Selling Better to Retailers
WSD caught up with Darryl Rosen the other day. Darryl, as you may remember from our interview last year, is the former President and owner of Sam’s Wines & Spirits in Chicago. Since selling the business, Darryl has been working with distributors all over the country to help them build, cultivate and maintain better working relationships with their customers. His advice is simple: treat your customers as if you could lose them.
SAY IT LIKE YOU MEAN IT. Two of the biggest mistakes salespeople make, said Darryl, is failing to follow up and failing to make a connection. To help his audience better understand the message, he created a character called Vending Machine Man. The vending machine personality is where salespeople take orders and not much more. They don’t try to help customers when they’re in their place of business or take the initiative to improve poor relationships. In other words, the Vending Machine Man doesn’t add value before asking for value. He doesn’t act in a professional manner, and is really more interested in himself than anything else.
Clearly, that isn’t the best way to approach retail customers. Darryl says the best way to build good relationships is treating retailers like you could lose their business. “For retailers,” he said, “there’s this notion of not having a choice” in deciding which distributors they are going to work with. To help combat that attitude, he encourages distributors to change their mindset.
“The most critical thing for a distributor salesperson is to almost trick themselves into believing they can lose a customer even though they can’t. It is important to create an environment of trust,” said Darryl. “And don’t think that just because we are in a deepening recession, that sales people should throw trust and integrity out the window. It’s not a disposable line item on an income statement. The fact is that distributors could learn a lot from retailers because a retailer can lose a customer” if their service is not up to par.
Of course, retailers have ways of dealing with distributors they don’t like even if they can’t fire them. For example, distributors could lose their status in the retail account. Distributors can lose placements, and they could be moved to the bottom of the shelf or at the back of the bar.
This is why “it is important to create an environment where your customers do business with you not because the laws say they have to but because they want to.”
One way to build rapport with retailers is getting to know the employees in every account “because you’re not just selling to the president of the company or the buyer. Your job is to sell all the way down to the people that bring the goods in.”
DON’T FORGET THE HOW AND WHEN. Better execution of sales calls is also key. Salespeople should strive to use retailers’ time efficiently by giving the customer information they need in a format they find useful.
“I think the days of the dog and pony show with the sixty slides on PowerPoint are over because I don’t think people have the time or attention for that,” said Darryl.
“I try to stress that customers have less time, attention, patience, and energy nowadays, and the consolidation of brands has made it that much worse. Consolidation has made it so much more difficult to build brands and to build relationships because everybody’s running so ragged. So, one of the most important things people can do is ask first, present second. In other words, always ask your customers how they want their information to be presented.”
HUMANITY VERSUS INVENTORY. Darryl argues that consolidation has almost dehumanized the business by replacing human interaction with numbers and inventory. Now at the supplier level, companies are often run by executives overseas and brands are bought and sold at a quick pace, which is rapidly changing the sales environment. In order to improve relationships, suppliers should amp up their interaction at retail.
“Suppliers from my experience are not as interested in executing at retail as much as they are interested in controlling the distributors. I know some suppliers have better interaction at retail, but some never go into retail at all. They just go to the corporate office and they don’t really interact with the customers.”
As a result, distributors are often flooded with inventory that is passed on to the retailer, which can create bad vibes between the tiers. One way to help soften the mood is to create an environment of helping retailers sell inventory and having a little empathy.
“I understand that sometimes you have to do what you don’t necessarily think you should do. However, you can find a unique way of showing the retailer that you care about the inventory that’s in the system and you’re going to do something about it. And I don’t mean something financial or something illegal. I just mean that you show that you give a crap about the inventory you’ve already sent to people,” said Darryl.
FEARING THE ECONOMY. Right now, the beverage alcohol industry isn’t getting hammered by the economy as much as other businesses. However, people are definitely concerned about the future which can strain relationships. Darryl compares this notion to being in a room where everybody has the flu and wondering when you’re going to catch it. So how should you cope?
“Retail customers have less people because they’re firing people. So here they are heading into an (uncertain) holiday that everybody is forecasting to be dismal although beverage sales are holding up pretty good. I don’t think things are dire in the beverage business, but I think that when people become anxious, worried and scared about the economy, their attention span gets shorter. As a result, that interaction becomes even more important and harder.”
Once again, empathy and adding value is important. “If retailers’ sales are shrinking or they have to discount more, they’re going to be looking to distributors to maybe raise discounts and help them out a little bit.”
In all, Darryl’s theory stems from the old kindergarten adage of “treat people the way you want to be treated.” Good service results in good relationships, better sales and more money.
