The World Of Product Distribution

Sales Training

2009-08-20T21:16:00Z

Due to the slumping economy, a friend of mine recently made a pretty big career change that landed him his first sales job.

Interestingly enough, and to the surprise of my friend, the company hired him without having any previous sales experience or knowledge about the product offering he would be required to sell.

His first week on the job, he was required to shadow another sales rep in the field to “learn the ropes” before being thrown into the fire and given his own territory.

The “training” that he received during his first week, he told me, barely got him by once he was let loose on his own. In fact, he had to go out and procure new business leads in an industry he previously had no knowledge about or any formal sales training. So, it should come as no surprise to learn that he struggled his first few weeks on the job and wanted to quit.

Although he has struggled in his new sales role, my friend has been able to procure just enough business to bring home a decent paycheck. However, he says he wishes his company would offer him some formal sales training or education because to this day, he still has only received one week of “training.”

Sadly, sales reps in distribution operations across the country can relate to my friend. In fact, when speaking with an industry sales coach last month, he told me that only 5 percent of all jan/san distributors are actually investing in educating or training their salespeople.

So like my friend’s company, I’m saddened to hear that distributors are sending their inexperienced salespeople out into the field that don’t know the true meaning of how to sell and are likely losing out on opportunities because of inexperience.

Although the economic climate may not be the best time to send salespeople to education seminars or training classes, distributors should still be investing in their sales employees and helping them learn the best practices of salesmanship.

A Non-glamorous Industry?

2009-07-16T18:17:00Z

Outsiders often frown upon the commercial cleaning industry. Is it because they don’t know all that is involved? Or is it that all they can conjure up when thinking about the industry is a picture of a janitor cleaning toilets and emptying waste receptacles?

If only outsiders saw a fraction of what goes on behind the public eye they might stop looking at the industry through a negative lens.

Those who work in the industry know that there’s much more to cleaning toilets and mopping floors. Actually, most cleaning professionals — even though they may not be compensated as well — view their jobs as being just as important than those in the medical industry, as cleaning promotes a healthy environment. But sadly, the negativity coming from outsiders always outweighs the good.

This pessimism also carries over to the distribution side as well. Speaking with a jan/san distributor recently, he says because of the non-glamorous image that is cast upon all that is involved with the cleaning industry, it has become increasingly difficult to attract young sales employees.

He asked me: “How do you get younger people attracted to the industry and show them not only from a monetary standpoint that there’s a future, but from an excitement standpoint that it is a glamorous business even though they might not be selling the new brand new iPod or something in technology?”

This is a question that many distributors unfortunately don’t have an answer for.

So I pose this question to you: How can we make what’s considered a non-glamorous industry into a glamour industry?

Safeguarding Mobile Data

2009-06-10T17:00:00Z

One of the top ways critical business data is either breached or lost today is through mobile devices. In fact, business owners only have to look at some of the more recent data breaches to learn that cell phones, laptops, personal digital assistants (PDAs) and USB flash drives can cause major headaches for organizations if not properly protected.

Because of the threat of data landing in the wrong hands, more and more businesses are looking to strengthen their security practices and technologies to better protect the mobile devices that their personnel is using while on the road. In fact, according to a recent survey conducted by SC Magazine, 49 percent of IT security professionals say their businesses are currently deploying mobile security solutions this year to ensure company data is being safeguarded.

These businesses are simply looking into how their mobile devices fit into their enterprise security plan. This includes having a plan to regularly patch devices and place restrictions on the kinds of files that can be stored on mobile devices, including mobile phones and laptops as sensitive data can be retrieved from old devices that are not disposed of properly.

The protection of mobile devices should not be taken lightly. With today’s devices now capable of holding large amounts of confidential information, one simple slip-up by someone on the road can be costly for a business.

If you haven’t done so already, consider spending some time re-examining your company’s mobile security policies. After all, it’s better to be safe than sorry.

Learning From Trying Times

2009-05-20T16:01:00Z

Anyone can steer the ship in calm waters. But what sets today’s business owners apart are the ones who can maneuver the ship through the roughest of seas.

In these times of economic despair, business owners are watching their profit margins slowly deteriorate. With customers cutting back on spending, businesses have been forced to sacrifice their own employees for the well being of their companies.

But while a majority of businesses are failing during this current recession, there are some who have managed to ride out the storm practically unscathed.

For the most part, companies that became complacent and relaxed during normal times are the ones that are finding themselves struggling. Their biggest mistake? They didn’t come into this current recession with a strategy. Thus, they’re finding it extremely difficult to operate.

Like almost every industry, the cleaning industry has been affected by this recession too. In fact, businesses across the board have taken a hit.

