StrategiesThatWork.com

We hope you find the following information to be both useful and interesting.  At the bottom of this page you will find brief summaries of other articles that may also be useful to you....

Use our contact forms to let us know what you think, other topics we should include, and so forth...

What Is The Product?

I cannot remember a time when companies didn't at least talk as if they wanted to give their customers the product they wanted. For some reason, however, the move to satisfy customers seems to have stopped there (addressing only the physical product) for many companies. What they are missing is the way they provide service, technical support, and parts.

Informed Consumers

In the past ten years we have seen some significant changes in the tools that businesses and their customers have at their disposal. One of the most obvious is the Internet. Millions of people have instant access to volumes of information, but businesses have been slow to put much more on the Web than a digital version of their product brochure. This makes it difficult for potential customers to learn about your products in a manner that is convenient to them.

The Web Rules

Something that many businesses seem to have overlooked is the fact that a small (formerly regional) competitor with a simple but comprehensive Web site can present a very competitive presence.

If your Web site is slower loading and less comprehensive, you could appear to be the smaller (or at least the less sophisticated) company. As the number of companies on the Web has increased it has become the first choice for information for more people. As a result, fewer people are resorting to traditional media to find suppliers.

After all, with so much information so readily available on the web, why go to the trouble to find the (presumably) few other companies from other sources. Suddenly, Web presence is required, and a web presence means little unless the browsers put you in the first two or three pages of ten hits.

Cheap Long Distance

Another important change has been the cost of long distance telephone service. The rapid downward spiral in long distance costs has made telemarketing incredibly affordable. No one has ever said that they look forward to the call during dinner attempting to persuade them to change their long distance carrier, so it probably isn't effective, right? Wrong. If it wasn't working, do you think they would still be calling? Think about it.

Perhaps the ultimate tribute to the power of the telephone call is offered by your print media salesperson. Just think, when was the last time you were prompted to buy print media because of an ad you read? Probably never. So what do your print media sales reps do? They call you!!! They actually call you on the telephone to tell you that you need to spend money advertising in their magazine. There has got to be some greater truth in this somewhere!

Overnight Delivery

Another innovation that we take for granted but generally under-utilize is overnight package service. It has become incredibly affordable (especially for high volume users) and reliable. The implications this has for your ability to provide replacement parts and other items that formerly required local dealer or branch outlet support is incredible. You can be on the other side of the continent and still have delivery to your customer's door before lunch the next day, frequently sooner than a local service person could appear.

What Dealers??

Recognizing that we now have some generally under-utilized tools at our disposal, it is up to us to find ways to use them to better meet our customers' needs. How these tools change the business landscape differs for small "upstart" companies and those entrenched in the old ways of doing business. Small "upstart" companies can now afford to have a national presence.

An Internet site can put you in front of more people overnight than your less progressive competition with their national network of dealers or retail outlets. Not only are you able to become national without the cost of setting up a costly network of company stores or dealers, by selling direct you are able to be cost competitive even though your larger competitors may have far greater economies of scale.

That's because the dealer adds an additional markup before the product reaches the end user. The key is to use their retail price as an index, price your product somewhat lower, and sell direct. By operating without a dealer network you can frequently more than offset any diseconomies of scale you might have. The dealer networks that once gave the big companies such an advantage can work against them, making it almost impossible for them to copy your direct marketing strategies.

Compete Locally - From Anywhere

If your product is small, your customers can "overnight" it to you for repairs. If you move quickly in the repair department, you can have it back in your customer's hands 72 hours after it was sent to you. Again, this is probably much faster than the local dealer for your competition could get it back to the customer, even if the customer took the time to personally deliver it and pick it back up. You are not only faster, you are more convenient!

An alternative for producers of larger equipment is to design it with easily removed components so that the customer can "pop out" the problem and swap it. Since you can send the exchange component to them while their defective unit is on its way to you, they can be back up and running the very next day.

Use E-Mail

If you are really Web oriented, you may find that you can avoid some of the high costs of print advertising and direct mail by asking your web site's visitors for permission to keep them up to date on specials and such via e-mail. You will find that unlike "spam", such direct mail e-mail is a welcome and affordable way to stay in touch with your customer base.

Importance Of Dealers Is Slipping

Larger companies can certainly benefit from the same suggestions as previously discussed for the smaller companies, but they generally have to somehow make the transition from "how it's always been done" to the best way to do it. Some products really do need a local dealer, but the number of products for which this is true is constantly diminishing.

