Point of Sale | The Barefoot Spirit

Aspiring Entrepreneurs of Consumer Products are Often Overshadowed by Technopreneurs

Michael Houlihan & Bonnie Harvey — Thu, 13 Aug 2015 18:09:02 +0000

It’s easy to get the idea that all entrepreneurial pursuits must be in technology. Yet, over half of the start-ups we see in the hubs, incubators and universities around the country involve some kind of consumer product.

These products may incorporate technology or even be sold online, but their producers know that they will grow their brands faster, sell higher volumes in a single transaction, and have a better chance of being discovered in a retail store. Why? Several reasons:

Weight. Consumer products tend to weigh so much that the expense of home delivery cannot compete with customer pick up. Customers know this and regularly drive to retail stores to purchase many such items all at one time for sheer efficiency.

Visibility. When in a retail store, customers are more likely to discover and buy new products and notion items that they may miss seeing online. This makes retail stores a sought after location especially for new consumer brands and products.

Convenience. Customers plan on regular visits to retail stores to get products they need in their hands that day. Many visit more than one type of product store on the same trip.

Volume. Consumer product producers can sell large quantities of their products in one transaction to a chain or box store and get regional and national distribution within that retail company. They get one check from one entity for a large shipment.

All this seems obvious, but today we have gotten so carried away with online sales and everything tech that we may have forgotten that the three basic human needs are still food, clothing, and shelter. Although you can purchase many of these products online, ultimately you want the convenience of a retail store for these necessities.

With tech we hear, “I don’t really need it, but I can’t live without it!” and that’s fine. Technology has become a part of our lives, but cannot replace our basic needs. Technology offers producers of consumer products a convenient way for their customers to research their products. Tech has given these producers more accurate, efficient, and time-saving applications to handle supply chain management, production, accounting, modeling, and social presence, but until you can actually get real products right through your computer, we are stuck with the most efficient way of getting them to our homes – retail outlets.

Still, the most important part of the retail sales process is the physical point of sale. It’s where your product, your customer, the money, and the decision to buy your product all come together. Consumer product producers know that’s generally in a physical, bricks-and-mortar retail store. They know that their new product will be in front of an already established audience qualified and capable of taking it home that day.

This is why it’s so important for us personally to serve this increasingly neglected entrepreneurial market segment with education about what it really takes to achieve success with a consumer product sold through a conventional distribution system.

Over the past year we have been working on a soon-to-be-released 4-part video webinar on this very challenge. In this webinar, we give to you the guiding principles for success we learned during our 30 years of experience creating and marketing a successful international consumer product sold through a three-level distribution system – which includes producer, distributer, and retailer.

The lessons we learned will certainly give you or someone you know a big head start and valuable insights on consumer product success in the bricks-and-mortar retail space. Check it out at www.thebarefootspiritgps.com

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Aspiring Entrepreneurs of Consumer Products are Often Overshadowed by Technopreneurs appeared first on The Barefoot Spirit.

World’s Best Sale Pitch: “My Product will help you Increase Sales”

Michael Houlihan & Bonnie Harvey — Sat, 28 Jul 2012 21:50:23 +0000

We’ve spent over two decades in sales, and it’s true – nothing happens until the sale is made. We have a friend who described her sales job as “conveying the value proposition of (her) product to (her) buyers.”

There are many books written on the subject of sales, sale techniques, and best closing strategies. We’ve often said the best sales person is the “Assistant Buyer”. The key to sales success is simply to sincerely have the buyer’s best interest at heart.

When you produce a product that goes through distribution channels, or when you offer a service business to business, the funds your buyer has to buy from you came from the sale of their product or service. If you are selling direct to the consumer, you still have to recognize that they have to work for the income, one way or another, that enables them to buy your product.

Everybody who sells products or services wants to sell more. The ultimate question from your prospect is: “How does your product or service help me sell my product or service?” or “How can you help me make more money?” That’s why positioning your sales pitch as enhancing theirs is so effective.

Here are some ways your product or service can help your customer’s bottom line:

1. Reduce his overhead cost per unit sold. He has to pay rent, lights, power, insurance, staff, cleaning, etc., whether he sells your product quickly or slowly. If it’s a fast seller, his cost per sale is reduced. He improves his ROI on his capital investment, maintenance, advertising, and staffing.

2. Increase his profits with lower acquisition costs and, consequently, higher profit margins on your product. Give him a volume purchase program that enables a lower retail price and increased volume resulting in higher profits per month.

