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Unfortunately,
most promotional
consultants don’t
see the amazing
value they bring
to the table
and therefore
give away their
most precious
commodities—
their time, ideas
and creativity. You
need to get paid
for those things.
|
DECEMBER 2016
|
53
GROW
Industry Average
If you dig a bit you can find
some interesting industry
statistics. For example, the
average gross profit in our
industry is between 32 and 34
percent. Why is this? I contend
it’s because that range is the
average margin published
in supplier catalogs, and
because we price and sell the
products based on the catalog’s
suggested price. Nowhere has
it ever been stated that you
must sell at those margins;
they are merely guidelines.
What Are You
Worth An Hour?
If I were to ask, “What is
your time worth per hour?”
what would you say? I have
heard ranges from $10 an hour
(seriously) to $300 an hour. If
you are unable to answer that
question, let me set the record
straight. What if I told you that
your time is worth a minimum
of $100 per hour? How would
that change your next quote? If
you had to earn $100 per hour
what would you do differently?
What steps would you take
to ensure that you meet that
quota? Unfortunately, most
promotional consultants don’t
see the amazing value they
bring to the table and therefore
give away their most precious
commodities—their time, ideas
and creativity. You need to get
paid for those things.
Selling At Higher Margins
Some time back, in a similar
article on increasing profits
by upselling, I shared the four
things I always do when selling
high-end jackets:
• Have the client’s logo
engraved on a wooden hanger
and place the jacket on the
hanger for the presentation.
• Attach a custom hang-
tag on the jacket.
• Consider placing the
client’s logo on the jacket.
• Place the jacket in a
logoed hang bag.
Each of these touches creates
an opportunity to upsell. I
cannot tell you the number of
times clients have commented
on the logoed hangers and
garment hangtags, but each of
these is a touchpoint for me to sell
the value of why it’s important,
such as: it gives the item a higher
perceived value, makes it look
more like a gift and it gives it a
retail appearance and appeal.
The client usually loves these
upselling ideas and orders
the jackets along with logoed
hangers. My cost for the logoed
hangers is $2 but I sell them for
$15. When I mentioned this in
a previous article, a gentleman
called me and told me I should
be ashamed of myself for ripping
off my customers. Really? I have
never used a handgun during a
sales presentation. I show, tell a
story, sell the value and clients
agree that the value is there; then
they can freely purchase—or not.
I always sell on value, and I
always upsell. For those of you
who think selling way above an
“A” discount code is impossible,
think again. I have coached and
mentored a number of folks who
routinely sell this way.
I remember a conversation
with the late Marvin Spike from
ASI (he was amazing by the way)
about this very subject and he
said, “Cliff, always remember,
profit is not a four-letter word.” So
true. It is imperative that we, as
business people, show a profit.
Marketing At Lower Costs
Another way to increase your
profitability is to look for ways to
lower your costs—especially on
self-promotions. For example,
when you speak with your
suppliers find out what products
they have on close-out. Look at
what they are offering, determine
the client audience you want
to target with the product, and
develop a theme, copy and
Increase Profits
By Upselling
Have the client’s logo
engraved on a wooden
hanger and place the
jacket on the hanger for
the presentation.
Attach a custom
hang‑tag on the jacket.
Consider placing the
client’s logo on the jacket.
Place the jacket in a
logoed hang bag.