Category: Distribution

Pricing Dubiety

Posted on by Steve Sammartino

If we’re first to market how do we know a price the market will accept? There’s no precedent. 

In the early stages we get knock backs. People are change averse. They’ll often say it’s too expensive. It’s their default response to your sell in, even if it isn’t true. In these times we suffer Pricing Dubiety. The trick is to stay the course, knock on all the doors first. Sometimes we simply need a foundation customer to lead the others to a new paradigm. 

If the price does turn out to be too high, it’s the easiest thing in the mix to change. Besides, it gives us a reason to go back and see ‘the rejecters’ again if we do reduce it.

Single Minded Proposition – V 2.0

Posted on by Steve Sammartino

There’s nothing more powerful in marketing than this. It allows the other important things to happen. Like being remarkable, sexy, premium, eyeball worthy, first, functional or ‘the’.

There’s another reason it counts. It makes the un-fun part of a start up easier. The administration. It’s far easier to do all the non audience stuff when you only do, make or sell one thing. Accounting, banking, inventory management, production, tax, supply chain, warehousing, distribution, invoicing et al… all become less arduous.

Then we can focus on the stuff that really matters.

Cold Calling

Posted on by Steve Sammartino

Cold calling is difficult.  What choice do we have when we are establishing a product in a new distribution channel? One in which we have few contacts. (note: my definition here is B2B & excludes interuption phone calls to private dwellings)

Try two phase calling. Turn up and ask for the manager or owner. You only want 5 minutes to talk about an idea with them. You simply tell them what you are doing and ask for some input. It goes something like this:

We are developing X and think it could be good for your industry or a business similar to yours, but we’re not sure. This is what we are thinking, what do you think…?

Two things often happen. Firstly they tell you what type of marketing you should be doing. Then, they may ask you to bring in your widget to show them next time. What it needs to be successful is a low status approach. Let them they own part of the idea. Collaborate with them. Don’t bring anything with you. No samples, no brochures, nothing. Just talk with them.

If they’re not interested move on. Don’t be annoying. 

This can work because you remove their defenses. They don’t have to figure out a way to reject you. Then next time you come to actually sell something to them, it’s not a cold call, it’s warm.

Rainmaking

Posted on by Steve Sammartino

In the movie The pursuit of happiness, there’s a seen where the main character asks a successful Ferarri driving stock broker his secret. He replies with two things, “People and numbers”

 pursuit-of-happyness.jpg

 

What it doesn’t mention is the subtlety of this statement. It’s actually about numbers ‘of’ people. It’s the art of rainmaking.

The most important role in any start up is your ability to make rain. (read here sell). It can only be done by hitting the pavement and phone. Our technical and strategic brilliance will need to the back seat for a while. Especially in launch phase.

Success ratios aren’t nearly as important as the number of calls we make. The former improves when we focus on the latter. 

Box Of Fruit

Posted on by Steve Sammartino

While sitting in the reception of an ad agency a delivery came to reception that had us gobsmacked.

                                    fruitbox.jpg

A box of fruit. Which sells direct for between $20-$50. Plenty of margin there. What I loved about this was the simplicity. The barriers to entry are non existent. Think of the concept today, revenue next week. Start up cost close to Zero.

Although it is easy to copy (there are now 3 of these operators in my City), it has a natural lock out device built in. There’s only room for one player in each office block. It’s a personal service where the relationship is core. Anyone can bring there own fruit to work – cheaper, so it isn’t price driven. Once you’re in, it would be very hard for another player to push you out. It also builds the things companies buy; brands & distribution.

Back to the gobsmacking… my busines partner and I swore that our next business would be as simple as a ‘box of fruit’.

First to Market?

Posted on by Steve Sammartino

 

Being first to market is the best way to ensure success. (please re-read the last sentence) You’re inventing money. But it’s still possible to make significant dint in the market if you’re late and better, or you’ve pulled a copy cat move in a new geography.

Just in case you’re halfway through a startup launch and you’ve been devastated to find another player doing ‘your idea’, I’ve pictured a few inspirations to help you stay the course.Google logo

 

 

 

                        late but better

 

 

 

 

                        

 

 

         copycat in new geography

 

 

 

 

          late but better

 

 

 

 

 

copy cat in new geography (NZ Ebay)

($700m sale price)

 

 

 

 

           late but had distribution

 

 

 

 

 

 

  late, but cheaper production method