3. Make his retail environment more attractive with seasonal point of sale materials and promotional programs geared to the theme of the given holiday. Make your displays festive decorations to his retail space.

4. Increase his business with local promotions and support for neighborhood causes. Use Worthy Cause Marketing to bring in customers who have a social reason to buy your product. Let the membership of the non-profit you support know where your product is for sale in his neighborhood.

5. Sell him a product or service that makes him more attractive and more competitive to his clients or retail customers. Give him the best price in your category, or an area-wide exclusive for an introductory period.

6. Add value to his total sales package. Is there something you can sell him that makes what he’s selling more valuable, adds an extra feature or delivers another benefit – like a guarantee, excellent customer service or loyalty program? Does your product give him “green” bragging rights?

7. Improve his personnel’s efficiency by providing training, benefits or tools his staff can use to increase his sales. Help him find and keep good people.

These are just a few examples of how you can help your buyer increase profits and do his job more efficiently. When you focus on what your buyer is trying to do, you can quickly get a clue as to what you can do to help him increase his sales. Adding value to his sales efforts with your product allows him to say to his customers, “But wait, there’s more!”

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post World’s Best Sale Pitch: “My Product will help you Increase Sales” appeared first on The Barefoot Spirit.

Tailor Your Message to What Your Audience Wants to Hear

Michael Houlihan & Bonnie Harvey — Mon, 18 Jun 2012 17:11:17 +0000

If you want to make a statement, tell them what you want to say. If you want to make a deposit, tell them what they want to hear. Sounds simple enough, but what do they want to hear and who are they anyway?

Every successful business learns eventually that there are a whole lot of folks between them and their end-user. Each one wants to hear a different message for a different reason. Sometimes we get so excited about our new idea and how well it will go over with the general public that we forget how essential it is to get it to them. Focusing on the benefits to your end-user is fundamental, but don’t forget all the other folks in between and what each of them wants to hear.

“What’s in it for me?” is the question they all want you to address. It may surprise you that it has little to do with those end-user benefits you are so excited about. Research, experience, questioning and listening can tell you what they want to hear.

Your own staff may want to hear how they will share in your success. They may want to hear about the incentive programs, benefits, working conditions, days off, and advancement opportunities. They may also want to hear how your idea will make the world a better place. They want to hear about your previous successes and your ability to weather a storm.

All your middle men want know how your product improves their strategic position versus their competition, how you are going to help them sell it, how they can get it for less, and how much you have budgeted for marketing. They want to know who will buy it and why.

If you depend on retailers, they will want to hear how your product fits into their existing categories, what kind of point-of-sale promotional materials you have, and what kind of a warranty you provide. They want to know that you have a representative in their area. They also want to hear how you will send customers to them to buy your product.

Your idea may be a game changer, but are they ready to play a new game? Sometimes pioneering a new concept can take years to catch on. Your initial buyers may buy for reasons you never dreamed of. If you are changing the world, get ready for some missionary work and some unlikely initial customers. Be ready to change your message to stay relevant with the market as it is now and as it changes.

Does your product weigh a lot or is it inexpensive? That’s all the more reason to be ready with multiple messages. Internet product sales, with the exception of downloads, require shipping whether or not it’s included in the price. Somebody pays for it. Most heavy or inexpensive items can’t compete with conventional brick and mortar store pricing because of shipping costs. If that sounds like your product, you likely will want to go through the general retail market. Identify what each person between you and your end-user wants to hear, and give them what they want.

Don’t just make a statement, make a deposit!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Tailor Your Message to What Your Audience Wants to Hear appeared first on The Barefoot Spirit.

Positive Company Culture is critical to Growth and Survival – Part 3

Michael Houlihan & Bonnie Harvey — Sat, 31 Dec 2011 21:05:55 +0000

This is the third part in the series about the original Barefoot culture. Culture really sets the tone, boundaries, and expectations the team has toward your company, your mission and your product.

We’ve saved the best for last because having a common cause and a common challenge forges, more than any other single factor, positive company culture.

When you are growing especially a new a brand, something out of the box that has never been done before, you are going to face stiff resistance from the distribution channels and the retail establishment. You can’t blame them because what you are attempting to do is new and unproven. We jujitsued that resistance into the glue that held our team together and gave it a common cause.

