Business-to-Business Advice

[Tim Bateson]

I want to get some business advice from those here that have been there and understand the difficulties getting a new business off the ground. In this case moving from one-offs and small batch orders into larger business-to-business work.

Cold Calls: I’m no salesman, but I know this is a valuable skill I need to learn. So I’d appreciate any hints for making cold calls on prospective business customers.

Thank you.

[Joe Pelonio]

The last few months my retail customer base has decreased significantly, due to their inability to spend money or going out of business. This is where wholesale customers become far more important. I consider myself much more of a craftsman than salesman. Most of my wholesale customers are the opposite. They know how to find customers and sell, but use me and others to produce their products. Yes, the price must be lower than retail so they too can make a profit. Some of them found me, but others came from my calling on them to tell what I do and present them with samples. They have learned that even if I cannot do the work myself, I can recommend a way to get it done. There are cases where I have someone else do the work for me, I sell it to my wholesale customer, who is selling it wholesale to another shop who has the actual customer needing it.

Some of these are "marketing" companies, who work with customer to expose their products or services to the public. Typically they order things like calendars, pens, note pads with logo imprints. I come in with custom
laser produced unique items, but also vinyl lettering for vehicles, signs,
name badges and desk nameplates. Once the marketing people become familiar with these items they can sell them, making themselves a one-stop business service. The customers no longer have to go to 2-3 place and I can just do the work, using artwork prepared by their graphic artists to my requirements.

As I have mentioned before, one newer customer that has started to give me a decent amount of business is a retail outlet for shipping, copying
and mailbox rentals. By taking to them we are filling a need in the area by providing my products and services at their location. I made a display with samples for the counter and banners for the walls, gave them instructions on the kinds of files I need, and they order by e-mail. The customers are there anyway, and this saves them from driving to the next city with
sign or engraving shops so they are happy to switch.

[Rodne Gold]

The best way is this:
Target a market - like for example local signage companys
Produce around 50-100 sample sets , small tags , engraved perspex , cut out lettering , some paint filled substrates etc,
DO NOT phone and give a big schpiel...make it simple.
Like:

Hi I am jon from laser inc , I have a free sample set of my work which I can post you...are you interested?
If the answer is yes - ask for their address , explain a little of what you are capable of to make sure they need your product and ask to whom the package must be sent. Keep it short and sweet......,
Send it with an accompanying letter.
The most irritating thing about cold callers is the set speech thing , and 90% of the time , you delivering it to the wrong person.
Cold arrivals are also not welcome , you gonna irritate someone by taking their time to do your pitch.
Now here comes the most important part - the question you have to ask yourself - and that is "Why would these folk want to use ME over the competiton?"
This is what you have to answer to write your little letter and persuade em you are the better option.
If you cannot answer this adequately - then dont bother with the above !!!!!!!!!!

[Mike Null]

Tim

Too many people who buy laser engraving machines think they can create some artsy product and sell it to the world. What they don't realize is that selling something to the world takes real marketing expertise which few have.

The other thing these people don't realize is that most engraving is occasion based. People want something engraved for a special event; weddings, graduations, birthdays etc. In other words it is not an impulse based business.

That's why so many who try the flea market/craft show route don't make enough to cover expenses. And no, it's not worth just to get the exposure. Why get exposure with a lot of people who won't use your service.

That raises another point--service. Engraving is a service; it is not really a product. You may sell a product with the service but remember, you are in the service business much as a plumber or dentist.

Unless you are one of those rare marketing geniuses trying to run a retail oriented engraving business from your home is a sure path to failure. Immediately people will be reluctant to come to your home and they will assume that your work is not as good and therefore should be cheaper than the competition.

The other problem with retail is that, while there are many potential customers, their need to return is very limited.

On the other hand, commercial, government and institutional customers have an ongoing need for your services and can be counted on to return with some frequency. A decent web site is critical to doing business with these customers. One important advantage is that the web site does not limit you geographically.

If you accept any of this view then creating an effective marketing plan should be a bit easier.

[onur cakir]

And please count decoration business too.

The only problem is if i had 240"x120" laser rather than 24"x12" i would make great profit in short time.

