Networking - Profitable Connections
By Jim Hingst
When
I sold fleet graphics, I had formed an alliance with a truck leasing salesman
that resulted in $300,000 in highly profitable new business one year. How
profitable? The mark up on fully burdened costs was 40% for a profit of
$120,000.
The
leasing salesman not only provided me with leads, in most cases, he made the
appointments and he joined me on my sales calls. What’s more he closed all of
the deals for me. How was this possible? The relationship financially benefited
him and me as well as the customer. This was a true win/win deal that put money
in everyone’s pocket. Here’s how.
The
sales commission paid to the leasing salesman was based on the total package of
the lease. The more extras that the salesman loaded into the cost of the lease,
the more money he made. Obviously, I benefited too, but in more ways than you
might imagine. The cost of the fleet graphics was amortized over the length of
the lease – typically five years.
Because
the graphics were included in the lease, the prospect could easily afford an
expensive graphics program. In other words, the prospect did not pay for the
graphics up front. The leasing company financed the deal so the cost of the
graphics was included in the monthly payment. In addition to financing the
deal, the leasing company was required to pay their vendors before they
delivered the equipment. That meant that
the company that I worked for promptly received payment in full for the
graphics. Best of all, I looked like a hero to my employer and I was paid a
bonus. All I needed to do was ensure that the job was delivered as promised.
Selling
graphics as part of a lease package was easy money and a great success story. As
a speaker at sign industry events, I have told this story to hundreds of sign
makers. It would not surprise me, however, if I learned that none in my
audience took my advice and networked with equipment leasing salesmen.
Building
lasting business relationships takes time and considerable effort. While most
of us have cultivated a few friendships and alliances in the graphics market,
few have developed some form of a networking plan. Even fewer follow through on
that plan.
A
business relationship is like any other relationship. It is a two-way street.
If you want to get a lot, you must give a lot. In forming an alliance with a
leasing salesman or trailer salesman, don’t expect to receive great leads or
personal introductions to their customers without providing something of value
in return.
In
fact, if you are beginning a new relationship with another salesperson, the
best way to start is to give first. Be the first to provide him with a lead.
Here’s the reason. By giving first, you obligate the other to give back. What’s
more, it’s a great way to break the ice.
Let’s
suppose that you are a greenhorn and have no leads to give. At the very least,
you can invite the other salesman to breakfast. I had a sales manager, who
encouraged me to “start each day having breakfast with a leasing salesman or
trailer salesman.” His rationale was that everyone needs to eat, and breakfast is
cheaper than paying for dinner, drinks or a sporting event.
You
can employ a similar tactic with a satisfied customer, who you know well. For
example, if your customer has a particular hobby, buy him or her a small gift
related to that interest, such as a book. Afterwards, you have a perfect
opportunity to ask for a referral. “Who else should I be calling on?”
If the referral is a good
friend of your customer, suggest that the three of you meet for lunch. If he is
agreeable, ask him if he could set up the meeting.
When you receive a referral,
make sure that you follow up in a timely manner. Let the person, who gave you a
referral, know the results of your meeting. If the referral results in new
business, always remember to say thank you.
You should always hold any
information that an industry contact shares with you in strictest confidence.
Any violation of this trust will likely damage your relationship and could scar
your reputation in the industry. Networking is not, or at least should not be,
some con game. If you want successful industry alliances, you must deal with
others with honesty and sincerity.
Developing a Networking Strategy
A networking strategy should
integrate with the other components of your marketing plan. That strategy
should support your company’s overall sales and marketing objectives. As with
any other component of that plan, you should establish goals, activities,
timelines for completing those activities, and a budget.
Your networking goals and
activities could include:
● Establishing alliances with
specific individuals, such as truck leasing salesmen, trailer salesmen and
building contractors.
● Participating in industry
associations. For example, when I sold fleet graphics, I regularly attended
regional truck safety council meetings.
● Joining your community’s Chamber
of Commerce for the purpose of meeting local business leaders. If you join a
group, such as the Chamber of Commerce or industry association, you can improve
your visibility and credibility within the organization by volunteering for
committees, contributing articles or speaking at events.
● Speaking at industry and community
events.