The Culture of Common Causes

When Barefoot was trying to get traction in the marketplace, it was an uphill battle. Just to keep the bottles on the shelves was a daily struggle. The Barefooters ( Sales Reps) spent much of their time just replacing vacancies and point of sale materials that had been removed by competitors. Being a small company, Barefoot did not yet have the respect of the distributors or the retailers, and, therefore, did not warrant the attention required to keep the product in stock. Every Barefooter faced the same challenge all over the country.

“How could you put a foot on a wine label?” is what the wine snob detractors were demanding at the time. They thought it was just a passing fad, and a wine not to be taken seriously. The Barefooters were out to show them differently, and they did! Thanks to a great winemaker, Barefoot wines kept winning more medals than any others in the same price category. There’s nothing like team victory to bind the team together!

All the sales staff knew that Barefoot was indeed destined to become big, very big, so they worked together, shared war stories and kept each other energized. They felt like Davids, up against the Goliaths of the wine industry.

They also knew that their fellow Barefooters were actively engaging the ultimate market, the general public. They knew that Barefoot had a “secret weapon”: worthy cause marketing. They were making the world a better place through wine, and they were proud of it.

These forces forged a real team spirit and life-long friendships between the Barefooters. They all knew that it takes a certain type of person to be a Barefooter. They were happy to be one of the team, and they sincerely enjoyed each other’s company and support.

The original Barefoot culture was based on the human desire to have a positive effect on the industry, the community, and the environment, and to be recognized and appreciated for it. It was a philosophy of win-win-win.

Although the example of the original Barefoot culture was that of a consumer product delivered through conventional distribiutions channels, we hope that the lessons we learned will be helpful to you and your business no matter what it is. Good luck and good selling with a positive company culture!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Positive Company Culture is critical to Growth and Survival – Part 3 appeared first on The Barefoot Spirit.

Distribution: The Distance between a Great Product and a Sale – Part 4

Michael Houlihan & Bonnie Harvey — Tue, 15 Nov 2011 19:11:12 +0000

In the previous three posts we have given just a few examples of the importance of Channel Distribution Management in product design. Here we will examine two of the most important factors in product distribution through conventional channels:

14. Stack it! It is great to get your product on the retail shelf, but getting it stacked on the floor is infinitely more valuable. When your product or brand is new, there is no better way to announce its arrival than a colorful floor display. Floor displays are at the option of the retailer, but retailers are more likely to grant you the coveted floor space if they believe they can move your product quickly. This may require special pricing, local promotion, merchandising assistance, special signage, and months of preparation and scheduling. Retailers want to floor display products that have a demonstrated record of brisk sales, a real Catch 22 for new producers with no track record. However, a strategic plan that starts small and demonstrates brisk sales with adjacent retailers will give you and your product credibility.

15. Reorders are more important than orders! Without the reorder, all your work to get your product to the retailer is lost. This is why eternal vigilance at the retail level is essential. There are many reasons why retailers don’t reorder besides the obvious, “The price was too high,” or “The quality was too low.” Here are some examples:

Your product sold out and the retailer forgot to reorder because he was not used to reordering it.
The retailer’s distributer that supplies your product did not deliver.
The distributer delivered the wrong product.
The distributer’s sales person loaded the retailer up last month with products that have yet to sell and now the retailer doesn’t want to order anything from that sales person, including your product.
Your product is still in the back room and never made it to the shelf.
The invoice was wrong and the price was wrong.
Your distributer’s sales person simply did not ask for a reorder.
Your products UPC number was incorrectly entered at the back door and was refused.
Your product UPC number was incorrectly entered on the scanner at the check out.
Your product’s shelf reorder ticket was lost or removed.
None of your Point of Sale signage was up.

If you don’t have your own representative in that city, visiting that store on a regular basis, your product could be easily discontinued for any of the reasons above, and more. And everyone will tell you, “It just didn’t sell”.

There are many more distribution factors to consider before launching any product. The most successful products treat distribution as more important than the product itself.

In most chain stores, you get only one chance…forever! The good news is that your product can’t be discontinued if it isn’t there yet. Do your research. Start small and slow.

There are warehouses full of great products that never made it to the shelf. There are shelves full of many products that are less than great … but they have great distribution. Customers buy what’s there, and they can’t buy what isn’t.

Your product is only new once. So take the time to build the distribution requirements into your product and your budget. Hit a home run at your first and only time at bat!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Distribution: The Distance between a Great Product and a Sale – Part 4 appeared first on The Barefoot Spirit.