As products become more reliable and less service intensive, the direct sale to the end user becomes increasingly attractive. Not only is it generally more cost effective, it puts you in closer contact with your customers. This means you get more rapid and more accurate market feedback, making it easier for you to quickly respond to changes in the market.

Direct Customer Contact

As products have become more reliable, they have also become more technically sophisticated. Too many manufacturers have discovered that their dealers and distributors are not keeping up with the technological changes, frustrating end users.

We have all had the experience of calling the factory for technical support, having the problem diagnosed, and then being forced to purchase the part we need through a local (local meaning "closest", sometimes not really close at all) dealer.  It would not be so bad if the dealer didn't know less about the part than we do! Then the dealer calls the same person we were just talking to at the factory to order the part for us.

What value did that dealer add to the process?

Staying In Touch

If your smaller (direct selling) competitor is taking all of the service calls at a central location, service patterns emerge more quickly, enabling the company to rapidly address the root problem.

Direct (to the end user) service contact also puts you in control of the quality of service customers receive. Of course, this is not a problem with any of your dealers, but sometimes service update information does not receive a lot of attention in a dealership. When the service technician is subsequently "stumped" by a problem, it is a lot easier to slam the product and manufacturer than to the technician has simply not been staying current….not very good for your company's image.

When Do Dealer Fit?

An established dealer network does not have to be dismantled in order to have direct contact with end users (see "Dealers And Distributors"), there are several less radical approaches you might pursue. Regardless of your choice, however, you need to face the facts….dealers should only be involved in the distribution, sales, and support process to the extent that they add value in proportion to their cost.

Any cost they add to the process in excess of their contribution simply serves to drive up your retail price, making your market vulnerable to any competitor willing to sell direct.

Let Customers Buy

The Way They Want To Buy

By forcing customers to buy in a particular way (you cannot buy that from me, you will have to call your local dealer…), you also expose your market to anyone willing to let customers buy the way they want to buy. The free enterprise system is inherently adaptable, and if your policies are not what the market wants, someone will emerge to satisfy the market. It's that simple. You satisfy your customers or someone else will.

Best Picks...

....If you are in a hurry and can only read a few articles, the following five are the ones we hear the most about...

They are a bit longer than most of the others, but they will give you something to think about....

Could You Run A Winning Football Team Like You Run Your Company?

Teamwork - Coaches and players speak to business professionals, encouraging them to build teams that can win.  Let's compare your company to a professional football team....

Eating The Heart Of The Watermelon

The heart of the watermelon is the sweetest and lowest hassle part - so why bother with the rest?  You may not want to follow this thinking at your next picnic, but it sure works when making customer and product decisions!

Quit Your Company - An Exercise

This exercise will force you to see your company and the competitive landscape differently than ever before.  It will help you decide what needs to be done in order to stop the competition you don't even have yet...

Dealers And Distributors (Short Version)

You may need dealers and distributors- or not.  The real issue is whether your end users feel that they need your dealers and distributors!  Companies win when they offer end users what they want....

Dealers And Distributors - And "Going Direct"

If you have a dealer and distributor network, should you consider "going direct"?  Let me ask you this - if a major competitor did, what would happen to you?  That's your answer - this will help you see how to do it....

Management Theories

Not all management theories work - and this section discusses some theories that have problems

Reality Instead Of Theory

You can't believe everything you have been taught about business.  Most of it is true, good information - the trick lies in knowing which parts to believe, and which parts to reject.

Positive Reinforcement Myths

Positive reinforcement can result in training and motivational miracles - but there is one little catch...everyone in the "real world" seems too well fed for it to work!

Truth About Advertising - What Advertising Awards Mean To You

Advertising awards are something ad agencies love to display - perhaps it gives them a feeling of credibility.  It's a shame those awards don't reduce their client's advertising costs or increase their client's sales...

"One Size Fits All" Management Fads

Management fads do a lot of damage - they send companies off in wrong directions, and they erode the confidence of managers.  How?  Managers try the latest fad, and when it doesn't work, they assume it is because they were not good enough - it's a shame, because their instincts are almost always more effective than the fads...

TQM - The Quality Myth

TQM has been a major force for a number of years.  Although it has lost some of its luster in many circles, its proponents (consultants getting wealthy, perhaps) continue to re-invent it under a constant flow of new names....

Your Departments

The last group of articles in this section apply to sales and marketing.  The reason this area is receiving so much attention here is that there seems to be more confusion in that area.  Let's just take a quick look at some of your key departments...

Accounting Excitement

If business was a sport, the accounting department would be keeping score.  Unfortunately, the accounting department seldom provides the kind of information managers need in order to make good decisions....