● Actively supporting
community functions or charities.
The objective of these
activities is to form relationships with successful people, who are
well-connected in your industry or your community and who can provide you with
referrals or introductions, which result in sales. The key reason to network is
to meet other business people, who sell to the prospects that you hope to sell.
Implementing a successful
networking strategy requires that you pick and choose the right partners with whom
to form relationships. The most obvious and most valuable partners are those
who already sell to your ideal prospects. These people already have established
relationships and a keen understanding of the developments and unmet needs of
the target markets. What’s more, in the case of selling fleet graphics, truck
and trailer sales people will know long before you will, who is in the market
for new equipment.
Relationships that are
one-sided, just don’t work. For that reason, as you make new connections, you
should ask yourself what you can do to help the other person. In certain
circumstances, you may want to offer a finder’s fee to another salesperson, if
the lead results in a successful transaction. That fee might be a percentage of
the sales volume. Of course, I am not suggesting anything that would violate
any code of ethics.
Expanding Your Circle of Connections
If you limit your network, you
limit your opportunities. In a closed circle of connections, you interact with
the same people, doing the same things, day in and day out, selling into the
same markets. For most people, it’s just easier and seemingly safer, to stay
within your comfort zone.
The risk of the closed circle,
though, is that a technology shift or a change in fashion could decimate those
safe markets. What will you do then? In today’s marketplace these changes don’t
gradually evolve over generations. Changes in technology and markets happen in
the blink of an eye. Just ask the old sign painters or the neon tube benders.
At one time union sign painters were the highest paid craftsmen in Chicago.
Those, who did not change with the times make less today than they did 40 years
ago. The only safe bet today is to expand your circle of connections, broaden
your skills and product offerings and boldly venture into new markets.
Supporting Your Networking Efforts
As part of your marketing
plan, you can use social media and public relations to support your networking
efforts in the following ways:
● Develop an e-newsletter to
maintain contact with your connections. You should link the newsletter to
articles on your blog or your website.
● Post links to any article
that you may have written on platforms, such as Facebook, LinkedIn and Twitter.
● Regularly send out press
releases to news organizations, industry connections, prospects and current
customers.
● Post photographs of your
best work on your social media platforms.
● Volunteer as a speaker at
industry and community events.
You have several different
communication channels available to you.
Some channels are more effective than others in delivering your message
based on individual preferences. For this reason, you should broadcast your
message on a variety of channels.
Strengthening Personal Relationships
Everyone faces challenges in
their lives, including your industry connections. These challenges include loss
of a job, divorce, death of a family member and bankruptcy. If you are serious
about developing a true relationship with an industry connection, come to the
rescue, when someone needs help. You may not be able to do much more that
making a recommendation or offering sympathy. A sincere effort to help will
never be forgotten by the person in need.
One of the most important keys
to building long term relationships is maintaining regular contact. In addition
to face-to-face meetings, you can keep in touch in the following ways:
● Phone calls to pass along a
sales lead.
● E-mail or snail mail an
article, which might interest your connection.
● Send a monthly e-newsletter
to your connections.
● Invite your connection to a
round of golf, a ball game or an industry event.
Networking Events
A common perception of
networking is a gathering of business people, exchanging business cards,
drinking adult beverages and engaging in small talk. In fact, for many people,
this is exactly what networking has become.
If you would like to leave a
networking event with more than a few business cards and a hangover the next
morning, here are a few suggestions:
● Before you attend a
networking event, prepare a positioning statement that describes what your
business does. That statement should emphasize the benefit that you provide.
For example, instead of describing your business as a sign shop, you could say
“we design, manufacture and install vehicle advertising programs that help
companies increase awareness and sales.” Or you could say that you develop building
graphics programs that help stores increase traffic and remodel interior décor
to make a store more appealing.
● If you feel uncomfortable
starting a conversation, put the ball in the other’s court by asking an
open-ended question. Another approach is to make an observation about the
other’s industry. For example, you could begin by saying, “It seems to me that
your industry is challenged by…” In reacting to your statement, your new
contact may want to expound on you comment or to correct you. A correction
could be the best reaction that you could hope for. The goal is to put the
other in control of the conversation, letting him spill his guts. Once he
starts talking, you have the opportunity to probe for additional information.