CHAMPAGNE HOPES FOR HAPPIER HOLIDAYS
Champagne producers are keeping their fingers crossed this holiday season in hopes they will see a much needed spike in sales. The global economic downturn has taken a bite out of champagne, driving total volumes down -16.5% in October overall to 36.2 million bottles, according to data from the CIVC industry body. This marks the first decline in the Champagne market since 2000, but it’s important to note that comparisons are tough. Last year volumes rose almost 6% to a record 430 million bottles, worth $5.9 billion in revenue. Sales plunged everywhere in October – including France and Britain – but was mostly led by the U.S., said the CIVC.
DATA FOR THE U.S. According to IRI, U.S. sparkling wine is chugging along and imports are showing growth but at a slower rate. Dollar sales of domestic sparkling wine rose 6.6% in U.S. food and drug stores in the four weeks to November 2, while imports were up only 1.2%. Volumes of domestics rose 1.3%, while importer declined -2%.
French champagne saw declines in both sales and volume in October, down -2.9% and -4.2%, respectively. Sales of Italian sparkling wines grew 3.3% but volumes were down -2.5%. The countries with the biggest spikes in growth in dollar value are as follows (in order): Argentina (199%), Germany (97%) and Australia (30.2%).
Champagnes and sparkling wines priced above $35 declined in dollar sales (-3.2%) and volume (-6.5%), while the $18-$35 range was flat. The fastest growing price segment was value wines priced $5 and below, follow by sparkling wines/champagne priced $13-$18, and finally the $8-$13 price segment. As we’ve seen with table wine, consumers are increasingly purchasing value-priced bottles and trading down from the ultra-premium brands to premium priced wines.
WSD BRIEF:
FRESH & EASY HAS ADDED 5 WINES UNDER $9 from producers in Italy (Corvina-Merlot Cantina di Merlara and Ca’ Miani Garganega-Pinot Grigio), Spain (La Parra Loca Tempranillo-Shiraz), Australia (Lancewood Cabernet Sauvignon) and Washington (Roslyn Family Vineyards Cabernet Sauvignon). “By offering select wines from renowned producers around the world for budget prices, Fresh & Easy customers don’t have to compromise and are able to experience wines they may not otherwise be able to explore,” said wine buyer Mei-Lon Jimenez.
Until tomorrow, Megan
“Do not do unto others as you would that they should do unto you. Their tastes may not be the same.”
George Bernard Shaw
--------- Sell Day Calendar ----------
Today's Sell Day: 7
Sell days this month: 22
Sell days this month last year: 20
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: +1
BEER SUMMIT 2009 - The Four Seasons, Austin, Texas - Join us for great speakers, intelligent discourse, good food, and of course great beer at the next Beer Summit on March 1 - 2, 2009. Click here: http://tinyurl.com/beersummit
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
SAY IT LIKE YOU MEAN IT. Two of the biggest mistakes salespeople make, said Darryl, is failing to follow up and failing to make a connection. To help his audience better understand the message, he created a character called Vending Machine Man. The vending machine personality is where salespeople take orders and not much more. They don’t try to help customers when they’re in their place of business or take the initiative to improve poor relationships. In other words, the Vending Machine Man doesn’t add value before asking for value. He doesn’t act in a professional manner, and is really more interested in himself than anything else.
Clearly, that isn’t the best way to approach retail customers. Darryl says the best way to build good relationships is treating retailers like you could lose their business. “For retailers,” he said, “there’s this notion of not having a choice” in deciding which distributors they are going to work with. To help combat that attitude, he encourages distributors to change their mindset.
“The most critical thing for a distributor salesperson is to almost trick themselves into believing they can lose a customer even though they can’t. It is important to create an environment of trust,” said Darryl. “And don’t think that just because we are in a deepening recession, that sales people should throw trust and integrity out the window. It’s not a disposable line item on an income statement. The fact is that distributors could learn a lot from retailers because a retailer can lose a customer” if their service is not up to par.
Of course, retailers have ways of dealing with distributors they don’t like even if they can’t fire them. For example, distributors could lose their status in the retail account. Distributors can lose placements, and they could be moved to the bottom of the shelf or at the back of the bar.
This is why “it is important to create an environment where your customers do business with you not because the laws say they have to but because they want to.”
One way to build rapport with retailers is getting to know the employees in every account “because you’re not just selling to the president of the company or the buyer. Your job is to sell all the way down to the people that bring the goods in.”
DON’T FORGET THE HOW AND WHEN. Better execution of sales calls is also key. Salespeople should strive to use retailers’ time efficiently by giving the customer information they need in a format they find useful.
“I think the days of the dog and pony show with the sixty slides on PowerPoint are over because I don’t think people have the time or attention for that,” said Darryl.
“I try to stress that customers have less time, attention, patience, and energy nowadays, and the consolidation of brands has made it that much worse. Consolidation has made it so much more difficult to build brands and to build relationships because everybody’s running so ragged. So, one of the most important things people can do is ask first, present second. In other words, always ask your customers how they want their information to be presented.”
