Not Changing Product
Lines or Reps
Selecting Products
and Sales Representatives
Recently we had a visit from
a salesman that has been calling on our store for the past year.
We added a series of items from one of the product lines that
he represents, because the fasteners produced are not available
from the company that has serviced our store for years.
As would
and should be expected with each visit, he has asked us to change
to his fastener line. And, during one of his earlier visits, he
asked to present his entire line. Before this presentation was
made, we reminded him that we are a conservative business, and
have made a practice of not replacing one line with an identical
line unless there was an exceptional problem with the currently
stocked line. We have declined his offers, but at least we are
aware of what he has available.
Many salesmen, and product lines,
have come and gone. Each wanting to join the list of suppliers
that have their products in our store. This is the same as we
would expect to happen in any hardware store. With many of the
sales pitches, we have heard the usual round of incentives: more frequent
or improved sales calls, buyouts of the competitor's merchandise,
free displays, assistance in setting up the new merchandise,
and even additional discounts on our orders for an unspecified
period of time. Through all the deals and years, we have repeatedly
declined most of these offers. But, for the lines that we have
added to our store, it has been because of a lack of service,
selection or delivery from the current supplier.
For the salesman
that is making the presentation, we perceive disappointment and
sometimes a lack of understanding. Yet for the salesman and the
product line that we are keeping, we suspect that he is most appreciative.
With either salesman, they tell us that operating as we do, is
not the norm for hardware stores today.
Our decision to operate
our store this way, is based on the method we have chosen to service
our customers. We appreciate and admire the occasional customer
who tells us they remember 1959, when three brothers opened a
hardware store in St. Petersburg, the one we currently own. The customer
usually goes on to tell us that they have always shopped
in our store, which is in a town that, in the past seven years,
has seen all of the hardware co-ops, discount stores, and warehouse
stores arrive to compete for the retail hardware dollar.
We
know that the success of our store is dependent upon these customers
that have shown a continued loyalty to our store. And we know
that this same group of customers have helped us to add new customers.
Imagine our proud feeling, the day that Mr. Hartley, a charge
account customer, brought a man into our store, explaining that
this individual had purchased the Hartley home. Mr. Hartley wanted
to introduce the new resident to his neighborhood hardware store.
Shortly thereafter, the new resident received a letter from our
store with four dated coupons for discount or free items, as we
subscribe to a newcomer welcoming service.
It has also been our
experience that our success is dependent upon our showing a similar
loyalty to our vendors. An example is this salesman that has serviced
the stores that we have owned since 1973. We believe that he continues
to have our best interest in mind. Of the product lines that he
represents, we believe he is careful in his suggestions for items
that we will add, or continue to keep in our inventory. We believe
that some products will be suggested because other stores in the
area are selling this item, and not because a manufacturer has
offered a cash spiff for any order that the salesman can get.
While he is not the only salesman that assists us in this manner,
we know one of the main reasons we have a number of salesmen that
fit this description is this method of selecting both product
lines and reps. We believe that when we change a product line,
it should be after great thought, and with good reason. We have
heard repeated reports of retailers that have changed product
lines frequently. One is the story of a hardware retailer that
has changed his line of faucet stems and related items five times.
It seems that after a good sales pitch, a manufacturer buys out
the competitive line and installs his line. Unfortunately, within
a matter of months, another manufacturer is making the pitch,
and initiating another buyout. One of the plumbing suppliers has
had his line in the store twice. We can't help but think that
this store's customers and employees are confused.
While we
do hear these stories through the salesmen that call on us, we
also receive information that assists us in selecting, or deleting,
other items that we will stock or promote. We watch for information
like this so that we will not advertise items that we anticipate
will be heavily promoted by the discounters and warehouse stores.
Unfortunately, we have experienced one product line that we have
discontinued because we have found it is a labor intensive product
to handle, and is constantly promoted at prices that are below
our cost. To us, the efforts necessary are not worth the possible
results. A salesman first tipped us to this valuable information
which has saved us possible embarrassment.
Our years of experience
have shown that there are many services and programs available
from wholesalers, associations, and manufacturers. Some of these
services have costs, and some are free, but one of our most
valuable sources of consultation has been the sales representative
that calls on us on a regular basis.