
Because if you don't, going after retailers to offer the ONE Group product line isn't for you.
When I first joined ONE Group, I was so excited about the possibility of selling to retailers. The "Why" of this is something for Sigmund Freud to dissect. Perhaps I thought it would make me less of an "Avon Lady" and more of a "Donald Trump" if I wasn't just going around selling organic products to individuals. I don't know really where I was coming from - all I know is that where I found myself after a few tried and failed attempts was not a happy place.
The funny thing is that my professional background is in sales... Business to Business sales in fact. I have sat at the negotiation table with the decision makers of Fortune 500 companies and landed multi-million dollar accounts. I thought that pursuing a few local retail store owners would be a walk in the park...
Boy, was I wrong!
Just last week one of you presented me with a story of rejection by a retailer. This retailer said that unless they could get the 40% off on products, they weren't interested - because they were looking at their bottom line.
What I found most striking about this objection is the irony within it. If a retailer is looking at their bottom line profits - wouldn't it make more sense to leverage their income by offering their customers the best products on the market? Wouldn't it leverage their income to have others out there selling products for them?
The following questions came to my mind...
- How many products does their store sell when the doors are closed?
- How far can they actually reach a customer demographic? Maybe 10-20 miles?
This retailer probably has hopes of making profits - but does this retailer have goals of being a multi-million dollar chain of stores? No, probably not. And that is okay because not everyone has a million dollar mentality. What I have found is that most small retailers don't have their "financial gauges" set to go above a certain level of income.
Another thing about retail stores is that they hate MLM companies and would rather be set aflame than be associated with a network marketing company. I have no clue why this is, nor where these people get their information, but personally I feel it is based on ignorance.
Another one of you called me this week and said that her retailer said that he refused to be associated with MLM because it put him in direct competition with the representatives. This is also another bit of irony that I can't help but ask questions to:
- If he is in competition with the reps, are not the reps also in competition with him?
- If another store offering the same products as he offered opened up across the street from him - would he close his doors in fear of the competition?
- How many other stores that sell his same products are in his region or online? Probably quite a few - yet he still opened a store to compete. Why then is he afraid of MLM competition?
- If he is afraid of MLM competition - why? Does he see how powerful it is?? And if so - why wouldn't he position himself in such a place of power?
There are some pretty high up reps in ONE Group and even some newbies that think retail is going to sink the company. They claim that it is making the market for reps impossible to succeed. I must question this... if the retailers are sinking the reps, why then are the retailers so afraid of us? 2+2 is just not adding up to 4 here.
I am beginning to see that in order to be successful with retailers, we must apply the same principles that we apply to prospective customers and representatives. We must QUALIFY them first. But before we do - we must assess our 80/20 Rule. How much work will it take to make that retailer happy vs. how much money we will make off that retailer. If we are applying 80% of our efforts into retail for a 20% ROI, is that really where we want to be? BUT... if the retailer is self-sufficient and doesn't need a lot of work and you invest 20% of your time to make 80% of your GV, then perhaps it is worthy of a second look.
I don't see retail as direct competition. Personally, I believe there are different types of shoppers in the world. There are those that love to shop online, there are those that love to shop in stores and there are those that prefer direct contact with a personal representative. Those three very seldom cross over. But when they do - it is something that benefits everyone.
For example, if a customer runs out of miessence deodorant, they are faced with having to order it and wait up to a week. They cannot do this. Most folks won't go a week without their deodorant - well, hopefully. :-) So this customer is faced with having to go to their local health store or organic market and do what? Buy another brand. Why? Because it is convenient. What could happen as a result? We could lose this customer forever to the convenience factor.
In my mind, I would LOVE to be able to tell my customer that they can run into their local health market and buy the miessence. For me - it is about making the customer happy.
This is where the dilemma of retail comes into play. If a retailer isn't thinking in terms of what will make his customers most happy - he will see us as competition. Equally, if a representative is seeing retail as the competition... what does that say?
But what if this retailer had the opportunity to capitalize off the competition? What I mean is, if this retailer were to join as a Representative, he could build the competition himself. That way, all competition's sales would lead back to him. To me - this is a no brainer.
We must go back to the mentality factor of retail and in looking at the typical small retail store, they are indeed Mom & Pop shops. Do mom and pop have a burning desire to make money?
Let me tell you that I grew up in a family of retailers. My family owned a small chain of retail stores back in the 70's - early 90's. Big discount chains put us out of business eventually. But even before the plethora of discount stores took over, I can tell you this ------ my family's goals were not to make millions. The typical small retailer is thinking in terms of simply keeping the doors open and turning ANY profit that they can just to stay alive.
My father had already made his wealth before opening the stores. In fact, he opened the stores as part of his early retirement. It gave his wife something to do, and gave him money to play Skins on the golf course everyday. That was it... there was no goal of making millions. It was simply an elaborate retirement account.
This leads us back to qualifying. You must qualify retailers the same way that you qualify anyone else in the business. Don't walk in trying to SELL them something. Walk in and try to find out if they are someone worth doing business with. Do they meet the demographics? Do they have a nice shop that you would be PROUD to see the products in? Proud to say, "One of my retailers is..." How much hand holding does this shop need? Is it worth your time?
If they qualify - then you make your presentation.
And then possibly comes the rejection. But don't take it too hard!! The funny thing is that if you sat at a table with the CEO of a multi-million dollar company and gave the same presentation - you would probably have better success. Why? Because the CEO of a multi-million dollar company isn't just trying to keep the electricity on - he's trying to own the electric company.
Let's Succeed Together!