(Blog-Off II Entry) How Splash of Red and Luxury found each other

I’ve been a promotional products distributor for the past 15 years and life was good…no…let me re-phrase that, quite incredible. I bought whatever I wished, sent two children to University overseas, purchased real estate, Gucci, Prada, drank $50.00 martinis… etc etc. Towards the end of 2008 my inner voice whispered a warning. This powerful little voice is always right but I didn’t want to listen. Big mistake! I noticed a lot of changes in my business. The biggest change occurred within me. I lost my interest and that hungry salesperson became burned out and dispassionate about the company, the clients, the employees and even the little profitable office I inhabited for 14 years that was like a home away from home became a sorry sight. The love and passion for my life and my business decided to exit “stage left” as the battles between us we were getting worse. They didn’t like that I mentioned the word: “job”. For an entrepreneur, a job is much like a death sentence. Overwhelmed and confused I watched helplessly as these negative forces took control.

In January 2009 the bottom fell out of my company as we lost our biggest client then another one and then of course the recession infected the company like an incurable disease. The negativity would not go away and this was the beginning of the toughest journey in my life. At the beginning I did very little to remedy this situation save for a few cold calls and resorting to my basic sales tricks and tools that I was taught in the late 80’s. I had launched another company in February 08. I spent a lot of money in designing and marketing my new luxury equestrian luggage/bag line. That was shelved temporarily as well. No time and no money. All I could think about was personal survival and saving my 15 year old company. Every single day I whispered: God help me. Then I decided enough was enough. I moved onward with all the courage (and fear) I had. I did not look back.

I would like to share some of the measures I had to implement in order to save my company, keep my faculties intact and re-connect with my clients.

1. Reduced my office space significantly and stored products I didn’t need. I also held 2 sample sales.

2. Surrounded myself with products that were fresh and inspiring. I have to love what I sell so I looked at exciting colourful products and invited sales reps to visit and provide me with complimentary samples. I asked them to show me new products and how they could be applied to certain promotions. I also asked them about trends coming down the pipeline and any specials they were promoting. I used all this valuable information in my quarterly newsletter and showcased special products or brands. This interaction with my suppliers and their reps also gave me hope and inspired me to sell and keep the vibration moving.

3. I asked employees to go on a part time basis. They had to be made aware of the situation and realize that this was only a temporary situation and most importantly, they had to become more creative and offer their assistance in areas that were unfamiliar to them. This was a good opportunity for them to learn and grow professionally. If they didn’t cooperate then they were fired. It’s unfortunate that some people cannot see an opportunity when it’s presented to them.

4. Asked employees to be paid as contract workers to reduce government contributions.

5. Reduced my phone lines to 2 and a fax line. The current business telephone package was too expensive so I asked for the best and least expensive package. I didn’t need all the phone features anyway.

6. Any unnecessary expense was completely cut. Whether it was $10.00 or $100.00 a month… it adds up. 

7. Networked, registered for courses or showcased products and well known brands at a small trade show once a month. Then I followed up after the event and sent an email to each and every person I met. They responded.

8. Kept in touch with supplier’s A/P departments to let them know I was working hard to re-build my company and asked them for a payment plan. They were also very helpful. This also lets them know you’re transparent and honest.

9. If I was having a bad day I did not speak to clients as the tone of my voice was a dead giveaway as to how I was feeling that day. If you can’t fake it, don’t bother.

9. Contacting my existing and potential clients on a constant basis by using email and some cold calling then following up with another email. Clients were emailed visually colourful product newsletters that were uplifting and informative. They were kept in the loop even though their budgets were significantly cut and it also reminded them I was still available. I tracked all my contacts and my results. Actually reading my results proved to be a very powerful tool. It challenged me as a salesperson. There were questions I always asked myself: What can I do differently to get that business? What do clients need during these economic times? How can I make it easier for them to order? How can I differentiate myself from my competitors? I always asked my clients to answer my questions as they were the ones buying.

10. I wrote a list and presented myself with 2 scenarios: the worst that could happen and the best that could happen. The worst wasn’t so bad. I was very resourceful during this difficult time and made a decision that I wasn’t about to lose my company. Working for someone was not an option and I also reminded myself that as an entrepreneur, this is the life I chose. Sometimes it’s smooth sailing and other times it’s like riding a roller coaster without a seat belt, literally hanging on for dear life.

I am happy to report that my company is on the road to recovery and a marketing company has decided it wants to partner with me and take over sales. There is a young team that is eager to learn from my experience and I’m happy to teach and mentor. This will free up my time to delve into the world of luxury. Share my experience, my passion and my love for luxury products. I invite you to join me on my journey.

Comments

[Tim]

I was ARA retailer of the year last year. (Awards and Recognition Association) I jumped business by over 67% of where we were at the previous year. I was just a manager of the business, the owner had a very negative outlook and his tone and everything was showing to the customers. He also started to make some cuts that shouldnt have been cut, like advertising and marketing (how you going to sell without them). He purchased equipment instead (BIG NO NO) and thought that was the answer. He went against everything I told him, after 9 months of dealing with everything I decided I needed to get back into being a salesperson and go back to doing what I love. I loved what I was doing, but I couldnt fall with the owner and then be lost. I was pro-active, found another job and feel really good about myself. I am now a contract worker there on items they can not handle and only I knew how to do and I make some extra cash that way. Yesterday I went in there and noticed they are $110,000 less than the previous year and have only taken in like $20k for this month so far while last year this month I did almost 100k myself. Its tough to see certain things, but the moral is you have to be PRO-ACTIVE and always be POSITIVE! I am glad to see you are doing better and remember ALWAYS UTILIZE YOUR POSITIVE ENERGY!

Brogansinc.com was the business I was at. I am kind of still there, they do embroidery, engraving, chenille and laser etching.

GOOD LUCK anything I can help you with just send me an email, I know quite a bit about the industry ;)

timr@gpiprototype.com

[Sean]

It's not always about waving the white flag in defeat but how you adjust and change to the ever changing environments we live and work in. Your story is inspiring. The next 15 years should be as exciting as the first 15 years.

[Melanie]

It takes courage to share your honesty and re-build. Thanks for inspiring the entrepreneur and pushing us to re-focus and change our thinking. Looking forward to reading about the next chapter of your journey.

[Mike Browne]

I have been self-employed for many years. 2009 was so bad I had to lay myself off.

[Darlene]

I just took a lood at my comment I left for you and there are so many typos, I can figure out how to delete it. Darn....Focus, thoughts as you moved....

[Darlene]

This is what everyone is facing right now. Most people just gave up and walked away. Not you, you became your own best salesman. Your recreated your company, yourself, and was open to new ideas and vocused on what is important. Excellent article, I enjoyed reading about your thoughts are you moved through your changes. I wish you all the success in all your future endeavors.