I recently spoke with several jan/san distributors on how they are weathering this current economic storm and the suppliers who are doing well for themselves are the ones who used past experiences to prepare for these trying times. Learning from prior downturns, they say they made sure that they had credit lines lined up ahead of time and planned business strategies that would help them operate under uncertain circumstances. But even though they have positioned themselves to ride out this storm, they are still seeing a dip in sales — nothing they say they are too concerned about though.

Some economists predict that this recession will ease up before the conclusion of 2009. Business owners who manage to make it through in one piece should view the “Great Recession” as a learning opportunity. If businesses can make it through these times, they should be positioned to make it through anything.

The Value Of E-newsletters

2009-03-26T15:18:00Z

Traditionally, jan/san distributors have sent newsletters via snail mail to customers that contain announcements and new product information. But as postage costs continue to rise, and the labor alone to send these out can be a little taxing, some distributors have decided to send their newsletters out electronically through e-mail.

Distributors who have made this transition are finding it to be advantageous, as they can now send out as many newsletters as they want to current or prospective customers — as long as they have a healthy collection of e-mail addresses.

Simply put, e-newsletters are a simple and cost effective way for distributors to share the benefits of what their company offers. Plus, e-newsletters allow distributors to connect with customers and prospects on a more frequent basis — anywhere from once a month to once a week — on top of having salespeople make routine sales calls.

One thing for distributors to consider, however, is that e-newsletters should be designed to be a quick read. Thus, distributors should only show glimpses of what they have to offer (green cleaning programs, new or improved product lines, special promotions), as well as share any new educational and informational tips from manufacturers.

But the most important facet distributors often fail to capitalize on when sending out e-newsletters is to link customers to the subject matter being highlighted in the newsletter. Not only can it be a courtesy to customers, but it can also help a distributor make a sale or get customers to visit their Web site. In fact, those distributors who have been using e-mail to send out their newsletters say they have noticed a significant boost in traffic to their Web sites as well as an increase in e-commerce.

So as times continue to get harder in the cleaning industry, don’t underestimate the value of what an e-newsletter can do for your business.

A Matting Horror Story

2009-02-19T19:24:00Z

Just about every facility I’ve visited this winter, I’ve subconsciously graded their matting performance. I’ve been to some facilities that have excellent systems in place, while others have little or no matting at all.

One facility in particular — a Chinese take-out restaurant near my house — takes the cake as the worst I’ve seen yet.

The last time I visited the facility was on a snowy, blistering-cold day in January. I opened the restaurant’s door to find that I was standing on a traditional 3x5 walk-off mat in the entryway. After I stopped to wipe my feet, I looked up and saw something that would make any floor care specialist cringe. The restaurant’s tile floor was covered with pieces of cut-up cardboard boxes that were taped to the floor. In fact, the restaurant was using cardboard as walk-off matting for the 25 feet of flooring that leads from the entryway to the ordering counter at the back of the facility.

The worst part, because it was snowing outside and their front entryway was not free of snow, customers — including myself — continued to track in snow onto this cardboard “walk-off matting.” So, the cardboard was becoming a slip-and-fall hazard.

Although I left the facility without witnessing anyone injuring themselves, this particular restaurant was setting itself up for a potential lawsuit just because it appeared they didn’t want to spend a couple bucks on proper matting.

Distributors, it’s important — especially in the winter months — for you to educate customers on the importance of proper matting.

Wholesale Or Direct?

2009-01-16T14:00:00Z

In today’s recessionary environment, it’s more important than ever for jan/san distributors to pay careful attention to their purchasing process and whom they are buying their products from.

As end user companies are strapped for cash and looking to distributors to bail them out, distributors are forced to find a supplier that not only will give them a bargain for their dollar, but who can also meet their service demands when pressed by customers.

Although a supplier with the lowest priced goods may look and sound enticing, distributors should explore their options — manufacturers and wholesalers — before making a commitment.

Pricing: Distributors who purchase products direct from manufacturers often get better pricing than those who purchase from wholesalers. Manufacturers also give cash back rebates to distributors on qualifying items.

Orders: Most wholesalers allow distributors to purchase products without placing minimum order requirements. Manufacturers, on the other hand are a different case as they make distributors meet a minimum requirement for products as well as freight. Wholesalers give distributors the opportunity to purchase in small quantities or can be relied on for special orders. Thus, distributors are not tying up money in inventory that otherwise might end up being dead stock.

Uniqueness: By buying direct, distributors are entitled exclusive rights to certain product lines that in turn help them stand out in the marketplace. Distributors also have the ability to private-label certain product offerings by going direct.

Financial Investments: Wholesalers grant small-sized distributors the ability to purchase products that they otherwise couldn’t purchase direct. Thus, they don’t have to maintain a lot of inventory and also gives them the opportunity to expand into new markets without any significant financial investments.

