Heavy Merchandising Work as Differentiator 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.)
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)
(196)
Lawn and Garden Success*:
* Success stories are summaries and approximations only. See our web site for additional details on success stories.