
Ecommerce continues to grow as a part of our business.
The most important aspect of a program is that it achieves the purpose of making an existing "distribution channel" viable. What do I mean? In other words, we are using technology and a program to help the client either purchase or distribute branded merchandise to their network of either marketing managers, departments, franchisees or sales teams. The VAST majority of the stores intended to sell 1-piece merchandise to employees are failures and not profitable. They CAN work if the employer is FUNDING the merchandise, like in the case where employees receive an annual stipend to purchase branded apparel or uniforms. 2014 Statistics for Proforma Albrecht Active Programs 34 active stores 5 seasonal stores Managing 20,000 users Over 6,000 orders $3.2 million in business directly placed online through the store Immeasurable indirect business as a result of store, program or contract www.proforma.com/ecommercehandbook Qualifying the Opportunity Is eCommerce a Good Fit? Many account opportunities would benefit from a customized company store. You can be the hero by streamlining purchasing across your client's programs and departments through a single, user-friendly site. The answers to the following questions will help you determine if eCommerce is a good fit. 1. What is the purpose for your client wanting a company store? There are many answers to this question. It's your job to listen. In the world of company stores, every sale is not a good sale. You should know when to say no. By knowing basic financial information about your client, it will support your decision to put time into the project or pass on it. . 2. What are your client's annual sales? The higher the sales, the better chance a company store has to be successful. Promotional product sales are generally in direct proportion to your potential client's sales. Another way to look at it is: a company's promotional product purchases are a percentage of the advertising budget. Also, the number of employees in a company can help you know your client - ASI estimates a $100 spend on promotional merchandise for every 1 employee. 3. How many locations does your client have? The more locations, the more reasons to have an eCommerce solution. The company store will control the client's branding and expenses by having all purchases come out of one solution. 4. Does your client have a marketing department? Businesses with marketing departments will usually purchase large drop---ship orders. This may be an opportunity to help your client manage inventory more effectively and less expensively. 5. How many branches/divisions, dealers, sales reps and agents make up the company? When a business involves these types of organizations, company stores have a better than average chance to be profitable (and may open the door to expanding the products you sell to your client). 6. Does your client do trade shows? Trade show promotional product sales will be significant enough to make most stores profitable. 7. What was spent on promotional and/or print products last year? This is a basic question that will show you the potential scope of the store. 8. Is there a budget proposed for promotional and/or print products in the upcoming year? A budget will indicate what a company is willing to spend, although companies may spend more than what is budgeted. Many companies lack control and may not know what they spend, which represents a great opportunity to demonstrate our value. 9. Has there ever been a company store program? This question shows that you want to advance the action and build upon what was previously provided. 10. What did they like and dislike about the previous company store? Finding out what did and didn't work will help you succeed where the previous provider may have failed. 11. If they have an eCommerce site, what is the address? Analyzing the previous site will give insights into how to move forward with a new company store site. Keys to success - Goals - have a goal for what you, as a salesperson, want out of the account and also know and ask the client for their goals Simple - keeping the structure organized in a way that fulfilling the program and orders is efficient, profitable and cost effective for both customer and supplier i.e. Tier pricing, qty min, zero inventory model. Utilizing preferred suppliers - timely billing, shipping advantages,1/2 1st qty. programs, 24 hr service Turn key approach - for customers, sales rep and accounts payable The best time to ASK about a program opportunity is BEFORE you make any promises, Carl Albrecht is our program manager, he has helped with many, if not all, of the 34 active stores. Carl@albrechtco.com. Michelle McCafferty is the Proforma National Accounts Manager and call also assist in directing you to the right resources, mmcafferty@proforma.com |