Customer Service: Manufacturer reps help distributors with customer bids, product information and support. They even assist on sales calls.

So, before you have a stock-out, your supply starts running low, or you need a special order, consider doing your homework and getting multiple quotes from both your manufacturer and wholesaler partners. It never hurts to do a little shopping around.

For more information on purchasing direct from manufacturers or going the wholesale route, read Sanitary Maintenance’s January cover story.

Cash Flow

2009-01-08T14:00:00Z

In today’s recessionary environment, nothing can destroy a distributor’s business quicker than insufficient cash flow. And with financing harder to come by, it’s vital that jan/san distributors maintain enough liquidity to weather these difficult times.

This requires distributors to institute tighter cash flow management and inventory controls to get a better handle on money coming in and out of their business to increase their chances of survival.

You can have extraordinary sales numbers, but if you’re not managing your cash flow properly, you could be closing down your shop before you know it. To get a better handle on cash flow you must be aware of your profitability. First and foremost, always make sure your books are as up to date as possible and are accurate.

You also need to keep a tight rein on customer collections. In this economy, 30 days means 30 days. So, bill customers immediately and follow up as soon as an invoice is overdue. If customers are behind on a 30-day invoice, tell them you can delay payment only for an additional 30 days before freezing services.

Most importantly, you must get a better handle on inventory to make sure you’re not overstocked with dead weight or run out of stock of items that are in heavy demand. In today’s environment, customers’ purchasing patterns are expected to change. That makes it even more important for you to adjust your inventories to the new realities and demand patterns.

Forklift Safety

2008-12-18T14:00:00Z

Distributors, you should never underestimate the importance of forklift safety in the warehouse. In fact, about 100 workers are killed each year as a result of forklift accidents according to the Occupational Safety And Health Administration (OSHA).

About a quarter of the yearly fatalities are caused by overturning. Other common causes are workers being struck by the forklift, by materials and workers falling out of the machine. OSHA statistics also reveal that nearly 95,000 serious injuries happen every year because of unsafe forklift operations.

To help drive those numbers down in warehouses across the country, OSHA recently released an online source of safety that warehouse managers can share with their lift-truck drivers.

OSHA’s “eTool,” is an online review of the agency’s powered industrial truck safety requirements. Warehouse managers and employees can tap into topics ranging from the differing types and fundamentals of powered trucks, to operating the forklift, to understanding the workplace, as well as training assistance.

Although it shouldn’t be used as a substitute for a warehouse’s formal training program, it can be helpful in training new employees or refreshing veteran employees’ forklift safety skills.

Certifying Private-label Products

2008-12-04T14:00:00Z

Third-party certification for cleaning products in itself is pretty confusing to most people in the jan/san industry. So, I apologize in advance if I make your head spin a little bit more.

A couple of weeks ago I spoke with a jan/san distributor who recently went through the process of getting one of his company’s private-label green products certified by a third party organization.

What the distributor told me was a little shocking — and baffling — to say the least. He said that although he could provide detailed documentation to the third-party organization that this same particular chemical was already certified — by the manufacturer who formulated it — the third-party organization still required that the distributor submit a fee to have the product undergo testing for certification.

What the distributor, and now myself, can’t seem to understand is if the product has already been certified by the same group, is bottled and packaged by the same manufacturer, then why would a distributor have to pay to have the same exact product certified again?

Although it’s not as costly as the fee manufacturers pay to get a product certified by a third-party group, this particular distributor already made the decision to purchase this product because of the product’s certification backing. But according to the third-party group, once the product was re-packaged as a private-label under the distributor’s name, the product no longer is the same anymore.

Anyone else disturbed by this?

Green Schools

2008-11-20T14:00:00Z

I recently had the pleasure of attending the Green Clean Schools National Summit hosted by the Healthy Schools Campaign in the nation’s capital.

It was very encouraging to see an event where cleaning industry leaders from across the country gathered for one common objective: to learn how to pass mandatory legislation in their respective states for green cleaning in schools.

The Healthy Schools Campaign, which led the charge to get the state of Illinois to jump on board mandatory green cleaning in schools, gave a detailed presentation on what it took to get the state to enact green cleaning as a law. Those in attendance were then able to take that detailed model back to their home states and build their own coalitions stemming from it.

It was encouraging to see that a handful of distributors were in attendance and are looking to get proactive in helping lead the charge in their respective states. After all, why shouldn’t distributors be stepping up to the plate? They are the ones who are selling schools their cleaning products and have the knowledge and pull with both manufacturers and school custodians to voice their opinions. All distributors have to do now is convince their proponents and their state legislatures — who some say have no idea what green cleaning is — to jump on board.

