 Make a Head Start Technology 2. It's only as good as the people who operate it. Once you've invested in technology, make sure you have the right people to operate it, says Brian Governor, president and owner of Youngstown, Ohio-based distributorship P&W Marketing Inc.. Hire an IT person and train employees to ensure they understand its features and capabilities and make the best use of it. 3. If you buy, they won't come. Some printers purchase new equipment because they believe "if I buy it, they [customers] will come" even when they don't have the work to support the investment, says Judy Coovert, secretary and treasurer at distributorship PRINTCOM Inc., Seattle. Instead, gain the work and then make the investment.
Customers 5. Seek and you shall find (and benefit). No matter how long it takes to look for a material or adhesive for a customer, find it. You may not gain the order on this job, but in the future, you can quickly offer the solution to another client, says Gregory Trebnick, CEO of Trebnick Specialty Tags & Labels, a manufacturer in Springsboro, Ohio. 6. It doesn't hurt to experiment, sometimes. One of Trebnick's customers wanted labels that would stick to auto transmissions for years. The manufacturer couldn't find a ready-made solution, so decided to try something new. The company used the reverse side of clear polyester to print and laminated a custom 3M transfer tape to meet the customer's adhesive specifications. A pressman, who had 15 years of experience and worked at Trebnick, said it wouldn't work. However, it did and today, Trebnick continues to work with the customer.
7. Go beyond customers' printing needs. Joe Walkup, president of distributorship Innovative Business Products LLC, Nashville, says he helps his customers not only fulfill their print-related needs, but in other ways, too. "I try to find out ways to help them with anything they are purchasing," he says. Walkup enjoys the challenge, but more importantly, his customers view him as someone they can rely on. 8. Be consistent. If you tell your customers that you offer quality products, then buy products of similar quality from your manufacturing partners. There has to be a consistency in quality, otherwise customers will see the gaps. "You can't buy super low and try to sell it super high," Kohn says. People 10. Personal life affects performance. It's rather simple, but you need to have a healthy personal life. This automatically translates into being a motivated employee, Governor says. 11. Don't wait too long to cut the cord. Pay employees according to the work they do; it pays off in the long term, Governor says. On the other hand, if an employee isn't performing, cut the cord as soon as you can.
12. Communication is key. For years, Joe Webb, vice president of Pensacola, Fla., distributorship Formsystems Inc. and DMIA's Region 3 Director, had heard about the benefits of company meetings, but never had time to implement them. Last year, when the distributorship held its first meeting, it turned into a 3-hour discussion with solid input from all its eight employees. Now, the company holds every month a meeting called Solution Session to discuss things such as finding new business, providing better customer service and ways to give back to the community. 13. Free up your time to do what you do best. If you are an excellent sales person, but spend time dealing with HR issues and collecting bills, then hire a collections manager and an HR person, Kohn says. Similarly, managers should analyze the strengths of their employees and find out ways to best utilize them. Partners
15. What do suppliers like? Ask your current and prospective suppliers what they like about the most successful distributorships they deal with, says Dick Gray, CDC, CFC, CEO of Xtension Technologies Inc., a distributorship in Laguna Hills, Calif. Structure your activities to match what your competitors are doing with the suppliers. 16. Pay your bills and get paid on time. Trebnick says his company always pays invoices on time. At the same time, Trebnick tells distributors that the company won't do business with them if they don't pay invoices within 60 days. "This eliminates people who think we are a bank rather than a label manufacturer," he says. Networking
18. Join associations. Trade associations like DMIA give you access to new ideas and industry expertise. By exchanging ideas with peers, you'll avoid mistakes these companies have already made, and be leaps and bounds ahead of your competition, says George W. Smith, CDC, vice president of sales and partner at Tully-Wihr Company, a distributorship based in Hayward, Calif. Walkup plans to join associations his customers belong to. This way, he can gain a better understanding of their businesses and also use referrals from his existing customers to gain more credibility with prospects. Company 20. Chart a marketing plan and stick to it. Marketing is a key component of business that sometimes isn't crossed off from printing companies' to-do lists. Understand that marketing is a long-term process and that you need a plan to implement it, Kohn says. It helps attract new customers and educates your existing customers about all the services your company offers. 21. Sell, but selectively. Concentrate on selling products and services that make money rather than selling everything you can. Kohn's company used to sell stock paper, but the product didn't have much profit margin. Focus on value added, higher margin products and services. Find out your company's core competencies and expand from there. 22. Where's your focus? Many companies focus too much on "jobs" rather than "accounts." A big job may turn out to be only a one-time thing, Coovert says. Concentrate on accounts, where customers view your company as a one-stop shop and buy almost everything from you.
23. If you add value, charge for it. Explain the added value to your customers in concrete terms. If the customer or prospect isn't willing to pay for what you do (they may not realize the full benefit or they are looking for a cheaper price), then move on, says John Smilko, vice president of supplier Kramer-Smilko Inc., Bel Air, Md. You can't stay in business when you lose money.
24. Understand the company's financial picture. Hire a consultant to get an outsider's perspective, says George Crump, chairman and CEO of distributorship FRI Resources, St. Louis, and a DMIA Board member. Be realistic instead of being driven by the belief that next month will bring sales. 25. Hang in there. Despite hard work and long hours, your company will lose business. Good customers may be acquired, move to other cities or simply go out of business, Webb says. When Webb heard that his biggest account was moving to another state, he worried about the impact on his business. After a sleepless night, Webb told the customer that he could serve them better in the new city because he had manufacturers there. Five years later, Webb's company is still providing products and online services to the customer.
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