HUMANITY VERSUS INVENTORY. Darryl argues that consolidation has almost dehumanized the business by replacing human interaction with numbers and inventory. Now at the supplier level, companies are often run by executives overseas and brands are bought and sold at a quick pace, which is rapidly changing the sales environment. In order to improve relationships, suppliers should amp up their interaction at retail.
“Suppliers from my experience are not as interested in executing at retail as much as they are interested in controlling the distributors. I know some suppliers have better interaction at retail, but some never go into retail at all. They just go to the corporate office and they don’t really interact with the customers.”
As a result, distributors are often flooded with inventory that is passed on to the retailer, which can create bad vibes between the tiers. One way to help soften the mood is to create an environment of helping retailers sell inventory and having a little empathy.
“I understand that sometimes you have to do what you don’t necessarily think you should do. However, you can find a unique way of showing the retailer that you care about the inventory that’s in the system and you’re going to do something about it. And I don’t mean something financial or something illegal. I just mean that you show that you give a crap about the inventory you’ve already sent to people,” said Darryl.
FEARING THE ECONOMY. Right now, the beverage alcohol industry isn’t getting hammered by the economy as much as other businesses. However, people are definitely concerned about the future which can strain relationships. Darryl compares this notion to being in a room where everybody has the flu and wondering when you’re going to catch it. So how should you cope?
“Retail customers have less people because they’re firing people. So here they are heading into an (uncertain) holiday that everybody is forecasting to be dismal although beverage sales are holding up pretty good. I don’t think things are dire in the beverage business, but I think that when people become anxious, worried and scared about the economy, their attention span gets shorter. As a result, that interaction becomes even more important and harder.”
Once again, empathy and adding value is important. “If retailers’ sales are shrinking or they have to discount more, they’re going to be looking to distributors to maybe raise discounts and help them out a little bit.”
In all, Darryl’s theory stems from the old kindergarten adage of “treat people the way you want to be treated.” Good service results in good relationships, better sales and more money.
CHAMPAGNE HOPES FOR HAPPIER HOLIDAYS
Champagne producers are keeping their fingers crossed this holiday season in hopes they will see a much needed spike in sales. The global economic downturn has taken a bite out of champagne, driving total volumes down -16.5% in October overall to 36.2 million bottles, according to data from the CIVC industry body. This marks the first decline in the Champagne market since 2000, but it’s important to note that comparisons are tough. Last year volumes rose almost 6% to a record 430 million bottles, worth $5.9 billion in revenue. Sales plunged everywhere in October – including France and Britain – but was mostly led by the U.S., said the CIVC.
DATA FOR THE U.S. According to IRI, U.S. sparkling wine is chugging along and imports are showing growth but at a slower rate. Dollar sales of domestic sparkling wine rose 6.6% in U.S. food and drug stores in the four weeks to November 2, while imports were up only 1.2%. Volumes of domestics rose 1.3%, while importer declined -2%.
French champagne saw declines in both sales and volume in October, down -2.9% and -4.2%, respectively. Sales of Italian sparkling wines grew 3.3% but volumes were down -2.5%. The countries with the biggest spikes in growth in dollar value are as follows (in order): Argentina (199%), Germany (97%) and Australia (30.2%).
Champagnes and sparkling wines priced above $35 declined in dollar sales (-3.2%) and volume (-6.5%), while the $18-$35 range was flat. The fastest growing price segment was value wines priced $5 and below, follow by sparkling wines/champagne priced $13-$18, and finally the $8-$13 price segment. As we’ve seen with table wine, consumers are increasingly purchasing value-priced bottles and trading down from the ultra-premium brands to premium priced wines.
WSD BRIEF:
FRESH & EASY HAS ADDED 5 WINES UNDER $9 from producers in Italy (Corvina-Merlot Cantina di Merlara and Ca’ Miani Garganega-Pinot Grigio), Spain (La Parra Loca Tempranillo-Shiraz), Australia (Lancewood Cabernet Sauvignon) and Washington (Roslyn Family Vineyards Cabernet Sauvignon). “By offering select wines from renowned producers around the world for budget prices, Fresh & Easy customers don’t have to compromise and are able to experience wines they may not otherwise be able to explore,” said wine buyer Mei-Lon Jimenez.
Until tomorrow, Megan
“Do not do unto others as you would that they should do unto you. Their tastes may not be the same.”
George Bernard Shaw
--------- Sell Day Calendar ----------
Today's Sell Day: 7
Sell days this month: 22
Sell days this month last year: 20
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: +1
BEER SUMMIT 2009 - The Four Seasons, Austin, Texas - Join us for great speakers, intelligent discourse, good food, and of course great beer at the next Beer Summit on March 1 - 2, 2009. Click here: http://tinyurl.com/beersummit
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 11:20 AM
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