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KristineS
02-09-2009, 01:05 PM
I'm not sure how many of you send out samples, but I'm hoping enough of you do that you can help me brainstorm some ideas.

One of our companies is in an industry where sending out samples is the norm. Samples recipients are qualified and the samples are requested, so no samples go out blind. Unfortunately, the industry has a couple barriers to switching from a currently used product to a new one. The rate of people switching to our product from a competitors is about standard for the industry, but I think it could be better if I could get past those barriers.

The biggest barriers are (1) most larger companies in the industry carry a large inventory on hand which would have to be disposed of before a switch could be made and (2) precise color matching is required and products from different manufacturers can vary in color and shade.

My question is this: how do we get a larger percentage of the people who receive our samples to switch? I've thought about including a coupon or sale offer with every sample. I've considered creating a more stringent qualifying process. I've thought about offering to send someone to the company's facility to do a color match.

If you were me, what sort of offer would you make? Or would you simply accept that your switch ratio was on par with the industry standard and let it go at that?

cocoy
02-09-2009, 01:17 PM
That's tough.

Points you already know...

Why do they need to buy yours when they still have others in stock to finish up.

They probably need to keep inventory of the same items they have sold (color matching) if they have to go back and do something with that past customer. just a guess without knowing what item this is.

Sending a sales rep and talk directly to them might do some good.

They definitely need some incentive or reason to go with your product.

Just observations to think about. Sorry. I'm no help.

nealrm
02-09-2009, 01:21 PM
KristineS,
I deal a great deal with color in my day job. One thing I can say is that customers don't like having to retint product. They really want it to come in the door ready to use. I know that can be diffucult, but it would make a very good impression. If possible try to find a sample of the end product. Then before you ship the sample, make sure the color match is correct.

KristineS
02-09-2009, 03:24 PM
That's tough.

Points you already know...

Why do they need to buy yours when they still have others in stock to finish up.

They probably need to keep inventory of the same items they have sold (color matching) if they have to go back and do something with that past customer. just a guess without knowing what item this is.

Sending a sales rep and talk directly to them might do some good.

They definitely need some incentive or reason to go with your product.

Just observations to think about. Sorry. I'm no help.

Very good points Cocoy.

We have tried the sales rep thing, and it doesn't seem to affect the switch rate one way or the other.

The incentive to go with us would be that our product is high quality, but our prices are lower than the accepted industry standard. The problem is that switching is such a pain that even the incentive of lower prices isn't always enough to make people switch.

KristineS
02-09-2009, 03:25 PM
KristineS,
I deal a great deal with color in my day job. One thing I can say is that customers don't like having to retint product. They really want it to come in the door ready to use. I know that can be diffucult, but it would make a very good impression. If possible try to find a sample of the end product. Then before you ship the sample, make sure the color match is correct.

The product we're selling is thread for machine embroidery. We have created an online conversion program on our web site that converts from the other popular threads in the industry to ours. The problem is there isn't always an exact match from one thread manufacturer to another. So that's an issue.

You make a good point though.

cocoy
02-09-2009, 04:38 PM
You can market it as new thread for any of their new designs/products.

Not sure how ideal that is in that business though.

New design? New thread! :)

Just H
02-10-2009, 11:33 AM
Kristine, I'm assuming these businesses are doing big quantity embroidering for ?? Probably not individuals but maybe companies who order shirts for all their employees. Is that right? What is the biggest problem about these companies doing the switch that is deterring them? Is there something that would make that part so easy they couldn't turn down the offer? I know with my stuff that getting an exact color match means including PMS colors or similar (depending on the product) and the client often has to pay extra for that. One company I worked for included a service to get the closest match to their PMS color for free, meaning that we looked up the color and picked our closest possible standard color. Most clients were usually fine with that as a slight variation is not decipherable on the customer end and they don't really care all that much. Those of us that work highly with colors can spot it right off but because we're trained to do that.

Maybe get some feedback if possible from these companies why they don't want to make the switch? Even if it's just a one-word response such as: cost, convenience, etc. That might put you in the right direction of finding a better solution for both ends.

KristineS
02-10-2009, 12:39 PM
The PMS color thing is a good idea, and we do already include PMS colors with all our thread colors.

I think the biggest barrier is simply that switching is a pain in the arse, and people don't want to do it. We provide PMS colors, downloadable conversion charts and an online conversion program. So finding the matches is fairly easy. I think we just need to educate the industry about the tools we offer and how easy we can make switching if they allow us to help them.

Paul Elliott
02-10-2009, 05:51 PM
The product we're selling is thread for machine embroidery. We have created an online conversion program on our web site that converts from the other popular threads in the industry to ours. The problem is there isn't always an exact match from one thread manufacturer to another. So that's an issue.

You make a good point though.

If I'm the customer, 1) what's in it for me, and 2) what's it going to cost me?

You need to focus on the barriers to change and reverse the risk--take it all on yourselves. IOW, "We'll bear the expense and delay risks of your change over."

Is the cost of a custom thread order too far out of the question that you couldn't guarantee a match? I know that color paint matching is done with far greater precision than the human eye can detect.

What could you do for the customer, if you got the order but couldn't achieve an effective/acceptable match?

Keep in mind it isn't simply selling but solving your customers' problems and effectively allaying their fears.

Paul

KristineS
02-11-2009, 08:48 AM
If I'm the customer, 1) what's in it for me, and 2) what's it going to cost me?

You need to focus on the barriers to change and reverse the risk--take it all on yourselves. IOW, "We'll bear the expense and delay risks of your change over."

Is the cost of a custom thread order too far out of the question that you couldn't guarantee a match? I know that color paint matching is done with far greater precision than the human eye can detect.

What could you do for the customer, if you got the order but couldn't achieve an effective/acceptable match?

Keep in mind it isn't simply selling but solving your customers' problems and effectively allaying their fears.

Paul

I think you're right Paul, it is about solving their problems and allaying their fears.

Probably what I need to do is get all the pieces of the puzzle on our side, in other words our people and the manufacturer and figure out what we can do and what we're willing to do. Then we can move on from there.

Paul Elliott
02-11-2009, 11:19 AM
I think you're right Paul, it is about solving their problems and allaying their fears.

Probably what I need to do is get all the pieces of the puzzle on our side, in other words our people and the manufacturer and figure out what we can do and what we're willing to do. Then we can move on from there.

Kristine, survey some of your current customers and ask them what the factors were that delayed or impeded their decision to change to you.

Approach some of your prospective accounts and ask them their true concerns--all of them--about switching to you.

Then, remember the following: There are always 2 reasons for everything ... the stated reason and the real reason.

Do everything you can do to determine the real reason.

I realize that donuts and coffee to the person to grease the conversation may be impractical, i.e., not in your city, but you can certainly find someone who will cater lunch.

Call them with prepared questions. No matter how they answer the first time you ask a question, get back around to that question in a slightly different way to see if you can ferret out the real reasons.

You will likely find answers that are very valuable to your presentation process for all future contacts for your company .. with that customer and others.

It's probably not a thing to record--that may inhibit their freedom--but take notes like mad.

While each such interview may not be very productive, the ones that are can be VERY productive.

Paul