Selling someone else’s products

Have you ever thought about selling someone else’s products? When you sell someone else’s products,  parts of that vendor’s business obviously become a part of yours: their products and services. However, the reality is a good bit more complicated.

Be sure what business you’re in

When you consider selling someone else’s products, it’s critical to assess whether the product is germane to what you do.

For example, it isn’t hard to find stores selling fidget spinners. They’re an impulse buy that could add a small bump to daily sales, so grocery stores, convenience stores and the like could justify selling them back when they were hot.

However, it makes little sense to see these gadgets advertised on outdoor signage at pawn shops and musical instrument stores – which I’ve seen lately. The logic behind advertising out-of-context impulse items on a specialty retail store’s limited outdoor signage escapes me – particularly on high traffic streets.

Will it confuse their market? Will they lose their focus by selling a few $2.99 items? Doubtful. While they’re trying something to increase revenue, the emphasis on an out-of-context, low-priced impulse buy product is the reason I bring it up. It makes no sense for a specialty retailer.

When you start selling someone else’s product, there are questions you don’t want your clients and prospects asking. They include “Have their lost their focus?” and “What business is my vendor really in?”  These questions can make your clientele wonder if another vendor would serve them better.

Should you sell out of market?

I had this “Is it in context?” discussion with some software business owners this week.

One of the owners (not the tool vendor) is asking the group to sell the development tools they use to their customers & other markets. Ordinarily, this would be a head scratcher, since most software development tools generate their own momentum, and/or are marketed and sold with a reasonable amount of expertise. That isn’t the case with this tool vendor.

However, the discussion really isn’t about that tool vendor, even though they’re at the center of the discussion being had by these business owners. The important thing for you is the “Should we sell this product?” analysis.

Start the conversation by bluntly asking yourself if makes sense for your business to sell this product.

Adjacent space or different planet?

If your company sells to businesses that develop software internally or for sale to others, then you might consider selling a vendor’s software development tools to your customers. It might make sense if you sell into enterprise IT.

However, if you sell software to family-owned, local businesses like auto parts stores and bakeries, it makes no sense at all. You’re going to appear to be from another planet going to these customers to sell software development tools.

If you try to sell these tools in an unfamiliar market, then you’re starting fresh in a market your team probably isn’t used to selling and marketing into. The chance of losing focus is significant unless you’re leading your current market by a sizable margin and have plenty of extra resources.

Ideally, a new product line feels congruent to your team, clients and prospects. Even when it’s a good match, the work’s barely started as selling and supporting a ready-to-sell product requires a pile of prep work.

Your sales team needs training to sell the product and know how/when to integrate it into multi-product solutions. You need to include the product in your marketing and training mix. Your support team needs training to provide the level of support that your customers expect. Your infrastructure team needs to incorporate it into your CRM, accounting, website, and service management systems. Your deployment team may need training as well.

What if the new product’s vendor has problems?

Reputation damage is one of the biggest risks when selling someone else’s products, particularly if you have to depend on the other company to service and interact with your customers.

Does the product vendor provide support as good as yours? Do they communicate in a timely & appropriate manner? Do they service things promptly? Are they a good citizen in the developer community? These things are important in the software tools market. In your market, they may not matter.

The actions of the product’s creator reflect on you, since YOU sold the product to YOUR client. Carefully consider the risk/reward. Your entire clientele will be watching.

Twelve Days of You

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Creative Commons License photo credit: gagilas

Think about your day.

What did you do yesterday?

Were you productive? When I ask that, what I mean is this: Can you reel off a list of high-priority things that you accomplished?

Did you waste any time?

How much of each hour did you spend on real, focused, dedicated work that actually produces a profit (either directly or indirectly)?

Let’s go on the assumption that you are one of the most productive people around and spent 50 minutes of each hour doing work of a nature that I just described.

That leaves 10 minutes to stretch, hit the restroom, and do whatever.

The Price

What’s that cost?

At a billable rate of $50 per hour, that ten minutes is only worth $5.00.

Or so it seems.

If you only work 40 hours a week, that 10 minutes consumes 400 minutes (about six hours) a week, worth $200.00.

In terms of time, that seems like a lot. In terms of money, maybe not so much.

Until

Until you multiply that times 50 weeks a year, when it becomes… Ten grand. 300 hours. 12 days.

Yet, you’ll assert that you don’t have enough time.

If you were focused and organized, what could you get done in twelve days?

Just One Thing

One of my favorite movies – and a scene that every business owner needs to consider.

What’s your business’ one thing?  What’s yours?

Is that what the bulk of your current efforts are working towards?

If you need some help figuring that out – or just staying focused on it – check out The Power of Focus.

I am a slacker. Are you?

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Creative Commons License photo credit: striatic

Yes, me.  I am a slacker. I admit it.

A year ago, I was planning to release my first book, “Business is Personal”.

You probably don’t remember me doing a launch promotion on it. That’s cuz I didn’t launch it.

As you might suspect, stuff happened and pushed it out of my immediate view and soon enough, a year went by.

Bet that never happened to you.

It’s still sitting in my authoring software, laughing at me: “You can’t finish me today, bwa-ha-ha-ha-ha-haaaaaa” (yeah, that’s supposed to sound like an insane creepy laugh).

Enterrrrrr theeee excuuuuuuuuusee zoooooooonnnnnne (you can figure out how that is supposed to sound).

The Excuse Zone

See if any of this sounds familiar, even if you have to adjust the facts.

  • Before first light today, I headed out to Melita Island to help teach the 2nd part of Boy Scout Wood Badge. WB is an adult leadership course for Scout leaders and I am part of the instructor team.
  • The morning after I get back from Melita, I leave for Scout camp for a week.
  • The next week is 4th of July week and I have to go to a swim meet that will be a lot about remembering a dear friend who in her last 18 months of life literally willed a small town into getting a new swimming pool suitable for swim meets – all while battling pancreatic cancer.
  • Meanwhile I have client work, coaching sessions, blogging, writing my newspaper column, working on my own product development work, doing family stuff, visiting with that awfully cute granddaughter you see in that photo on the blog, a week in Missouri with the in-laws and such right after the 4th, out of town swim meets every weekend till August, then (not 100% sure on this one) 10 days in the backcountry on a wilderness pack trip.
  • That gets me to August 16 and doesn’t count other troop activities, Rotary (yes, I’m still club president), a few other volunteer gigs here in town and again, more of that client work stuff.

All the while… it sits there and taunts me. The book, I mean. You can probably hear it giggling.

Choice

You probably think “Heck, no wonder you didn’t get it done, with all THAT stuff going on.”

And you would be completely missing the point.

It has nothing to do with how much other stuff I have to do. It has to do with making a choice about the stuff I AM doing.

Each day since the Spring of 2008 when I started “Business is Personal” (the book), I’ve made a choice – several times a day.

These choices were made to do something else other than chip away at the book, even if I chose to do something that might have seemed important at the time.

No one else made these choices. Just me.

A few of my favorite Jim Rohn quotes come to mind:

  • “When you say ‘No’, you say ‘Yes’ to something more important.”
  • “Learn to say ‘No’. Don’t let your mouth overload your back.”
  • “We can no more afford to spend major time on minor things than we can to spend minor time on major things.”

What did you not get done today that you should have gotten done, if only it wasn’t for that “really important” thing you did instead?

Say “No” to the not-so-important so that you can say “Yes” to the really important.

PS: Stay tuned for the book. If you’d like to help with it, take one minute to slide on over to http://www.businessispersonalbook.com and enter a question (someone will win a pair of free consultations, may as well be you).