Here is a new project that i've been working on for few days;

I'm planning to sell tempered and colored black glass tiles (8"x8") for bathroom&shower installation. My idea is to engrave some parts of the color on tile and spray paint them with different colors. I'm sure it will look perfect on bathroom walls.

Also leather cutting for lightning accessories is a top seller for me at this moment.

Laser is in leather cutting business for almost 10 years in Turkey but i'm the first person to apply it for lightning.

About strategy....for decoration business relations with architechs is the most important thing. Decoration fairs are important too. After first fair that i joined with laser products i sent sample products to architechs and i take small personalised gifts with their name on everytime i visit them.

As far as i know construction&decoration business is in depression in USA right now but during these depression moments you can focus on A+ VIP costumers or architechs working for them.

[Scott Challoner]

Souds like we're in the same boat Tim.

I've just started doing more cold calls recently too. I think I googled cold calls a few weeks ago and there was an article in a magazine a few years ago that had some good tips. The article was about a man who was very aggresively trying to grow his promotions company. He and all his sales people followed a 50-10-5 rule. You had to talk to 50 new prospects a week. Voice mail doesn't count, you have to talk to a live person. Of those 50, you needed to schedule 10 face to face meetings and land 5 new accounts. That's a bit aggressive for me, but it could easily be pared down to a 10-2-1 rule. One new client a week would be great, but that might be unrealistic too. The important number is the 10 IMO. It takes discipline to make call number 5 after the 4th "No".
He also sugggested that you have a script. I agree with Rodne that you don't want to talk for 5 minutes, but it's good to have a loose framework that includes anticipated responses from the potential customer.

E-mail marketing is another thing that seems to be big right now. You can go with something like Constant Contact or just e-mail people on your own. The nice thing about Constant Contact and those types is you offer an opt-out and you can see who's reading your emails or opting out. I think you get other statistics as well. Currently, I just e-mail people I know, or I've met but I see it as another form of word of mouth advertising as it's easy to forward an email to someone who might need your service.

I can't say I have been disciplined enough to do all of this and I hate to give advice not tempered by experience, but this is what I've been reading. I'm sure you'll get more "Real World" advice.

HTH

[Jack Harper]

Rodne, is right on, but I would add the importance of the follow up. It is critical that you follow through with them in a timely manner. I would suggest adding in your introduction letter that you will followup with them on X date. Not in a week or "soon" but on Wednesday the 23rd. Then, as if I have to say it, make that call on THAT day. When you talk to them, remind them that you promised to touch base to get their impressions. If the conversation does not lead to anything concrete, ask if it is OK to check back with them in a month. IF they agree, add it to your calender, or even better, your contact management software like ACT, and then again follow through. If your calls are not aggressive and kept short and friendly, you will build a relationship on a more personal level. They will also get a since that you are consistent and reliable, making you less risky to do business with. One final note, realize that sales is a numbers game. You will close Y% of sales for every X attempts. So every time you fail, realize that this is a good thing as you got one of the statistically necessary rejections out of the way and are that much closer to your next sale.

[Tim Bateson]

I'm reading and taking notes. Keep it coming.

It's at this point I envy the type of people that not only can sell ice to an Eskimo, but sell them a freezer for that ice. :rolleyes:

[David James]

Reading the Little Red Book of Sales and the Sales Bible by Jeffery Gitomer have sure helped me with sales. https://www.gitomer.com/products/Books.html You may also want to try getting into some networking groups, chamber of commerce, and such. Meet some biz people in a group and become trusted among them, pretty soon, you will get their business and their referrals. I must say I am having quit a bit of difficulty myself, but these two action have sent me way ahead of where I was just a few months ago.

[Tim Bateson]

David, Funny you should mention that. In today's mail I received an invite to a small businessman's breakfast. It's a small business professional networking group. I turned them down last year. Now with the economy so low, I think it's time I turn up the burner on my endeavor.

[Mark Plotkin]

Tim,

Here is my .02 worth of advice. I am lucky and have the skill to sell ice to Eskimos. It comes with years of practice and lots of rejection. Cold calls are extremely difficult and puts you on the wrong turf-theirs not yours. Depending on what you are selling from the laser the following may help. If wholesale commercial products, then doing research over the internet to find potential users of your product and setting an appointment to show your goods is probably the best use of time.

