Chuck Nichols - Summary Background

·         Four years running a Merchandising Services company.

·         15+ years in software and software services – primarily sales and sales leadership

Merchandising Services Success Stories*

 

(77)  Waterheater Unit Sales At This Retailer Are 28% Greater Per Store Per Year than Its Larger Competitor.

  • Waterheater Manufacturer Sales Up More Than 300% Over Eight Years through a Single Retailer.
  • Manufacturer Survives Industry Consolidation, Becomes the #1 Waterheater Manufacturer in U.S.
  • Returns Down From Near 10% To 5%
  • Provides Better Merchandising Work Than The Manufacturer's In-House Staff, At A Substantial Cost Savings.  
  • Emergency Regulatory Recall Handled in 72 Hours While Some Competitor’s Waterheater Departments Were Shut Down for a Month.
  • Helped Manufacturer And Retailer Conduct First Effective Line Reviews, Resulting In Not Stocking Gas Water Heaters In Electric Water Heater Markets.
  • Sales Cycle Notes:  Work was commission based.  (Founder served as manufacturer’s rep for product.)
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Details: http://tomingraminc.sharepointsite.net/Public/WaterheaterSuccessStoryv2Redacted.pdf

 

(78)  $1.2 Billion Increase in Retail Sales of Major Appliances (estimated: 2003 to 2006)

  • Retailer’s Market Share of Major Appliances Increased from 13.7% in 2003 to 17.7% in 2006, While Competitors Either Lost Share or Grew Slightly
  • Four Week Test Increases Sales of Major Appliances by 11%, Increases Turns by 20%
  • Second Test Confirms Initial Results
  • Retailer’s Close Rate on Major Appliances 15% Higher Than Major Competitor
  • Freed Up Approximately $30 Million of Non Performing Inventory In Six Months

  • Sales Cycle Notes:  European / Asian company needed field sales force in US, difficult for them to hire and oversee.  Originally commission based, moved to flat fee.

     Details: http://tomingraminc.sharepointsite.net/Public/MajorApplianceSuccessStoryv3Redacted.pdf

 

(178)  Sales Increase of 5 to 10% (est.) for Heavy Product - Auto Batteries.  Reduction in Returns Saves $100,000+, Pays for Entire Program.   Discovered and Rectified Significant Planogram and Out of Stock Problems in Stores.  Identified a Root Problem With Displays That Was Preventing Effective Rotation.  Completed Work Where Two Previous Merchandising Companies Had Failed.  Category:  Heavy Work, Auto

 

(179)  Closed Multi-Year Program at $36+/hour During Recession of 2008/2009*.  Manufacturer states "We Will Get Better Sales Productivity from the Merchandising Company's Staff Than Our Own.  We are good manufacturers.  They are good at running a field sales force.  They have the sales disciplines, methods, structure, and management.  We always have the problem of 'salary creep' and 'reps not where we need them'.  The merchandising company is good at dealing with this.  In addition, we estimate that a full time person, with overhead, costs about $100,000 per year.  The merchandising company charges us $75,000 to $80,000 per person - with better results."  Sales Cycle Notes:  Asian / European company.  Manufacturer chose to purchase only field reps and oversee with their own management.  Heard of merchandising company's work and called them.  Interviewed 3 competitors.  Sales cycle took 3.5 months, but merchandising company was confident they had the deal after only two weeks.  Beat large broker because it was too big to provide the dedicated team / attention desired plus did not have primarily male field force.  Beat smaller, regional competitor because they did not have the scope or retailer expertise needed.  Category:  Cannot Disclose  (CN)

 

(180)  Multi-Year Program at $35+/hour, Spring Work Only*.   See success (179).  Nearly identical program of reduced cost and improved field sales results.  Sales Cycle Notes:  Sister company of Major Appliance success story manufacturer #(78).  Knew reputation for good sales gains plus cost savings.  Category:  Cannot Disclose  (CN)    

 

(181)  Closed Another Multi-Year Program at $36+/hour During Recession of 2008/2009*.  Manufacturer needed field sales organization, very similar to success (179).   Complex New Product Required Skilled Field Sales Organization that Manufacturer had Never Needed Before.  Average full time person, with overhead, costs manufacturer about $100,000 per year.  The merchandising company charges $75,000 to $80,000 per person - with better results."  Sales Cycle Notes:  Started with small amounts of work recommended by the retailer.  Merchandising company's lead client had a cutback.  Merchandising company pursued this manufacturer based on "if you like what we've done for you, we need a multi-year commitment, otherwise it goes away."  Manufacturer chose to purchase field reps plus field management plus a back office staff.  The merchandising company oversees all field work.   Manufacturer really needed the help to meet cost cutting goals, revenue goals and to support the complex new product.  Category:  Cannot Disclose  (CN) 

 

* Success stories are summaries and approximations only.  See our web site for additional details on success stories.