The past three years have brought generous
sales, a variety of products and just about anything was considered
a collectible.
Retailers thrived, Reps. were handsomely rewarded for reorders
and collectors had their fill of a multitude of collectibles ranging
from plush to commemorative coins.
Are those days lost forever or is this just a revamping time?
With a soft collectibles
market and no new base of retailers to sell too, what's a Rep
to do?
Year 2000 will be known as a challenging year for sales Reps.
and manufactures. They would watch many small retailers fail and
accounts dwindle. Surviving retailers would ultimately have to
pull out all the stops just to stay afloat.
Reps. would be forced to work harder than
ever and in many instances altar company policy just to ensure
a sale.
In many cases Reps are given unrealistic sales figures, which
escalates their pressure in some cases hampers their ability to
sell.
Year 2000 would prove to be a soft market
and Reps. would have much to be concerned about.
Some concerns Reps are faced with include the following:
Matching or beating current sales figures.
Manufactures inability to design and produce unique merchandise.
The economy has played heavily on many Reps. minds and in some
cases has jeopardized those all-important final sales.
Maybe its time for manufactures to wake
up and offer incentive programs for hard working Reps.
A threatened Rep. will not produce as much as a rewarded Rep.,
boost their moral, pad those commission checks and remind them
how important they are to your business.
Will manufactures
survive the ride?
Manufacturers are constantly being challenged by a variety of
scenarios, which dictate their success.
The collectibles market would appear to be over saturated and
it is a constant dilemma to manufacture new and exciting products.
For the past two years it would appear that
the market would bear anything made from beans. An obvious slow
down in this category has many scratching their heads and wondering
what happened.
Although many Companies have survived and have not cooked their
beans as of yet, some have fallen by the way side and may never
simmer a pot of beans again!
Manufactures are constantly being hampered
by delinquent sales accounts, bankruptcies and mishandling of
their products.
Because of these constant issues many manufactures are forced
to sell their goods to larger chains. In turn, customers do not
receive the one on one care and attention they deserve. In many
cases manufactures products are not well represented in larger
chains thus hampering their sale appeal.
In my opinion, customer service has a lot to do with the ability
to move product. If you are well versed in a product line and
show the product well, it will sell. Larger chains normally tend
to forget customer service and sell in mass quantity.
Will 2001 be the year manufactures regain control of the collectibles market or will accounts continue to dwindle and sales die off? It's too soon to tell but one thing is for sure, there will be a lot of revamping and internal restructuring going on, manufactures will not survive without it!
Rumor has it that Enesco has restructured their whole organization all the way down to their Sales Reps. Reps. who have been with the company for years have lost their positions and must reapply for their jobs!
Boyds Bear has also done some restructuring
with the retirement of the Head Bean.
Many retailers are confused by these turns of events and do not
even know who their Reps. are for these companies.
How has the Internet
impacted today's market?
Many manufactures have jumped on the bandwagon and given the Internet
a whirl. There are conflicting reports and the jury is out on
what impart if any this may or may not have on sales.
While many manufactures felt the need to advertise on the Internet and showcase their goods, some retailers felt that this tactic only deprived them of sales.
Manufactures need retailers to sale their products, if manufactures launched their own sites and offered their products for sales, it would them starve the retailers. In many cases retails would be forced to compete with the manufactures and many would cancel accounts.
The Internet holds many powers and search engine's can be very successful in bringing attention to manufactures and retailers.
Many companies frown upon their retailers
selling their products on the Internet.
Recently I contacted a few manufactures asking why they feel threatened
by the Internet.
I've been told that if their items were sold online they would
not be considered exclusive, limited or worthy of collecting.
Some manufactures feel that their products would fair better if
sold only in small shops where attention could be given to detail,
which may be overlooked online.
While I understand this to some degree, I also feel that in today's
market manufactures should be more concerned with servicing their
customers needs and taking advantage of numerous retailers showcasing
their product online.
If I were a manufacture I would launch a
company website and NOT offer product for sale through that site.
Instead I would showcase my product and allow retailers online
and off to sell on my behalf.
This strategy serves many purposes.
It provides customers with the ability to purchase online, thus
avoiding missing items sought after, due to conflicting schedules.
It ranks a company higher in the search engines based upon the
amount of retailers selling their merchandise.
It also attracts the attention of many online shoppers!
Boyds' successfully launched a premiere
bear that was featured on their website with details on how to
purchase this limited offer through retail. Many collectible sites,
including my own, featured this bear along with details for our
readers to have the opportunity to purchase a limited Boyds product.
If I recall correctly, the selling of the bear was a huge success
and I had one retailer contact me with information about availability,
which I passed on to my readers. Within a matter of minute's I
had readers asking for the e-mail address of this retailer and
she sold out immediately.
I even received many notes that evening as collectors returned
home from work reading their newsletter. Many were disappointed
that they had missed out on this opportunity but appreciated the
fact that they were at least notified about this special offer.
This is proof that there is power behind the Internet and if used
correctly, the sky's the limit!
E-Commerce, where did it all go wrong, or has it?
Unless you have been hiding under a rock, you are bound to have heard the term "e-commerce." E-commerce has bombarded us with TV, radio ads and news slots. It seems to be everywhere! What is commerce? It's a simple enough question. Commerce is the exchange of goods and services, usually for profit. So, what is e-commerce? "The #1 Introduction to Electronic Commerce". This is the twin of commerce, but with a twist. E-Commerce is the practice of buying and selling products and services over the Internet, utilizing technologies such as the Web, electronic data interchange, email and electronic fund transfers. E-commerce is extremely difficult to establish with all of variables that must successfully fall together.
