Price Protection - READ THE FINE PRINT

Prices change.  Sometimes prices change after you have stock in your shops.  If you have not sold inventory yet and prices come down you can be eligible for a price protection program.  You should check.  First, make sure that you are always current with pricing.  Subscribe to a price list email update that your vendor partners should offer.  Next, read  your program details or check your contract.  If all else fails, call your account manager to find out what programs are in place  This is very common in the computer software, electronics and hardware markets.  Also, traditional manufacturing resellers and partners should watch out for this too.  Vendors will calculate what inventory you have based on the following formula:  what you bought minus what you sold.  What you sold is calculated based on POS transactions.  The net is what you have left and you should see a credit memo on account for that stock. 

Ask and You Shall Receive: Get E-Mail Marketing Dollars› › › B2B E-Mail Marketing

http://www.clickz.com/experts/em_mkt/b2b_em_mkt/article.php/3386221  BY Joanna Belbey and Karen Gedney July 28, 2004

Today's advice is specifically for computer resellers and distributors -- but it can also apply to anyone who sells and distributes products from major companies.  Vendors such as Hewlett Packard, ViewSonic, and Sun allocate millions of dollars each year to market to partners and through partners. Leverage these programs to get marketing funds for your next business-to-business (B2B) e-mail campaign.
In addition to e-mail, these funds can be used to run a local marketing campaign, send direct mail, set up a booth at a trade show, get sales support and training, and so on.

These funds have two requirements The campaign must be brand-specific to the vendor from whom you're requesting the funds. You need a marketing plan.  Elay Cohen, a San Francisco-based channel consultant, explains it all in his blog. He says although many resellers know about these programs, they approach them the wrong way. They shoot off an e-mail or call their reps to request funds without offering a concrete marketing rationale or plan.   Cohen writes:  Think about what you are trying to achieve. You might want to generate new leads? How many? You might want to generate new business? How much? By when? Think about these kinds of metrics and relate them back to the funds you are asking for. Sum up your costs and then submit it to your representative for approval. Make sure, once it is approved, to write down the approval number.

He goes on to say some companies offer an online form to complete with a mini-marketing plan built into it. If the company you're interested in doesn't, try this plan structure (we've customized it a bit for B2B e-mail):
Your company name and contact information.
Activity type (e.g., e-mail).; Activity costs: (for e-mail, that can include your list, copy, design, e-mail provider, etc.) Don't be skimpy; Event or campaign description; Total requested amount; Performance objectives (number of leads, seminar attendees, etc.). Find out realistic statistics for similar e-mail campaigns; The products you're planning to support; The markets you plan to cover; Campaign timeframe; If it's scheduled to happen soon for a business-critical reason, you may get a faster response to the request.  Past successes, if you've done this before.
Ask your rep how other resellers have successfully used B2B e-mail so you won't have reinvent the wheel.

Philippe Monrougie, of SSI hubcity, a major Northeast IT solutions provider, has used "Sun Funds" from Sun Microsystems to put together a marketing seminar.   Monrougie says, "We hired a marketing firm who scrubbed our database for us, put together e-mail invitations and reminders, and handled the telemarketing. We ended up with a nice turnout and 25-30 prospective new customers who we are following up with now."  SSI hubcity has also used Sun Funds to participate in a big sailboat race for channel partners, build a demonstration portal for the Sun Insurance Group, rebrand the company, and host a launch party.  And if you're someone who's successfully requested and used vendor partner programs to get marketing funds for a B2B e-mail campaigns, share your experience with Karen for a future column.

A leading online marketing journal discusses ways companies can secure marketing investments from their vendor partners......

How to request special pricing for competitive deals from your vendors?

 Do you know you can request special pricing on deals you are working?   Ask your vendor partners what facilities and support they have in place to support you when you are competing on price?  I'm not sure if you know this but if you don't you should ask your account manager. Here is the detailed scenario:  If you are buying directly from a manufacturer or if you are buying from a distributor, the vendor will take in all special pricing requests.  In this competitive market, companies do not want to lose business based on price especially to a competitor BUT companies also don't want to lose money if they don't have to.  So, what does this mean? Companies aren't advertising about your right to request special pricing on a deal that you are working or to request special pricing for inventory that you may have in stock that you just can't move.   Ask your account manager and then be ready to have some answers to the key qusetions so your special price can get approved. Who are you selling to?  Who is the competitor that you are competing against?  What is the product?  How long is the price good for?  If you have a price list or an advertised price, scan it in and email it to your vendor.   Be as organized as possible.  This will result in more won deals for you and ultimately more money in your pocket.     Send the requests via email or ask if there are forms that need to be filled out.  Keep all of  your documentation and most importantly keep the SPA (special pricing authorization) number so you will be rebated for the funds owed to you.  Do you have any experiences with this in your business?  

Oracle announces....channel program improvements

Oracle this week plans to communicate to its partners, what it plans to do with its channel program.  Oracle will now work more closely with their partners.  This means more leads and more collaborative marketing for you if you are an Oracle reseller or if you plan to be an oracle referral partners.  Rauline Ochs, group vice president of North American Channels at Oracle, said the new channel guidelines were discussed at Oracle's annual sales kickoff in June and are geared to ensure predictable, reliable behavior toward partners. She reaffirmed Oracle's commitment to its Global Channel Opportunity Registration System (GCORS), where partners log new sales opportunities. In theory, such registrations prevent Oracle from taking the sale direct.   Good news for partners.

Manufacturers raise availability of specialized inventory....