If you are doing awards and personalized items, then service clubs, network groups and chambers of commerce are great places to be! The challenge is don’t try to sell like everyone else. I can always tell the newbie’s at events trying their hardest to get the sale on the spot. It does not work and people get turned off. You have to build trust and get to really know people. Sales come from an identified need build over time with people you “know” even if just on a business level. Most people join organizations hoping their will get business, my experience is these people don’t get anything and quickly drop out.

So here is how it really works, for me anyway. Join a group and get involved. Quality is more important than quantity. Once you join attend events and sign up for a committee to give to the group. Really put out an effort and be involved don’t just attend meetings and committee meeting to be there. This is the best way to really meet people and build trust. Network, exchange business cards, ask questions, visit other member’s place of business and then do the soft sell. Offer to do the groups award for annual meetings, special events, auctions and fund raising. Over TIME you will grow your business and contacts.

This method has served me well over the years. I do awards for the local Rotary Clubs, cities, counties, chambers and other business on a regular basis. Most have annual events, special plaques, name badges and other needs. I just received an order from a city employee who purchased for the city and is now going to use me for her dog club. (75 key chains for one event)

So to sum it up, rather than going out with a shotgun approach to many people and most of the time the wrong person, spend your time developing long term relations with the right people. It pays off in the long run. Good luck and I hope this helps!

[David James]

Networking groups usually allow you to attend as a guest three time before accepting your application to join. Cost can be anywhere from $0-$500 a year. BNI is a large national networking franchise, I don't belong, but have herd good things about them. I belong to one breakfast club, one lunch social and one educational group. All three have members of my target market, and since engravers are not as abundant as insurance agents, realtors, or CPA's, I tend to have the market cornered within those groups. They also like you to bring samples of your work, award plaques, biz card holders, name tags, luggage tags, etched wine bottles, and such. Since a realtor can't bring a house to the meeting but you can bring an award plaque, you get allot of attention and people find you more attractive and interesting to talk to. These groups only allow one member per trade or category, so you are it, no competition within the group.

I did my educational group's name tags for free, 10- 2x3 Rowmark plastic tags with a clip. The realtors and insurance agents loved them, and it was great for showing exactly what my company was capable of. I offered the breakfast group the same name tags for $4.00 each, a discount price, they wanted to pay the full $10.00 each my reg. price and did. Then I followed it up with a discount offer for biz card holders, showed them mine, (the anodized aluminum ones from Laser Bits) and people bought them up like crazy.

My point is, I have found it useful to meet people, show people, offer people, and let people sell it to themselves. Jeffery Gitomer says "people hate to be sold, but they love to buy!"

I just finished the free 90 day trial Constant Contact is offering. I would recommend at least using the trial, no money or credit card numbers up front, unlimited e-mails to a list you put in (under 100 contacts). Gitomer also talks about this in the little Black Book of Connections.

I hope this helps... and I hope we don't live in the same town! If we do, then I guess I will see you at breakfasts ;-)

[David James]

I would really be interested to hear how some get military jobs and contractors? Thanks, DJ

[Dave Johnson29]

one breakfast club,
one lunch social,
one educational group.


Hi David,

Thanks for the detailed information. Just one question, How did you find out about these groups?

I live in a small country town and about 5 other small towns within a 25 mile radius. I do not recall seeing anything like these groups advertised or mentioned. I am considering joining the local CoC though and see where that might lead. (pun intended)

[Margaret Turco]

Hi Dave J. You don't exactly say where you are other than northern AZ, but I found this list http://www.scfaz.com/pdf/AZTradeBizAssoc050608.pdf through a google search. You could search on business associations in your zip code maybe.

[Dave Johnson29]

You could search on business associations in your zip code maybe.


Thanks Margaret,

DUH! {slapping forehead} :confused: I didn't think of a search on associations. I blame old age and an errant Lab puppy.

[Margaret Turco]

I don't think I can blame my age and I don't have a puppy, so why can't I remember simple words like, uhm, what was I talking about? Most happy to help!

[Dave Johnson29]

so why can't I remember simple words like, uhm, what was I talking about?