Purchasing

Purchasing is more than "buying what you said you wanted", it is a proactive role that investigates better products and anticipates demand.

Engineering And R & D

Engineering creates your "new and improved" products - you need to make sure they know what your company and your customers want from them.

Manufacturing

Manufacturing - Manufacturing efficiencies largely determine your costs - and costs largely determine your competitive position!  Efficiency requires great management, management willing to do what it takes to attract and retain the very best people.

Entering New Markets - Then Closing The Door Behind You

Entering new markets - you couldn't do it if the companies already in those markets were staying in touch with their customers!  Remember that after you enter a market - or you may become someone else's "new market"!

Innovate, Renovate, But Satisfy Your Customers

Things have changed faster than most companies have changed - the web, overnight delivery, long distance charges, longer lasting products, direct (to consumer) sales - there are many ways to combine these things to satisfy your customers - and gain market share.

A Winning Marketing Campaign - Lousy Sales

Heartbeat Of America.  The ad campaign won awards, but market share slipped.  Winning companies match great marketing with great products - then the competition loses while consumers win.

Strong Companies Win In Efficient Markets

Marketing is not the art of lying without getting caught.  When your product is the best choice, there is no need to lie.

Applied Market Research - Satisfied Customers

Market research can come from a consultant, but it should also come from your own employees.  Having market research means nothing, however, if you don't use it to make customer driven decisions.

Selling To People - Not Markets

Sometimes we can forget that markets don't buy anything, people do.  Market research is valuable, but make sure it tells you about real people.  Nobody wants your product - they want a way to solve a problem or meet a need - perhaps your product can help them accomplish that.

Advertising For Sales, Not Awards

Advertising - why are you doing it?  If it is for sales, you may need to make sure your agency understands your priorities - instead of pursuing "awareness" and "impressions" - if you want sales, hold them accountable for sales!

The Rest Of It...

Not everything fits into a file, box, or compartment - this is the rest of it....

StrategiesThatWork.com Homepage

Marketing should not be a lie - build a company with productive labor, efficient purchasing, great design, accurate accounting, rational distribution - and the result is a truth you are proud to tell.  Marketing becomes a simple matter of telling the truth to people who are interested!

Eating The Heart Of The Watermelon

The heart of the watermelon is the sweetest and lowest hassle part - so why bother with the rest?  You may not want to follow this thinking at your next picnic, but it sure works when making customer and product decisions!

Dealers And Distributors - And "Going Direct"

If you have a dealer and distributor network, should you consider "going direct"?  Let me ask you this - if a major competitor did, what would happen to you?  That's your answer - this will help you see how to do it....

Dealers And Distributors (Short Version)

You may need dealers and distributors- or not.  The real issue is whether your end users feel that they need your dealers and distributors!  Companies win when they offer end users what they want....

Quit Your Company - An Exercise

This exercise will force you to see your company and the competitive landscape differently than ever before.  It will help you decide what needs to be done in order to stop the competition you don't even have yet...

Three Kinds Of Employees

The right employees are one of the most important resources a company has. Most employers are quite aware of how valuable a great employee can be, but have a difficult time figuring out who the great ones are.  It helps to divide the work force into three groups.... 

Your Mission Statement - What It Means

A mission statement is not something you can carve in a plaque next to your door, because it needs to change.  Mission statements establish priorities, and if customer satisfaction is not at the top of those priorities, you may have a problem.

Could You Run A Winning Football Team Like You Run Your Company?

Teamwork - Coaches and players speak to business professionals, encouraging them to build teams that can win.  Let's compare your company to a professional football team....

Performance Reviews

Performance reviews.  Yawn.  While performance reviews are not exciting, few things can do more to shape your company.  Done right, they can make a big difference...

"Honey, We Need To Talk"

"Honey, we need to talk" are terrifying words when they come from your spouse.  You may feel that you have an "open door policy", but walking in that door feels a lot like "Honey, we..." to most employees.  You need an easy way to stay in touch - like lunch!

Partnering And Sole Sourcing

Partnering - we hear a lot about it, but if you aren't willing to be a partner in your purchasing, you are not ready to ask your customers to trust you in that role....walk in their shoes for a moment.

Customer Focus

"Customer Focus" is something we hear a lot, but seldom results in much action.  Funny, isn't it, that customers are the only people who leave money in your company - everyone else is there to take some out....

Science Of Yourco

You don't have to look further than the nearest business magazine to find a few easy steps to management success - so why bother to develop a "Science Of Yourco"?