Last week, a large pharmaceutical company announced that they would be increasing the availability of a flu vaccine to US distributors and sales partners.  If you were working in this industry you would want to be on the "list" of distributors that receive the notification and the option to take stock and deliver on this demand.  Most of the ways a distributor would be considered for this extra benefit is by keeping close alignment of inventory levels, sales performance, and forecasting with its vendor partners.  Keep a current business plan that highlights business drivers that can help you and help your vendors partners strategically bring new products to market with their partners.
 
For those interested, the company mentioned at the beginning of this article is Chiron Corporation.  These principles do apply to any manufacturer across any vertical.  The fulll article is available at this site:  http://www.bizjournals.com/sanfrancisco/stories/2004/07/19/daily50.html

Plan your promotional and campaign year in advance...and share it....

Promotions and campaign planning is critical for companies, both large and small, to manage their business objectives and set the right, achievable forecasts.  Companies like Procter & Gamble, Heinz, Kellogs, and others are experts at creating account specific plans to set and track programs to drive sales.  They will define their marketing spend at the beginning of each fiscal and quarter and then start plugging in promotional programs that are brand specific and account specific.  Account Managers are empowered to share programs with their key partners and customers.  This collaboration should happen but usually it is top down.  The account manager will define what they think should happen in their patch.  Usually, this results in a plan that might not be adopted by customers and partners.  Here we are talking more about business planning rather than just an awareness strategy. 
 
Imagine a world where customers send their account managers promotional plans that can become part of a corporate overall strategy.  The task is to you to document your plans and then the onus is on you to work with your account manager to have them listen to your ideas and integrate them with their business drivers.   The net of this process will mean better pricing and better promotions that you can use in your everyday business activities.    We'll post some sample annual promotional plans that will help you and that comply with the big company corporate standards of business planning.

How to get funding from vendors!

Besides asking for an investment in your firm from your local venture capitalist (and selling your soul), you can request funds for your sales and marketing activities from your vendor partners.  Think abou the next sales conference you want to run, or the next sales incentive program you need to fund, in either case these activities should be focused around a vendor's products.  Direct mail campaigns are acceptable.  Each vendor has a published list of programs that they will co-sponsor and fund if the right plan is put in place.  Ask them for the list.  Let your account manager know you are planning such an event and since you're promoting their brand and their product line you'd like some funds in the spirit of the partnership.  Be prepared to document your approach and your expectations, keep all of your receipts and even invite your vendor account manager to the event or better yet keep them in the loop of all the successes.  Successes can be defined as new leads, sales, whatever. 
 
These vendors have millions and millions of dollars waiting to spend on brand specific and market specific campaigns.  This is a win win.

Be bold - ask for rebates and promotions

Don't be afraid to ask your distributors to tell you AND show you the available programs.  Chances are they will not offer you the promotions and incentives and they'll end up keeping it.  These distributors will receive money back from their vendor partners for purchases they make and for purchases you make.  They get paid on what they sell you.  Don't be shy and ask the distributors to share or else you'll take your business elsewhere.  Now, this won't always work but asking shows that you are aware and then they'll be inclined to share in the future.  No guarantees on this one, but it can't hurt. 

Are service agreements stacked or updated on renewal?

If you are a software reseller, do you find it difficult for the vendors to  "stack" a maintenance agreement on top of an expiring agreement. Here's a typical scenario: End user receives a notice in the mail, via email, via telephone, letting them know that their existing maintenance/support contract is due to expire. This contact usually takes place around 6 weeks prior to expiration of the agreement. End user contacts reseller and asks the reseller to renew the agreement with the vendor. We contact distribution and request that the agreement be extended for another year. Distributor says "OK". Distributor sends request to vendor who puts the agreement into place. Resellers discover that the new agreement is activated IMMEDIATELY rather than upon expiration of the prior agreement. End result is that the end user loses out on the value of any time that remained on his old agreement.   Does this happen to you?

Microsoft relaunches its channel program

In a bold move, MSFT has decided that it is going to work more closely with its partners in pre sales and post sales. Here is a link to the article.

http://www.crn.com/sections/breakingnews/dailyarchives.jhtml?articleId=22104729

Some of the highlights are:
1. Sales collaboration
2. Service collaboration
3. Campaign coordination
4. Deal support and better pricing

Where do you want to go today.....

Inventory levels are slightly up - why is this important to you?

U.S. wholesale inventories rose sharply in May '04 as stocks of durable goods posted their biggest gain in four-and-a-half years. Demand is up but how can vendors do a better job managing demand fluctuations? And, why is this important to a small business?

Vendors struggle with tracking inventory levels are their sites and also at their sales partner sites. Gaining a good grasp on what exact levels of inventory remains a critical part of their forecasting and supply chain planning business. If you are diligent to keep track of your inventory levels in a software application or in an XLS file, then be kind and send that information back to your vendors. They'll appreciate it and they will reward you for it. It'll make their jobs easier. Some vendors even have programs where they reward you for submitting your inventory levels.

Some benefits you can expect if you offer this kind of collaboration with your vendors include: better pricing, advanced notice of product releases, more qualified and better leads, technical assistance, pre sales support and post sales support. There are more, but I list these to give you a feel for the benefits.
Check out Western Digital's program benefits. For validated POS reporting, this is how they get inventory levels checked, they offer additional montly volume rebates,

http://www.selectwd.com/northamerica/PDF/SWD_PlatinumPartner_v6.pdf

Newsletter to subscribe to

http://newsletter.crn.com/cgi-bin4/DM/y/eiAX0GhoFj0ElM0COqm0An

CRN Direct is a great resource for resellers and distributors in the high tech industry. You can get the latest on vendor programs, new product announcements, and promotions.

This is a must read.