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The demo unit that never comes back
Almost every reseller has a cupboard nobody likes to talk about. It holds devices that should be somewhere else: with an end customer, being tested....
Almost every reseller has a cupboard nobody likes to talk about. It holds devices that should be somewhere else: with an end customer, being tested. Or it does not hold them, which is the bigger problem. Ask your team where the demo unit from that project last spring ended up. You will get three answers and no serial number.
Let us work out what that costs. A mobile computer worth 900 euros goes out for testing and stays away for four months. When it comes back it is no longer new: protective film gone, scratches on the housing, cycles on the battery. A thirty percent markdown is generous, so that is 270 euros. With five such units in circulation you have 4,500 euros tied up and 1,350 euros lost. And that is the lesser problem. The bigger one: after four months there is still no decision.
Why does the unit not come back? Because nobody agreed on what was actually being tested. »Take your time and have a look« is not a test. It is a loan without a brief. The device spends two days on the warehouse manager’s desk, gets switched on once, is found to be fine and moves into a drawer. There it stays until the battery is flat. Your customer has learned nothing, and neither have you.
A test that is worth anything has three things: a question, a person and a date. The question is not »Do you like it?« but, for example: Does the scanner read the damaged label through the film, in the cold store, with gloves on? The person is whoever will work with it eight hours a day, not the buyer. And the date is the appointment for the wrap-up call, which you arrange when you hand the unit over. Two weeks is almost always enough. Anyone who needs longer is not testing, they are putting off the decision.
Now the uncomfortable part: not every enquiry deserves a demo unit. Someone who wants a trial for three scanners rarely wants to verify anything. Mostly they want to play. And the end customer who asks three resellers for one device each is getting the three of you to pay for their market research. You are allowed to say no. You are also allowed to say: Gladly, once we have written down what the device is supposed to prove and when we will talk about it. Anyone who will not agree to that would not have bought anyway.
One more thing before the unit leaves your building: register the project. I have written about project pricing and deal registration before. The trial is the moment when you do the work. If the project is not in your name, you run the test and somebody else writes the quote. And talk to us before you buy a demo unit out of your own pocket. Many devices come with manufacturer demo programmes, and we know which ones.
Done properly, a trial is the strongest sales tool you have. A device that has worked in the customer’s cold store needs no data sheet. But it is a tool, and tools are lent with a return date.
So remember: »A demo unit without a return date is not a test. It is a gift with a serial number.«
Finally, you only need one distributor
Count how many...
Count how many distributors you have an account with. Three? Five? I know resellers who buy from seven – with seven portals, seven passwords, seven credit limits and seven contacts, one of whom is reliably on holiday. I’ve already written here about what I think of out-of-office replies. There was always one reason for collecting distributors, and it was a perfectly sensible one: nobody had everything. One had the devices, another the accessories, a third the service contract and a fourth happened to have stock. My argument is this: that reason is disappearing.
Let’s start with the maths, because you won’t believe me without it. Take twelve orders a week. Every additional source costs you fifteen minutes per order: log in, check stock, compare prices, place the order, match the delivery note, file the invoice. With two additional sources, that’s thirty minutes per order, six hours a week, three hundred hours a year. At €50 an hour: €15,000. Almost two working months in which nobody at your company has sold anything. Did buying from five different sources really save you €15,000? Sometimes, yes. Most of the time, you saved three euros on a scanner and never did the maths.
Then there’s the part that causes the most headaches: stock. With us, you see what’s in the warehouse – real quantities, not »available on request«. You can reserve stock for your project, and reserved means reserved: the devices sit on the shelf waiting for you, not for whoever shouts loudest tomorrow. And every reseller has their favourite products – the three scanners, the one printer, the terminal that appears in every second quote. Tell us what they are. We’ll make sure those exact products are there for you, even in the week when the market has been cleared out. I’ve already written about distributors without warehouses. This is the opposite.
The second point is less visible, but more important in the long run: your projects and service contracts are all in one place. Where was the service contract for those eighty devices from two years ago? When does it expire? Which project price applied, and which end customer was it registered for? If the answers are spread across five distributors, you’ll find them in the inbox of a colleague who no longer works for you. If they’re all in one place, you see which contract is about to expire – and call your customer before someone else does. You already know from this series that a service contract is either sold with the device or never sold at all. The renewal goes to whoever knows the date.
