Ring Up Retail Sales

Opportunities flourish in local retail establishments for a variety of products

WHEN DISTRIBUTORS think of lucrative vertical markets, retailers are rarely the first to pop into their minds. Retail is often overlooked, even as it remains right under the proverbial nose of the distributor sniffing out new opportunities. Although consolidation has squeezed the middle out of the market, niches still abound for the perceptive distributor.

"We produce a lot of retail signage," said Doug Marecek, sales manager for manufacturer Integrated Print & Graphics (IPG), South Elgin, Ill. One product that IPG sells, Teslin paper, which is "almost like plastic" and very durable, is produced in a variety of sizes and perforated so end-users can utilize it in multiple situations. Orders typically include preprinted logos customized by the end-user with a laser printer for use on a shelf or rack.

"For instance, a hardware store may want a sign for a sale on lawn seed," Marecek said. "Customers love it because they don't have to go to the sign store every time they want a sale sign printed up, and they can use it outdoors where they have sod, plants, mulch, etc."

Nancy Mantell, a distributor at Centurion, Buffalo Grove, Ill., agreed that retailers like the flexibility, but sometimes, they will ask for preprinted stock instead of blank sign stock. The sign stock is printed in an 8-1⁄2x11˝ format, either 1- 2- or 4-up to both fit indoor sign holders and be stapled to skids of products that are placed outside, such as ice melt.

Similarly, IPG will imprint a car dealer's company name on products preprinted with Chevrolet, Honda, Ford, etc. "We do that for continuous forms, unit sets and tags so it will say Bob's Chevy, for instance, instead of just Chevy," Marecek said.

Centurion also sells a pocket-sized receipt pad that can be hung up or placed on a shelf. Shoppers use the forms to fill in the SKU and price of a desired item, and then take the form to the cashier for payment and pickup. It's ideal for hardware, electronics and garden centers.

Beyond Basic

Some products are obvious needs for retailers—invoices, checks, envelopes, receipt rolls, ribbons, toner cartridges, guest checks for restaurants—but many of these basic business forms have suffered severe price erosion in recent years. One product that is still offering good margins is labels.

"Labeling is a big portion of our business," said Mantell. Centurion began selling labels and printers after demonstrating a paint formula label at a hardware industry show. "That led us to bin and pricing labels, and we now sell close to 40 different labels, plus the printers," Mantell reported.

Two quite different, "very lucrative" product labeling applications are part of the reperetoire of Detriot-based American Solutions for Business distributor Martha Henderson. For example, one of her restaurant customers bottles and sells its own salad dressing, ordering 20,000 four-color labels every six months.

A local health club also needed labels for an entirely different purpose—its on-site childcare center. Preprinted labels with the club logo are quickly personalized in marker with the child's name and then attached to the child's clothing while parents work out. The customer re-orders 10,000 labels every few months, Henderson stated.

She also supplies labels for a jewelry manufacturer located in Kentucky. "I have all the templates, and they just fax me the reorder," said Henderson.

Rewarding Loyalty

Retailers frequently use direct mail as part of a loyalty or rewards program, mailing out personalized messages using continuous stock, often with an integrated or affixed plastic

or paper membership card. "Reward programs are in high demand. People are going to buy the product anyway, but if they get a trinket with it, they'll switch stores," Marecek said.

He noted one store offered a Home Depot stored-value card as a reward with more flexibility than the standard promotional product.

That order involved a cooperative program between the retailer and a larger chain store, but most loyalty programs focus on bringing traffic back into the original retailer.

For instance, a service station or oil change franchise may mail a $5-off coupon on a personalized postcard. A distributor could supply preprinted stock only, or could handle personalization and mailing services as well. Henderson's restaurant customer also buys postcards from her that are mailed out to prospective catering customers.

Thomas Wicke, another American Solutions for Business distributor that is located Mesa, Ariz., runs a loyalty program for a California restaurant which distributes and collects evaluation cards from its customers. Wicke then uses the cards to send e-mails to restaurant patrons reminding them to celebrate their upcoming birthday or anniversary with a meal out. He also produces reports for his customer on its patrons' satisfaction with various elements of their dining experience.

Wicke hopes to leverage his experience to win an account with a national food industry franchisor that is in the early stages of setting up a loyalty program.

Working on the Chain Gang

Winning business with a large chain can be a frustrating process, Wicke said. "Chains are difficult to get into; their bureaucracy is so complex." Even if the local manager or franchise owner is receptive, their hands may be tied by marketing personnel at a distant headquarters. Wicke advised focusing on locally owned chains.

Mall management may offer another retail avenue, although Henderson cautioned, "It's hard to get your foot in the door there, especially since multiple malls are sometimes run by the same company." She suggested identifying some elements of current print needs that mall management is unhappy with.

For instance, look for opportunities with seasonal signage, advertising and promotional items for special events—car shows, bridal fairs, carnivals—and circulars promoting sidewalk sales, grand opening, etc. Wicke said distributors should not expect to gain business from individual mall tenants but should instead focus on promotions involving the mall as an entity.

Marecek described a 10-part raffle book that IPG produces with 10 different tickets in each booklet. A mall or business association could use this product to sponsor a raffle benefitting a local charity while increasing traffic to their stores.

Many traditional downtown areas and Main Streets are seeing a resurgence due to an influx of historic preservation dollars and local economic development efforts. Distributors should approach local chambers of commerce or nonprofit development corporations to seek out umbrella marketing opportunities that exist for stationery, shopping bags, signage, direct mail and promotional products.

Packaging offers potential for volume reorders, albeit one many distributors don't think of. Wicke, for instance, is working with a jewelry company which distributes its products through upscale retailer Nordstrom, and he is currently researching packaging for this Christmas buying season.

Once product research is completed, distributors should approach a mall or a local business association and offer to provide packaging or bags which will set their group of stores apart from the competition and give them an extra edge, especially during the busy holiday season.

Henderson is also eyeing a seasonal market for which she can supply labels and bags to multiple retailers. "Here in Michigan, cider mills do a strong business, and in the fall, they have lots of families and school groups coming to them."

Other seasonal markets to consider include Christmas tree farms, Halloween costume rental/party stores and ethnic markets which supply goods to events such as Cinco de Mayo. Although the market may be limited to a specific timeframe, demand—and competition—is intense and retailers need a guaranteed supply of a multitude of printed products, including postcards, bags, labels, receipt tape, signs, boxes, unique promotional items and more.

Products designed for one retailer may also find applications in multiple retail settings. For instance, Mantell said she sells a product dubbed The Handler—a plastic handle which can be imprinted with a store name and designed to distribute the weight of plastic grocery bags, and it's also ideal for paint cans.

The plastic, adjustable tags used to label trees in a nursery can be used to label snowblowers, wheelbarrows, outdoor furniture or anything else a store might sell which is large, awkward and stored outdoors.

Golden Rule

Mantell had advice as well for distributors looking for new product ideas: know your customers. Involvement in a particular retail niche means attending their trade shows and subscribing to their magazines to better understand their needs and capitalize on shopping trends.

"Retail customers will tip you off on whatever the wholesalers are doing and what you should get into," she said.

"They're looking for someone to help them out and are very loyal. If you treat them right, they'll treat you right." A customer service mantra golden for both retailer and distributor.

By Janet R. Gross