Blow Your Own Horn
If you want to bolster your
reputation in the industry, you need to blow your own horn. No one will do it
for you. When your shop does something outstanding, such as produce a new
vehicle wrap advertising program, write a news release describing it. Include
photos that support the narrative. In addition to emailing your story to local
newspapers, post the story on your website and blog and promote it on your
social media platforms.
To aid in building a robust
network of connections, you should also promote yourself as an authority in
your field. Once you build a reputation as an expert, people in the industry
will make an effort to get to know you and ask for your advice.
While becoming known for your
expertise is not difficult, it requires a commitment of time and effort. First,
you actually need to become knowledgeable in your field. Every day you should
devote at least an hour to reading trade publications, industry books and
technical bulletins. As you are building your knowledge base, get your name out
in the market by writing articles, writing a book or publishing a blog.
In your community, you can
also submit articles to your local newspaper. As an example, your story could
profile a customer. Your article could describe how the new graphics program
remodeled the appearance of his store, upgraded his corporate identity or
helped launch a new product offering.
As an advertising copywriter,
I wrote dozens of testimonials profiling the successes of businesses. If your
story is interesting, factually truthful and well-written, editors will snap it
up. Good stories about local businesses generate readership and responses.
Network with Your Vendors
Your shop likely spends
thousands of dollars each year with several vendors. These vendors could
include representatives of sign supply distributors, your banker, your CPA,
insurance agents and your vehicle dealer.
When I worked for a graphics
company, my connections with raw materials suppliers regularly yielded sales
leads for businesses in the market for vehicle graphics, window graphics and
wall graphics.
Some of your vendors are aware
of new businesses opening up and likely in need of signage, vehicle graphics
and building graphics. If you are not cultivating relationships with your
suppliers you are missing sales opportunities. If your vendors truly value your
business, they should welcome an invitation to meet over breakfast or lunch. Considering
the money that you spend with these people, you should have no problem asking
for a referral. All you are doing is asking for a little help. These vendors
should help you with introductions to key players in some of your target
accounts.
Conclusion
In building strong connections
within our industry and in your community, here are a few keys to your success:
● If you want someone to
become interested in your business, become sincerely interested in their
business.
● God gave you two ears and
one mouth. Use them in that proportion. Become a good listener. As Dr. Stephen
Covey advised: “Seek first to understand, then to be understood.”
● Give a little; get a lot. Go
out of your way to help others, especially those in your networking circle.
● Be involved in your industry
and your community. If you join a group, become an active participant.
Volunteer for committee assignments and as a speaker.
● Become a market expert.
Every day learn something to improve your knowledge base.
● Be highly visible. Contribute
to industry publications. Offer to speak at industry events. Promote yourself
online.
● Choose your industry friends
wisely. Don’t run with the turkeys. Instead, soar with the eagles.
Good Luck Selling!
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About Jim Hingst: Sign business authority on vehicle wraps, vinyl graphics, screen printing, marketing, sales, gold leaf, woodcarving and painting.
After fourteen years as Business Development Manager at RTape, Jim Hingst retired. He was involved in many facets of the company’s business, including marketing, sales, product development and technical service.
Hingst began his career 42 years ago in the graphic arts field creating and producing advertising and promotional materials for a large test equipment manufacturer. Working for offset printers, large format screen printers, vinyl film manufacturers, and application tape companies, his experience included estimating, production planning, purchasing and production art, as well as sales and marketing. In his capacity as a salesman, Hingst was recognized with numerous sales achievement awards.
Drawing on his experience in production and as graphics installation subcontractor, Hingst provided the industry with practical advice, publishing more than 190 articles for publications, such as Signs Canada, SignCraft, Signs of the Times, Screen Printing, Sign and Digital Graphics and Sign Builder Illustrated. He also posted more than 500 stories on his blog (hingstssignpost.blogspot.com). In 2007 Hingst’s book, Vinyl Sign Techniques, was published. Vinyl Sign Techniques is available at sign supply distributors and at Amazon.
© 2020 Jim Hingst, All Rights Reserved.
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