State Of The Window Tinting World

I posted the following entry on April 27, 2008.  Times have changed but much of what I wrote is applicable today. Take a fast read and see if I was that far off one year and two months later?  I'll have more to write on these issues shortly

Mike Feldman



###
4/27/08

Many of our steady readers understand our unique perspective on the window tinting (or do you prefer window film?) Industry.

Frankly, I have learned a heck of a lot more about window film in the last year than in the entire last ten years I spent at 3M Window Film!

How does a corporation meet quotas when the economy is hurting?? 

Well the first concept to disregard immediately is investing in advertising and consumer awareness campaigns.  Please don't assume for a second that improving sales has anything to do with an actual investment!

Forget training programs and dealer loyalty programs. . are you nuts??



Here's a typical game plan:

  • Raise your pricing by a huge % and hope that no one above you notices that there is actually no organic growth, but rather inflated numbers. Best trick is to do that starting in the early days of the following quarter. This tends to get some dealers buying more inventory before the quarter ends.

  • Figure out a way to add more dealers and try to get them to take a stocking order to make it "look like" you sold film.

  • Try to get a large retail chain to promote your film and coerce your dealers to install for the retail stores at foolishly low prices.

  • Call on larger commercial accounts and get creative with your pricing tactics. Since you know that most of your dealers can never win a larger project with your film prices on products that are outdated and over priced.

  • Sell direct to your dealers rather than through distribution.  This lets you add the distribution margin to your pricing and as the high honchos above you are typically asleep at the switch; they will never figure out that you didn't really sell 25% more product! Rather you simply took your channels margin away from them and gave it to yourself.

  • Drag your feet on paying out co-ops and warranty credits. This make you look more profitable doesn't it!
So what does a small business owner need to do to protect their equity and income?

  • Keep an open mind and explore competitive film programs. Compare how their dealers are being respected versus what type of treatment you are receiving.

  • Compare competitive co-op programs as well as their sales support materials that make it easier to communicate your selling message.

  • Never trust, remember "Loose Lips Sink Ships!" Keep your commercial projects a secret or you might discover some shenanigans behind the scenes.  You will have no one to blame but yourself.

  • Stand up for your integrity, never let anyone coerce or threaten you or your business.

  • If they show up in your town unexpectedly, or call you without any advance notice it's because they are up to something in your marketing area.

  • Seriously- develop your own network of communications with your fellow dealers.  Compare what your reps are telling them as opposed to that drivel they told you. There are always contradictions and sweetheart deals. The only way you'll ever know is to keep connected to a much larger circle of information.

  • NEVER place yourself in a position where you have only one source of product.  You need to have options just in case!

  • NEVER pay a fee to participate in any program unless that program is transparent. In other words, does every dealer pay the same fee based upon strict guidelines? Is someone getting a free ride because they like the other guy better than you?

  • Now consider this; if you are the guy they liked better, and you have a better secret deal. .what type of ethics does this display?

  • If you understand the various product solutions available; ask yourself if you are promoting the best solution to your customers by category?  If you understand, in your heart and mind, that you are hood winking your customer, you will ultimately fail. Consumers aren't dummies!
Your obligation as an independent business owner is to build a sustainable business with equity and profit the outcome of your efforts and investment.

It's not to buy more film or kiss up to your rep in a foolish hope of getting more corporate leads than that local competitor they set up to take business away from you!

You have choices, but the first obligation is to maintain your own self respect and personal integrity.

Mike Feldman

 

What did you think of this article?




Trackbacks
  • No trackbacks exist for this post.
Comments
  • No comments exist for this post.
Leave a comment

Submitted comments are subject to moderation before being displayed.

 Name

 Email (will not be published)

 Website

Your comment is 0 characters limited to 3000 characters.