Face it, the future of our country is our children. Giving them a safe and healthy environment to learn in shouldn’t even be an issue today. Distributors, the ball is in your court. Are you up to the challenge of gathering and using your resources to help pass green cleaning laws in your state?

Cutting Expenses

2008-11-06T14:00:00Z

Businesses in the United States have to operate leaner these days or they risk closing their doors. That’s why it’s more important than ever for businesses to take stock of their expenditures to make sure they’re not wasting money. In fact, distributors may be surprised how easy it is to cut costs.

One way distributors can trim the fat is by rethinking their delivery routes. By plotting out and organizing delivery routes, it saves money on gas. For instance, if you have several customers in close proximity of each other, try to schedule multiple deliveries to those customers on the same day. And, in the event your drivers have to drive across town after deliveries, investing in GPS devices can help find the most efficient route.

Distributors can also find significant savings by being more energy efficient. By having employees in your company to turn off their computers and other appliances at closing time, distributors can benefit from upwards of a $75 savings on energy per year for each computer. Also, swapping out incandescent light bulbs and replacing them with fluorescent bulbs can result in significant savings, especially in the warehouse.

Combating Staph...Even In The NFL

2008-10-22T13:00:00Z

The Cleveland Browns have been under fire as of late because the team’s star tight end, Kellen Winslow Jr., recently contracted a staph infection for the second time in his brief pro football career and was hospitalized for three days.

After word spread that Winslow had contracted staph, several reports have surfaced claiming that in the last five years, seven cases of staph have been contracted by Browns players.

Because of these reports, “staph” has been getting a lot of attention and interest from the sports world over the last week. In fact, it’s opening up eyes inside all locker rooms across the country as well. That’s because if a professional athlete, who trains and practices in world-class facilities and receives first-class medical care can contract staph, what’s preventing a college or high school athlete from getting it?

In the case of the Browns, they’ve been trying to combat staph for the last five years. The organization has tried to make all of its facilities safe by keeping areas where the players dine, dress and meet clean, and by hiring a sports coating company to routinely examine and clean their training facilities. The team also installed a machine two years ago that uses an ozone process to kill bacteria on its equipment that can cause staph and other infections.

The team even went the distance to bring in experts to come in and talk to the players, as well as distribute educational material on how to prevent and care for staph.

As the high school football season is in its home stretch, schools are getting prepared for the incoming winter sports such as wrestling and basketball. Distributors should see this time as an opportunity to spread the word to their customers and help schools implement proper cleaning programs to help prevent the bug from infecting their student-athletes.

Daycleaning

2008-09-25T13:00:00Z

While at the ISSA show in Las Vegas a few weeks ago, I had the opportunity to sit in on an expert panel that spoke about the current trends in the jan/san industry. One topic that was of significance was daycleaning and how it has been gaining momentum in the industry.

And really, no one should be surprised. As the green movement continues to sweep the industry and country, conserving energy and resources is a topic that is fresh on everyone’s mind. Coincidentally, sustainability is what daycleaning is all about. In fact, statistics show that office buildings that switch their cleaning operations from nighttime to daycleaning lower their utility expenses and conserve their use of energy by 25 to 30 percent.

After listening to the presentation I couldn’t help but think how distributors can complement in-house service providers and other end users that are on-board the sustainable route in moving towards this trend. Manufacturers have been making it a priority to produce low-decibel vacuum cleaners and low-water-use floor equipment with less noise and distraction and cleaners will not interrupt building occupants while making their rounds.

As safety concerns of the building occupants continues to be a major reason for not switching to daycleaning, distributors can tap into this gray area and help end users by training them and tailoring their cleaning procedures and products to best suit their individual needs.

It will be interesting to see how distributors approach this trend in the coming years as it picks up steam with end users.

Salary Or Commission?

2008-09-10T13:00:00Z

Hiring a sales staff on a commission-only basis may sound like an up-front cost-saver for most jan/san distributors, but experts say investing in a sales staff pays dividends down the road.

All distributors want a good salesperson that can communicate to prospects what separates their individual business from the competition. But most importantly, distributors also want a salesperson that buys into their company’s mission.

As a distributor, if you hire someone and you’re not willing to invest the time and resources in them — what a commission-only offer suggests — you’re quite possibly missing out on an opportunity.

In fact, businesses have noticed faster turnover with a commission-only sales force than those salespeople who are salaried. After all, when times get rough, the straight-commission salesperson has no incentive to stay, especially if they’re trying to make an honest living.

Commission-only salespeople in today’s day and time are becoming a dying breed. With a rough economic situation impacting every industry in the U.S., salespeople want a secure position. It’s up to distributors to offer them one.

In the end, distributors may find that providing a salesperson a position where there’s a solid base and reasonable expectations to succeed to be less expensive in the long run.