Then there’s the question of product range, because a single distributor is no use if they don’t stock half of what you need. We’re not a broadliner, and we don’t want to become one – I’ve written about why before. But within our specialist field, we go wide: scanners, mobile computers, label printers, POS systems, receipt printers, touch displays, customer displays, cash drawers – and all the accessories that go with them, from charging cradles to that one cable that always ends up missing. A rollout rarely fails because of the device. It fails because the mount was ordered from another supplier and arrives a week later, while forty devices are sitting in your customer’s corridor.
And now to the part I consider the most important. A distributor who only supplies what you already sell is a warehouse with a phone number. We’re constantly adding new manufacturers and new product areas – RFID, security technology and whatever comes next. For you, that means you can try out a new field without setting up a new supplier. Same account, same contact, same credit limit – and someone who can tell you what other resellers are currently learning in that field. Marketing calls that a Growth Engine. I call it this: your product range grows without your supplier list growing with it.
Now for the uncomfortable part, and this one goes against my own argument. In this series, I’ve warned about having one big customer that everything depends on. Doesn’t the same apply to having one supplier? Of course it does. Keep a second account. The day will come when we don’t have a particular item, and when it does, we’ll tell you rather than inventing a delivery date. I don’t want you to buy from us because you no longer have any other choice. I want you to buy from us because, for the past year, you haven’t needed another choice. There’s a difference – and it’s one we have to earn again with every order.
So remember: »A second distributor is insurance. A fifth is a sign that the first one isn’t doing its job.«
Trade shows are dead. Long live dinners!
I’ll admit it: I’ve been to more trade shows than I care to remember....
I’ll admit it: I’ve been to more trade shows than I care to remember. I’ve stood at exhibition stands, lugged catalogues around, handed out pens and spent evenings in hotel bars talking about promising contacts who, come Monday, turned out to be students with a passion for collecting carrier bags. At some point, I started asking myself the question every financial controller had been asking for years: What does any of this actually achieve?
The honest answer is uncomfortable. These days, a trade show is largely an event where exhibitors visit other exhibitors. Everyone has already seen the latest products online, and the reseller you actually wanted to talk to is either at the stand next door – or hasn’t made it to the show at all because they’re short-staffed. You pay for floor space, stand construction, hotels at exhibition rates and three days with your sales team away from the office. And you come home with a stack of business cards, a third of which leave you wondering why you were given them in the first place.
Let’s use some example figures. A small stand with all the trimmings easily costs €25,000. If that results in a hundred genuine conversations, that’s €250 per conversation – and many of them last four minutes and end with: »Send me some information.« For the same money, you could invite a hundred partners to a really good dinner. Two hours, no neighbouring stand, no announcements over the PA system, no pens. Which of those two conversations will you still remember a year later? Exactly.
Now for the uncomfortable part – and it applies to me too: Trade shows aren’t completely dead. Manufacturers need the big stage, and some contacts really do happen simply because two people find themselves standing at the same coffee machine. If you disappear completely, people notice that too – just not in a good way. So I’m not saying: Stop going to trade shows. I’m saying: Stop treating a trade show as sales. It’s visibility. Sales happens somewhere else.
Where? Wherever people take the time to talk. I’ve written before that a slide with forty charts doesn’t convince me – an exhibition stand is basically the same slide, only you can walk around inside it. What does convince me is a conversation where someone listens, asks questions and remembers that your daughter has just finished her A-levels. That works a lot better around a dinner table than at a high table covered in a stretch tablecloth.
Anyone who knows us knows that we have a place for evenings like these where the food smells pretty good. But the principle works anywhere: at the restaurant around the corner, over a barbecue after a training session or at breakfast before a project kicks off. What matters isn’t the location, but the math behind it: fewer contacts, but genuine ones. Ten partners who know who you are after an evening together are worth more than two hundred business cards that end up in the recycling bin three weeks later.
So I’ll keep going to trade shows. But with lighter luggage instead of a catalogue full of products – and a short list of people I’m going to invite to dinner afterwards.
So remember: »At a trade show, you collect business cards. Around a table, you collect partners.«