We are not alone... :eek::eek:
http://www.nytimes.com/2009/02/26/fashion/26spy.html?_r=1&th&emc=th

[Margaret Turco]

Thanks Dave, that really made me laugh! I feel better just remembering that I used to remember....sort of.

[pete hagan]

Don't get discouraged by not being the freezer salesman, simply look at the type of clients you WANT and then realize you will NEED twice the number of clients you MUST have. What I mean is that you should look at all the obvious areas, chamber breakfasts, church dinners, social connections as your cream on top of steady cyclical business. These type of customers usually take long sell cycles where it is the trust in YOU that gets the order versus the product quality, customer service and pricing. Also look at VOLUME customers and understand their buying cycles. For the engraving business it has been ruled by trophy shops for a very long time so you'll have to compete on price not quality. Here is where volume makes the difference. Every sports group needs T-shirts, team pictures, ribbons, plaques, small trophies, a few big trophies and sometimes sponsor recognition pieces. The nice thing is that there are enough different seasons that if you go after the different sports you can have good seasonal cycles for the cash flow. The downside is that you live and die by the cash flow and need more employees to finish the quantity of products.

Example the trophy shop that takes care of the youth baseball here in Lexington probably produces roughly 500+ small pieces that they may make $1.50 each on, 125 larger (but small) trophies where they may make $5.00 and then 15 or so where there may be real profit from. HOWEVER they cover the other sports as well soccer, basketball, football etc and they do well on volume. The real cream is from the recognition pieces YOU sell to the parents who own / manage / operate business' where they get REAL profits for the common items like name tags, door signs, equipment labels etc..

For me I’m very specialized and it works well. I think if you can generate niche products that are high profit where you can grow those sales over time you are then more immune to the business climate we face now where everyone is scaling back. It’s not like my business is not feeling the pinch but I also don’t have to depend on low margin, high volume sales to make my living. If you can find products that you either sell at high profit – retail or develop great relationships where you make quality products and sell through other retailers at a wholesale you should do well. Just remember that it takes the same amount of paperwork and customer sales support for one single retail sale as it does to sell 25 items to a wholesale customer. It just depends on the profit for the amount of time you invest.

Keep watching the creek and you’ll see that there are some of the greatest minds out here offering free advise. Very seldom will you find an industry where “secrets” are so openly shared. Good luck!

[David James]

Hi David,

Thanks for the detailed information. Just one question, How did you find out about these groups?

I live in a small country town and about 5 other small towns within a 25 mile radius. I do not recall seeing anything like these groups advertised or mentioned. I am considering joining the local CoC though and see where that might lead. (pun intended)


I found the groups I attend on Craigslist, but I live in a city where that site is popular and very active. I grew up in a small town of 1900 people and watched my father (a business owner) network in groups such as the Lions Club, Native Sons, Elks, Moose, Chamber, Toast Masters, BNI http://www.bni.com/ (http://www.bni.com/) , and local coffee shops. You make allot of friends and meet some great people.

Otherwise, you should start one. Put together a network of tradesmen, businessmen, euntrapanuers, salesmen, contractors, office managers, bank managers, realtors, insurance agents, restaurant owners, growers and ranchers, taxidermist, butchers, and so on. If your community doesn't have a networking/referral/leads generating organization, it needs one with the countries economy the way it is now. Let me know if you would like some assistants.

[Tim Bateson]

I listened closely to the advice given here.

Yesterday - I attended my first meeting of a Professional Businessmen Networking Group.

Today - I received a call from one of their members - a good size local business agency (please excuse me for being vague). They're known for using local businesses to outsource some of their work. It so happens they get numerous requests for engraving their products, but currently have no one local to outsource these requests.

One of the good parts of this potential deal is they would have all graphics laser ready - my most time consuming task. Another is they do all of the selling - again not my strongest skill. I have a "brunch" meeting scheduled with them next week to see if we're a good fit as partners.

Joining a networking group was good advice that seems to have a lot of potential. If not with this deal, then maybe one down the road.

For those looking to do the same - be careful, there are a lot of these groups and some are only there to get your money. My learned advice here is talk to those you now do business with. This can also be your auto mechanic, realtor, banker, or any other local businessman you trust. If successful they all network and will likely know what good networking groups are in your area.

Thanks.