New Season, New Hope

As I write this, we're in the middle of the trade show season, which means my chiropractor, massage therapist, acupuncturist, and the guy who colors my hair are all looking forward to my return home and their share of my "open-to-buy." I've felt very encouraged by what I've seen in the markets. There's a positive buzz; no grousing in elevators, no complaints in showrooms. Retailers seem to have had a good holiday season, and that's resulted in very good attitudes.

The busy showrooms had something more to offer than just the usual cheese, crackers, and boxed wine. In one showroom, I heard live music. In another, I was served lunch and a variety of wine and beer. I saw artist signings and presentations. And I saw retailers staying on longer, and writing big orders.

The marts have also gotten in on the act, with more mart employees offering more help than ever before. The L.A. Mart had staff on each floor, handing out complimentary snacks and bottled water.

My favorite quote was the manufacturer I overheard telling a peer, "I've figured out what this industry needs. More women shoppers and two Christmases."

But because I've never been one to don rose-colored glasses, there are a few sobering issues to address. The reality is that several years of economic uncertainty have taken their toll. Once-strong local department stores have either closed entirely or shut down branches. Ditto national chains. And many independents have been pushed out by the big boxes.

Of course, when a messy, unfocused, over-extended store closes it's not necessarily a tragedy for sales reps — stores like that are rarely huge income-makers. But all these closings mean one thing; the pieces of the pie are getting much larger.

I first heard that phrase, "bigger pieces of the pie," used in the early '80s, when I was a greeting card sales rep. I had to think about the implication. (Here's the Ashcraft stream of consciousness: "Bigger pieces of pie, hmm, that doesn't sound so bad. I'm hungry. When's this appointment going to be over?) What it means, of course, is that the stores that are still around have more customers. So that's good, right? But now the reps that used to sell to the stores that closed have to make up that income somewhere else. So we're all going to be selling to the same stores. That's not so good. (Now I'm hungry and nervous.) I assume you see my point.

Flash forward 20 years and the implications are even more sobering. The computer age and the availability of information-on-demand means expectations are higher than ever. Nowadays, you need to do more than ever to become indispensable to those fewer available retailers.

Here's a good example. Thom Macias, owner of Party On La Cienega in Los Angeles, has created an incredible retail mecca that began as a single party store. In ten years, he and his partner, James Pepper, have grown enough to take over an entire city block. Party On is the place for gorgeous stationery, home decor, and gifts. There's a huge department devoted to wrap, a baby gift department, and a full line of wonderful pet items. Any rep or manufacturer would love to be in that store.

But as Thom explains, "I can buy virtually everything in my store from somewhere else. There are very few items I can get from just one vendor."

The reps and manufacturers that Thom wants to work with are the ones that "get it" — the ones that know their lines and service them in full, and keep him posted about specials, the competition, and what's selling. If you're not doing that … well, you don't "get it," do you?

What can you do to stay important to these retailers? The answer is really pretty simple: get back to basics. If you're a manufacturer, that means putting away the reports and the minute-by-minute analyses of which item was selling best four minutes ago, and getting in touch with your reps, your retailers, and your consumers. It means becoming more creative by offering smart, clever specials and promotions. It means making sure that the features and benefits of your line are clear to your sales force. Are you writing fun, informative newsletters for your reps and retailers? Does your website offer information on bestsellers, new releases, future ship dates, and promotions? Remember all those marketing basics you swore you'd start implementing? The time is now, my friends.

If you're a rep, it really means getting back to basics. Remember the enthusiasm and energy you had when you first started? Remember how you got to know each line and loved showing samples and catalogs? Well, it's time to do that again.

Get to know your lines inside and out. What makes them better than the competition? Are there buying programs that would benefit your accounts? Are you servicing the products you've sold, helping with displays, or stopping by to straighten shelves when you've got spare time?

And retailers, you're not off the hook. Good reps are your best resource. When you send orders directly to the manufacturer, you lose. Then reps can't tell you about bestsellers, check to see if you qualify for specials, let you know if your competition is already carrying an item, or even check for invoicing errors. And chances are the reps won't get paid for the order (or get full commission), so everyone loses.

It's a new year, and a new opportunity to do things better. It's also a chance to ensure that the big pieces of the pie get shared. Let's all dig in.