Here are 5 tips that I’ve used and coached throughout my promotional product career. When used correctly, these techniques can add 5-10% to the gross profit of distributor sales reps. Please use these tip wisely and often. Enjoy the extra spending money!
- Never Use A Catalog
DO NOT ever give a catalog to your client. Pricing in our industry is 100% relative and based on perceived value. Set the perception and you set the price. If you give your client a catalog you are giving them exactly what they need to start price shopping. Give your client a catalog and you will GUARANTEE yourself a lower margin than you could have earned.
- “Read” Your Client
How experienced is your client? Do they purchase promotional products every day or is this their first time? Is this order a very important decision to him? Or does he just want to get it over with and off his checklist?
You need to be able to read your client and the situation. Their experience level will tell you a lot about where to price their project. If they lack experience, walk them through the ordering, production, and delivery process, but don’t forget to pay yourself for the service provided by padding your bottom line a bit.
- Understand The Value You Bring
We aren’t peddlers of trinkets and trash. We are professional branded merchandise consultants. We source products, negotiate, manage logistics, and protect the brands and businesses of our clients. Never forget that. Don’t minimize your value because that always leads to you minimizing your margin.
- Use Trusted Suppliers That Give You The Best Pricing
Not all suppliers are created equal, nor is the pricing they offer. Whenever possible present your clients with products from the suppliers that give you the best pricing. Special pricing is usually available from the large suppliers. Give your customer a high-quality product and give yourself higher commissions by using trusted, value-driven suppliers.
- Add “Closeouts” to your offering
Some reps view closeouts or overstock items as unsellable, obsolete products. This couldn’t be further from the truth. In many cases, adding closeouts to your product mix provides great value to your client, generates higher margins for you, and helps a trusted supplier move merchandise. There are very successful reps who make great livings selling closeouts exclusively. You can usually sell overstock items at a margin of 60%. That’s definitely something to be excited about!