know how you would be set up.(Vernon offers a variety of different set up options – we would discuss with you the best fit)
7. If you would have an employee option are there benefits such as group health and dental and a 401 K plan? (Vernon offers these)? What else?
8. How do you get paid? Commission, salary, a combination? (Vernon pays a 50/50 split on profit, paid upfront when the order is written – bonuses, benefits and tech tools are all added on top of the 50 % that you would receive)
9. Are there profit guidelines? How low can you go on price and profit percentage? Who determines the price? Can you set your own? (Vernon has published plans. On good size orders you can sell at 20 % profit and still receive a 50/50 split)
10. Is there a sales contract or agreement? If so is there a non-compete provision? Are there financial penalties imposed if you try to leave and stay in the industry selling to your exisiting accounts? You must ask these questions, just in case you make a mistake as you need to have an exit strategy if things do not pan out as planned. (Vernon has no non-competes or penalties for leaving)
11. What happens if your customer does not pay the bill in 30, 60 or 90 days? What are you responsible for? The commissions, the profit, the supplier net cost? The answer here could cost you some significant money! (Vernon gives 150 days for a customer to pay their bill before there is any impact on the rep and even then we only take back the commission. If the customer pays at 165 days we reinstate the commission)
12. What if you make a mistake and the order needs to be redone? What is your responsibility? What if the supplier makes the mistake? How about if the company that you represent makes the mistake? What is your responsibility? Who pays for what? (If you make the mistake with Vernon we split the cost of the redo…If Vernon or the supplier makes the mistake, Vernon or the supplier covers the mistake)
13. Do you receive reports on your sales orders and accounts? (Vernon offers a variety of different reports sent electronically to all of our reps on a regular basis)
14. How would you enter orders? On line or in writing? (All Vernon reps have their own on line account that maintains all their data and order history)
15. What support is available? Product research? Credit and collections? Customer Service? Supplier contacts? (Vernon offers all of this – 150 employees in our home office are there for you!)
16. What is available in terms of technology tools for you to use? ESP or Sage? Affinity artwork?  Pinpointe? Personalized Website? Online Account Management System? (Vernon offers all of these and much more)
17. Does the company have sales meetings? (Vernon has a National Sales Meeting in addition to regional meetings around the country – the goal is education and training along with comaraderie)
18. 18. Is training available? (Vernon offers on line and in person training)
19. 19. Are there contests and incentives? (Vernon has a variety of different contests and incentives throughout the year. The biggie is our incentive trip. We offer destinations like Cancun, Cabo, Victoria BC, Big Sky Montana and others)
20. Can you talk to other sales reps before making a decision to join or align with the company.(We would offer you a list of 5 to 6 reps who you can call and speak with about their Vernon experience)
21. We strongly suggest that you check with several of your supplier friends to see what they know about the company or companies that you are considering?
22. What marketing tools might be available in terms of company catalogs and leave behind pieces? Will the company help you to distribute or email proactively to your accounts and prospects? (Vernon does all of this!)
23. If commission what is the percentage of profit split and when is the commission paid? Some options are when the order is written (Vernon’s way), when the order is invoiced, when the order is paid. This is important as it determines how long you need to wait after you make a sale.