Some may be influenced by the attention
that e-commerce has brought to the Internet. Many news sources
repeatedly knock e-commerce and give it a bad name!
While I disagree with many posted reports I credit the disarray
of e-commerce to lack of experience. I base this upon the inexperienced
companies working online trying to satisfy their customers wants
and needs.
E-commerce is NOT for everyone. Many try
to get too big too fast and lose their appeal while spending big
bucks to try and get to the top, only to lose!
They become so consumed with advertising and forget whom they
are dealing with.
Collectors are more apt to view a link provided through a smaller
site, which provides them with news and information of interest,
rather than some of the larger sites that are often overlooked.
Manufacturers would fair better if they
team-up with respected smaller sites to get their news out and
seen!
I'd like to see some of these manufactures loosen their strings
a little and once again service their customers needs.
If they have a product that sells well, they should take full
advantage of the Internet. In the next two to three years they
will without a doubt regret not using the Internets full potential
to their advantage.
Newer companies are coming on board daily and the older ones will
be barred if action is not taken soon!
Instead of viewing the Internet as cold and unfriendly, view it
as a tool of the future. With the right people and site design,
you can make it as friendly and inviting as you wish. Give your
site a down home appeal, don't be too technical and remember,
the more information the better!
Make your site interactive and allow your customers to share their
experiences with your product. Be bold and confident and the sales
will come!
I believe that e-commerce would fair well if they teamed up with affiliate or interest sites. To dissect these two strategies, we must first understand them. Affiliate links represent the middle ground between banner ads and commission-based programs. With banner ads, the advertiser takes all of the risks… If no one clicks on the banner, the advertiser loses money. E-commerce sites may want to set up advertising with other sites that post their banners, but also who advertise through newsletters, e-mail and reputation. Although many online newsletters are filled with special interest news, many can be misleading to advertisers and e-commerce. While their newsletters do pertain to special interest news, they also contain hidden costs which advertisers will become aware of when inquiring about posting in that newsletter. Although I do not agree with these strategies, they have been proven to make some sites successful and wealthy.
I feel that the credit to any site may it be e-commerce or not is INFORMATION! Consumers want to be well read and do not wish to be bombarded with useless information, which does not pertain to the subject they are viewing, they also do NOT want pop-up ads, which are distracting and a nuisance!
What's a Manufacturer to do?
Manufacturers need to allow consumers to
determine their own wants and needs and give them the opportunity
to purchase the product online; you may reap better rewards than
ever imaginable!
Consumers want to be heard and want the opportunity to give ideas,
which may be implemented.
Ask yourself the following questions:
What's to stop a retailer off line from marking up your product
and over inflating their profit?
Do you have another means of constantly keeping tabs on your retailers
without the use of the Internet or Reps., which can be very costly?
Could your company benefit from more exposure and reach millions
with a click of a finger?
Are you looking to decrease your advertising budget while still
building your customer base?
If you answer YES to at least two or more questions, the Internet
is for you!
Some manufacturers would look at this strategy as extra work and
may not be prepared to handle problems, which may arise.
While the Internet can be full of dishonest retailers, give the
collectors the benefit of the doubt and allow them to choose whom
they purchase items from.
Simple guidelines can be implemented and retailers caught not
following these guidelines would simply lose their accounts.
I believe manufacturers would be amazed at how the Internet serves as a constant babysitter for your company. Retailers and collectors never hesitate to turn in dishonest people.
How collectors are
affected by today's market.
I can remember just two years ago anything that was stuffed with
beans sold! Now a day, collectors have become more selective and
have altered their buying needs and wants.
In many cases, collectibles are viewed as a hobby and some are
not concerned about their value as they were purchased as something
desirable. Others purchase collectibles in hopes of it retaining
or escalating in value throughout the years.
Many collectors prefer to purchase items, which are limited and fun to collect. If an item becomes mass marketed it losses it's appeal and collectors are more than likely willing to pass it up!
Today's saturated market has posed a dilemma for collectors who wish to collect but are tired of viewing the same old stuff! Manufacturers have failed to capture the attention of collectors by offering something new, exciting, challenging and limited.
The Beanie market had many spellbound and in awe, can it be duplicated in another form, or can Ty recapture their audience, once again, only time will tell what 2001 has in store for us.
Manufactures, Reps and retailers will all
have to work in sink to ensure a successful year 2001.
Companies may be forced to revamp their current strategies, go
out on a limb and try something new.
The Internet holds many possibilities and if used correctly can
be the selling tool of the future!
Manufacturers would do well in remembering that collectors are made up of moms, dad, grandmas, and children, all which lead very busy lives. Why not consider selling your product on and off line to accommodate everyone's wants, needs and desires?
I truly believe that the collectibles market
is a wide-open field with many avenues untouched.
Today's market offers everything from miniature shoes, teapots,
plush, dolls, stamps and coins.
Who knows, there might be a product out there just waiting to
be discovered! Will it be anything like the Beanie craze? Probably
not, but then again you never know!
One thing is for sure, there will always be a need and desire to collect and collectors are just waiting for something to take their breath away!